The Mother of All Bailouts–2 to 3 Trillion Dollars–$2,000,000,000–$3,000,000,000!–Rewarding Greed, Arrogance and Stupidity–Pay for Play!

Posted on February 10, 2009. Filed under: Blogroll, Books, Economics, Education, Employment, Homes, Investments, Links, People, Politics, Quotations, Rants, Raves, Regulations, Resources, Video | Tags: , , , , , , , , , |

 
LOL

Bird and Fortune – Subprime Crisis

 

Bailout Prize Patrol

THE TARP SONG “I Want Some Tarp” by Bill Zucker

 

UPDATE

More and more Federal government interventions and more and more bailouts–this is national socialism/fascism–not capitalism!

The cost to the American people will be unemployment rates of between 15% to 20% within two years and inflation rates of between 25% to 50% within four years.

Let the markets work!

Do not do business with any bank or business that needs or takes a bailout or capital from the Federal government.

 Always remember it was the Federal government insisting that banks make mortage loans to people they would not normally lend to that started this mess in the first place.

 

(Part 1/2) Treasury Secretary Timothy Geithner Announces Economic Recovery Plan

 

(Part 2/2) Treasury Secretary Timothy Geithner Announces Economic Recovery Plan

 

Inside Look – Financial Stability Plan – Bloomberg

 

Reaction to Geithner Speech – Bloomberg

 

Inside Look – Geithner’s Financial Rescue Plan – Bloomberg

 

LET THEM FAIL ! NO BAILOUT ON MY BEHALF JIM ROGERS

 

Thomas Sowell – Obama’s Vision

 

Thomas Sowell – The Vision of the Anointed

 

Ron Paul on Socialism, Inflationism and the Death of the Dollar

 

Why Nazism Was Socialism and Why Socialism Is Totalitarian 1

 

Why Nazism Was Socialism and Why Socialism Is Totalitarian 2

 

Why Nazism Was Socialism and Why Socialism Is Totalitarian 3

 

Why Nazism Was Socialism and Why Socialism Is Totalitarian 4


 

First, some background information as to how did we get into this financial crisis in the first place:

Deconstructing the Subprime Crisis

 

subprime derivatives

 

Second, what lessons can we learn from the financial crisis:

Franklin Allen on Lessons from the Subprime Crisis

 

Third,the investment banks got greedy,arrogant, and stupid:

Jeremy Siegel on the Resilience of American Finance


 

Fourth, how do we get out of this massive failures of both the  Federal government and securities market?

Please note which foreign country bought significant amounts of agency or Fannie Mae and Freddie Mac securites–Communist China!

 

Wall Streets Day of Reckoning: Turmoil in the Global Market

 

Wharton Faculty Teach-In October 21, 2008

 

Finally, here comes the mother of all bailouts to recapitalize the financial institutions:

 

 

Obama: More Bank Failures Likely

The rush to getting the so-called stimulus bill through Congress with or without any Republican support was noticed by many commentors. 

Why?

Hang on to your wallets and watch the dollar depreciate some more.

The Treasury Secretary, Tim Geithner,  will be asking for between 2 to 3 trillion dollars for creation of either (1)  a “bad bank” to aggregate all those toxic investments or troubled assets to get them isolated from all US financial institutions so that lending can be rebooted or started again or more likely or (2) recapitalize the financial institution by investing money in exchange for preferred stock and warrants to be repaid sometime in the next five to ten years.

 

Creating A ” Bad Bank”?; Cleaning Up Toxic Assets – Bloomberg

 

Soros Says Bad Bank Plan Won’t Solve Lending Woes

 

Bad Bank Loses Favor – Bloomberg

 

Jim Lacamp on CNBC’s Kudlow & Co Feb 5, 2009 Part 1

 

Bernanke on Fed’s Future: More capital injections & guarantees – setup “”bad banks”


 

I agree with Eric, if a “bad bank” is what Secretary Geithner is going to recommend to Congress, just say no way pal.

Nobody is going to agree as the valuation or price for a troubled toxic asset.

Once was enough on the job training or OTJ for a Treasury Secretary.

Jim Rogers was right, why does anybody listen to Geithner?

 

Shame on you Glenn Beck – Telling the Truth about Timmy Geithner

 

Tax Cheat

 

Geithner Is Sworn in As Treasury Secretary

 

Who were some of the biggest campaign contributors to President Obama and the Democratic Party?

Follow the money–the executives and employees of the bailedout financial institutions.

No surprise there–the Chicago Way–pay for play.

Getting it right is more important than doing it fast.

When the new Treasury Secretary comes to Congress to report on TARP and then asks for another 2-3 trillion  ($2,000,000,000,000–$3,000,000,000,000) for additional authority to purchase toxic or troubled assets or recapitalize the financial institutions in trouble, the American People are going to go ballistic.

 

Inside Look – Banks Urge Quick Release of TARP 2 – Bloomberg

 

“Dr. Doom,” Nouriel Roubini about banking nationalisation and moral hazard

 

Jim Rogers: The fundamentals of Commodoties are IMPROVING!

 

It is abundantly clear that the American elites of both political parties are not telling the American people what is really going on or the scope of the problem.

What the American political class does not understand is the American People are very mad and about to revolt.

The American people will stop calling and e-mailing their Representative, Senators, and President.

Instead the American people will start marching.

So what will the Treasury Secretary recommend.

Yes, you got it, back to Treasury Secretary Paulson’s second plan to recapitalize the banks.

Again, how much is this going to cost the American people for providing a capital infusion now to be paid back latter, say in five to ten years, if not sooner.

Stay tuned.

 

 

Background Articles and Videos

 

New Bank Bailout Could Cost $2 Trillion

By DEBORAH SOLOMON, DAVID ENRICH and JON HILSENRATH

“Government officials seeking to revamp the U.S. financial bailout have discussed spending another $1 trillion to $2 trillion to help restore banks to health, according to people familiar with the matter.

President Barack Obama’s new administration is wrestling with how to stem the continuing loss of confidence in the financial system, as it divides up the remaining $350 billion from the $700 billion Troubled Asset Relief Program launched last fall. The potential size of rescue efforts being discussed suggests the administration may need to ask Congress for more funds. Some of the remaining $350 billion of TARP funds has already been earmarked for other efforts, including aid to auto makers and to homeowners facing foreclosure.

The administration, which could announce its plans within days, hasn’t yet made a determination on the final shape of its new proposal, and the exact details could change. Among the issues officials are wrestling with: How to fix damaged financial institutions without ending up owning them.

The aim is to encourage banks to begin lending again and investors to put private capital back into financial institutions. The administration is expected to take a series of steps, including relieving banks of bad loans and distressed securities. The so-called “bad bank” that would buy these assets could be seeded with $100 billion to $200 billion from the TARP funds, with the rest of the money — as much as $1 trillion to $2 trillion — raised by selling government-backed debt or borrowing from the Federal Reserve. …”

 

http://online.wsj.com/article/SB123319689681827391.html?mod=todays_us_page_one

 

Roubini Predicts U.S. Losses May Reach $3.6 Trillion (Update1)

“…U.S. financial losses from the credit crisis may reach $3.6 trillion, suggesting the banking system is “effectively insolvent,” said New York University Professor Nouriel Roubini, who predicted last year’s economic crisis.

“I’ve found that credit losses could peak at a level of $3.6 trillion for U.S. institutions, half of them by banks and broker dealers,” Roubini said at a conference in Dubai today. “If that’s true, it means the U.S. banking system is effectively insolvent because it starts with a capital of $1.4 trillion. This is a systemic banking crisis.”

Losses and writedowns at financial companies worldwide have risen to more than $1 trillion since the U.S. subprime mortgage market collapsed in 2007, according to data compiled by Bloomberg.

President Barack Obama will have to use as much as $1 trillion of public funds to shore up the capitalization of the banking sector, following the $350 billion injection by the Bush administration, Roubini told Bloomberg News. Congress last year approved a $700 billion rescue fund, of which half remains to be disbursed. …”

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aS0yBnMR3USk

 

Participants in Government Investment Plan

“In unveiling its bank-share purchase program, the Treasury Department required nine of the nation’s largest financial-services companies to sell a total of $125 billion in preferred stock to the government, and said an additional $125 billion in stock could be bought from other firms on a voluntary basis. Below, see a list of participating companies. Click the headers of the columns to sort by company, state and amount.
Last updated: 02/04/2009
  …”

http://online.wsj.com/public/resources/documents/st_BANKMONEY_20081027.html

 

Good news: TARP II coming soon

posted at 12:35 pm on January 20, 2009 by Allahpundit

“…No, not the stimulus. Another monster bailout on top of the stimulus. If the timeline here is right, Team Barry could be asking for it by mid-February, which would mean the $700 billion in TARP I lasted … five months.

Ever get the feeling like we’re just buying time?

[P]ersons close to the situation in Congress told Politico that the deteriorating economic situation leaves little breathing room. Bank losses are up and auto sales down. A top Hill staffer predicted Obama could be forced to seek more money even before the President’s Day recess in mid-February.

If so, this would be a nightmare political scenario for the incoming administration, which has focused on using the next month to muscle through its economic recovery plan…

But Obama gets one honeymoon as a new president, and waiting is not without risks. Financial newspapers reflect a growing concern that the government must do more to buy up the bad investments that hang over financial markets; with more bad earnings reports due this week, there is sense that this is a crisis that can’t be avoided…

“Congress isn’t going to step up and say, ‘Hey, can we give away another $700 billion?’” said an aide to a second Democratic House member. “But there’s a growing sense among people who are really watching this closely, I think, that it is entirely possible, six months from now, maybe even less, the administration is going to come back and say, ‘We need more; we need … more of the same.’”

http://hotair.com/archives/2009/01/20/good-news-tarp-ii-coming-soon/

 

Inside Look: A Severe Global Economic Contraction

Recession & Recovery

Jim Rogers Investment banks all gonna go to…

 

Jim Rogers on the Asian Financial Forum pt 1/2 Jan 21 2009

 

Jim Rogers on the Asian Financial Forum pt 2/2 Jan 21 2009

 

Jim Rogers Britain is Bankrupt (21.01.09)

 

Peter Schiff on CNBC Kudlow – 1:20:09 Part 1

 

Obama – The New Face of Western Imperialism [1 of 2]

Obama – The New Face of Western Imperialism [2 of 2]
 

 http://www.treas.gov/press/releases/reports/0010508105_a_report.pdf

 

Timoth Geithner

Timothy Franz Geithner [pronounced /ˈgaɪtnər/] (born August 18, 1961) is the 75th and current United States Secretary of the Treasury, serving under U.S. President Barack Obama. He was previously the president of the Federal Reserve Bank of New York and a tax chiseler.

Geithner will be directing the nation’s economic recovery from the worst financial crisis in three generations, a task that could define the first two years of Obama’s term. Specific duties include directing how $350 billion of already existing Wall Street bailout money is to be spent, then making the case to the United States Congress and the public if more is needed. In addition, Congress is working on an $825-billion economic recovery package that dedicates about two-thirds to new government spending and the rest to tax cuts. Geithner will be playing a big role in disbursing that money.[2]

Geithner’s nomination came under fire due to his failure to pay over $30,000 in taxes in the past. Geithner was able to receive Senate confirmation but he remains under deep criticism for not following the rules of the agency he now oversees.[3]

http://en.wikipedia.org/wiki/Timothy_F._Geithner 

 

Jim Rogers, Jr.

“James Beeland Rogers, Jr. (born October 19, 1942) is an American investor and financial commentator. He is co-founder, along with George Soros, of the Quantum Fund, and is a college professor, author, world traveler, economic commentator, and creator of the Rogers International Commodities Index (RICI).

Rogers, whose full name is James Beeland Rogers, Jr. was born in Wetumpka, Alabama. Rogers grew up in Demopolis, getting started in business at the age of five, picking up bottles at baseball games. He got his first job on Wall Street, at Dominick & Dominick, after graduating with a bachelor’s degree from Yale University in 1964. Rogers then acquired a second BA degree from Balliol College, Oxford University in 1966. After Oxford, Rogers returned to the U.S. and enlisted in the army for a few years.

In 1970, Rogers joined Arnhold & S. Bleichroeder, where he met George Soros. That same year, Rogers and Soros founded the Quantum Fund. During the following 10 years the portfolio gained 4200% while the S&P advanced about 47%.[1] It was one of the first truly international funds.

In 1980, Rogers decided to “retire”, and traveled on motorcycle through China. Since then, he has been a guest professor of finance at the Columbia University Graduate School of Business.

In 1989 and 1990, Rogers was the moderator of WCBS’ The Dreyfus Roundtable and FNN’s The Profit Motive with Jim Rogers. From 1990 to 1992, he traveled through China again, as well as around the world, on motorcycle, over 100,000 miles (160,000 km) across six continents, which was picked up in the Guinness Book of World Records. He tells of his adventures and worldwide investments in Investment Biker.

In 1998, Rogers founded the Rogers International Commodity Index. In 2007, the index and its 3 sub-indices were linked to exchange-traded notes under the banner ELEMENTS. The notes track the total return of the indices as an accessible way to invest. …”

http://en.wikipedia.org/wiki/Jim_Rogers 

 

Pay to Play

“Pay to Play, sometimes pay for play, is a phrase which has been used for a variety of situations in which money is exchanged for services or the privilege to engage (play) in certain activities. Some uses refer to illicit activities, such as the exchange of money for influence in politics, while others can be normal, even expected, practices. An example of the latter is the concept of No Pay No Play in auto insurance law: an uninsured driver is not permitted to recover money for property damage or bodily injury damages caused by an auto accident, even if the uninsured driver is not at fault, because the lack of pay into the system results in the revocation of the uninsured driver’s right to play when compensation is collected.

In politics, pay to play refers to a system, akin to payola in the music industry, by which one pays (or must pay) money in order to become a player. The common denominator of all forms of pay to play is that one must pay to “get in the game,” with the sports analogy frequently arising.[1]

Typically, the payer (an individual, business, or organization) makes campaign contributions to public officials, party officials, or parties themselves, and receives political or pecuniary benefit such as no-bid government contracts, influence over legislation,[2][3] political appointments or nominations,[4][5] special access[6] or other favors. The contributions, less frequently, may be to nonprofit or institutional entities,[7] or may take the form of some benefit to a third party, such as a family member of a governmental official.[8]

The phrase, almost always used in criticism, also refers to the increasing cost of elections and the “price of admission” to even run[9] and the concern “that one candidate can far outspend his opponents, essentially buying the election.”[10]

While the direct exchange of campaign contributions for contracts is the most visible form of Pay to Play, the greater concern is the central role of money in politics, and its skewing both the composition and the policies of government.[11][12] Thus, those who can pay the price of admission, such as to a $1000/plate dinner or $25,000 “breakout session,” gain access to power and/or its spoils, to the exclusion of those who cannot or will not pay: “giving certain people advantages that other[s] don’t have because they donated to your campaign.”[13] Good-government advocates consider this an outrage because “political fundraising should have no relationship to policy recommendations.”[14] Citizens for Responsible Ethics in Washington called the “Pay-to-Play Congress” one of the top 10 scandals of 2008.[15]

Incumbent candidates and their political organizations[16] are typically the greatest beneficiaries of Pay-to-Play. Both the Democratic and Republican parties have been criticized for the practice. Many seeking to ban or restrict the practice characterize pay-to-play as legalized corruption. …”

http://en.wikipedia.org/wiki/Pay_to_Play

 

Webster Tarpley

“Webster Griffin Tarpley is an author, journalist, lecturer, and critic of US foreign and domestic policy. Tarpley maintains that the events of 9/11 were engineered by a rogue network of the military industrial complex and the CIA. His writings and speeches describe a model of false flag terror operations by a rogue network in the military/intelligence sector working with moles in the private sector and in corporate media, and locates such contemporary false flag operations in a historical context stretching back in the English speaking world to at least the “gunpowder plot” in England in 1605. …”

“In January 2008, Tarpley became one of the first critics to assert that Barack Obama is actually managed by right-wing powerbrokers. Tarpley claimed that a shift in power had taken place in the ruling class, with the Zbigniew Brzezinski faction and its presidential candidate Obama ascendant over the lame-duck neocons. The targets of US imperialism would now be Russia, China and its ally Pakistan, instead of Iraq, Iran and Syria. He developed these themes in his two books on Obama.

Tarpley is also a tough critic of free market, particularly the Austrian School and Chicago School economics [12]. …”

http://en.wikipedia.org/wiki/Webster_Tarpley

 

Elizabeth Warren

Elizabeth Warren is the Leo Gottlieb Professor of Law at Harvard Law School, where she teaches contract law, bankruptcy, and commercial law. Warren graduated from the University of Houston with a B.S. in 1970 and received her J.D from Rutgers Law—Newark in 1976.

Warren is a member of the FDIC’s Committee on Economic Inclusion. She is the former Vice-President of the American Law Institute and a member of the American Academy of Arts and Sciences. She served as the Chief Adviser to the National Bankruptcy Review Commission. Warren is a popular teacher, winning awards from her students at Harvard, the University of Pennsylvania, the University of Michigan, and the University of Houston Law Center.

Warren has testified several times before House and the Senate committees on financial issues. The National Law Journal has repeatedly named Professor Warren as one of the Fifty Most Influential Women Attorneys in America, and she has been recognized for her work by SmartMoney magazine, Money magazine, and Law Dragon. …”

 

“On November 14, 2008 Ms. Warren was appointed by United States Senate Majority Leader Harry Reid to chair the five-member Congressional Oversight Panel created to oversee the implementation of the Emergency Economic Stabilization Act.[5] The reports of the Panel are available at http://cop.senate.gov. …”

 

http://en.wikipedia.org/wiki/Elizabeth_Warren

 

Jim Rogers – Super-inflation to come worldwide 

 

 Jim Rogers Britain Can’t afford it (23.01.09) 1/2

 

 

Jim Rogers Britain Can’t afford it (23.01.09) 2/2

 

Marc Faber “U S will default on debt or enter hyperinflation” 02-05-09

 

$78 Billion Financial (TARP) Bailout Scandal: Taxpayers Shortchanged on Asset Purchases

 

Elizabeth Warren Introduces COP’s Valuation Report

In this video, Chairperson Elizabeth Warren introduces COP’s third oversight report: Valuing Treasury’s Acquisitions. This report features a deal-by-deal analysis of the value Treasury received in exchange for the taxpayer dollars it spent on the ten largest TARP transactions.

 

Obama and Democrats are Responsible: Fannie Mae/Freddie Mac

 

The Democrats and Obama caused the financial crisis of 08 by supporting Fannie Mae and Freddie Mac and covering up their bad books.

 

Obama and Fannie Mae

 

 

Spendulus Alert: $50 billion for “mandatory mortgage modifications”

By Michelle Malkin 

“I uploaded the entire Sellout Substitute Amendment championed by the Turncoat Caucus this weekend. Did you read through to the very end of the 778-page legislative text? Did your Senator? If you did, then you saw this: ….

 

“…Yes, you read that correctly. $50 billion more of your money made available to tax cheat/bailout failout architect Treasury Secretary Tim Geithner to force banks to do loan modifications with homeowners deep under water on their mortgages. That’s in addition to the $20 billion already allocated by the House last month for the same purposes.

Banks have been engaged in these “mo mod” programs over the past year. The Democrats want to accelerate the pace and use the power of government to essentially provide a blanket amnesty for borrowers and lenders who made bad financial decisions. Yes, I know there are many responsible borrowers out there having trouble negotiating loan modifications. I’ve heard from some of you. But this $50 billion giveaway to the banks — the brainchild of unscrupulous borrower Chris Dodd – is exactly the wrong way to go.  …”

http://michellemalkin.com/2009/02/09/spendulus-alert-50-billion-for-mandatory-mortgage-modifications/ 

 

 

Related Posts On Pronk Palisades

 

Bad Government Intervention Requires Bad Government Bank-The Road Map Out Of The World Economic Crisis–Stabilize–Stimulate–Strengthen–Simultaneously! 

American People’s Plan = 6 Month Tax Holiday + FairTax = Real Hope + Real Change!–Millions To March On Washington D.C. Saturday, July 4, 2009! 

Tea Parties Take Off In Texas–Spreading Nationwide–Are You Going To Washington Fair? Millions Celebrate The Second American Revolution–Saturday, July 4, 2009

BO’s Raw Deal: Obama’s Two Year Recession and Two Year Hyperinflation–Hopeless & Small Change!

Boycott Bailedout Businesses and Banks

Ban Bailouts–Stop Inflation Now (SIN)–Stop Socialism of Losses!

The Sovereign Wealth Fund Threat: Are Chinese Communists Behind Rush In Passing Bailout Bill?

The United States is Broke!–Chapter 11 Bankruptcy Time For GM and Ford Is Now!

Recession–Recession–Recession–Scaring People–Have A Hot Dog!

It Is Official–The U.S. Economy Has Been In A Recession for 11 Months and Continuing!

 


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