$700 Billion BAIL-OUT Legislation

I am making some reserch from a far of country.
I appreciate your views.
No disagreement
Thank you sir.

For the time being i have a nice bail out information( which I had not counter checked but it seems reliable)

History of U.S. Gov't Bailouts

September 22, 2008 1:35 pm EDT

With the flurry of recent government bailouts--and a much larger one likely on the way--we decided to try to put them in perspective. The circles below represent the size of U.S. government bailout, calculated in 2008 dollars. They are also in chronological order.

http://www.propublica.org/special/government-bailouts

What matters is the "cumulative" visual. No page is large enough.

Some people speak simple American English for those participants whose mother Tongue is not English.
here is one guy who speaks queen's English, candian English, Australian English, Indian English, African English and other sort of English.

"If this swindle goes down, we should ALL stop paying on our credit cards.
http://www.chris-floyd.com/content/view/1610/135/#comments

We voted for them (or they wouldn't be there).

Does not matter sir.
I am always here to air my views and curtail my freedom.
If someone wihes to know about my existense in A2K the threads and replies are there though hidden.

Thanks for the cite, Ramafuchs. It seems there exists a sea of voices crying out to Congress: "DON'T DO IT!" Let the robbing bastards fail. Force them to file for bankruptcy. Let the bankruptcy trustee scoop up the assets to finance the economic clean-up. Let's spend that 700 billion dollars to strengthen our country from the ground up by investing it into our education programs, renewable energy, and infrastructure.

I understand Poulson was an officer of Lehman Bros before his boot to his current position. Nobody sees this conflict of interest.

Sorry if i had hurt any American audience here in A2K.
But to sootheir feelings let me quote this for careful perusal,

believe me please it from China and the author is not an American.

The world's problems are not merely whether or not the United States will decline, but whether any other country, including those seemingly solid allies of the United States, will help bear the load the U.S. would take off its back. Who is to bear and how? Is it possible to bear this load and how long will it take for us to do it? Will the United States feel comfortable about sharing some of its load? Ultimately, it is not just a transfer of power or problem-sharing, but more an issue of sharing responsibility.

Bad news keeps coming from Wall Street. Again, the decline of U.S. hegemony became a hot topic of debate. Complaining or even cursing a world of hegemony brings excitement to us. However, faced with a decline of U.S. hegemony, the power vacuum could also be painful. We do not like hegemony, but have we ever thought about this problem when we mocked its decline? If the United States is no longer hegemonic, or its strength is declining, then who will be willing to pick up the load that the United States is not able or willing to carry?

The U.S. probably has three causes. First, with the rise of other countries, the United States is getting relatively weak. Second, for the United States, "its ability of world domination” is “plunging into the lowest valley" (quote from "Berlin Daily") - European media having even called the U.S. “a young patient getting weak.” Third, in today’s world that has more rising powers, Americans have realized that they do not have sufficient ability or willingness to continue providing more public services. Instead, the U.S. is to take initiative in order to discharge its own burdens.

These three aspects together create one result: the future "power vacuum” we will face. The current world, including U.S. allies, tends to just lodge complaints or accusations against the United States, rather than pick up its burden. Some developed countries are even quietly calculating how to better get out of the “pit” if the United States is ready to slip away. Another reality is that no country is strong enough to bear the whole burden, which can only be shared amongst many countries; but as to how to share, no one can offer a solution at the moment.

Moreover, the current globalized world calls for order. Superficially, the forces of globalization seem to be very strong: countries are interdependent and common interests must be taken into account in decision-making. However, during the crisis, the world is not different from what it was: national interests always remain paramount, with the iron allies of the United States not being an exception. The world is still full of risks.

Since the world needs order, and an independent power cannot maintain order and provide the world with more development opportunities, other countries should stand out and assume this role in establishing a mutually participated system. Unfortunately, such an ideal system has not been formed, and nobody knows when it will take shape. The world is still a place where power speaks.
The subprime crisis is an example. Many people anticipate, through this financial turmoil, a change of the current system that relies overly on the U.S. Good intentions are one thing, however, it is another matter whether or not a new multi-polar system can be established in the foreseeable future. We should notice that at present the world's financial system does not exist in isolation. It is the result of long-term historical evolution, closely associated with a country's strength, its openness, the development of globalization, and the existing global economic, political patterns. The relationship can be described as “the whole body moving when pulling one hair.”

Or perhaps, it will not take you long to discover that Wall Street’s decline is not followed by a more orderly global financial market, but a more chaotic one. You may even complain about another market that is even worse than Wall Street. This is a helpless and cruel reality. The subprime crisis has affected many foreign enterprises, banks, and individuals which in itself is again a true portrayal of the power of the United States.

Of course, in the long run, the growth of other economies and the rise of emerging countries will eventually alter this situation. However, this change does not depend on the amount of complaints from those countries victimized in the U.S. subprime mortgage crisis, but will depend on whether they have the ability and desire to bear the responsibility the U.S. is unwilling or unable to take, in order to build a more pluralistic and stable system with more opportunities for the entire world.

Therefore, the world's problems are not merely whether or not the United States are declining, but whether any other country, including those seemingly solid allies of the United States, will help bear the U.S. load. Who is to bear and how? Are they capable of bearing it and how long will it take? Will the United States be at ease with sharing some of its load? Ultimately, it is not just a transfer of power or problem-sharing, but more an issue of sharing responsibility. The lack of strength and desire to assume responsibility will lead to an unstable world.http://watchingamerica.com/News/6543/who-carry-the-burden-of-the-us/

On SUNDAY, September 21, OBAMA set forth key points concerning how the government should tackle the financial crisis.

First, there must be no blank check when American taxpayers are on the hook for this much money.

Second, taxpayers shouldn't be spending a dime to reward CEOs on Wall Street.

Third, taxpayers should be protected and should be able to recoup this investment.

Fourth, this plan has to help homeowners stay in their homes.

Fifth, this is a global crisis, and the United States must insist that other nations join us in helping secure the financial markets.

Sixth, we need to start putting in place the rules of the road I've been calling for for years to prevent this from ever happening again.

And finally, this plan can't just be a plan for Wall Street, it has to be a plan for Main Street.

SEE VIDEO HERE

* * *

On TUESDAY, September 23, McCAIN set forth key points concerning how the government should tackle the financial crisis.

HAPPENING NOW on television...waiting for published report.

Just now i read this.
After reading this i got upset and despirited.
Rama

Federal Reserve Chairman Ben Bernanke bluntly warned reluctant lawmakers Tuesday they risk a recession with higher unemployment and increased home foreclosures unless they act on the Bush administration's $700 billion plan to bail out the financial industry.

Despite the warning, influential lawmakers in both parties demanded changes in the White House-backed proposal, and conservative Republicans recoiled at the prospect of federal intervention into private capital markets.

Six weeks before the elections, both major party presidential contenders also insisted on alterations in the administration's prescription for the worst financial crisis in decades.

Bernanke's remarks about the risk of recession came in response to a question from Sen. Chris Dodd, D-Conn., who seemed eager to hear a strong rationale for lawmakers to act swiftly on the administration's unprecedented request.

"The financial markets are in quite fragile condition and I think absent a plan they will get worse," Bernanke said.

Ominously, he added, "I believe if the credit markets are not functioning, that jobs will be lost, that our credit rate will rise, more houses will be foreclosed upon, GDP will contract, that the economy will just not be able to recover in a normal, healthy way."

GDP is a measure of growth, and a decline correlates with a recession.
http://www.breitbart.com/article.php?id=2008-09-23_D93CJVM00&show_article=1&cat=breaking
When fools are there to ruin the congenial world then all intellectuals should wait for the last minute.

Thank you, DebraLaw, for starting this discussion. It is a very complicated issue to get a grasp on. Here, in no particular order, are some comments:
--When members of Congress got out of their briefing with Paulson Friday (?) night they were quite somber. Members of both parties were somber. So it looked like the plan, or a plan, would be approved quickly. The stock market soared on the prospect of a bailout. The notion of the government buying a bunch of trouble loans, to get them off the banks' books looked somewhat appealing in order to avoid having our financial system seizing up.
--I think there is a realization that, after the gov't put in $85B to salvage AIG, $700B to solve the rest of the mess is not realistic. There is not much talk about this, but I think $1.5T is closer. $2T when you consider that
--A lot of folks are running for election.. It will be fatal for them to vote for a "bailout of Wall Street" while providing nothing to the little people. I can see a lot of programs being added here.
--The executive pay thing is amusing. Some argue that they should continue to get multi-million dollar salaries because, if they don't, their firms will not participate in the bailout. These guys need to hire some PR people quickly.
--This final one gets a bit complex. I wrote about it elsewhere. The idea is that the gov't (and others) could buy these loans under what is called a "reverse auction." Assume that there are $100 worth of dubious loans. I offer to buy $60 of them for $20; you offer to buy $30 for $20 and CI offers to buy the other $10 for $10. If the idea is to rid the banks of these loans through gov't intervention, this, in my mind works quickly. But now some are arguing that, after begging for a bailout, the owners of these bad loans want to go to a traditional "high bidder" format. This will not fly with Congress.

somber
You mean Sombre= cheerless?

Excerpt was read on MSNBC today. It's ENLIGHTENING:

First Inaugural Address of Franklin D. Roosevelt
SATURDAY, MARCH 4, 1933

I am certain that my fellow Americans expect that on my induction into the Presidency I will address them with a candor and a decision which the present situation of our Nation impels. This is preeminently the time to speak the truth, the whole truth, frankly and boldly. Nor need we shrink from honestly facing conditions in our country today. This great Nation will endure as it has endured, will revive and will prosper. So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself--nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance. In every dark hour of our national life a leadership of frankness and vigor has met with that understanding and support of the people themselves which is essential to victory. I am convinced that you will again give that support to leadership in these critical days.

In such a spirit on my part and on yours we face our common difficulties. They concern, thank God, only material things. Values have shrunken to fantastic levels; taxes have risen; our ability to pay has fallen; government of all kinds is faced by serious curtailment of income; the means of exchange are frozen in the currents of trade; the withered leaves of industrial enterprise lie on every side; farmers find no markets for their produce; the savings of many years in thousands of families are gone.

More important, a host of unemployed citizens face the grim problem of existence, and an equally great number toil with little return. Only a foolish optimist can deny the dark realities of the moment.

Yet our distress comes from no failure of substance. We are stricken by no plague of locusts. Compared with the perils which our forefathers conquered because they believed and were not afraid, we have still much to be thankful for. Nature still offers her bounty and human efforts have multiplied it. Plenty is at our doorstep, but a generous use of it languishes in the very sight of the supply. Primarily this is because the rulers of the exchange of mankind's goods have failed, through their own stubbornness and their own incompetence, have admitted their failure, and abdicated. Practices of the unscrupulous money changers stand indicted in the court of public opinion, rejected by the hearts and minds of men.

True they have tried, but their efforts have been cast in the pattern of an outworn tradition. Faced by failure of credit they have proposed only the lending of more money. Stripped of the lure of profit by which to induce our people to follow their false leadership, they have resorted to exhortations, pleading tearfully for restored confidence. They know only the rules of a generation of self-seekers. They have no vision, and when there is no vision the people perish.

The money changers have fled from their high seats in the temple of our civilization. We may now restore that temple to the ancient truths. The measure of the restoration lies in the extent to which we apply social values more noble than mere monetary profit.

Happiness lies not in the mere possession of money; it lies in the joy of achievement, in the thrill of creative effort. The joy and moral stimulation of work no longer must be forgotten in the mad chase of evanescent profits. These dark days will be worth all they cost us if they teach us that our true destiny is not to be ministered unto but to minister to ourselves and to our fellow men.

Recognition of the falsity of material wealth as the standard of success goes hand in hand with the abandonment of the false belief that public office and high political position are to be valued only by the standards of pride of place and personal profit; and there must be an end to a conduct in banking and in business which too often has given to a sacred trust the likeness of callous and selfish wrongdoing. Small wonder that confidence languishes, for it thrives only on honesty, on honor, on the sacredness of obligations, on faithful protection, on unselfish performance; without them it cannot live.

Restoration calls, however, not for changes in ethics alone. This Nation asks for action, and action now.

Our greatest primary task is to put people to work. This is no unsolvable problem if we face it wisely and courageously. It can be accomplished in part by direct recruiting by the Government itself, treating the task as we would treat the emergency of a war, but at the same time, through this employment, accomplishing greatly needed projects to stimulate and reorganize the use of our natural resources.

Hand in hand with this we must frankly recognize the overbalance of population in our industrial centers and, by engaging on a national scale in a redistribution, endeavor to provide a better use of the land for those best fitted for the land. The task can be helped by definite efforts to raise the values of agricultural products and with this the power to purchase the output of our cities. It can be helped by preventing realistically the tragedy of the growing loss through foreclosure of our small homes and our farms. It can be helped by insistence that the Federal, State, and local governments act forthwith on the demand that their cost be drastically reduced. It can be helped by the unifying of relief activities which today are often scattered, uneconomical, and unequal. It can be helped by national planning for and supervision of all forms of transportation and of communications and other utilities which have a definitely public character. There are many ways in which it can be helped, but it can never be helped merely by talking about it. We must act and act quickly.

Finally, in our progress toward a resumption of work we require two safeguards against a return of the evils of the old order; there must be a strict supervision of all banking and credits and investments; there must be an end to speculation with other people's money, and there must be provision for an adequate but sound currency.

There are the lines of attack. I shall presently urge upon a new Congress in special session detailed measures for their fulfillment, and I shall seek the immediate assistance of the several States.

Through this program of action we address ourselves to putting our own national house in order and making income balance outgo. Our international trade relations, though vastly important, are in point of time and necessity secondary to the establishment of a sound national economy. I favor as a practical policy the putting of first things first. I shall spare no effort to restore world trade by international economic readjustment, but the emergency at home cannot wait on that accomplishment.

The basic thought that guides these specific means of national recovery is not narrowly nationalistic. It is the insistence, as a first consideration, upon the interdependence of the various elements in all parts of the United States--a recognition of the old and permanently important manifestation of the American spirit of the pioneer. It is the way to recovery. It is the immediate way. It is the strongest assurance that the recovery will endure.

In the field of world policy I would dedicate this Nation to the policy of the good neighbor--the neighbor who resolutely respects himself and, because he does so, respects the rights of others-- the neighbor who respects his obligations and respects the sanctity of his agreements in and with a world of neighbors.

If I read the temper of our people correctly, we now realize as we have never realized before our interdependence on each other; that we can not merely take but we must give as well; that if we are to go forward, we must move as a trained and loyal army willing to sacrifice for the good of a common discipline, because without such discipline no progress is made, no leadership becomes effective. We are, I know, ready and willing to submit our lives and property to such discipline, because it makes possible a leadership which aims at a larger good. This I propose to offer, pledging that the larger purposes will bind upon us all as a sacred obligation with a unity of duty hitherto evoked only in time of armed strife.

With this pledge taken, I assume unhesitatingly the leadership of this great army of our people dedicated to a disciplined attack upon our common problems.

Action in this image and to this end is feasible under the form of government which we have inherited from our ancestors. Our Constitution is so simple and practical that it is possible always to meet extraordinary needs by changes in emphasis and arrangement without loss of essential form. That is why our constitutional system has proved itself the most superbly enduring political mechanism the modern world has produced. It has met every stress of vast expansion of territory, of foreign wars, of bitter internal strife, of world relations.

It is to be hoped that the normal balance of executive and legislative authority may be wholly adequate to meet the unprecedented task before us. But it may be that an unprecedented demand and need for undelayed action may call for temporary departure from that normal balance of public procedure.

I am prepared under my constitutional duty to recommend the measures that a stricken nation in the midst of a stricken world may require. These measures, or such other measures as the Congress may build out of its experience and wisdom, I shall seek, within my constitutional authority, to bring to speedy adoption.

But in the event that the Congress shall fail to take one of these two courses, and in the event that the national emergency is still critical, I shall not evade the clear course of duty that will then confront me. I shall ask the Congress for the one remaining instrument to meet the crisis--broad Executive power to wage a war against the emergency, as great as the power that would be given to me if we were in fact invaded by a foreign foe.

For the trust reposed in me I will return the courage and the devotion that befit the time. I can do no less.

We face the arduous days that lie before us in the warm courage of the national unity; with the clear consciousness of seeking old and precious moral values; with the clean satisfaction that comes from the stem performance of duty by old and young alike. We aim at the assurance of a rounded and permanent national life.

We do not distrust the future of essential democracy. The people of the United States have not failed. In their need they have registered a mandate that they want direct, vigorous action. They have asked for discipline and direction under leadership. They have made me the present instrument of their wishes. In the spirit of the gift I take it.

In this dedication of a Nation we humbly ask the blessing of God. May He protect each and every one of us. May He guide me in the days to come.


http://www.yale.edu/lawweb/avalon/presiden/inaug/froos1.htm

I read the above article and I pay my humble regards to you for highlighting the above one.
The best English what I had learnt from this podium is from your link and that reads

In the field of world policy I would dedicate this Nation to the policy of the good neighbor--the neighbor who resolutely respects himself and, because he does so, respects the rights of others-- the neighbor who respects his obligations and respects the sanctity of his agreements in and with a world of neighbors.

821 people online
at the moment while i struggle with my rubbish English..
This is apt response( Cut and Paste) I found interesting about the subject.

HOW CAN WE FIX THE PROBLEM?

Economist Dean Baker Lays Out Progressive Principles for the Bailout

“The Fed and Treasury are right to take steps to avert this disaster. While there is an urgency to put a bailout program in place, there are several important issues that Congress should address in the context of bailout. While there is not time to prepare all the details of the financial restructuring that will follow after the bailout, there can be an agreement on the outlines that this restructuring should take. This list of suggestions is presented in that context:

“Principles to Guide the Bailout

“1) Financial institutions should be forced to endure the bulk of the losses with taxpayer funds only used where absolutely necessary to sustain the orderly operation of the financial system.

“2) The bailout must be designed to minimize the opportunity for gaming.

“3) The bailout should be designed to minimize moral hazard.

“4) In the case of delinquent mortgages that come into the government’s possession, there should be an effort to work out an arrangement that allows the homeowner to remain in her house as owner. If this proves impossible, then former homeowners should be allowed to remain in their homes as renters paying the market rent. This should be done even if it leads to losses to the government.

“5) There should be serious efforts to severely restrict executive compensation at any companies that directly benefit from the bailout.”

Other economists questioning the bailout:

Politico: “Many Economists Skeptical of Bailout”
Dean Baker’s Blog
Paul Krugman’s Blog
Robert Reich’s Blog

David Swanson: We Can Stop Paulson’s Plunder

There does not seem to be any way we are going to avoid shelling out a major amount of money to save banks from the unregulated greed of bankers. Dean Baker and Doug Henwood and every person with any economic expertise whom I find credible predicts disaster if we don’t.

But, as Baker pointed out on Democracy Now! this morning, the bailout can punish those responsible rather than rewarding them. It can also be done without creating new dictatorial powers for the executive branch of our government.

Congress must reject Paulson’s Plunder and enact a plan with these progressive principles from the Backbone Campaign:

A. The people who caused the problem or profited most should pay for it

1. Highly compensated executives total compensation should be capped or taxed heavily as a condition for being bailed out.
2. Tobin tax on all transactions in Finance, Insurance and Real Estate including currency transactions.
3. Government takes an equity stake, proportionate to the size of the bailout
4. Tax hedge fund managers’ income
5. Accountability - fire executives of failed companies as done in the UK, and abrogate their severance packages.
6. Impose a five-year, 10 percent surtax on income over $1 million a year for couples and over $500,000 for single taxpayers.

B. Re-regulate to prevent this from happening again

1. Direct the Federal Reserve to intervene to prevent asset bubbles.
2. Extend reserve requirements to new security categories
3. Regulate the packaging of loans so they can be evaluated, rated, and priced rationally.
4. Regulate hedge funds and private equity funds in a way comparable to banks

C. Include Main Street in the bailout and invest in a new productive economy

1. Establish a moratorium on foreclosures, renegotiating mortgages or institute a rent-to-own plan to keep people in homes.
2. Create a major economic recovery package which puts Americans to work at decent wages, in productive jobs that add value to homes and communities.
3. Invest the taxes on speculation, executive compensation, and the surtax on the wealthy in clean energy, infrastructure, education, and health care.


http://www.newsdissector.com/blog/2008/09/23/proposals-for-what-should-be-done-to-fix-the-problem-iraq-parallels/

“We hear every day about spending cuts to infrastructure and social services. Now the current Administration is proposing to spend more than what is currently allocated for the U.S. War in Iraq on this Wall Street bailout. It is critically important that we urge our elected representatives to take a close and careful look at the trade offs involved in their decisions.”

A healthy and productive economy requires substantial investment in affordable housing, health care, education and renewable energy. Taxpayers in the United States who will be required to pay $700 billion for the Wall Street bailout should also know that for the same amount of money, they could secure the following:

* 51.6 million people with health care for four years OR
* 181.2 million homes with renewable electricity for four years OR
* 2.9 million elementary school teachers for four years OR
* 27 million four-year scholarships for university students

$700 billion is more than what is currently allocated for the U.S. war in Iraq. This amount would allow us to repair all of our nations 77,000 deteriorated bridges and still have $519 billion to spend; or it would allow us to rebuild all of our nations 33,000 deteriorating schools and still have $664 billion to spend. For more analysis and trade-offs at the State and Congressional District level, please visit National Priorities Project's Trade-offs page online.
http://www.dollarsandsense.org/blog/2008/09/magnitude-and-meaning-of-proposed.html

T. Boone Pickens, the originator of the junk bonds, made a bundle raiding corporations and stripping them of their assets. He also helped fund the "swift boat" campaign against John Kerry. Many in the financial circles heavily funded Republicans and are Republicans.

Don't let GWB stampede Congress into the bailout after all his control of Congress prior to 2006 ignored the economy. What precipitated the crisis was that Bush was no longer running for office so he let interest rates rise. Those who defaulted on their loans or mortgages led to more till there was a snow ball effect. However, Busha and the media hid the truth and real estate gamblers/speculators kept on buying till the big boys started getting in the act. A former Bush Treasury Secretary Snow was involved with the leveraged buy out of Bell Canada, one of Canada's biggest corporations, for $30 billion. Suddenly the big banks felt a credit crunch. The news could no longer be hidden and the domino effect was in place.

Hold Bush's feet to the fire and ask for details and promise nothing. Make sure enemies like T. Boone Pickens are not rewarded. Don't let Bush stampede America against like he did in Iraq. The worst could be a recession not a depression. Make some big changes like restoring the four pillars as their existence was a self checking mechanism and enemies swim in their own cesspools. Break the media cartel as they are as much aculprit as Bush by hiding the crisis.

yeah, Both Bush and McCain continued to tell all of us that "our economy is sound." That's the major clue how they continued to hide the truth - even why we got into the Iraq war, and people still don't question it.

I was out of town attending a funeral. The last thing I heard before leaving was that Bush and Paulson had their bail-out proposal ready MONTHS ago. They just waited until now, when the time was ripe, to declare urgency and shove it down the congressional throat. It appears to me that BushCo was planning this trillion dollar "going out of office" gift to his rich cronies for a very long time.