Bushes Prime time appeal

[Mi Bankruptcy]

I mentioned this in another post without researching anything. I was hoping to get a little more feed back.

"At issue is a plan devised by Paulson to borrow as much as $700 billion to buy up troubled mortgage-backed securities to get them off the books of financial institutions, allowing those firms to resume their normal roles in the economy" -LA times

I would like to know where national investors stand on this bailout? For instance, they say 50% of American Debt is owned by Foreign countries. Does this mean that we the "tax payers" are buying back our debt from foreign countries? I had a chance to quickly look up some stats.. I don't have cable T.V. has anyone read or watched anyone addressing this? I see the benefit for Freedie-Mae/Mac. However, what about some of these other companies?

http://assets.opencrs.com/rpts/RS22331_20051123.pdf

"Data on major foreign holders (investors) of federal debt by country are provided in Table 2 below. According to the table, the three top-estimated foreign holders of federal debt by country, ranked in descending order as of September 2005, are Japan ($687.3 billion), China ($252.2 billion), and the United Kingdom ($182.4 billion). Based on these estimates, Japan’s portion of the investment in U.S. federal debt constitutes approximately 33.3% of all foreign investment in U.S. federal debt; China’s, approximately 12.2%; and
the United Kingdom’s, approximately 8.8%."

[Flamingo]

The newspapers over the next few days will be plastered with all everyone needs to know on this situation. All I can say is after watching Bush speak last night, I remembered listening to my mother (who lived through the Depression in her early teens) tell me about the soup kitchens and what occurred at that time. We are on the verge of that occurring again if something is not done somewhere and all of us, as he said, will be worse off than we are right now. And then after he finished speaking there was an immediate image of David Blane hanging upside down in Central Park - very appropriately described a lot of things.

[Mi Bankruptcy]

UPDATE: If you are interested in the is subject. NPR will address exactly what I posted above. Diane Rehm will discuss this at 10:00am EST.

[fltoo]

Bush is saying we need this right away. Some dem senators are asking why the rush. If the gov doesn't do this bail out, there will be no money for banks to lend. Businesses will fail left and right.

Both dems and republicans want some provision that the CEOs won't make a killing.

The debt is being bought at pennies on the dollar just like junk debt buyers. The idea is, the government has the waiting power to eventually sell the debt at a profit.

Who the hell knows, what a mess. Too little, too late.

In 2005 Shelby tried to rein in the problem. Fannie and Freddie always had strict guidelines for banks to follow in order for someone to be qualified for a home loan. Banks knew that only qualified loans would be bought by secondary lenders such as Fannie/Freddie. But then, the reverse redlining, and Fannie started buying up loans that were not qualified. Problem is the investors for these packaged loans ignored the easier guidelines and figured they were okay because they were government backed. Well, big surprise as this house of cards collapsed.

The Republicans backed Shelby and the Dems voted him down on regulation.

[JRScott]

Even if this passes many economist are saying that a recession is inevitable.

The problem is the overbloated government and overspending as a nation.

There is no easy and simple fix. Personally I do not think the bail out is needed and I believe it is largely un-American. It is no different than Putin buying out the Russian industries, Chavez grabbing Venezuela's etc.....

The sooner we accept that their must be a major readjustment of the American economy the better we are.

The federal government is 9 trillion in debt without this proposal, and has 53+ trillion in unfunded entitlement programs going forward.

If they print another 700 billion or more money it will mean the prices of goods and services you use every day will go up. It will not free up credit for those that cannot afford it and mostly only the big companies will have credit readily available again. Keep in mind the 700 billion is the low estimate, and many economist say the real cost will be between 2 and 3 trillion dollars.

It is better to accept the hard pill now, and get past it than to try this band aid that will not stem the flow. There is really only one real way to fix the problem and that is to become energy independent. The bill passed in the house for drilling is a farce. Almost all hydrocarbons are found within the first 50 miles of the shore, but it bans that. In addition it requires the states to approve drilling from 51-100 miles of their shoreline and offers them no royalties or revenues from the drilling. So basically it allows drilling 100 miles off the shore in areas we do not know of any significant hydrocarbons.

Another problem is the looming unfunded entitlement programs going forward. 1/5th of that is SSI, the rest is medicare and madicaid. Anyone that thinks the nation can afford National Health Care is dreaming. Medicare and Medicaid cover approximately 12.6% of the population at a cost of more then 500 billion a year, not counting the unfunded future spending for the program. National health care would cost between 6 and 8 times as much to offer as good of service. That is more than the entire federal budget.

To transform our economy we need to build in the USA and sell in the USA. This means renegotiating the various trade treaties of the last 30 years which give unfair advantages to trading partners. Then raise our tariffs to the same level other nations charge us. Lower corporate taxes in the United States so as to encourage business to build and sell here.

Whatever is hashed out in haste during these emergency sessions will not ultimately solve the problem.

[Bandit]

Bush needs to be put down and thrown completely off the table of cards. he is more than half to blame for why the USA has failed. He did more damage in 8 years than 200 years of presidents combined.

[Bandit]

Here. Read this nonsense:

http://www.prisonplanet.com/us-troops-in-homeland-crowd-control-patrols-from-october-1st.html

Welcome to China!!

[Mi Bankruptcy]

I am listening to NPR right now and they are saying that China owns 30% of mortgage debt from Fannie-MAE/MAC. So, the U.S. Just bought back 30% of the mortgages in the United States. Is this that bad? I guess it is if all the properties financed are inflated.. Then China makes out.

My next question is.. If we do a bailout for 700 billion to 1.7 Trillion.. Do we actually get a loan from China ( sarcasm)

[Mi Bankruptcy]

Here. Read this nonsense:

http://www.prisonplanet.com/us-troops-in-homeland-crowd-control-patrols-from-october-1st.html

Welcome to China!!

Good LORD??? From SOCIALISM TO COMMUNISM in only 1 Month WTF??

[JRScott]

Bush needs to be put down and thrown completely off the table of cards. he is more than half to blame for why the USA has failed. He did more damage in 8 years than 200 years of presidents combined.

I respectively disagree.

Woodrow Wilson and FDR did far more damage really, and what is coming from their failed policies will make this look like a picnic.

[imaloser]

i'm not sure but i think main street is screwed either way.

in essence, the 700 b is being used to allay fear but it will not allay the fall.

either way, for those of us on main street, we are in for a really rough ride.

our elected officials have completely forgotten what made this such a great country !

i think it's very interesting, from what i'm hearing, is that the majority on main street are opposed to a bail-out.

just goes to show the class division between main street and wall street.

politicians ? elected officials ? they've been in bed with wall street forever and they will continue to make cozy bed partners. were it me, i would say "get up, get dressed and get out".

[JRScott]

You are correct imaloser, this will not prevent the fall and in the long term will not contain fear, it will only in the short term allay fear, and it is meant to help wall street far more than main street.

And yes the opposition from main street (everyday Americans) is overwhelming.

[Cali]

I agree with JR, this is more of a band aid than a fix to the problem.

[fltoo]

Bush needs to be put down and thrown completely off the table of cards. he is more than half to blame for why the USA has failed. He did more damage in 8 years than 200 years of presidents combined.

Firstly, the USA has not failed. We have problems, we will fix them.

Secondly, FDR did way more damage.

I am not a Bush fan, but this blame Bush rhetoric is getting so old.

[banca rotta]

Firstly, the USA has not failed. We have problems, we will fix them.

Secondly, FDR did way more damage.

I am not a Bush fan, but this blame Bush rhetoric is getting so old.

I guess you met bandit.

It's bush's fault for 9/11, all the hurricanes, earthquakes, tornados, tsunamis, expensive oil. Please add to this anything I missed. I'm sure someone will.

I don't like bush's mishandling of a lot of issues but that's different then blaming him for most of it.

I feel the same way fltoo, I no longer support Bush but the blame game is very old and tired. I don't like Clinton either but never held him accountable for problems others caused. I do wish he captured and killed osama but that's for another day on another thread.

The American experiment will only fail if we let it.