Paulson's Panic

Nice article through which i got to know the inside story and the facts.
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Taylor
<a href="http://www.stop-credit-card-debt.com" rel="dofollow">Credit Card Debt</a>

A Proposal to Resolve the Fannie Mae and Freddie Mac Financial Fiasco

In order to solve what has been termed the financial crisis, it is necessary to identify the cause of Fannie Mae???s and Freddie Mac???s catastrophic failure.

The cause of their downfall is the partisan democrat pressure put on those companies to grant sub prime mortgages to persons who would be unable to repay those loans.

The democrat senators and representatives, who mandated that financial background checks be considered unnecessary and unwarranted, facilitated that irresponsible granting of mortgages to those unable to repay. The motive of the democrat members of Congress was strictly and blatantly partisan - to buy votes, and to maintain years of party support.

In 2005, John McCain co-authored a bill to investigate and regulate the faulty business practices of Fannie Mae and Freddie Mac, but that was opposed and defeated by the democrats in Congress.

On many occasions, President George W. Bush introduced proposals to regulate the mortgage lending companies, but those calls for regulation were opposed, obstructed, and defeated by democrats who were obsessed with the continuance of faulty lending practices.

In order to reform the financial sector, it is necessary that the sleazy politicians and top administration of those 2 mortgage companies who perpetrated fraudulent activity be publicly identified, investigated, and severely punished for their undermining the national economy.

It is only reasonable to expose the corrupt financial practices and their facilitators, and to remove them from any further activity, before any effort can be made to resurrect the American economy.
Otherwise, any attempt to do so will be useless, because the problems and perpetrators would still be present to frustrate and obstruct any meaningful remedial action.

Continued - A Proposal to Resolve the Fannie Mae and Freddie Mac Financial Fiasco

The first step toward economic recovery would be to isolate all sub prime mortgages from the assets of Fanny Mae and Freddie Mac, and to group the remaining viable ones into several stock options to be offered for sale to the public, and also as a bailout measure.

That would result in an immediate infusion of cash into the banking sector, thereby ensuring that credit could be granted to qualifying loan applicants.

Individuals or organizations who choose to buy those stock options should benefit additionally from any profits later realized by their investments.

Also, any profits resulting from the bailout option should be refunded to the INCOME TAX PAYERS only, since they would be the ones who would have financed the bailout.

Likewise, but separately, the various questionable sub prime mortgages should be bundled together into other stock options which would be structured to contain a mixture of both somewhat and less redeemable loans.

Those sub prime mortgage packages should be offered first to democrats, especially wealthy ones, who might be attracted to them by their being valued at a price of 80 cents on the dollar, based on the face value of the mortgages.
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That would afford them the option to support what democrats viewed to be a noble cause (home ownership for the unemployed), and besides, it might enable the stock option buyers to profit by 20 percent if all of the sub prime mortgages would be somehow repaid by the homeowners.

Thus democrats, especially the likes of George Soros, Barack Obama, Ted Kennedy, Chris Dodd, Nancy Pelosi, Harry Reid, and Charlie Schumer (who supported the granting of sub prime mortgages irrespective of demonstrated ability to repay) would be able to ???put their money where their mouths are???!

Lastly, there should be a guarantee that no further sub prime mortgages be granted.
Home ownership is a GOAL for many financially responsible Americans - it is not a government sponsored RIGHT for all persons living legally and illegally in the US!

The DEMOCRAT party has demonstrated its complete disregard and disgust for the prosperity of the American population and its economy.

It has put partisan politics above the welfare of the nation by its demonstrated sinister plan to decimate the financial industry.

By infiltrating the administration of Fanny Mae and Freddie Mac with its own DEMOCRAT operatives and sympathizers, it has encouraged and even forced those 2 companies to grant mortgages to party sympathizers who could not afford to repay those loans.

It managed to achieve that end by forcing those 2 entities to avoid conducting background financial checks and assessments into the status of applicants to repay those loans. As a result, mortgages were given to the unemployed, those on welfare, and even undocumented illegal immigrants.

In effect, a significant sector of the housing industry became a deceptively subsidized housing market.

Just as the radical group ACORN has schemed to flood the welfare system with applicants in order to undermine its ability to function, so also the DEMOCRAT party has schemed to undermine the ability of the financial markets to perform their vital roles.

But the American public DOES HAVE AN OPTION TO REGISTER ITS DISGUST WITH THE DEMOCRAT party that is hell-bent on stealing this election in order for it to decimate the capitalistic system which has facilitated American prosperity throughout its history.

Only 5 percent of the mortgages which have been granted by those 2 lending companies are uncollectible. They have become the financial sector???s Achilles heel because they have been repackaged several times as stock options, thereby multiplying their accumulative detrimental effect.

The remaining 95% of those mortgages are held by families which have bothered to assess their financial positions, optimistically apply for and obtain their mortgages, and continue to repay them.

But the responsible 95% are furious that whereas they have been financially responsible, they must now also subsidize the default mortgages of the irresponsible 5%.

The DEMOCRATS have forced them into an untenable corner, but they can show their disgust for the oppressive DEMOCRATS by voting them out of office in the House and Senate, and by electing a REPUBLICAN president and VP who will reform Washington so that another disgusting massive DEMOCRAT extortion scheme can never be perpetuated on American citizens.

The $700 billion bailout plan being proposed by Treasury Secretary Paulson will result, very quickly, in the collapse of the dollar and hyperinflation.

The US economy does not have $700 billion in spare cash to buy up the $700 billion in Treasury notes that need to be issued to finance this bailout. If our economy did have that kind of surplus money, we would not be in this "liquidity crisis" that is freezing up our financial system We will need foreign investors to buy even more of our debt. But already a huge amount of our national debt and private debt is being held by foreigners, including sovereign governments like China. When the Federal Reserve prints up an additional $700 billion in money to be be sold as Treasury notes, the result is a significant devaluing of the dollar. That means the dollars that foreign investors hold will be worth less. But foreign investors aren't stupid, they can see this coming. To protect themselves they will start selling off dollars before they get devalued. Once the dollar starts dropping, the decline will accelerate, as no one wants to be stuck with dollars as they spiral down. (This is what happened to stocks in financial companies recently, the downward trend scared investors and everyone starting bailing out.) When the dollar is going down, no one wants to be the "last man standing", the one still holding dollars that are now worth a fraction of what they were after everyone else has dumped theirs. It's going to be "sell quick or be left holding the bag." Thus, a collapse of the dollar. With a collapsed dollar and the Fed still printing money to finance this $700 billion bailout, we end up with hyperinflation.

POOF! THE BAILOUT DRAGON
(to the melody of Puff the Magic Dragon, Peter, Paul & Mary)
Adapted by WilliamBanzai7

POOF!, the bailout dragon lived by the subprime sea
And frolicked in the autumn mist near a land of Wall Street greed,
Little Hanky Paulson loved that rascal POOF!,
And brought him mortgage backed securities and other fancy finance stuff. oh

POOF!, the bailout dragon lived by the subprime sea
And frolicked in the autumn mist in a land of Wall Street greed,
POOF!, the bailout dragon, savior of all deadbeats,
And frolicked in the autumn mist in a land of Wall Street greed.

Together they would travel on a workout boat with billowed sail
Hanky kept a lookout perched on POOF!s gigantic tail,
Finance kings and princes would bow wheneer they came,
Pirate ships would lower their flag when POOF! roared out his name. oh!

POOF!, the bailout dragon lived by the subprime sea
And frolicked in the autumn mist in a land of Wall Street greed,
POOF!, the bailout dragon, savior of all deadbeats
And frolicked in the autumn mist in a land of Wall Street greed.

Wall Street lives forever but not so little boys
Without leverage and quantitative finance you can't make make fancy toys.
One grey night it happened, Hanky Paulson came no more
And POOF! that mighty dragon, he ceased his fearless roar.

His head was bent in sorrow, greenbacks ceased to rain,
POOF! no longer wanted to play financial legerdemain.
Without his life-long friend, POOF! could not be brave,
So POOF! that mighty dragon sadly slipped into his bailout cave. oh!

POOF!, the bailout dragon lived by subprime sea
And frolicked in the autumn mist in a land of Wall Street greed,
POOF!, the bailout dragon, savior of all deadbeats
And frolicked in the autumn mist in a land of Wall Street greed.

CHARGE "OFF" THE TARP BRIGADE

(Charge of the Light Brigade, Alfred Lord Tennyson)

(Modified by WilliamBanzai7)


Half a trillion, half a trillion,
Give or take 200 billion, onward!
All in the valley of Balance Sheet Death
Rode the seven hundred billion tax dollars.
"Forward, the TARP Brigade!
"Charge for the ABS Credit Default Swaps!" he said:
Into the valley of Balance Sheet Death
Rode the seven hundred billion tax dollars.


"Forward, the TARP Brigade!"
Was there a politician dismay'd?
Not tho' the Congress knew
Some guys named Alan and Ben had blunder'd:
Their's not to make reply,
Their's not to reason why,
Their's but to do and die:
Into the valley of Balance Sheet Death
Rode the seven hundred billion tax dollars.


CDOs to right of them,
CDSs to left of them,
AIG and the GSEs in front of them
Volley'd and thunder'd;
Storm'd at with Wall Street shot and shell,
Boldly that load of Federal largesse rode and well,
Into the jaws of Balance Sheet Death,
Into the mouth of subprime contagion Hell
Rode the seven hundred billion.


Flash'd all the workout sabres bare,
Flash'd as they turn'd in air,
Sabring the asset backed losses there,
Charging an army of tawdry bankers, accountants, and shysters, while
All the world wonder'd:
Plunged in the seedy subprime-smoke
Right into the red numbers they broke;
Lehman and Bear Stearns
Spared from the sabre stroke
Shatter'd and sunder'd.
Then they rode back, but not
Not the seven hundred billion.


Subprime CDOs to right of them,
Subprime CDSs to left of them,
Fat Wall Street advisory fees behind them,
Volley'd and thunder'd;
Storm'd at with derivative losses, asset backed shot and shell,
While level 3 zeros fell,
They that had fought so well
Came thro' the jaws of Balance Sheet Death
Back from the mouth of subprime contagion Hell,
All that was left of it?
Nothing left of seven hundred billion!


When can its glory fade?
O the wild loss charges!
All the world wondered.
Honor the huge expenditures they made,
Honor the TARP Brigade,
Noble seven hundred billion taxpayer dollars.


(TARP--Troubled Asset Relief Plan of 2008)


http://williambanzai7.blogspot.com/

Nobody knows what this will really cost. Nobody knows what doing nothing will reallly cost. We do seem to know that so called Main Street voters hate the bailout. We also know what Wall Street wants as we see the markets rise and fall on bailout or not rumors. Watch your 401, or your IRA, or your pension fund disappear in big chunks as the market tanks if there is no bailout. Watch Main Street fighters against the deal say it was the other guys who killed it. As the financial markets collapse, every politician in each party will be able to place blame on everyone else. When the dust settles, and the average Main Street financial holdings have been cut in half or worse; count on Main Street to still think they were right and a Wall Street bailout was wrong. You see on Main Street you can never be wrong if you never change your mind. Let Main Street politicians decide the fate of Wall Street and our financial system. After all, the govenment handouts they survive on will keep coming.

Ok ladies cozy up...

Here's your first lesson in GOB101:

1. Senator Obama and the Democratic Party keep trying to tie Senator McCain-to-President Bush.

2. Senator Obama and the Democratic Party keep saying Senator McCain has agreed with President Bush 90% of the time.

3. A poor campaign strategy, a poor VP pick, past and conflicting statements, Troopgate, Lobbying Ties, Witchcraft, and other events cause Senator McCain's Poll numbers to tank.

4. The Republican Party comes up with a strategy to distance Senator McCain from President Bush.

5. Key Republicans get briefed on the scheme.

6. Senator McCain illogically suspends his campaign for the Economic emergency in Washington.

7. Senator McCain cancels appearance on Letterman, but hangs around NY to get further briefings on the scheme.

8. Senator McCain suggests Senator Obama should come to Washington too.

9. Senator Obama explains why he's not going to Washington. (Scheme spoiler)

10. President Bush calls Senator Obama directly and asks him to come to Washington, although President Bush never contacted Senator Obama after his historical primary win.

11. Senator Obama agrees to go. (Scheme back on!)

12. The majority of Democrats, Republicans, and the President agree on a Bailout Plan and...

13. Senator McCain says he's "against" the plan (Revival of the Maverick opposing Bush!)!

There ya' go in "13 Stars"...oops I meant "13 Steps"!

This ain't my first rodeo!

SAVE AMERICA
OPEN DOORS
AMERICA IS A COUNTRY OF IMMIGRANTS
IMMIGRANTS WILL SAVE AMERICA
GIVE CITIZENSHIP FOR EVERYBODY WHO BUY A HOUSE BY CASH

bojack27,

Republicans created this disaster. They were the Great Deregulators. Why is it that Republicans can't face accountability? McCain cost us $500 Billion with the Keating scandal, and it repeated with his friend Phil Gramm's bank deregulation.

Republicans own this one, and they should face the music and spend the next 20 years as the whining minority party, while the Democrats do what they did with Clinton - restore fiscal responsibility and usher in a new era of prosperity.

Here is a question for all... why is it that Barack Obama is asking for the homeowners to be bailed out? Is he talking about the 5% that made these interest only investments, adjustable rate mortgages and foreclosed on their loans? Or is he talking about the 95% of the homeowners who haven't miss a payment? Why should we reward those who over-extended their credit by buying houses that they couldn't afford in the interest of making a profit? That is rewarding those who are doing wrong.... Why are we having a bailout plan being conducted by Dodd, Grant and others who are responsible for this mess... Democrats are responsible for this mess and are trying to cover up there stupidity..... and are trying to put the spin on this being the presidents fault....people really need to get the facts on what really happen to this financial crisis....

bush = America's disaster president

in history, bush will be know as disaster president.

bush, the disaster president, is not the president at times of disasters of 9-11 or katrina or financial meltdown, but the 'disaster' president who created all these disasters: the disasters stemming from 9-11 (unncessary Iraq war and unfinished Afghan war); the disaster after katrina; and the disaster in wall street from his policies of helping fat cats get even fatter.

the disaster president of america have single handedly drove america from an economic superpower to an economic thrid-wold country.

ARREST BUSH. ARREST CHENEY. PUT THEM IN JAIL.

The words panic by most and Bush's scare fear mongering tactics are liable to make things worse before they get better.
He virtually said nothing last night unless you consider panic, warning, scare, fear, recession, depression, etc. words of hope and looking forward to the future. The only good thing right now about that, is, perhaps we'll be rid of the fear mongering, scare tactics of the GOP!!!!!