Category: Credit Crisis Bailouts
The analysis published under this category are as follows.
Wednesday, October 01, 2008
Why the Bailout Vote Failed / Politics / Credit Crisis Bailouts
By: Walter_Brasch
The Republican leaders of the House of Representatives grabbed a half dozen bags of sincerity, looked directly into every TV camera they could find, and lied. The House had just defeated, 228–205, a bipartisan $700 billion bailout bill. But it was the Democrats who were the subject of vicious rhetoric.Read full article... Read full article...
Tuesday, September 30, 2008
Wall Street Mega-Crash: The Last Bank Standing / Politics / Credit Crisis Bailouts
By: Steve_Selengut
Dateline Washington, October 19th (get it?) 2010: the Peoples Bank & Trust of America has now established itself as the only bank of any kind in the USA, totally owned and managed by the US House of Representatives. A 2/3 majority must now approve all investment banking transactions; your district representative's staff reviews individual mortgage applications; and all 401(k), IRA, and remaining employer pension assets have been rolled into the Social Security Slush Fund. Read full article... Read full article...
Tuesday, September 30, 2008
Bernanke and Paulson in the Dark on Bailout Impact / Politics / Credit Crisis Bailouts
By: Mick_Phoenix
Pre Vote Commentary - Welcome to the Weekly Report. This week we use the words of Ben Shalom Bernanke to describe why the $700Billion bailout will fail. I am going to assume the Bailout is enacted in one form or another and is probably announced around the Far East market opening times. However, there is a possibility that if Congress has not agreed then no soothing words will be forthcoming and a crash in share prices is used to "galvanise" action. We shall see.Read full article... Read full article...
Tuesday, September 30, 2008
How To Stop A Run On The Banks / Politics / Credit Crisis Bailouts
By: Mike_Shedlock
The global banking system has frozen up. There is no trust between banks and there is no trust by depositors of banks. This has caused a run on the banks, and has led to the failure of Washington Mutual and Wachovia. Internationally, several large banks have failed. Bloomberg is reporting Libor Rises Most on Record After U.S. Congress Rejects Bailout .
Read full article... Read full article...
Tuesday, September 30, 2008
Political Leaders and Pundits Are Clueless About Bailout Rejection / Politics / Credit Crisis Bailouts
By: Richard_C_Cook
Stephen Pearlstein is the Washington Post 's Pulitzer Prize-winning business columnist. In print and as a TV talking head—like on Chris Matthews' Hardball late last week—Pearlstein is one of the foremost media cheerleaders for the $700 billion Wall Street bailout bill.
Or should we call it the Bush-Paulson-McCain-Obama- Pelosi-Reid-Dodd-Frank Wall Street bailout bill?
Read full article... Read full article...
Tuesday, September 30, 2008
Bailout Cost per US Tax Payer Analysis / Personal_Finance / Credit Crisis Bailouts
By: Richard_Shaw
Pre-Vote Commentary- The bailout of Wall Street may not have ultimate costs as high as the nominal bailout amount, but the interest payments on the debt will come due immediately, and the recoveries from Wall Street, if any, will take many years.
The impact of the bailout which will surely happen in one form or the other, will impact taxes, interest rates, the exchange rate of the Dollar, imports and exports, foreign direct investment both in and out of the US, corporate sales and profits, and a long list of economic and investment dimensions too long to mention and to unknowable to predict.
Read full article... Read full article...
Tuesday, September 30, 2008
$700 Billion Bailout NO Costs $1.2 Trillion in Stock Market Loss / Stock-Markets / Credit Crisis Bailouts
By: Brady_Willett
The House of Representatives voted ‘no' on a $700 billion bailout yesterday and investors reacted by punishing U.S. equities for an estimated $1.2 trillion loss. If you were to ask the average person this morning if purchasing $700 billion in toxic securities to immediately generate $1.2 trillion in stock market wealth sounded like a good idea, many would probably respond ‘yes'. This hypothetical aptly demonstrates the mass myth that has been engrained in nearly everyone's psyche over the last two decades - that something, at least on paper, can be produced from nothing…
Read full article... Read full article...
Tuesday, September 30, 2008
Surprise Bailout Plan Rejection Sends US Stock Market Crashing / Stock-Markets / Credit Crisis Bailouts
By: Money_Morning
William Patalon III writes: In a move that will reverberate from Wall Street to Main Street, the U.S. House of Representatives yesterday (Monday) voted to reject a compromise $700 billion banking-bailout bill, an act of stunning defiance that eradicated $1.2 trillion in shareholder wealth as U.S. stocks endured their biggest one-day point loss in history.
The blue-chip Dow Jones Industrial Average Index plunged 777.68 points, or 6.98%, to close at 10,365.45. The tech-laden Nasdaq Composite Index plummeted 199.61 points, or 9.14%, to close at 1,983.73. And the broader Standard & Poor's 500 Index plunged 106.59 points, or 8.79%, to finish the day at 1,106.42.
Read full article... Read full article...
Monday, September 29, 2008
How Voter Fury Stopped The Bailout Plan / Politics / Credit Crisis Bailouts
By: Mike_Shedlock
Inquiring minds are considering the Wall Street Journal article How Voter Fury Stopped Bailout
Left-Right Combo By Opponents Put Plan on the Ropes.
The defeat in Congress of a proposed $700 billion economic-rescue package followed an intense outpouring of voter anger, fanned by politicians, interest groups and media on the left and right, that overwhelmed calls from the president and top lawmakers to pass the deal.
Monday, September 29, 2008
The Bailout Battle Continues: What's Next? / Politics / Credit Crisis Bailouts
By: Mike_Shedlock
We won the battle. Please remember this is a war.Nancy Pelosi, Barney Frank, Treasury Secretary Paulson, Obama, and McCain all still want to pass this stupid bill.
Read full article... Read full article...
Monday, September 29, 2008
Could Paulson's Dead Bailout Plan Have Worked? / Stock-Markets / Credit Crisis Bailouts
By: John_Mauldin
The purpose of Outside the Box is to present views which cause us to think through our basic assumptions. This week our old friend Michael Lewitt of Hegemony Capital Management gives us a view as to why the bailout bill going down may not be as bad as I think it might. There is much we agree on, however. And part of our agreement is that a deeper recession is in our future. Let me be clear. Muddle Through is now at risk. Read full article... Read full article...
Monday, September 29, 2008
Republicans Defy Bush and Vote NO to Socialist Bailout Bill / Politics / Credit Crisis Bailouts
By: Richard_C_Cook
FINALLY, someone said “No” to the criminal gang that runs the U.S. economy when the House voted down the Bush-Paulson $700 billion Wall Street bailout plan by a vote of 228-205.
Shame on the Democrats! Speaker of the House Nancy Pelosi, Majority Leader Steny Hoyer, and Majority Whip Rahm Emanuel delivered “yea” votes from 60 percent of Democratic House members and thereby gave the bill the only chance of passage it had.
Read full article... Read full article...
Monday, September 29, 2008
Bailout Would Still Mean a Fragile US Economy / Interest-Rates / Credit Crisis Bailouts
By: Paul_J_Nolte
Pre NO Vote Commentary - Wall Street's hopes and prayers have been at least partially answered, as the leaders have agreed on a bill that will be introduced into the House this morning. $250 billion now, another $100 if necessary, then the final $350 would have to go through Congress. What is left out of the bill is some real assistance to the economy and actually opening the loan process. The removal of the bad loans does nothing to the balance sheets of ailing banks as the equity has already been written down; the mere buying just removes the asset and does not add any equity back into the bank.Read full article... Read full article...
Monday, September 29, 2008
Congress Votes NO to Bailout Plan- We Won!!! / Politics / Credit Crisis Bailouts
By: Mike_Shedlock
I want to thank each and every one of you who took the time and energy to defeat this monstrosity. This was an enormous victory for Democracy.205 Yes - 228 No - We Won!!!!
Read full article... Read full article...
Monday, September 29, 2008
Flawed $700 Billion Bailout Plan / Stock-Markets / Credit Crisis Bailouts
By: Money_Morning
William Patalon III writes: Even with a congressional compromise having been reached, the $700 billion credit-crisis bailout plan will remain the headline story this week as analysts monitor whether the deal is viewed as a good one, or is ultimately regarded as a flawed deal that can only do damage to the U.S. economy over the long haul. Read full article... Read full article...
Monday, September 29, 2008
Bailout Plan No Solution to America's Ponzi Scheme Economy / Politics / Credit Crisis Bailouts
By: Mike_Stathis
Risks of the Proposed Bailout: Part II - Would I support a bailout under any circumstances? Maybe. But only if there was a clear plan laid forth with specific guidelines and it was to be executed by credible and competent leaders. And only after I saw dozens of bank, Wall Street, and mortgage CEOs and others have their assets stripped and sent to prison. But all of Washington has been way behind the curve the entire time. And they have not raised the issue of accountability as I define it. Read full article... Read full article...
Monday, September 29, 2008
China and the Middle East to Finance US Treasury Bailout? / Interest-Rates / Credit Crisis Bailouts
By: Mike_Shedlock
The Wall Street Journal is reporting Financial Troubles Humble U.S. The U.S. is turning to foreign governments and other overseas investors to buy a good chunk of what could total $700 billion in Treasury debt expected to finance the bailout. Foreign investors also are needed to shore up the depleted capital of the nation's financial institutions, seen in the plan by Japan's Mitsubishi UFJ Financial Group to buy a large stake in Morgan Stanley, which is weighed down by bad debt and market distrust.
Read full article... Read full article...
Monday, September 29, 2008
Financial Crisis Bailout or Not, Economic Depression is Upon Us / Politics / Credit Crisis Bailouts
By: Mike_Stathis
Risks of the Proposed Bailout: Part I - McCain, along with Paulson, Bernanke, Bush and others are using scare tactics hoping to rush the approval of this historic banking bailout plan. Threats of a “disaster” and a “severe economic crisis” have been interpreted by the media as a “depression” if the bill is not passed immediately. Politicians continue to scare the public stating that without a bailout, pension and 401(k) plans will be threatened. Are the conditions very serious? Definitely. The point is that they are so serious that a bailout won't do much at this point other than waste taxpayer money with no real accountability. Finally, as far as I can tell, this bailout really doesn't do much if anything to help taxpayers. Read full article... Read full article...
Sunday, September 28, 2008
World of Unreal Finance Hitting the Real Economy / Politics / Credit Crisis Bailouts
By: David_Chu
“It's not the economy, stupid!” - Bill Clinton's campaign slogan was: “It's the economy, stupid!”
Actually that was James Carville's maxim and battle cry for the 1992 presidential election. Mr. “Ragin' Cajun” Carville, as you probably don't remember, was the commander-in-chief of Bill Clinton's first campaign for the White House. He was and is married to Mary Joe Matalin who happened to be working on George H.W. Bush's 1992 re-election campaign! Ms. Matalin was also an assistant to President George W. Bush and a special counselor to Vice President Dick Cheney until 2003.
Read full article... Read full article...
Sunday, September 28, 2008
US Congress Bailout Deal Passes But... / Politics / Credit Crisis Bailouts
By: Mike_Shedlock
Well I am now convinced there is a deal of sorts. The New Your Times is reporting Breakthrough Reached in Negotiations on Bailout .Officials said that Congressional staff members would work through the night to finalize the language of the agreement and draft a bill, and that the bill would be brought to the House floor for a vote on Monday.
Read full article... Read full article...