The day the secondary markets died, truly a scary day.

NEW -> Contingent Buyer Assistance Program
The Bush administration today announced a plan to use hundreds of billions of dollars of taxpayer money to buy up up bad mortgages and other debts. The process of injecting more fiat money into an already over-inflated system had the desired effect - the Dow Jones shot up 450 points - but the dollar, following a brief jump, began to plummet.



Awgee, I definitely did notice that the dollar was weakening from its 80 highs on Thursday and Friday while the DOW rallied 300 - 400 points, which clearly is an artificial rally giving Americans a false sense of affirmation? I am curious to how the Chinese will react to this? Wouldn't they need to print tons of their own currency in order to accomodate the pegging between the U.S. and the Chinese Currency. Wouldn't this cause hyper inflation in China. Wouldn't this absolutely piss off the Chinese?



What do you think are the REAL chances that the Chinese will dump our treasuries if the value of our dollar plummets down to 40 to 50? Is this a realm of possibility?
 
[quote author="PANDA" date=1222075207]The Bush administration today announced a plan to use hundreds of billions of dollars of taxpayer money to buy up up bad mortgages and other debts. The process of injecting more fiat money into an already over-inflated system had the desired effect - the Dow Jones shot up 450 points - but the dollar, following a brief jump, began to plummet.



Awgee, I definitely did notice that the dollar was weakening from its 80 highs on Thursday and Friday while the DOW rallied 300 - 400 points, which clearly is an artificial rally? I am curious to how the Chinese will react to this? Wouldn't they need to print tons of their own currency in order to accomodate the pegging between the U.S. and the Chinese Currency. Wouldn't this cause hyper inflation in China. Wouldn't this absolutely piss off the Chinese?</blockquote>


Sorry Panda. I know little about the Chinese and have absolutely no predictive ability on their behavior.



I had some ideas that many of the more outrageous aspects of the TRAP bill are red herrings designed to give Congress something to object to and argue about and feel good about when they deny them, while the meat of the bill, more transference of wealth from the poor to the wealthy, is passed without objection. But now, check this out: <a href="http://www.bloomberg.com/apps/news?pid=20601087&sid=aYXtwpG9mw9g&refer=home">already making the bailout unlimited; Wow, that was fast.</a>
 
NEW YORK (CNNMoney.com) -- Democratic leaders on Capitol Hill said on Sunday that the Bush administration's $700 billion proposal to bail out the financial system lacked necessary safeguards for taxpayers and homeowners.



Democrats want the measure to include independent oversight, homeowner protections and limits on executive compensation, House Speaker Nancy Pelosi, D-Calif., said in a statement early Sunday evening.



"We will not simply hand over a $700 billion blank check to Wall Street and hope for a better outcome," she said.



Pelosi said that Congress will take action on the bailout this week but will act "to insulate Main Street from Wall Street."



http://money.cnn.com/2008/09/21/news/economy/bailout_proposal_Sunday/index.htm



Anyone think, hell, the ides of march? The Ides of September! 9/11, Katrina, the collapse of the financial world as we know it. September is a cursed month.
 
<em>"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. The one aim of these financiers is world control by the creation of inextinguishable debt."</em>

Henry Ford
 
[quote author="jefa" date=1222077150]NEW YORK (CNNMoney.com) -- Democratic leaders on Capitol Hill said on Sunday that the Bush administration's $700 billion proposal to bail out the financial system lacked necessary safeguards for taxpayers and homeowners.



Democrats want the measure to include independent oversight, homeowner protections and limits on executive compensation, House Speaker Nancy Pelosi, D-Calif., said in a statement early Sunday evening.



"We will not simply hand over a $700 billion blank check to Wall Street and hope for a better outcome," she said.



Pelosi said that Congress will take action on the bailout this week but will act "to insulate Main Street from Wall Street."



http://money.cnn.com/2008/09/21/news/economy/bailout_proposal_Sunday/index.htm



Anyone think, hell, the ides of march? The Ides of September! 9/11, Katrina, the collapse of the financial world as we know it. September is a cursed month.</blockquote>


Except for those counting the minutes until the kids go back to school .... hooray! :)
 
[quote author="awgee" date=1222121602]<em>"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. The one aim of these financiers is world control by the creation of inextinguishable debt."</em>

Henry Ford</blockquote>


Hey, Awgee your quotes are quite telling. Ever seen the movie zeitgeist? you should watch it. everone should watch it. it's interesting. give it a shot if you have 2 hours to kill. a lot of food for discussion. the reason i bring it up is the last 1/3 of the film is all about THE FED and thier hidden agenda.



It's a hard movie to watch if your squemish or close minded don't bother.



I like the comments about human greed and nature being brutal also. from another poster



I guess there is the way things are and the way we wish they would be, but never will?



www.zeitgeistmovie.com
 
[quote author="jefa" date=1222043181]I personally would call and say "Remember you are at a historic cross roads. What you chose today will likely be recorded in the history books. If you don't know the ramifications of what you are doing, call and talk to people you really trust who are knowledgeable on the issue. Remember to factor their own self-interest in when you listen to their advice. And make as an informed decision as you possibly can. Paulson and Bernanke are very wise people, but they're also operating on little sleep and short time. It's up to you to do your own homework."



Just wrote to my congressman and said that exact thing.</blockquote>


Well, I just wished that my email was as cordial and friendly as yours. I hope I did not go overboard. :red:
 
[quote author="mediaboyz" date=1222073715][quote author="Allison C." date=1222042993][quote author="No_Such_Reality" date=1222042424]All I can say is write, call, email. Do it again and again and demand that they have equity and oversight and no blank check.</blockquote>


I hear ya. I am emailing John Campbell after logoff. Do my part, voice my opinion, blow off my steam. >:(</blockquote>


Thanks for doing this Allison. I also emailed Campbell about NO bailout for Fannie & Freddie. Hopefully our contacts will help!</blockquote>


you are welcome, mediaboyz. I was boiling after reading about the fraudulent flippers aka Soni family, getting loan approvals from WAMU in OC Register. I know life is unfair, but this is the least I can do, whether it has any effect or not.
 
<em>"There is nothing more dangerous than when those responsible for a nation's troubles are believed to be its savior."</em>



Unknown
 
If the real concern is the liquidity of the credit markets, why don't the banks just go to the discount window or term auction facility or any of the other avenues the Fed has made available?
 
Its just total fear.

Money is running to safety.



30 Day Treasury dropped 69 Points from .91 to .22

again today. Lets see how tomorrow goes.



When the 13 week went to below .01 last week thats a big RED Flag.
 
When ten different countries decide to ban shorting in the same week, that only makes me much more fearful. Way to go there.
 
The credit seizure on last Wednesday was not caused by the toxic waste on the banks' balance sheet. It was caused by massive money market fund redemptions when The Reserve MMF broke the buck. The run on MMFs was cured the next day by the either the Treasury or the Federal Reserve backstopping all MMFs on Thursday and the credit markets went right back to normal, almost instantly. Paulsen's nonsense about how the economy will go to heck if Congress doesn't act immediately is the same scare tactics hooey that realtors use when telling you that you better buy now or you will be priced out of the market forever, or you beter make a full price offer because there are two other offers already. When this bill becomes law, the US economy will get much worse, not immediately, but like heroin to an addict, it just will get worse and worse as more debt is added.






/




It is funny how much clarity appears after a few days.
 
<em>Watching Hank and Ben testify and I have an important question....



What kind of watch is Hank wearing??? It looks really cool! </em>



I didn't even see the watch.....all I could do was stare at that gnarly crooked pinky of his. WTF is with that ?
 
<a href="http://www.financialsense.com/fsu/editorials/danielcode/2008/0923.html">Hank Paulson and Tinkerbell</a>
 
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