Monday, October 6, 2008

the financial rescue plan failed to restore much-needed confidence

London plunges as banks pump billions into market

The approval of the $700bn US rescue plan failed to ease fears in Asia over the American economy and the global financial crisis. The FTSE index of leading shares dived by five per cent shortly after the start of trading this morning, following sharp losses across Asian equity markets on growing concerns over the global financial crisis. Approval by the US House of Representatives on Friday for the financial rescue plan failed to restore much-needed confidence with investors now anxious as to how it will be implemented.

Posted by malct @ 10:06 AM (756 views)
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8 thoughts on “the financial rescue plan failed to restore much-needed confidence

  • Just like bookies at the race-course, the markets know the truth.

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  • planning4acrash says:

    It was never for the economy. Its for the elite, who caused the crash with a derivatives boom, and the people behind that boom came up with the crazy solutions. By the way, Bear, i cldnt fit this in the last thread, oil is an example of a commodity

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  • planning4acrash says:

    That has risen in price against£,yet fallen more than half against gold.In Weimar republic foreigners bought stuff in Germany,cheaper than at home,with their own currency and gold,whilst germans bought bread with wheelbarrows of$.Inflation is ARTIFICIAL!

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  • 1. renting2 said…
    Just like bookies at the race-course, the markets know the truth.

    The best summary I’ve read in years.

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  • Seems they (Congress) didn’t even get to read the bill anyway!
    Rep. Michael Burgess – “we are under Martial Law”
    Rep. Michael Burgess (R-TX) reports from the floor of the House that the Republicans have been cut out of the process and called unpatriotic for not blindly supporting the fraudulent bailout. He says the only debate has been about what talking points to use on the American people. The most ominous revelation is when he claims the Speaker has declared martial law.

    “I have been thrown out of more meetings in this capital in the last 24 hours than I ever thought possible, as a duly elected representative of 825,000 citizens of north Texas.” Said Congressman Burgess.

    Burgess asks the Speaker of the House to post the bailout bill on the internet for at least 24 hours instead of passing the largest piece of legislation in US financial history in the “dark of night.”

    and from SOTT

    But what exactly happened during the voting? A day before the final result, Rep. Michael Burgess reported from the floor of the House that the speaker declared “martial law”. Before you go marching through the door chanting “Heil!”, let us clarify that the sinister term in fact refers to a certain procedure within Congress:

    Under the martial law procedure, longstanding House rules that require at least one day between the unveiling of significant legislation and the House floor vote on that legislation – so that Members can learn what they are being asked to vote on – are swept away. Instead, under “martial law,” the Leadership can file legislation with tens or hundreds of pages of fine print and move immediately to debate and votes on it, before Members of Congress, the media, or the public have an opportunity to understand fully what provisions have been altered or inserted into the legislation behind closed doors.

    In other words, congressmen are forced to vote without knowing what exactly they are voting for.

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  • Congress didn’t get to read the bill – and the fact didn’t go unnoticed :-

    from Online Journal – Betrayed by the bailout: The death of democracy
    By William John Cox

    On Friday, October 3, 2008, the American people were betrayed by those whom they had elected to represent them. The members of Congress who voted for the Wall Street “bailout” violated their oath of office to “support and defend the Constitution” . . .”that I will bear true faith and allegiance to the same” . . .”and that I will well and faithfully discharge the duties of the office on which I am about to enter: . . .”

    Without holding any meaningful hearings or public discussions and listening only to those most responsible for the economic disaster, Federal Reserve Board Chairman Ben Bernanke and Treasury Secretary Henry Paulson, Congress abdicated its responsibility to the American people.

    Locking out most members from all discussions, the congressional “leadership” emerged from their backrooms with legislation that grants Secretary Paulson the ability to spend at least $700 billion to “take such actions as [he] deems necessary” . . .” to promote financial market stability.”

    Entrusting tremendous political and financial power (and a ton of borrowed money that taxpayers will have to repay with interest) into Paulson’s sole discretion, members of Congress must have been aware that, prior to his cabinet appointment in 2006, Paulson worked for 32 years at Goldman Sacks, one of the Wall Street firms that stands to benefit greatly from his “actions.”

    Paulson, who cashed out his Goldman stock valued at $575 million to become the secretary of Treasury (without having to pay any taxes on the sale), earned more than $53 million in pocket change during just his last two years at Goldman Sacks for innovations such as a new line of “Mortgage Backed Securities.” Gambling more than a trillion dollars on risky subprime second mortgages, Paulson cleverly converted them into AAA-rated “secure” investments by purchasing guarantees from the American International Group (AIG).

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  • renting2 and plato

    I like the summary aswell, however, given what was being talked about here at least a year ago I am franky surprised the markets haven’t plummeted along time ago.

    It appears a knee jerk reaction to every piece of news and often in the opposite direction you’d think.

    You see all will be rosy by 2.00pm this afternoon and the markets will stage a ‘dramatic recovery’.

    Frankly I can see exactly why people have poured into BTL (rightly or wrongly) as they have absolutely no faith in these City Clickers actually making money for anyone else but themselves.

    Tell me this, if the ‘City’ is so imp[ortant to this country because of the money it brings in, how come nobodies pension or endownment has performed even during an absolute boom.

    IMO there should not be a bail out as good(ish) money is simply being poured after bad. The bailout money should be used to ‘oil the cogs’ in more of a direct way and miss out the reckless banks and financial institutions altogether.

    Let them get proper jobs I say.

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  • STR 2007….assuming there are any proper jobs left ;-).

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