We have a 'Bailout Plan"

[Joseph Burkeson, CMI]

It looks like it is much worst than we realize and $700B may just be a drop in a bucket if this article is true. It appears that on the one hand they are scrambling to get some kind of a package passed without focusing on the severity of the crisis which would erode confidence further. I don't normally subscribe to Cramer but he makes a lot of sense in this video.
============================================

Fed keeps banks afloat as money market crisis deepens

Thu Sep 25, 2008 6:13pm EDT
By John Parry and Jamie McGeeever

NEW YORK/LONDON (Reuters) - U.S. banks and money managers borrowed a record amount from the Federal Reserve in the latest week, nearly $188 billion a day on average, showing the central bank went to extremes to keep the banking system afloat amid the biggest financial crisis since the Great Depression.

The data on borrowing from the Fed closed out another day of high anxiety in global money markets. Key measures of funding stress hit record levels on both sides of the Atlantic as nervous market participants awaited developments from Washington on a $700 billion U.S. financial bailout plan.

Federal Reserve data showed on Thursday the total amount banks borrowed nearly quadrupled the previous record of $47.97 billion per day notched just the week before.

"This looks like the balance sheet of a central bank that is keeping the financial system on life support," said Michael Feroli, U.S. economist with JPMorgan in New York.

Unfortunately there is more gloom here: http://www.reuters.com/article/ousiv...48O9B920080925

[Michael Larson]

Update: HERE (Entire bill)is the bailout bill released this afternoon.

Draft: Emergency Economic Stabilization Act of 2008

[Joseph Burkeson, CMI]

Originally Posted by mlarson

Update: HERE (Entire bill)is the bailout bill released this afternoon.

Draft: Emergency Economic Stabilization Act of 2008

Sad day for all Americans who were sold out by those who were supposed to look out after our interests. The backlash to those who sold us out to the Wall Street fatcats & international banking whores should be swift and dealt at the polls whenever one of these bastards comes up for reelection.

Ron Paul: ASSETS ARE WORTHLESS!

[Dennis R. Goudreau]

and lets not forget GM & Ford

[Frank Magdefrau]

Bad day for all Americans. The house voted down the "Bail Out Plan"
http://news.yahoo.com/s/ap/20080929/...ncial_meltdown
Bad days are ahead for most home inspectors, you heard it from me first. Time to get a real job.

Glad I still have 1 more year on my HUD contract. As the Banks move towards handing the homes over to HUD my numbers will rise.

Stocks dropped bad with news.

[Greg Bell]

I hate to tell you Frank but this was a great day for America. We don't need to reward the people that got us in this mess to begin with. We don't need to bail out the people that bought homes that they could not afford. We don't need to bail out the people that used their home as an ATM during the last 5 years. The fed is going to dump all the money that is needed to keep the credit market going.

[James H. Bushart]

Originally Posted by gbell

I hate to tell you Frank but this was a great day for America. We don't need to reward the people that got us in this mess to begin with. We don't need to bail out the people that bought homes that they could not afford. We don't need to bail out the people that used their home as an ATM during the last 5 years. The fed is going to dump all the money that is needed to keep the credit market going.

I agree.

This bailout was like putting a band aid on a heart attack. Another year of record foreclosures would put us right back in the same spot....then what? Putting money in the pockets of brokerages does little to help a man afford his house.

[Randy D. Stufflebeem]

Originally Posted by gbell

I hate to tell you Frank but this was a great day for America. We don't need to reward the people that got us in this mess to begin with. We don't need to bail out the people that bought homes that they could not afford. We don't need to bail out the people that used their home as an ATM during the last 5 years. The fed is going to dump all the money that is needed to keep the credit market going.

Greg,
I agree with you! I am willing to risk my stocks, mutuals, etc for awhile just to see what the markets will do while the debate rages on. Two things we found out today is oil is continuing to drop (and yes there is a relationship), and second is Pelosi once again proved what a #%$@@^% she is. Blamed it on the republicans! Duh! Has anyone checked how many dems voted againest it? Have we talked about a LOAN-OUT instead of BAIL-OUT? Just a bad bill.....period! I am optimisic something will get done! This can't be shoved down the peoples throats in my humble opinion.

[Mark Jones]

I got this in a email today, I don't think it's a good idea but it's a plan.

Hi Y'all,

I'm against the $85,000,000,000.00 bailout of AIG. I'm also against the $700,000,000,000++ bailout being proposed in Congress right now!

Instead, I'm in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.



To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up..

So divide 200 million adults 18+ into $85 billon -- that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a We Deserve It Dividend.

Of course, it would NOT be tax free. So let's assume a tax rate of 30%. Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife has $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family?
Pay off your mortgage – housing crisis solved.
Pay off credit card debt.




Repay college loans – what a great boost to new grads
Put away money for college – It'll be there for Junior.
Save in a bank – create money to loan to entrepreneurs.
Buy a new car – create jobs
Invest in the market – capital drives growth
Pay for your parent's medical insurance – health care improves
Enable Deadbeat Dad s to come clean – or else

Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.

If we're going to re-distribute we alth let's really do it...instead of trickling out a puny $1000.00 ( 'vote buy' ) economic incentive that is being proposed by one of our candidates for President.

If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!
< /FONT>
As for AIG – liquidate it.
Sell off its parts.
Let American General go back to being American General.
Sell off the real estate.
Let the private sector bargain hunters cut it up and clean it up.

Here's my rationale. We deserve it and AIG doesn't.

Sure it's a crazy idea that can 'never work.'

But can you imagine the Coast-To-Coast Block Party!

How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 Billion We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC.

And remember, The Birk plan only really costs $59.5 Billion because $25.5 Billion is returned
instantly in taxes to Uncle Sam.

Ahhh...I feel so much better getting that off my chest.




Kindest personal regards,
Birk

T. J. Birkenmeier, A Creative Guy & Citizen of the Republic

PS: Feel free to pass this along to your pals as it's either good for a laugh or a tear or a very sobering thought on how to best use $85 Billion!!

[Michael Larson]

Mark.
The math is wrong. This has been discussed here earlier.

They even added a snopes entry today.

[Joseph Burkeson, CMI]

Originally Posted by gbell

I hate to tell you Frank but this was a great day for America. We don't need to reward the people that got us in this mess to begin with. We don't need to bail out the people that bought homes that they could not afford. We don't need to bail out the people that used their home as an ATM during the last 5 years. The fed is going to dump all the money that is needed to keep the credit market going.

Let's take time to praise & support the Republican Party without who we the people would be bailing out Wall Street. Unfortunately the current & proposed head of the party (AKA Bush & McCain) just don't get it.

[Christopher Currins]

Originally Posted by gbell

We don't need to bail out the people that used their home as an ATM during the last 5 years. The fed is going to dump all the money that is needed to keep the credit market going.

That is what kept the economy going since 9-11, it was only a matter of time before the bottom fell out.

[Michael R. Boyett]

Originally Posted by rstufflebeem

...and second is Pelosi once again proved what a #%$@@^% she is.

Her political rhetoric and Bush/Republican bashing right before the vote will be viewed as one of the all time biggest blunders in US politics. Right up there with "Dewey Defeats Truman" or Dan Quayle comparing himself to John Kennedy.

[James H. Bushart]

Originally Posted by mboyett

Her political rhetoric and Bush/Republican bashing right before the vote will be viewed as one of the all time biggest blunders in US politics. Right up there with "Dewey Defeats Truman" or Dan Quayle comparing himself to John Kennedy.

LOL

I opposed the bailout...but still, to even imagine that there was one single congressman who ---- because Pelosi hurt his feelings ---- voted against a bailout he otherwise believed would save the country's financial system, is absolutely absurd.

[Michael Larson]

Can we all just admit the Democrat leaders wanted this plan to pass but couldn't muster enough of their own members to do it.

They are frauds.