Friday, Sep 19, 2008

We are heading for more than a house price crash with intervention of this nature

Bloomberg: Paulson, Bernanke Push New Plan to Cleanse Books

Sept. 19 (Bloomberg) -- U.S. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke proposed moving troubled assets from the balance sheets of American financial companies into a new institution. Congressional leaders who met with Paulson and Bernanke late yesterday in Washington said they aim to pass legislation soon. The initiative is aimed at removing the devalued mortgage- linked assets at the root of the worst credit crisis since the Great Depression. Today, the Treasury announced a $50 billion program to insure the holdings of money-market mutual funds for a year.

Posted by jack c @ 01:51 PM (867 views) Add Comment

7 Comments

1. malct said...

odd you should post this just now jack c,

The thought just passed my mind in a quiet moment, This is clearly not just a house price crash, never has been, never could have been.

Much of the monopoly money has been built on houses, but not all.

Friday, September 19, 2008 02:22PM Report Comment
 

2. malct said...

and . . . . . it also adds fuel to the controversial subject of what is on and off topic here on hpc

it may help admin to stop moving the goal posts around, but I doubt it.

Earlier today they blasted away a lively discussion on the Fed - what could be more topical?

with respect, I'm sure they had their reasons, s2r1, p4ac and malct being three of them. lol

ps anybody got a chart / charts on the origins of the fed res?

I have, but there's no way I'm posting them.

Friday, September 19, 2008 02:30PM Report Comment
 

3. Welshie said...

I want to know where they are getting the money from to fund these bailouts.

I strongly suspect that they are sacrificing the futures of the same generation already priced-out of the housing market to pay for the comfortable retirement of the generation that has already benefitted from this house price boom.

Why are the media not asking these questions?

Friday, September 19, 2008 02:39PM Report Comment
 

4. renting2 said...

TRACY IDIUT

Thoroughly toxic Repository of C****Y
Illiquid assets and unrecoverable Debt Imposed on the poor Unsuspecting Taxpayer

Soon to be coming to you via it's very own dedicated UK branch! (Then plans for the rest of Europe).

Friday, September 19, 2008 02:44PM Report Comment
 

5. jack c said...

malct - I agree with your thoughts on the "monopoly money" game that has been taking place and not just in the residential housing market. Lets see what other "plans" emerge this weekend.

Friday, September 19, 2008 03:12PM Report Comment
 

6. malct said...

jack c - I suppose if we were to be honest - OK, I will be


I didn't expect a house price correction to create the global financial crisis the BBC are now (at last) referring to.

what made the difference?

some honest dealer realising packages weren't worth the price on the box?

any ideas anybody?

Friday, September 19, 2008 05:28PM Report Comment
 

7. last_days_of_disco said...

I love the words "cleanse books". I wish I could go round the bank and do that!

Friday, September 19, 2008 05:29PM Report Comment
 

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