Bush Sidesteps Congress? $630 Billion To Be Pumped Into Economy Despite House Bailout Rejection
By Logan Murphy Sunday Sep 28, 2008 6:00pm
The Federal Reserve will pump an additional $630 billion into the global financial system, flooding banks with cash to alleviate the worst banking crisis since the Great Depression.
The Fed increased its existing currency swaps with foreign central banks by $330 billion to $620 billion to make more dollars available worldwide. The Term Auction Facility, the Fed's emergency loan program, will expand by $300 billion to $450 billion. The European Central Bank, the Bank of England and the Bank of Japan are among the participating authorities.
The Fed's expansion of liquidity, the biggest since credit markets seized up last year, came hours before the U.S. House of Representatives rejected a $700 billion bailout for the financial industry. The crisis is reverberating through the global economy, causing stocks to plunge and forcing European governments to rescue four banks over the past two days alone. Read on...
I'm not an expert on the economy or Wall St., but this sure looks like an end-around by the Bush administration to give away hundreds of billions of dollars without the approval of Congress.
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the 'system' is working. WTF!
How do you give away that much money without the approval of Congress. Something is seriously wrong with that and needs to be changed. People need to start getting pissed off about this sh*t and demand better.
See, we weren't going over the cliff - they just wanted us to think so!
The "bailout" simply provides some financial relief for bankers and stock holders as well as political cover for all.
The Bush Family: Bank Robbers and War Criminals Extraordinaire.
*
Un. Con. Stitutional.
Yeah, but this was Plan B. Plan A would have given taxpayer's money directly to the bankers, a much preferable solution for the Administration and his party.
Once again, we see just how things work. This was featured on ABC news and explains this rogue administration.
http://ugv.abcnews.go.com/Category.aspx?uid=536827
Its another Bush ramrod scam. Trying to burn the house down before the new landlords show up . If they ever do ? Bush is still/already playing the part of dictater. He just hasn't made it official yet. Be a bigger iceburg for them to ram into yet before the election.
That is how the Federal Reserve System works, as a lender of last resort. Also... the Federal Reserve also isn't part of the Executive Branch, though it often works in concert with the Department of the Treasury, so, while political pressures definitely play a role, it is not correct to say that "The Bush Administration did this."
Whether it's a Jewish holiday or something else, anything that slows this process down is good. It will shine more light on the Federal Reserve and the farce that congress has become.
And it seems to make McBain look more and more rediculous by the hour.
That's our bush boy, asking forgiveness instead of permission! and why not? this is how the gramm/bliley/leach thingy was passed originally. There were banks already ########### illegal activities and the dereg bill just made it legal after the fact.
Oops, we already spent the money! So write that check, Mommy!!
What goes unsaid is that the money which has gone to fund the obscene occupations in Iraq and Afghanistan, which both Obama and McCain have approved, could have been pumped into the economy to give this country a much needed boost, such as improving schools, hospitals, libraries, infrastructure, etc.
Yikes.
how many times do i have to repeat myself
BUSH/CHENEY ARE OUT TO DESTROY THE U S ECONOMY
i guess this won't sink in until they have completely
FUCKED EVERYONE OVER......
how does that wall feel on your heads now?
geeeeeeeze.......this has been a no-brainer
for over two years now.
won't impeach.....won't impeach.......won't impeach
will how does that dry-hump feel for the tenth time?
From what I understand, the liquidity pumped into the markets came at a time when it was thought the bill would pass.
Does anyone think that the Republicans in Congress might have shot down the bailout proposal as posturing for November -- to portray themselves as standing up to the Democrats, Wall Street -- and also distance themselves from Bush?
Or are they that smart?
If Congress doesn't give Bush what he wants... Executive order #51 by Friday.
Bush is nothing.
The Fed is independent of the Constitution.
i daresay, by the time this fight's over, somebody's going to wake up with 3 black eyes, and i don't think it'll be lady liberty.
one punch from the left, one punch from the right, and one punch right down the middle.
"...sure looks like an end-around by the Bush administration to give away hundreds of billions of dollars without the approval of Congress."
... and a reach-around for Wall Street ~ again. Eesh! (:>
I doubt the Fed even consulted Bush on this but I'm sure Paulson knew if it wasn't his idea in the first place.
yes indeed, this is rich-- what were obama's conditions?
from thecaucus.blogs.nytimes.com
" . . . a payback plan for taxpayers if the bailout succeeds; a bipartisan board to oversee the bailout; limits on any federal money going to compensate Wall Street executives; and aid to homeowners who are struggling to pay their mortgages."
yes, this is rich-- it appears that george flips the bird once again--
Rasputin @ 17:
PS. that would be a nice way for him to "postpone" the election indefinitely...
Since the bill was not passed, doesn't this qualify as tazation without representation?
taxation
Well this should drive a stake in the heart of McSame.
The US and global financial crisis is becoming much more severe in spite of the Treasury rescue plan. The risk of a total systemic meltdown is now as high as ever
PrintShare
Nouriel Roubini | Sep 29, 2008
It is obvious that the current financial crisis is becoming more severe in spite of the Treasury rescue plan (or maybe because of it as this plan it totally flawed). The severe strains in financial markets (money markets, credit markets, stock markets, CDS and derivative markets) are becoming more severe rather than less severe in spite of the nuclear option (after the Fannie and Freddie $200 billion bazooka bailout failed to restore confidence) of a $700 billion package: interbank spreads are widening (TED spread, swap spreads, Libo-OIS spread) and are at level never seen before; credit spreads (such as junk bond yield spreads relative to Treasuries are widening to new peaks; short-term Treasury yields are going back to near zero levels as there is flight to safety; CDS spread for financial institutions are rising to extreme levels (Morgan Stanley ones at 1200 last week) as the ban on shorting of financial stock has moved the pressures on financial firms to the CDS market; and stock markets around the world have reacted very negatively to this rescue package (US market are down about 3% this morning at their opening).
Let me explain now in more detail why we are now back to the risk of a total systemic financial meltdown…
Taxation without representation? Congress, more gonads are needed. You and only you can put a leash on the Executive.
EconDork @ 9:
Think Bilderburg.
That might change your opinion.
tz @ 28:
The only way to prevent executive action is for Congress to impeach.
That flushing sound you're hearing? The rest of the US going down the toilet.
So this bullshit devalues the dollars I have now by how much?
Snidely Whiplash @ 16:
Well, I'm not sure if "smart" is the right word, but maybe they are survivalist. Common sense tells them not to be associated with the bush party if they can any way avoid it. They are hearing from their constituency and what they are hearing is the people are mad as hell. A vote to support the bailout could well be the vote of death for their campaigns.
CoIntelPro for Pronktastic Victory Over SCLM, DIEBOLD, ESS and SEQUOIA! @ 27:
His website is normally subscription but for the duration of this mess he has opened it up to everyone. You still need to register but there is no fee.
EconDork @ 9:
that is pretty ignorant and simplistic. the recipients of the FedRes loans are FedRes banks and the US will pay interest for these fucks lending money to themselves.
CoIntelPro for Pronktastic Victory Over SCLM, DIEBOLD, ESS and SEQUOIA! @ 30:
But, but but, the SPEAKER of the HOUSE says she can't.
So what does that leave us?
No, this doesn't have anything to do with the bailout.
This is a move being done to make more dollars available outside the us, because there's a high pressure now for borrowing money in USD.
The Fed swaps some dollars for some Euros, Yen, Pounds and all the other currencies from all the other Central Banks who are willing to help, and those banks then auction off dollar loans to whoever needs dollars.
Anybody surprised?
This clown endorses the 'unitary executive' claptrap, remember?
Checks and balances dont make for a warm cup of piss to this jackass, but the really curious part, to me, is if he has the hubris to suspend the Constitution, and/or elections.
I really hope not. I mean that.
odds? anyone? c'mon, a beer? a buck?
The one thing no one wants to talk about is this - the money, whether from the "taxpayers" or not (in quotes because, with record deficits, it's not the current generation of taxpayers that will likely pay for this if Republicans have their way), it has to come from somewhere. I think what needs to happen is, and this is like kryptonite for Republicans... and will be framed by Republicans, if Democrats support, to be kryptonite for Democrats too is that taxes need to be raised on the top 5% who gained all of their wealth on the back of the working class. They're greedy so they aren't going to just give that money to help save everyone else. Take Carly Fiorina for example. She didn't think twice about taking $45 million on her way out the door at the cost of 20,000 people losing their jobs. So why should anyone think twice if the government wants to tax that money and recoup it to help the rest of us?
Or, the Democrats could just play it like this. Let the Republicans, with their dreams of the free market being all perfect, continue the debate on this. When the market doesn't correct itself in a few months, sure it'll be after the elections, but then we can begin the process of showing that no regulation, which is what the free market is, means a vast, vast majority of the country suffers. Then, whenever that argument is brought up, we need only point to this time.
AN OPEN LETTER TO LORD HOITY TOITY DE ROTTEN-CHILD
dear lord,
congratulations on printing yourself up 630 billion more bucks of monopoly money to wipe your @$$ with.
your pal, UNCLE SAM.
p.s. have a HAPPY F*CKING CHRISTMAS.
Rasputin @ 34:
Thanks, I caught that last week. I'll keep passing his info until registration is required. Roubini got out of those markets last year and was blasted by the American Financial press for pointing out the repercussions of the housing bubble.
I'm sorry, but why won't Pelosi impeach this fuck?
HDon Says: Since the bill was not passed, doesn’t this qualify as tazation without representation?
Yep, the American Taxpayers has been tazered again.
> BUSH/CHENEY ARE OUT TO DESTROY THE U S ECONOMY
No, they're just pursuing their mandate to run the country for the short-term advantage of the richest segment of the public.
I'm not sure what all of this means. Let me consult with Sarah Palin and I'll try to get some like total information for ya. Be right back.
If this is what it takes, fine by me. This is the worst financial crisis since 1933, when FDR closed the banks temporarily to stop a run on the entire system. The fact is, the Fed and the Treasury do have discretion to act when the value of the currency and the availability of credit is threatened. This is such a time.
The alternative to the hundreds of billions of dollars in loans to the banks is a chain-reaction collapse of the US banking system, followed by collapses in Europe and Asia, along with large-scale bankruptcies, stock market crashes and uncontrolled deflation. In other words, another Great Depression. The situation really is this bad.
Pog mo 'thoin Bush/Cheney!
Or are they that smart?
is "shrewd" a kind of "smart?"
a case could be made it is....
Is anyone surprised by this?
Our nation's economy is being waterboarded.
thread sucks
You guys are embarrassing at times. This was independent of the bailout. It had noting to do with the bail out, and was going to happen anyways. Read the articles next time.
And people laughed at Ron Paul for wanting to shut down the Fed.
I think this sucker's going down
Faster than the speed of sound
The "V" is turning upside down
In this sea of debt you'll drown
I bet you wish your ass was me
Fuck all y'all, I'm "43"
Dubya the nihilist punk.
The only thing I know for sure is that George Bush should be swinging from a Wall Street lamppost.
Presumably this neatly sidesteps all of the oversight and homeowner protections that were in the bill that the Republicans just killed.
please watch as the dollar tanks and our economy collapses.
This is a time when the gov'ts of the world have to realize that they can't save failing companies just because they're being run by your friends.
HDon @ 24:
LOVE. THIS. THOUGHT!!!
Rasputin @ 17:
Nah, Bush wants to leave as much as we want him to. Cheney is a whole different ballgame.
CoIntelPro for Pronktastic Victory Over SCLM, DIEBOLD, ESS and SEQUOIA! @ 27:
Hey, babe. Missed your pixels last night. Hate being in a different time zone.
Nihilists....must be exhausting.
> Common sense tells them not to be associated with the bush party if they can any way avoid it.
Which is funny as hell, when you remember that the typical Republican congressional campaign ad in 2004 was "I'm a George Bush Republican", with no other platform offered.
Times have changed.
pissed off patricia @ 45:
Hilarious, POP! That must be the call to the martini bar - see you there.
We really do not know, any of us, how "bad" of "good" the situation is.
there are no independent analysts with access to enough of the pertinent data to make that call.
every commentator has a political or financial axe to grind, every last one of them.
Annoyed Canuck @ 46:
bush is not the federal treasury, this is not his call.
it's congress call.
Well then, no need to worry about that pesky bill Congress is fighting over. Anyone who votes for that bill is a total fool now.
Zilam @ 51:
Sorry.
We strive to be embarrassing at all times.
CoIntelPro for Pronktastic Victory Over SCLM, DIEBOLD, ESS and SEQUOIA! @ 27:
OK, but first you have to explain what you just said!! I love Nouriel Roubin, he's very, very bright, but usually speaks in relative English. On what he said above...huh?
Lucy, 'splain...Ricky no understandy.
Anon @ 50:
get a thimble
Dahgrostab'ph-r-i @ 42:
He's got stuff on her for sure.
maybe it failed today because someone knew it was xmas? they were always going to get a present.
BeeSting @ 52:
R on Paul also wants to shut down every single regulatory agency and believes in NO regulation ever. 'nuff said.
Nancy, take the bailout off the table and put impeachment back on the table.
Alexdem @ 37:
the resulting flood of dollars will drop the value of the dollar, raise the price of internationally traded commodoties and cause catastrophic inflation.
Bobby @ 44:
no they are out to destroy th country. if the country has any resources when they leave office, boosh and cheney are liable for war crimes, among other things.
wardropper @ 68:
Yessiree, you got it. If anyone things the wiretapping was about foreigners or US, is mistaken. This was Watergate on a grand scale.
This admin has something on everyone (except maybe Feingold who seems to have stayed pretty true to himself).
MsJoanne @ 70:
Ron Paul. Racist twit. Another deregulating Repug.
tz @ 28:
congress? a punching nun puppet has more musclepower than harry reid. you'll find more guts in the average cocktail wienie than you will in barney frank.
no, we need the feds to come in and do what they do best -toss goons in paddywagons.
zugzug @ 57:
The companies are, of course, failing precisely BECAUSE they're being run by your friends.
does this mean the bail out has happened without it being on the backs of tax payers?
Surging Blue Lensman @ 61:
Yep, the bar is about to open and Sarah and I are fer sure going to chat about health care, jobs, spreading democracy and lipsticks. Join us if you like. We were going to talk about the bailout plan but yuck could anything be more like totally less interesting? Maybe we'll get lucky and Sarah will bring her most recent moose gutting pictures. She has an idea for a new lipstick shade, Moose blood red.
CoIntelPro for Pronktastic Victory Over SCLM, DIEBOLD, ESS and SEQUOIA! @ 72:
What do they care about hyperinflation? If they have to pay $100 for a gallon of milk, so be it. His salary alone was 4 million (of our) dollars in the last eight years and pappy is a fucking gazillionaire.
Hyperinflation is on its way.
Zilam @ 51:
Since the article that you claim no one read actually links the two, I would say you are wrong. The embarrassment you feel is all yours.
Say hello to the Weimar Republic. Best all get your butts to Home Depot and buy a wheelbarrow for your money. This is the modern electronic eqivalent of just printing more money. Typical for a man who never learned any history, nor financial responsibility.
The root of the problem is that the derivatives which are the basis for this melt-down are not instruments to generate capital but to collect interest on debt.
it started with reagan.
his corpoRat mandate was to keep wages low and profits high.
the corpoRats were endeavoring (successfully as ti turned out) to decouple productivity with worker prosperity. so, in the 80s, while productivity rose spectacularly, wages were kept stagnant.
To provide folks with the illusion of prosperity amid penury, Raygn's boys prevailed upon Greenspan to loosen credit. This let the schmoes buy all kinds of things on credit, without actually costing the corpoRats any of their profits...
and everybody since then bought into the shame...
The trech bubble was only the first of the financial frauds perpetrated byt the Pres (no matter who) and the Congress (also regardless of the names).
The chickens are coming home to roost again.
And the "serious" people want to put Col Sanders in charge of the coop...
MsJoanne @ 66:
Roubini says, essentially, to do what FDR did and save the mortgages. that minimizes the damage, because the other dependent financial vehicles are dependent on the mortgages. Once an agency is established to manage that. the real damage can be assessed and the real value of the assets can be determined. This current plan establishes no agency to oversee anything. Why the dems wanted to vote for it is beyond me.
Fiat Empire ~ Why the Federal Reserve Violates the U.S. Constitution 1 hr.
http://video.google.com/videoplay?docid=5232639329002339531
Men Behind the Curtain ~ 47 minute primer on the Federal Reserve System
http://video.google.com/videoplay?docid=-1693084887024293324
Copy and Paste into emails to your friends and family if you like...
MsJoanne @ 74:
she's a millionaire.
Surging Blue Lensman @ 3:
BS. $1Trillion lost in market cap today. When companies cannot buy capital good and pay their workers the average 'Joe' is going to get layed off by the tens of thousands.
Honestly on both sides of the aisle I am amazed at how many people think that Main St. and Wall St. are unconnected.