Thursday, October 2, 2008

The Fed has ALREADY brushed aside Congress’s “No” vote and pumped money into the system

Not One Dime

For nearly a year, we have been asking ourselves why the investors and foreign banks that bought up hundreds of billions of dollars of worthless mortgage-backed securities (MBS) from US investment banks have not taken legal action against these same banks or initiated a boycott of US financial products to prevent more people from getting ripped off? Now we know the answer. It's because, behind the scenes, Henry Paulson and Co. were working out a deal to dump the whole trillion dollar mess on the US taxpayer. It (The bill) provides hundreds of billions of dollars of bailouts to foreign investors. It provides no real control of Paulson's power.

Posted by malct @ 01:48 PM (606 views)
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9 thoughts on “The Fed has ALREADY brushed aside Congress’s “No” vote and pumped money into the system

  • 2. Only add articles from reputable sources (e.g. BBC, major newspapers, banks/building societies, government departments).

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  • planning4acrash says:

    Well, of course, the bill was always about additionals powers and indemnities.

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  • dohousescrashinthewoods says:

    And do we hear this on the Beeb? Not a peep.
    Still haven’t heard about the street protests either.

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  • mountain goat says:

    From Naked Capatalism Blog

    “The bailout, I mean rescue plan, can be seen as nothing less than a new Ponzi scheme. It works like this:
    Fed as only lender, in an attempt to keep the financial system from imploding;

    TARP needed to keep Fed balance sheet intact so that it can continue as only lender;

    Treasury will need to significantly increase the amount of Ts (public money) auctioned to fund TARP;

    Panic serves to encourage T. buyers, especially for bills;

    This represents a liquidity trap: TARP recipients of Ts will hoard cash to buy Ts: rinse and repeat.

    This results in drying up of lending to corporations/crowding out private capital – no new credit lines;

    The Fed becomes a holder of private capital, the later of which is now frozen to protect that capital from deteriorating, The rollover scheme will restrict even more lending in the private sphere for purposes of keeping the financial sphere on life support, but with the consequence of furthering the deterioration of the ‘real’ economy.”

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  • theboltonfury says:

    as i said before, Peston has now turned into the ArchDeacon of doom, so it is being reported of sorts

    PS Who is Peston? I don’t like many of his musings

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  • mountain goat says:

    T bills will pay for bailout, but they are now what everyone wants!

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  • Am REPOSTING the following from my response to an article further down the page. Someone asked who was pushing the “bailout” through Congress, who passed this latest version and how to comment directly to Congress. YES YOU CAN COMMENT AND PLEASE CALL THEM!

    It’s the Senate who ALREADY passed the bailout measure – and is sent it back to the House of Representatives with changes – like consideration of those riding bicycles to work in Arizona. And raising the FDIC limit. Big deal. Paulsen still gets to be Emperor. So talk to members of the House of Representatives by all means [see below for how]. The Senate passed it by a fair margin – including both Presidential candidates voting for it. As I’ve said on here before, neither of them has a clue.

    Look here to contact Congress —

    The House of Representatives website: http://www.house.gov/

    All the representatives, speaker and whips, are listed. I don’t know if the switchboard is mobbed, but they say it’s diffcult getting an email through and the system is slow from the massive traffic.

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  • mg @ 02:37PM

    looks like other comments across other posts are confirming your ‘drying up more’ theory.

    so obviously orchestrated

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