Rep. Frank Confirms Treasury Plan
Submitted by
CalculatedRisk on Sat, 09/06/2008 - 11:01am (169 comments)
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1st..ha!
at least top 5!!
It will be so nice if they can just make everyone whole.
Frank and others should be very embarassed that they were trying to use Fannie to bailout the rest of the mortgage market when they themselves need a bailout.
I don't expect a mea culpa.
Well all, I hope you like to eat shitburgers...cuz that's what you've been served. Good job savers...you are robbed and the insane flippers and their War Shriek allies get a push...if not a profit.
Vote DemoRebooblican. YEAH!
America Fuck Yeah!
Cheers,
"I am pleased by the secretary's strong reaffirmation that the vital roles these institutions play in our nation's housing markets must continue," Frank said.
Spoken like a true anti capitalist socialist.
So what's all the secrecy about? What do you supposed they are negotiating over Chablis and turkey crosissants?
Barney's on fire (or at least flaming).
Flaming liberal, please.
Mr Frank is one of the most intelligent people i've ever met. he's on top of his game always, and he's very much a realist. i'm sure his thinking is very practical as to why this needs to be done, and i'm sure he see the exit strategy too.
they are negotiating how this is going to work, who is going to run these, and the exit strategy. and they are looking at the ramification of people taking a haircut i'm sure. that's all very thoughtful discussion. i wouldn't want this act rushed...and a little vino helps lubricate the thought process i'm sure.
Frank is an admitted socialist, we all know that. But republicans told us they were pro-small government, pro-capitalism and pro-balanced budgets. Republicans are not only not stopping guys like Frank, Paulson and Bernanke are creating Communist programs. Unless, Mccain says he will unwind these illegal programs, I will vote against him.
But Mr. Frank said he didn't "know the details of the proposed interventions,"
It's like the Iraq war all over again. Legislature gives Executive branch a blank check. Then they all end up saying 'Hoocoodanode?
ipodius writes:
"Mr Frank is one of the most intelligent people i've ever met."
I don't what to say to that statement . . you leave me speechless.
Ron Paul, where are you?
MiTurn, have you ever spoken to him? He has a reputation for being very sharp everywhere..even with people that don't care for him.
Mr Frank is one of the most intelligent people i've ever met
Frank is either a cunning wolf or a dumbass. You say he is not dumb?
Personally, I NEVER use the bathrooms in Reagan National Airport because I never know what degenerate pervert used them before me.
And that's just Congress-people.
Mr Frank is far from dumb. I read his comment as "no comment" but in much more polite terms. He full well knows what's up.
No, ipodius, I haven't. Been then I've never spoken to Ron Paul, George W. Bush, Ben Bernanke, and a whole host of other people. But this doesn't preclude me from from forming intelligent, informed, and objective opinions of these people. Hells fire, Hitler had a reputation for being very sharp. Your point?
ipodius is right: Mr. Frank is indeed quite "sharp" and does an excellent job.
Unfortunately, he isn't working for us (the taxpayers). We're simply judging him by the wrong standards.
/snark
OH jeez here comes the Hitler analogies again. Damn knuckle-draggers favorite defense.
=IF(AND(Hank Paulson Statement=Housing is Healthy, Hank Paulson=Treasury Secretary),Marry Christmas Movie House,
Capitan Democrat writes:"Damn knuckle-draggers favorite defense."
Lol! hhhh, me tarzan. . . you jane. . . or Frank?
A lot of Pension Fund Managers bought the common stock as if it were backed by the government as well as the debt. The losses are going to be hard to explain to retirees and active members. There will be major political fall out from this but who cares. There is no one to be held accountable!
Re: Mr. Paulson "intends to use the powers that Congress provided it" in a law passed in July to keep Fannie Mae and Freddie Mac stable and functioning
Can we go back to see that law now?
Mr Frank is one of the most intelligent people i've ever met. he's on top of his game always, and he's very much a realist. i'm sure his thinking is very practical as to why this needs to be done, and i'm sure he see the exit strategy too.
What!? You are nuts! It's like asking the doctor who botched your surgery to do another surgery to fix it. The exit strategy leaves him richer and his constituents poorer.
Hanging by a thread writes:
"A lot of Pension Fund Managers bought the common stock as if it were backed by the government as well as the debt. The losses are going to be hard to explain"
I thought the whole idea behind this rescue was to protect investors, especially foreign (ie. Chinese) investors. Am I mixed up? Or am I dragging my knuckles again?
How do you figure that YLSP? What are the ramifications of breaking up the GSEs and selling them off, in a financial sense? What is the probability of loss of investment for the treasury? what are the ramifications for the current investors? and what is the law?
Welsh,
It's on Thomas LOC. There were a number of threads around here on it. It was passed by both Rs and Ds. The Rs could've blocked it and opposed it more vigorously if they wanted to, but no one knows why they didn't. Bush could've even vetoed it and they would've had enough to uphold.
I didn't read any of the articles, Paulsen still claiming he's only going to use $25B?
ipod, what's the ramifications of people paying cash for houses.
of people saving and renting for years and then buying.
is there any 'loss' in that idea?
I agree with RE Bear, Ipod--your using the term "exit strategy" begs a comparison to the administration & Congress' apparent complete failure to even consider the concept of an "exit strategy" when making the decision to barrel into Iraq (remember "shock & awe"). Given that record & the actions that brought us to this point (actions & deliberate & intentional inactions of this administration & Congress), maybe you should have a little more understanding for those who don't share your opinion of how smart people are or that they're giving any more real thought to an "exit strategy" for this move then they did to getting out of Iraq (someday).
Perhaps Barney Frank is smart. He is one member of Congress among many. I think Waxman's pretty good myself. Haven't noticed him able to make much headway through the massive corruption of this administration, although he's sure tried.
Somehow, Mr. Frank & all those other "smart" people got us mired in Iraq, Afghanistan & let that bubble get really really big & then pop.
FOXBOROUGH - US House Financial Services Committee chairman Barney Frank said the Treasury will not have to come to the rescue of the two largest sources of US mortgage financing, Fannie Mae and Freddie Mac.
"I don't think it's going to be necessary," he said at a foreclosure prevention workshop at Gillette Stadium in Foxborough yesterday. "Fannie and Freddie have survived housing better than a lot of other people."
After Fannie and Freddie reported combined second-quarter losses of $3.1 billion last week, some investors predicted Treasury Secretary Henry Paulson would be forced to use powers provided by Congress last month to support the companies through capital injections or debt purchases. Government-chartered Fannie and Freddie account for almost half of the $12 trillion of US residential mortgages.
Frank: Fannie, Freddie won't need rescue - The Boston Globe
ipodius,
It's simple micro-nomics. People do what is in their best interests. Every Congressman has their best interests in mind if they do things that enable to make money when they are out of Congress or maximize money when they are in Congress. In case you didn't notice Congress has been taken over by the corporations... no? Our whole government actually... no?
I want to see them man-up and not stick the bill to me and my children... but I highly doubt that will happen given the track record.
jus sayin i believe the quote i saw recently was "unless you are a russian oligarch you have a mortgage". that's very true. and, again, you have to pay RENT, so if a MORTGAGE is not much more than RENT it's a viable transaction. so what's your point? that, all of a sudden, the world is going to just stop and everyone is going to rent AND save for a house until they can pay cash? Are you smoking crack?
Time for a Democratic administration ot come clean up the mess the Republicans made, as always. And, as always, they Republicans will not be required to repay what they've stolen from us all.
Ipod I think you are very bright along with Barney, Benny, and Hank. I think they are working very hard and are doing a good job in the frame work that they are working in. Hopefully, you are right and this is the proper course and it will work. However, my illogic tells me that it is the wrong course and it it is leading us further away from a sustainable society.
The meetings come a month after Paulson hired Morgan Stanley to advise on any use of taxpayer funds to recapitalize Fannie and Freddie. A government takeover would be the latest attempt to blunt the impact of the yearlong credit crisis, after the Fed provided financing for Bear Stearns Cos.'s takeover by JPMorgan Chase & Co.
Under the plan, the government would make periodic injections of funds as the companies' losses warranted, avoiding a large up-front taxpayer cost, according to a person briefed on the plan. Debt and preferred shares would probably be protected, said the person, who declined to be identified.
tg, i think that all you can do is play the hand as dealt. so you look at what the options are, bluff when you have to, and up the bet when you can. these are intelligent guys...all of them. they have access to data and brains. so i have to believe that they're honestly trying to do the best for everyone involved. and i can clearly see the logic too. and you have to admit, the alternatives are horrible, and the GSEs have to be spilt up. now is as good a time as any.
@Misean
what, in this best of all possible worlds, would justify your cynicism?
Barney's buddies Campaign contributions isn't that special.
Real Estate $179,851
Securities & Investment $168,900
Lawyers/Law Firms $154,018
Insurance $126,298
Misc Finance $52,700
Barney Frank: Campaign Finance/Money - Summary - Congressman 2008 | OpenSecrets
Ive never seen this before;
The FHFA has the authority to place Fannie or Freddie into conservatorships or receiverships under the law. The legislation that President George W. Bush signed July 30 also gave the Treasury the power through the end of next year to extend unlimited credit to or make equity purchases in the firms.
Under a conservatorship, the authorities would aim to preserve Fannie and Freddie assets, rather than dispose of them, the law says.
FHFA Assessment
The FHFA was scheduled to release its assessment of the companies' capital levels as early as this week as part of a quarterly appraisal of their finances.
BIG QUESTION for you guys:
Why the bailout now? GSE common has had a nice run, and mgmt bragged they've never been more capitalized? Wonder what tsunami was about to hit that we didn't even know about...
The Regulatory Reform Act, signed into law on July 30, 2008, establishes a new regulator for Fannie Mae and Freddie Mac, the Federal Housing Finance Authority, or FHFA, with enhanced regulatory authority over, among other things, their business activities, including authority to reduce their portfolio investments. The Regulatory Reform Act also expands the circumstances under which Fannie Mae and Freddie Mac could be placed into conservatorship and also authorizes FHFA to place them into receivership under specified
circumstances. The Regulatory Reform Act also provides the Secretary of the Treasury with temporary authority, until December 31, 2009, to purchase any obligations and other securities Fannie Mae and Freddie Mac issue under certain circumstances.
We intend to invest exclusively in Agency RMBS. The Regulatory Reform Act may lead to market uncertainty and the actual or perceived impairment in the credit quality of securities issued by Fannie Mae or Freddie Mac. This may increase the risk of loss on investments in Fannie Mae and/or Freddie Mac-issued securities. The Regulatory Reform Act could adversely affect the availability and pricing of Agency RMBS and, therefore, adversely affect our business.
YLSP writes:
ipodius,
It's simple micro-nomics. People do what is in their best interests
yeah, thats so ayn rand
and thats the problem...selfishness
Argh... hate it when I post on a thread without realizing it's time has passed... from the previous thread. Not that my thoughts are all that profound:
I don't agree that the rich will bear more of the burden than the lower or middle classes.
However, as it becomes clear there is a limit to how much can be offloaded to the hapless taxpayer, we are going to witness some epic power struggles among people and entities who fancy themselves "too big to fail." The rich will have to eat some of their own.
Or as mp said...
"You will see the mother of all crashes when the tit is denied to those who think they are worthy of it."
Indeed. With lots of fireworks on the way down. As another poster says "got popcorn?"
(Black humor, if that isn't obvious....this shit is scary)
trust me, no pizza was served. It was taxpayer-on-a-stick.
There are few congress persons that I would invite over for dinner.
Where was that fudge pounding Frank when this mess was being created. Oh, I remember, running a call boy ring out of his D.C. flat.
Only a constitutional convention or a praetorian guard can right this ship.
Actually upon careful reflection I am pleased at these turns of events. I am particular impressed at the legislative expertise with which Rep. Frank has managed to herd this proposal through the morass that is Washington D.C. such that we taxpayers can vote on this in time whether to save these private companies from the consequences of their hubris and arrogance. [oh wait, haloscan doesn't have a sarcasm tag, sorry]
mt i believe that ayn rand's point was that, oftentimes, selfishness and the greater good align because what's good for me is also good for you. or it could be that i'm just as selfish
The notion of "too big to fail" is BS. So is the notion that the mortgage market would "freeze" or cease to function if the treasury doesn't intervene. This is a move to maintain the grip finance has over our society.
Contrary to what is being reported by TPTB, the mortgage market is dysfunctional because prices are TOO HIGH, not because prices are falling. This is an important distinction. The sooner prices fall, the sooner the mortgage market will operate in a more normal manner.
Maintaining permanent unaffordability is not a solution. Just ask Japan, where families live in 700 SF flats with 50 year multi-generational mortgages.
The Housing and Economic Recovery Act of 2008, P.L.110-289, changes many laws that affect both the housing and mortgage markets. Included in the act are provisions to strengthen and to unify oversight of the housing government-sponsored enterprises (GSEs Fannie Mae, Freddie Mac and the Federal Home Loan Banks). The Treasury is authorized to lend or invest an unlimited amount of money in any of the regulated entities in the event of financial or mortgage market
emergencies.
http://opencrs.cdt.org/getfile.php?rid=64601
FHFA also has broad regulatory powers over the FHLBs, and is required by law to recognize the differences between Fannie Mae and Freddie Mac and the FHLBs. For example, both enterprises must continue to exist, whereas the 12 FHLBs can merge, and FHFA can require FHLBs to merge. FHFA has all the powers of the FHFB, which formerly regulated the FHLBs, including conservatorship and receivership.
The FHFA reviews and can reject acquisition or transfer of a controlling interest in a regulated entity. It can administer conservatorship or receivership through litigation without Department of Justice involvement. FHFA makes certain that the regulated entities operate in the public interest and that the entities remain adequately capitalized. FHFA is to establish standards for each regulated entity for internal controls,audits, and risk management. (Sections 1101, 1102, 1107, and 1108) The prohibition (in prior law) against excessive executive compensation is enhanced by permitting FHFA to take into account wrongdoing on the part of the executive, and to hold pay in escrow while a determination is made. (Sections 1113and 1114)
Ross,
The surprising thing about Frank/gay is that he's a Dem. 99% of the time it's the Republican guys who are in the gay scandals. At least he has the balls to be out. That wouldn't work so well for you and your fellow hypocrites, though, would it?
"mortgage market is dysfunctional because prices are TOO HIGH"
That is under a free market economy and a capitalistic system that allocates capital to it's most productive use although maybe you didn't get the memo: We don't have one.
Doingwhat is in your own self interest is NOT the problem. Having a minority without oversight acting on youiZr behalf IS a problem.
We were founded as a republic, NOT a democracy. Worse still, our financial system is currently acting as a bizarre socialist/fascist monopoly.
ipodius
i dont get the sense that you are selfish
ayn rand has a lot going for her in her philosophy...and you recall greenspan was one of her best friends
any idea taken to the limit gets crazy
but seriously we need people who are willing to forego more wealth and more power to do the right thing for greater good of the people
and those leaders seem to be in short supply of late.
im a big fan of roosevelt...both of them
one a conservative, one a liberal
different,but they had one thing in common..give the average guy an even break with the system
neither man was perfect and both made mistakes...but both were good guys, imperfect but i believe truly cared for, and about america.
Man-moth
'At least he has the balls to be out.'
I think that remains to be seen. Can't really tell wheather he is the poundor or the poundee.
fun fun
Presidential candidates and house lawmaker comment on gov't plans to stabilize Fannie, Freddie
WASHINGTON (AP)
All this would not have happened if "we the people" enact and enforce annual contracts of performance for those who get elected.
But then again, as far as wealth is concerned, doesn't the top 5% control 95%.
So everything is going according to plan.
I'm not looking for a hand out. It seems most others here aren't either. But I strongly object to arbitrarily being forced to subsidize speculators and foolish lenders. All in the interest of "too big to fail." What a crock.
Too big to fail is a bogus slogan for sheep.
GRRRRRRRR!!!!
why now? what triggered the suddenness for this move?
A government bailout could cost taxpayers around $25 billion, according to the Congressional Budget Office.
If it were only 25 billion, we would'nt be discussing it on CR
In regard to the brazen plot to use Freddie and Fannie as a Trojan horse for Wall Street barbarians to raid taxpayers, the following is a simultaneous translation of the WSJ article (Deborah Solomon & Damian Paletta Sept 6, 2008):
"The Treasury Department is close to finalizing a plan to help shore up mortgage giants Fannie Mae and Freddie Mac, according to people familiar with the matter." [It's the week-end...time for the Wall Street/Fed/Treasury mafia to concoct another taxpayer scam.]
"Precise details of Treasury's plan couldn't be learned." [Don't ask. We don't tell]. "The plan is expected to involve a creative use of Treasury's new authority to make a capital injection into the beleaguered giants." [We can turn water into wine].
"The plan includes changes to senior management at both companies, according to a person familiar with the plans." [The rogue elephant CEOs will be tranquilized and shipped to the Serengeti plains of Africa.]
"An announcement could come as early as this weekend."[We need to act before the Asian markets open on Sunday.]
"On Friday, a series of high-level meetings were planned between Federal Reserve Chairman Ben Bernanke, Treasury Secretary Henry Paulson, the chief executives of Fannie Mae and Freddie Mac and the companies' new regulator, the Federal Housing Finance Agency."[Fannie Mae and Freddie Mac will become "made" members of the Wall Street /Fed/Treasury mafia in a Friday night sit-down.]
"Treasury has been working with bankers at Morgan Stanley to use its newfound authority, granted by Congress in July, to devise a way to prop up the mortgage giants, which have been pummeled by investors in recent weeks."[Hank 'the mole" Paulson has been scheming with the Wall Street crew to set up a "bust out" operation of the two tons of fun - Fannie Mae and Freddie Mac. The only detail remaining is who will be installed as front men to run the bust out operation.]
@ butter writes:
why now? what triggered the suddenness for this move?
The move was a long time coming.
instead of 'to big to fail',
let's start using
'to thick to shear. just slaughter it!
Why does this bailout have to be announced before
the Haitian markets open? I don't get it. Don't they have enough problems?
Yes Barney Frank is smart.Yes he was pimping little boys.yes he is a consummate politician and beltway insider with no moral compunctions whatever.And I would trade 90% of our california politicians for him in a heartbeat because as disgusting as he is he is a LOT better than most in the house and senate.I ordered a Carboy of everclear this morning,and have a couple of illegals digging up the Valerian patch (1/4 acre)I hope it lasts me through the election.
Oops! Never mind.
Re: why now? what triggered the suddenness for this move?
This is emergency action; Paulson can only do this shit in an emergency.
Stop with the "he/she/they're smart nonsense.
Seriously, if they were "smart" or even just exercising basic oversight this mess would have never happened.
I see a BIG logic problem with the "smart" slogan.
Wake up people! They are stealing from you. The honest, prudent and hard working Americans are being ripped off!
Treasury and Federal Reserve. In the event of a financial or mortgage
market emergency, the Treasury is given the authority to stabilize the housing finance
system by purchasing obligations and securities of the housing GSEs in unlimited
amounts under terms and conditions determined by Treasury. This authority expires
December 31, 2009. (Section 1117)
The PPT is now just Paulson!!
The question now is, how do taxpayers get involved, how will we pay, will it be higher taxes, or what? What role do we pay in this casino?
i think that all you can do is play the hand as dealt
I think figuring out who dealt the hand has a lot to do with the appropriate way to play it.
The act creates a new, stronger, unified regulator for Fannie Mae, Freddie Mac,
and the Federal Home Loan Banks (the housing GSEs). As a result of various
provisions in the act, the secondary mortgage market is likely to be broadly affected.
For example, the Secretary of the Treasury is given (until December 31, 2009) the
authority to lend or invest in the housing GSEs on whatever terms the Secretary
determines to be appropriate.
Jus wrote:
ipod, what's the ramifications of people paying cash for houses.
of people saving and renting for years and then buying.
is there any 'loss' in that idea?
Unfortnately at this time there is.
House prices would fall 80%-90% and we would have great depression 2.
The truth is FNM and FRE are part of the problem. Because of their existence houses are much more expensive.
I would prefer that they did not exist and everybody had to put 20% down to buy a house.
But I am also a realist, we are trying to avoid a complete meltdown of our finacial system and a depression.
"It is difficult to get a man to understand something when his job depends on not understanding it." - Upton Sinclair
We need to fire them all and start over. It's not that complicated. This b
give it 10 seconds the talk turns to a most appropriate song from dr strangelove
YouTube - Dr. Strangelove
What? We have to pay higher taxes when government spending increases? I thought Reagan proved that deficits don't matter.
reagan didnt say that, cheney did
Frank is nothing more than a coorupt politician. There was an article in the paper today about how he is receiving an interest free loan. What a crook. He should be in jail not in Congress.
link please or name and date of paper?
The "another great depression" slogan is BS too. Only 2% of Americans work in agriculture, yet we ship excess food around the world. Clean water is so cheap we see fit to green our lawns and golf courses with it.
This bailout is about maintaining finance's grip on our society. In other words, keeping the masses from defaulting on debt, and starting over as they entitled to do.
Mike, I think you're referring to Rangel.
Sorry for the drift but... Reagan knew exactly that deficits mattered. He knew they could restrain the Congress he faced and it did. It was the spendthrift Congress that revolted against those restraints and plunged us into chronic structural deficits which caused many of our current batch of problems.
The savings and loan crisis of the 1980s and 1990s (commonly referred to as the S&L crisis) was the failure of 747 savings and loan associations (S&Ls) in the United States. The ultimate cost of the crisis is estimated to have totaled around USD$160.1 billion, about $124.6 billion of which was directly paid for by the U.S. governmentthat is, the U.S. taxpayer, either directly or through charges on their savings and loan accounts[1]which contributed to the large budget deficits of the early 1990s. The resulting taxpayer bailout ended up being even larger than it would have been because moral hazard and adverse-selection incentives compounded the systems losses.
Savings and loan crisis - Wikipedia, the free encyclopedia
See Also: Lincoln Savings and Loan
The Lincoln Savings led to the Keating Five political scandal, in which five U.S. senators were implicated in an influence-peddling scheme. It was named for Charles Keating, who headed Lincoln saving and made $300,000 as political contributions to them in the 1980s. Three of those senators - Alan Cranston, Don Riegle, and Dennis DeConcini - found their political careers cut short as a result. Two others - John Glenn and John McCain - were rebuked by the Senate Ethics Committee for exercising "poor judgment" for intervening with the federal regulators on behalf of Keating.[10]
Will lending standards/requirements change for fannie and freddie while under conservatorship?
(i.e. will it be easier or harder to obtain a loan?)
cheney said it about reagan
washingtonpost.com: Reagan Policies Gave Green Light to Red Ink
Vice President Cheney allegedly declared, "Reagan proved deficits don't matter," he summed up an enduring argument from the former president
washingtonpost.com: Reagan Policies Gave Green Light to Red Ink - Similar pages
t was the spendthrift Congress that revolted against those restraints and plunged us into chronic structural deficits which caused many of our current batch of problems.
I bet this line works on people who don't know who David Stockman was. If they're really drunk. And high. And had a recent head injury.
Republicans. Democrats. Bah!
They're part of the oligarchy!
When are you guys going to figure that out?
Of the $160.1 billion in total direct and indirect costs, approximately
$132.1 billion, or 83 percent was provided from taxpayer funding sources.
The remaining $28.0 billion, or 17 percent was provided from industry assessments and other private sources.
Taxpayer funding for RTCs direct costs is estimated to be $81.9 billion,
which is made up of $56.6 billion in appropriations and $25.3 billion
related to the governments responsibility attributable to the REFCORP transaction.
Although most of the direct and indirect costs of the savings and loan
crisis had been funded or provided for through December 31, 1995,
significant fiscal implications remain as a result of the crisis. Substantial
funds were borrowed through bonds specifically designed to provide
funding for a portion of the direct costs. Both taxpayers and the industry
are paying financing costs on those bonds...
http://www.gao.gov/archive/1996/ai96123.pdf
Can't we just raise payroll taxes and then not pay back Social Security when the time comes?
It is interesting to note that rating agencies are not included in this new law, so perhaps, that is hopeful in a small way?
FHFA is to set capital classification standards for the FHLB, Fannie Mae, andFreddie Mac that reflect the differences in operations between the banks and theenterprises. (Section 1142)FHFA may downgrade the capital classification of a regulated entity (1) whoseconduct could rapidly deplete core or total capital, or (in the case of an enterprise)whose mortgage assets have declined significantlyin value, (2) which is determined(after notice and opportunity for a hearing) to be in an unsafe or unsound condition,or (3) which is engaging in an unsafe or unsound practice..
Why before Asian markets open?
In case you have not been watching, S&P broke support this week. So, if nothing is done we are going to retest lows are break them. My guess is Paulson's wall street friends are panicing - so lets bail out fnm and fre. The market should actually rise on this. The market does not like unknowns, and after this weekend FNW and FRE fate will be decided. (More likely they will do as little as posible and say they have saved the world.) How far the market bounces up will depend on how it "appears" the perfered is handled. ie. the prefered could still take a hit later, but hot now.
How is that the fed & treasury can't identify bubbles or excess speculation, but they can identify disorderly markets or markets in need of intervention?
What a crock of manure. This is a bailout of finance to maintain their grip on our society.
Americans are debt slaves for financiers. Sleep sheeple, sleep. This bailout is for your benefit. Trust us.
HAHAAHAHHA! Drink the koolaide. Sweet dreams sheeple.
Of course, in the middle of the biggest financial scandal ever, the bankers want one of the Keating 5 as president. He may be a pretty used-up old whore, but at least the johns know what to expect for their money.
Given the recent enactment of this Act and the fact that FHFA has considerable discretion in implementing its provisions, including through rulemaking proceedings and the issuance of orders, we cannot predict the impacts that the Act and FHFAs exercise of its authority under the Act will have on our business, financial position or results of operations. However, to the extent the Act or regulations or orders issued by FHFA pursuant to the Act may, for example, increase our capital requirements, limit our portfolio and new product activities, increase our affordable housing goals, or limit our ability to attract and retain senior executives, we anticipate that the impact could be materially adverse
"Can't we just raise payroll taxes and then not pay back Social Security when the time comes?"
We are fast approaching the point where working or paying ones debts makes little sense. Socialism always works that way.
can we re-cap what this preferred is everyone keeps mentioning? for those of us not part of the perma-blogger subset.
Conservatorship and Receivership. The legislation provides FHFA new authority to place us into receivership, and enhanced authority to place us into conservatorship, based on certain specified grounds. Further, FHFA must place us into receivership if it determines that our debts have exceeded our assets for 60 days, or we have not been paying our debts as they become due for 60 days.
Can't we just raise payroll taxes and then not pay back Social Security when the time comes?
That would be an excellent swindle of the middle-class wage earners, and their heirs, whose payroll taxes were RAISED ALREADY to build up the TWO TRILLION DOLLAR FICA SURPLUS.
If that's how the Greenspan Commission's policy change goes down . . . KUDOs to the thieves who executed it.
mporary Provisions
Enhanced Authority of U.S. Treasury to Purchase GSE Securities. The Secretary of the Treasury has long had authority to purchase up to $2.25 billion in our obligations. The legislation provides the Secretary of the Treasury with additional temporary authority to purchase our obligations and other securities on terms that the Secretary may determine, subject to our agreement. This expanded authority expires on December 31, 2009. To exercise this authority, the Secretary must determine that such a purchase is necessary to provide stability to the financial markets, prevent disruptions in the availability of mortgage finance, and protect taxpayers. In connection with exercising this authority, the Secretary must consider: the need for preferences or priorities regarding payments to the government; limits on maturity or disposition of obligations or securities to be purchased; the companys plan for orderly resumption of private market funding or capital market access; the probability of our fulfilling the terms of the obligations or other securities, including repayment; the need to maintain our status as a private shareholder-owned company; and restrictions on the use of our resources, including limitations on the payment of dividends and executive compensation.
Meanwhile, across the Pacific....
FINANCE - - Top News - Comcast.net
Sorry I forgot Frank is for prostitutes it was the other crook Rangel.
Rangel gets interest free loan - Topic Lexington, N.C. forums
Hurricane Ike has strengthened to an "extremely dangerous" Category 4 storm, forecasters say.
Here's more reasons why this bailout will be more expensive than most imagine.
First, house prices will never decline to a natural and affordable level. Second, after we bailout the Chinese and Japanese via their fannie & freddie paper, they will still tighten lending terms with us in the future.
What's in it for the tax payer?
mp writes:
Republicans. Democrats. Bah!
They're part of the oligarchy!
When are you guys going to figure that out?
mp | 09.06.08 - 4:46 pm | #
Well Said..
I don't think the american public has a clue....
So, despite the faux celebration at the ability of FNM and FRE to sell a smidgeon of debt this week, the GSEs likely had no chance to roll over 200B of debt this month. That's probably the reason for Treasury's actions.
What a treat, hope you enjoyed this as much as Kona, et al did!
If we become undercapitalized (that is, we fail to meet our risk-based capital requirement but continue to meet our minimum capital requirement), we would be required to submit and implement a capital restoration plan to FHFA and would become subject to significant restrictions on our business and use of capital. We would not be permitted to make any capital distribution that would cause us to be reclassified as significantly or critically undercapitalized. In addition, we would not be permitted to increase the size of our mortgage portfolio or to engage in any new activity without the approval of the Director of FHFA. The Director of FHFA would also have the discretionary authority to take a number of additional actions relating to our business, including requiring that we sell assets, reduce our off-balance sheet obligations, acquire new capital, terminate certain business activities, replace our management or any other action the Director deems appropriate. If we become significantly undercapitalized (that is, under existing regulations, we fail to meet our minimum capital requirement, but continue to meet our critical capital requirement), we would become subject to significant additional restrictions beyond those described above. If we become critically undercapitalized (that is, we fail to meet both our risk-based and critical capital requirements), the Director of FHFA may place us into conservatorship or receivership under specified conditions, which would transfer control of the corporation to the U.S. government. Moreover, the Director of FHFA is required to appoint a receiver if he determines that, for the preceding 60 days, our debts have exceeded our assets or we have not been paying our debts as they become due.
The Director of FHFA also has the discretionary authority to downgrade our capital classification if the Director determines that we are engaging in conduct that could result in rapid depletion of our capital, the value of the property subject to mortgages we hold or have securitized has decreased significantly or we are operating in an unsafe or unsound condition, or for other reasons. In addition, the Director of FHFA has the right, by order, to temporarily increase our capital requirements to ensure our safe and sound operations.
http://msnmoney.brand.edgar-online.com/EFX_dll/EDGARpro.dll?FetchFilingHTML1?ID=6087277&SessionID=3kGoWy3TKiaWZ_9#W58421E10VQ_HTM_146
Come on now, that was good:
If we become critically undercapitalized (that is, we fail to meet both our risk-based and critical capital requirements), the Director of FHFA may place us into conservatorship or receivership under specified conditions, which would transfer control of the corporation to the U.S. government.
What's in it for the tax payer?
Soft landing?
CNBC is going to be fun to watch on Monday morning.....
Why now? Because the Chinese told us to make the guarantees explicit. I have just assumed that earlier on Bush have his pledge to stand behind the FnF or else they wouldn't have sold so well. (The sales were after all his bail-out) Now with elections coming it was time to ink the guarantee. Also Russia either started dumping bonds or threatening to (I forget which). The guarantee removes the ability of Russia to use this as a threat and lets Cheney goosestep around the black sea.
The fix must have been well in. Because the bail-out bills sailed through congress and Bush signed it. I would not be surprised if there wasn't a wink and node agreement about not using it as an election issue. The alternatives must have been patent and potent.
Finally, from what I have seen and heard I agree that we are lucky to have Frank as chair. No I don't think he was interested in Paulson's bazooka. He inherited so much of the mess he did have to play the hand dealt
Only a constitutional convention or a praetorian guard can right this ship
LOL, we'll still be stuck with the ~60 million foolish americans who believe humanity was created by the tooth fairy 10,000 years ago. I could go on delineating the other foolish sub-populations but the fundies are the most numerous and most idiotic, IMHO of course.
The permanent fix for this particular problem, for me at least, is a business class ticket on JAL to NRT.
BTDT, got the t-shirt.
Last tip of the day:
FHFA SENDS 'NOTICE OF ESTABLISHMENT' TO FEDERAL REGISTER
The Federal Housing Finance Agency (FHFA) has transmitted to the Federal Register a Notice of "Establishment of a New Independent Agency." This provides formal public notice of the existence of the Agency, its purpose and the chapter of the Code of Federal Regulations (CFR) that it will employ for public dissemination of regulations, guidances and other publications. The new chapter of the Code is Title 12 CFR Chapter XII.
FHFA SENDS 'NOTICE OF ESTABLISHMENT' TO FEDERAL REGISTER - Bloomberg.com
Nice to see Welsh has learned to cut and paste.
Ipodious-
Frank is Chairman of the House Financial Services Committee. Which means he was there all along as this catatrophe developed- and did NOTHING until it started to explode in the pigmens' faces. At which point he jumped out in front and was the first to scream "We've got to help the poor homeowners!!! "
So if you say he's smart, I believe you.
The problem is, he is using his smarts to absolutely screw the average American, from the Upper to Lower Middle Classes to those living in real poverty.
He serves the ultra ULTRA rich.
Good people of Massachussettts, PLEASE get this asshole out of our Government.
We desperately need reps. who serve We the People. The ultra rich can always take care of themselves. They don't need Barney Frank and his ilk. They will not starve with or without Barney Frank.
Yeah, that Barney Frank has no morals.
I don't like Frank either.
(writing from some airport)
For those interested in the bill we had a thread and comments last month...
Link to CR on Foreclosure Prevention Act
There might have been 2 or 3 threads around the same time. Or was the blank check not in this bill?
I've never seen such a group of whiners. We don't need no stinkin' regulation. I got mine, Jack, you get yours.
Pershing Square Capital Management Releases Letter to U.S. Treasury Department Regarding Fannie Mae and Freddie Mac
Expired
Orangeman - By bailing out Freddie and Fannie, Hank "the mole" Paulson is bailing out not just Wall Street but also China, one of the largest holders of Freddie and Fannie paper. This week Wild Bill at PIMCO called Paulson's bluff to put up or shut up. Paulson is acting quickly before the Asian markets open to reassure China that the U.S. will bail the Chinese out of bad investments in Fredddie and Fannie...if it takes every last dollar of the U.S. taxpayers.
Paulson is not just bowing to the East, but bending over for the East...and Wall Street.
What's in it for the tax payer?
Angry Saver | 09.06.08 - 5:08 pm | #
Broken dreams
YouTube -
Geez, you go out for life and this is what the thread looks like.
Appreciate the comments - good and bad.
For most part, Ipodius, I agree with you. After the initial stage of anger, screw denial and get on with fixing it.
But you made a comment in the last thread - yeah, which one was that? - that goes to the heart of it.
Keep the system going by securitizing and using that as oil to lube. But securitizing is pretty much what got us here. Outside of the realm of regulation and beyond the scope of the Fed. And the banking system has shot it's wad for God knows how long.
Wife and I had long, painful conversation this AM. Candidates aren't getting it.
We now answer to the bastards in China, Russia and Abu Dhabi and it's going to be a huge effort to dig our way out. But that isn't going to happen without:
My eyes are bleeding. Time for a beer and cooking.
FUCK ALL Y'ALL BITCHES!
This was in the news in July:
The Treasury Department gains unlimited power, until the end of 2009, to lend money to Fannie Mae and Freddie Mac or buy their stock should they need it. The Federal Reserve takes on a new "consultative" role overseeing the companies.
See bill here: THE HOUSING & ECONOMIC RECOVERY ACT OF 2008
H.R. 3221
(DETAILED SUMMARY)
http://www.house.gov/apps/list/press/financialsvcs_dem/detailed_summary_of_hr_3221.pdf
The bill increases Treasurys authority under existing lines of credit to Freddie Mac,
Fannie Mae, and the Federal Home Loan Banks for the next 18 months, giving Treasury
standby authority to buy stock or debt in those companies.
To use the authority, the Secretary must make an emergency determination that
use of the authority is necessary to stabilize markets, prevent disruptions in
mortgage availability, and protect the taxpayer.
To protect taxpayers, the Treasury is directed to consider the need for priorities or
preferences for the government, limitations on dividends, executive compensation
or other uses of resources.
The authority also provides enhanced oversight of the enterprises while standby
facility is in place, with the Federal Reserve consulting with the new regulator on
the safety and soundness of and risks posed by the GSEs.
As part of the enhanced oversight the new regulator must specifically approve,
disapprove or modify executive compensation at all of the GSEs.
Have a nice day!
So our Friday night bank failures included two whales. Pizza pizza.
Frank is Chairman of the House Financial Services Committee. Which means he was there all along
You may wish to avail yourself of a newspaper and a calendar. And maybe a flashlight and two hands.
Anonymous: Well, that was productive.
mp: Yeah, they're pretty much all part of the political class. Anything else new?
Ackman wrote a good letter. I agree with him. My gut says the common and preferred and subordinate will get bailed out too, though.
It's on Thomas LOC. There were a number of threads around here on it. It was passed by both Rs and Ds. The Rs could've blocked it and opposed it more vigorously if they wanted to, but no one knows why they didn't. Bush could've even vetoed it and they would've had enough to uphold.
My medications must not be working properly - if I recall Team Bush DEMANDED these powers... Paulsen is one of his fricking cabinet members... one of the most influential & important!!! He didn't sneak it in there by surprise.
The reason the GOP congress critters didn't fuss (except symbolic waffling) is because this is one of THEIR OWN!!! They are on board!!!
Blame the Dems for not coming up with something better sure but jimminy the plan we got is a Bush Paulsen Plan top to bottom!!!
I laugh at all those who blame others (China etc.) for the problems they themselves created.
It takes two to clap.
If you don't want debt then don't buy things you can't afford, and if you use debt then at least have the integrity to pay it off when it is due.
Maybe now you'll have to actually pay for what you want. But am not holding my breath, waiting for more distractions to occur.
cd,
ackman , never ashamed to talk his book.
long cds, huge, of course!
The ranking Rep on this committee is Spenser Bachus. His Alabama district includes the recently infamous Jefferson county.
And just as an aside: what exactly would his critics here want him to have done?
BSC Caught the feds flatfooted. I doubt there was interest in this happening again. I think that the bills, the mechanisms for the bail-out etc were all worked out in advance on a bi-partisan manner. Meanwhile there was the usual media orchestration to lead us gently into seeing the danger of a F&F default.
The exact timing was I think moved up by the Russian threat
Yeah, unlike Gross who only wants what's best for the country.
dryfly,
You're correct. Paulsen was the one who gave the cover to Democrats for "bipartisanship". It was odd to see Frank praising Paulsen on the house floor during the debates. Bush threatened to veto the $4B grant for localities to buy forclosed homes. Must not've been for fiscal reasons.
For some reason I was remembering Republicans could've blocked it if they held together, but they didn't... and Bush didn't bother as you correctly pointed out it was his branch.
So yeahyeahyeah, you're right... there was no chance it would've been vetoed even if it passed 51-49 in the Senate and whatever in the House. We're so screwed..
ob Dawg writes:
Sorry for the drift but... Reagan knew exactly that deficits mattered. He knew they could restrain the Congress he faced and it did. It was the spendthrift Congress that revolted against those restraints and plunged us into chronic structural deficits which caused many of our current batch of problems.
If it was a restraint, why did it not restrain? Quoth Inuogo Montoya "You keep using that word. I do not think it means what you think it means."
Kinda wonder whether if F&F did some digging and found that Goldman et al shoved a couple hundred billion of worthless paper into the pockets of F&F by lets say,oh,...
tinfoil hat off
test
One last friggn thing, Id like to mention that Treasury had to invent a new agency which would allow for the mechanism in which Paulson will essentially abuse his power; he has no right to jump in bed with Fannie or Freddie, because they are not public entities. This is why they are placing these toxic mafia orgs in conservatorship, because they want to play a pea and shell game with private versus public, and this is illegal activity IMHO! Fannie and Freddie are corporationswith shareholders and this is a violation of antitrust law, so fuck you Paulson!
§ 321. General authority of the Secretary
(a) The Secretary of the Treasury shall
(1) prepare plans for improving and managing receipts of the United States Government and managing the public debt;
OK, that says public debt....not friggn jump in bed with Fannie and Bill Gross!
(5) prescribe regulations that the Secretary considers best calculated to promote the public convenience and security, and to protect the Government and individuals from fraud and loss,
Paulson, is not protecting American taxpayers from fraud, he is bailing out his buddies on wall street!
(7) with a view to prosecuting persons, take steps to discover fraud and attempted fraud involving receipts and decide on ways to prevent and detect fraud;
(a) To manage United States cash, the Secretary of the Treasury may invest any part of the operating cash of the Treasury for not more than 90 days. Investments may be made in obligations of
(1) depositaries maintaining Treasury tax and loan accounts secured by pledged collateral acceptable to the Secretary
§ 324. Disposing and extending the maturity of obligations
(a) The Secretary of the Treasury may
(1) dispose of obligations
(A) acquired by the Secretary for the United States Government; or
(B) delivered by an executive agency; and
(2) make arrangements to extend the maturity of those obligations.
(b) The Secretary may dispose or extend the maturity of obligations under subsection (a) of this section in the way, in amounts, at prices (for cash, obligations, property, or a combination of cash, obligations, or property), and on conditions the Secretary considers advisable and in the public interest.
§ 329. Limitations on outside activities
(a)
(1) The Secretary of the Treasury and the Treasurer may not
(A) be involved in trade or commerce;
What does this mean for the dollar, gold, and the open on Monday?
it means boooyaaaahhahahahahah time
What is really odd is that the prospectus of F&F says "not guarenteed by the US Government"
Moral Hazard 'el supremeoooo
I lost money in Vegas three weeks ago. Perhaps I should do a re-cap and send the statement of loss to the US Tres. and they can cover me, too. After all I had no intenetion of losing the money so it is someone else's mistake.
Au should do "nicely" on Monday.
Was that the housing bill that Barney got passed or was that the kiss of death for the economy bill.
Keep up the good work Barney
MLB
why now? what triggered the suddenness for this move?
NYTimes is reporting more accounting fraud at Freddie prompted the move.
- NY Times
For folks curious about John McCain on this issue, check out what he wrote in July:
Take taxpayers off hook for rot at Fannie, Freddie - St. Petersburg Times
"Americans should be outraged at the latest sweetheart deal in Washington. Congress will put U.S. taxpayers on the hook for potentially hundreds of billions of dollars to bail out Fannie Mae and Freddie Mac. It's a tribute to what these two institutions which most Americans have never heard of have bought with more than $170-million worth of lobbyists in the past decade."
"Ackman , never ashamed to talk his book."
Maybe he is short the preferred.
He is right though. Actually the FAIR solution is let all of the unsecured debt twist in the wind. Just guarantee the guarantee.
If there is a bounce, its a false one. If anything, the situation has changed for the worse. We knew these companies were too big to fail; now it is the government thats on the line instead of them, said veteran analyst Richard Bove at Ladenburg Thalmann. He said unless the government had a plan for what to do next this was an unbelievably negative move that would increase the government deficit and could impact on Americas ability to borrow money.
Record bail-out in US of Fannie Mae and Freddie Mac - Times Online
Ya Think?
What we need is more uncertainty. Won't some lawyers please step forward and tie this cluster up in court?
--Please...
This so-called bailout will only hasten the deflationary spiral, by nudging up longer-term interest rates and mortgage rates.
The "rescue" won't make housing prices go up--it will just create the illusion that government officials tried their best to make housing prices go back up.
I can't get away from this! I don't understand why Lockhardt is involved, when in fact Fannie/Freddie are to be under the control of FHFA?? This is all being done on the fly, like some crazy idea from an attention deficit idiot!
Re: On Friday, executives from Fannie Mae and Freddie Mac were ordered to appear in the offices of their regulator, James B. Lockhart, in separate meetings, and were told that regulators were exercising their authority to place the companies in conservatorship, which would allow for uninterrupted operation of the companies but would put them under the control of Mr. Lockhart.
Re: FHFA is to set capital classification standards for the FHLB, Fannie Mae, andFreddie Mac that reflect the differences in operations between the banks and theenterprises. (Section 1142)FHFA may downgrade the capital classification of a regulated entity (1) whoseconduct could rapidly deplete core or total capital, or (in the case of an enterprise)whose mortgage assets have declined significantlyin value, (2) which is determined(after notice and opportunity for a hearing) to be in an unsafe or unsound condition,or (3) which is engaging in an unsafe or unsound practice..
That does not say that OFHEO takes over, WTF is going on????
I'm not that worried about Fannie and Freddie. It's not that important in the big picture of things.
But I can't stop thinking about the bobcats.
Ask yourself...if bobcats started taking over our neighborhoods, would mortgages really matter much?
NYT is now saying Freddie overstated its book.
- NY Times
Read some great posts on actions the everyday person can do. I think these need reiteration.
1) Hold your elected reps accountable. Phone calls, emails, faxes. EVERY DAY.
2) Take your money out of the banks. Leave in the amount you need for paying bills but since there is a shortage of safe investments keep the cash from them to continue to leverage.
3) Quit paying your credit card bills and let them know why. Enough people do this then they will pay attention. Personal debt is the next looming threat to the economy.
4) Know someone in a profession that contributed to the bubble? Let them know you hold them with contempt.
5) Your house has lost more than 30% in value. Walk away. It really is a business decision. Do what's best for you and yours not what other people might think.
6) Declare BK. Seriously, walk away. Start over. Being a servant to your debt is not a way to live the only life you'll ever have.
Feel free to add to the list.
To the people who will respond with cries of personal integrity and do what's right. Look around and ask yourself if the corporations and government have integrity and do what's right for society.
Home price declines have to be halted in order to revive the U.S. economy, 2) the Bear Stearns crisis and its solution will lead to increased government regulation and a higher probability of inflation, 3) J.P. Morgan (the old man) was right character, not assets, should form the foundation for lending, although a reversion to this old-fashioned model is not likely anytime soon, and 4) whether you know it or not whether you like it or not you are bailing out Wall Street.
Investment Outlook
Bill Gross | April 2008
Alrighty then.
NYT is now saying Freddie overstated its book.
Someone send a memo to Tanta.
Clear fraud
Finally, regulators are concerned that the companies may have mischaracterized their financial health by relaxing their accounting policies on losses, according to people familiar with the review. For years, both companies have effectively recognized losses whenever payments on a loan are 90 days past due. But, in recent months, the companies said they would wait until payments were two years late. As a result, tens of thousands of loans have not been marked down in value.
1) Hold your elected reps accountable. Phone calls, emails, faxes. EVERY DAY.
You can cross this one off the list. They do not care what you think. How much can are you willing to send them? Their opponents? Oh...then fuck off and thanks for calling.
I wonder what this all means, which no one seems to discuss ...
To me, this seems crazy. Because the US is unwilling to let FRE/FNM default on its bonds (and still pay 90c on the dollar or so at the end) it will become the largest socialist experiment ever (government taking over 5T$ of debt ...) how could anyone think this might end up well?
That does not say that OFHEO takes over, WTF is going on????
I believe the Dodd-Frank bill renamed OFHEO but Lockhart is still in charge of the new regulating entity.
And yes, that's the same guy who cut the GSE's capital requirements back in Feb or march.
Hold your elected reps accountable. Phone calls, emails, faxes. EVERY DAY.
Sorry, but as a rule I rarely take advice of sperm, and never Satan (at least consciously). So I certainly wouldn't take it from the sperm of Satan!
Angry,
Yah, You seem to be on it!
I am hopeful the new agency will be better suited to provide better oversight than OFHEO did. OFHEO was essentially a rubber stamp for the GSEs until a few years ago when the FNMA accounting scandal woke it up. A new director took the reigns at OFHEO, James Lockhart, who seems to be doing all the right things (and one heck of a lot of press releases).
From the latest press release, it looks like the current director of OFHEO had a big hand in creating the new agency, FHFA. Since Lockhart has been pretty coherent, Ill try to consider this as a good thing.
Also: Whichever side wins, there will be a big change in the cast of characters, especially the Agency heads (Treasury, SEC, FDIC, and FHFA, which is the new agency that will be doing OFHEOs job to regulate the GSEs) during these unsettled times.
Grading Paulson and Bernanke -- Seeking Alpha
I made the mistake of writing Frank a couple of heartfelt letters asking for help with the FDIC and to tip him off about the impending banking crisis and FDIC's lack of staff. He wrote back in a hateful tone to make sure I understood he would not help me or second quess FDIC. It felt like a knife in my back. What I got out of it? Never ask him for personal help. He is on the grand stage where he belongs.
I like reading these posts like gone fishings on things that anyone can do. It seems to me that the ultimate way out is to screw it all and start living in an underground economy with some tribal elements that could get into things like
grow your own food
make your own clothes
build your own house
provide your own entertainment
do alternative medicine
home brew
etc, etc
"Americans should be outraged at the latest sweetheart deal in Washington. Congress will put U.S. taxpayers on the hook for potentially hundreds of billions of dollars to bail out Fannie Mae and Freddie Mac. It's a tribute to what these two institutions which most Americans have never heard of have bought with more than $170-million worth of lobbyists in the past decade."
Angry Renter | Homepage | 09.06.08 - 6:03 pm | #
John "Silverado" McCain upset about lobbying largess? Well of course - he probably didn't get enough from them himself...
Not sayin' McC is worse - just sayin' he was there for like a quarter century and did what? A campaign reform bill w/ Russ Feldstein of Wis (cool) but nothing really to 'fix' F&F. He's as culpable as any of them... Mr. Outsidermyass?
FFDIC writes: He is on the grand stage where he belongs.
FFDIC | 09.06.08 - 7:28 pm | #
He is in a safe district... you aren't in his district nor connected to an active contributer... hence you are day old left on the counter chopped liver in his eyes. I'm surprised you got a letter in reply unless it was to ask for donations.
That is the way the thing works... pay to play.
"mt i believe that ayn rand's point was that, oftentimes, selfishness and the greater good align because what's good for me is also good for you."
Well said!
Beyond that, individualism promotes choice, and having a choice is always good.
I have a question. Since I just don't want to get all upset and pissed off by reading on planned bailout, what is the true motive of it.
Is it
a) Bailout of the mortgage and RE industry
b) The financial liquidity of US economy
thankies,
Lazy Chaos
correction
b) The liquidity of US financial system.
Major Stock market rally on Monday, with gold and commodities being severely punished. If you own gold, sell NOW!!!!
dryfly,
The first letter I wrote to Frank was in the early 90s when I lived in MA his home state but yes - not in his district. Shortly after he wrote me he went to Mississippi to help two lesbians who had been attacked. They also were not in his district or state but were getting wide media attention. None of my elected officials in TX will help most federal employees unless they are connected to NASA.
Welsh rarebit at 5:53pm. Here's another thing about Paulson.
Can Treasury Secretary Paulson be expected to investigate and refer for prosecution Goldman Sachs CEO Paulson?
Paulson was Chairman and CEO of Goldman Sachs from 1998 to June 2006. Whatever role Mr. Paulson and his firm Goldman Sachs may have had in the subprime CDO fraud, Ponzi schemes, fleecing of pension funds, and other financial crimes remains to be seen...preferably by a state and federal investigations of Goldman Sachs and other investment banks.
It is in the Treasury Secretary's role as regulator and investigator of potential wrongdoing and criminal acts at Goldman Sachs that Paulson has an indisputable conflict of interest. Can Treasury Secretary Paulson be expected to investigate and refer for prosecution Goldman Sachs CEO Paulson?
Mr. Paulson has a blatant conflict of interest. He is part of the problem, not part of the solution. Mr. Paulson is the biggest Wall Street fox ever allowed in the biggest henhouse (U.S. Treasury). Outrageous!
Public confidence in the banking system will only be restored after vigorous investigation and prosecution of those guilty of the biggest financial crimes in U.S. history. Hank "the mole" Paulson is a person of interest.
How many Democrats voted against the authorization of these powers?