3 trillion more to fix our economy....

XCALIDEM

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May 31, 2008
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Unfreaking believable!!!! 3 trillion more on top of the $750 billion on the original bailout, plus the recently approved $830billion. Now 3 trillions!!!? :mad: WTF Barack Hussein Obama??? Where are we getting this freaking money from? This is the great plan from the man who didn't know that he needed to pay taxes....

http://www.timesonline.co.uk/tol/news/world/us_and_americas/article5704914.ece

The Obama Administration laid out plans yesterday to marshal an extraordinary $3 trillion to stabilise America's stricken banking sector and revive its collapsing economy. US shares dropped sharply despite an unprecedented few hours of emergency government action.

First, President Obama's Treasury Secretary unveiled a sweeping new rescue plan for the US banking system that could amount to at least $2 trillion. It involves a combination of taxpayers' and private money to help to free up the country's frozen credit markets and to save the financial sector from collapse.

Timothy Geithner's appearance unsettled Wall Street mainly because business leaders were concerned about the lack of detail in his plan. Two hours later an entirely separate plan - Mr Obama's $838 billion economic stimulus package aimed at creating jobs and reviving the economy - was narrowly passed by the US Senate, but in the face of almost unanimous Republican opposition. Needing 60 votes to avoid blocking tactics, the Bill attracted 61, with only three moderate Republicans backing it.

When Mr Obama was told of the Bill's passage during a rally in Fort Myers, Florida, he said: “That's good news. It's a good start.” Yet Mr Obama set himself tough benchmarks - as he did at a prime-time news conference on Monday night, part of a campaign to sell the stimulus package to the US public - in essence conceding that his presidency would succeed or fail on his ability to turn the economy around. He pledged that his stimulus plan would create or save three to four million jobs within two years. “If people don't think I've led the country in the right direction, you'll have a new president.”

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Mr Obama was appearing in Fort Myers because it has one of the highest home repossession rates in America. At one point a homeless woman, Henrietta Hughes, broke down as she told Mr Obama of her plight. He walked into the crowd, kissed her on the cheek, and said: “We're going to do everything we can to help you.”

In Washington Mr Geithner was bleak in his assessment of the banking sector because of its inability or unwillingness to lend money. “Critical parts of our financial system are damaged,” he said. “Instead of catalysing recovery, the financial system is working against recovery. This is a dangerous dynamic and we need to arrest it.”

He outlined a plan to stabilise the country's banks, which are burdened with an estimated $1 trillion of toxic, mostly mortgage-related loans. The bad debt crisis could lead to the collapse of more than 1,000 banks in the next three to five years, according to one independent estimate yesterday.

The heart of Mr Geithner's plan is to stabilise the banking system and get credit flowing again by combining the remaining $350 billion left from the $700 billion Wall Street rescue package - passed by Congress last year - with private investment and up to $1trillion of Federal Reserve funds.

The plan is crafted so that Mr Obama does not have to return to Congress immediately to ask for hundreds of billions of additional dollars to inject into the banking system, a move that would be politically difficult because of the US public's antipathy towards the banking sector.

Yet many analysts believe he will be forced to ask Congress for more funds because of the scale of the problems. Mr Geithner appeared to prepare the ground for this, saying that the approach “has to be comprehensive and forceful. There is more risk and greater cost in gradualism than there is in aggressive action. This strategy will cost money, it will involve risk, and it will take time.”

His plan has four main elements. He wants to use part of the remaining $350 billion Wall Street package as seed money to attract up to $1 trillion of private investment to buy up the banks' bad debts. He also wants to pump $100 billion into banks. Third, the Federal Reserve will expand a programme - up to $1 trillion - to jump-start consumer borrowing on items such as credit cards and car loans. Fourth, Mr Geithner wants to commit $50 billion
 
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Markets crash after Geithner's news

Treasury Secretary Timothy Geithner ducked the tough questions investors want answered as he rolled out a plan to repair the financial system -- and stock traders made him pay for it.

Driving investor doubts was Geithner’s failure to clearly address three issues at the heart of the crisis: Will banks saddled with toxic debt be forced to fail? How will illiquid assets be removed from bank balance sheets? And what will be done to arrest the decline in house prices that triggered the turmoil?

The risk is that the market reaction sabotages the plan before it gets under way, forcing Geithner to change his approach in response -- a position that his predecessor, Henry Paulson, frequently found himself in. That may mean the plan “may just end being an interim step,” said Kenneth Rogoff, a former chief economist at the International Monetary Fund who’s now a professor at Harvard.

“Tim Geithner did a great job in painting the broad strokes of the problem and laying out general principles, but it was a big disappointment not to have more details,” Rogoff said.

Rogoff also said Geithner missed an opportunity to send a stronger signal distinguishing his approach from Paulson’s: “ I would have liked to see President Obama standing behind the Treasury secretary, considering this speech, more than anything else, was supposed to lay out the policies signaling a decisive break from the past.”

Bank Stocks

http://www.bloomberg.com/apps/news?pid=20601087&sid=ank43KATMgXo&refer=home#
 
They keep talking about frozen credit markets... does anyone realize what markets they are talking about?

It's not regular mortgage markets. Those are doing fine. Just read the paper about recent home sales. They have to be getting a mortgage from somewhere, right? So regular mortgages are not the problem.

What about credit cards? Anyone being declined on credit cards? Seen a massive drop in credit card offerings in the mail box? Of course not. So that's not the problem.

So what "frozen credit markets" are they referring too? Answer: Sub-prime Mortgages! Isn't this amazing? Here they are trying to unfreeze the very line of credit that got the entire economy into this mess!
 
They keep talking about frozen credit markets... does anyone realize what markets they are talking about?

It's not regular mortgage markets. Those are doing fine. Just read the paper about recent home sales. They have to be getting a mortgage from somewhere, right? So regular mortgages are not the problem.

What about credit cards? Anyone being declined on credit cards? Seen a massive drop in credit card offerings in the mail box? Of course not. So that's not the problem.

So what "frozen credit markets" are they referring too? Answer: Sub-prime Mortgages! Isn't this amazing? Here they are trying to unfreeze the very line of credit that got the entire economy into this mess!

Yes, but that is not fear mongering.... It's only communicating to the Country... :mad:
 
The federal government needs to take immediate statutory action to make ARMs and sub-primes illegal from this moment on ... and in addition allow such exiting loans considered non-refinanceable to be refinanceable ... and somehow encourage and support the refinancing of these loans with bailout monies.

That will restore value to the securities supported by these otherwise deadly loans still in existence.

But the majority of the credit crunch caused by defaults on what understandably ended up being worthless ARM and sub-prime supported securities has translated into anal retentive banks refusing to loan money to regular businesses these businesses need weekly just to keep afloat in these "normal trend" days of over-inflated-value businesses needing loans on a regular frequent basis just to stay in business.

The money the banks need is to keep American businesses running ... and to thereby keep Americans employed!

This recession's-depression's cause and effect problems are considerably involved ... and business-as-usual solutions may be complicated, and difficult if not impossible to find ...

... Because the problem with refinancing ARMs and sub-primes is that their 30-year promised yield is negated, almost like a default!

Indeed, this recession-depression is a bad one.
 
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Where are we getting this freaking money from?"

A question the republicans never asked for 8 years of Bush, and Bush tax cuts, and Wars, and increased spending....funny how the party name on the white house changes, and you act like you care again...

That's funny... as always you guys are always blaming Bush. Did he spent 3 trillion all in one shot?

Obama is acting like a spoil child getting everything that he wants and you guys are so in love with him that you don't care if we mortgage our country to the chinese or the russians...

Since you guys are so in love with him; here's the song that you guys sing to him...

 
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