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Bush asks Congress for $700 billion for bailout

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posted on Sep, 20 2008 @ 09:38 AM

Bush asks Congress for $700 billion for bailout

WASHINGTON - The Bush administration is asking Congress to let the government buy $700 billion in bad mortgages as part of the largest financial bailout since the Great Depression.

The plan would give the government broad power to buy the bad debt of any U.S. financial institutions for the next two years. It also would raise the statutory limit on the national debt from $10.6 trillion to $11.3 trillion — making room for the massive rescue.

(visit the link for the full news article)

posted on Sep, 20 2008 @ 09:38 AM
This is insanity, 700Billion?

This will not only affect the states but send a ripple effect in the world economy.

Why doesn't the people stand up against this?

But someone explain this to me, the media keeps saying this is a govt. bailout, but the FED is a private and secret bank, it's it's own govt. outside the govt. is it not?

This is not a govt. bailout, it's even scarier than that, it's a bailout from a secret private bank with absolutely no accountability whatsoever.
(visit the link for the full news article)

[edit on 20-9-2008 by ModernAcademia]

posted on Sep, 20 2008 @ 10:39 AM
I don't think its all that much in the scheme of things.
What people fail to realize is, if they invest this money now and keep the economy going, they can actually make a profit from this in years to come from the taxes they will steal from people.
Obviously a whole load more unemployed people means less taxes.
So they want to keep it going to get more revenue.
I don't agree with it one bit, but from a financial perspective it makes sense.

posted on Sep, 20 2008 @ 10:44 AM
Just thinking about this bailout and I finding it extremely ironic that they are going to use $700 billion to bailout the banks so that the banks can continue to foreclose on homeowners. In other words, we're pay to keep the banks afloat so that they can continue to screw us.

Just wow! What has the world come to.

posted on Sep, 20 2008 @ 11:07 AM
Bush is really asking congress to approve the PRINTING of $700 billion. This is their big idea to fix things but in reality another country tried this trick of printing too much money - that was pre WWII Germany. It sent inflation through the roof costing people $12 for a loaf of bread back in a time when it should have cost about 25 cents!

So this idiotic "bail-out" is actually going to be the thing that brings America to its knees. A sad day indeed...

No more God bless America - it's now God HELP America...

posted on Sep, 20 2008 @ 11:08 AM
reply to post by SeekingAlpha

I couldn't agree with you more. If the govt is going to bailout someone, why not take the $700 Billion and distribute it evenly among all the American citizens? We're the ones will will ultimately pay for it anyway, with our blood, sweat and tears. It is clear where our govt officials real priorities lie, and it's not with the American people. How pathethic.

posted on Sep, 20 2008 @ 11:34 AM
They just increased the national debt by a Trillion a couple weeks ago for Fannie/Freddie. Now we need another Trillion.

Adding Debt at that pace is indicative of an end game. There are some 56 Trillion of OTC derivates in US banks alone and a quadrillion worldwide. All mixed up with mortgage backed securities. We will not print our way out of this, we will simply destroy the dollar and the US through hyperinflation.

Also, voting to increase the national Debt does not mean anyone has to loan us the money. By increasing our balance sheet at this pace we are telling our lendors we're in trouble, which in turn causes them to downgrade our credit. And I'm not talking about 'rating agencies' who are politically controlled. Our lenders are smart enough to figure out the situation on their own. The last TIC report for July speaks volumes.

posted on Sep, 20 2008 @ 11:41 AM
Well, just watch and look at what happens if this is done. If they do this, and get the banks back up and running, will the interest rates that got the home owners in trouble in the first place, be dropped down to where they can afford the payments? If they aren`t dropped lower, it will end up being the same thing all over again, just a recycle of the same thing. Only thing is, the bailout money will be used to do the same thing with. Lend it to people at high rates, and now, it ends up being a much bigger affair in the end. And that end being, the banks get richer from the bailouts and the public gets bent over even harder.

posted on Sep, 20 2008 @ 11:55 AM
The FAT LADY has sung.

GOD help us.

posted on Sep, 20 2008 @ 12:08 PM
reply to post by FiatLux

They've done that a number of times over the last thirty years or so. Now there is so much debt piled up that there is no way out. You can tell by the exponential rate at which debt was and is being created that things are out of control. Consider that a quadrillion dollars in OTC Derivatives is equal to 20 times world GDP. That debt was created over just 4-5 years. Increasing our national debt by 2 Trillion in the last two weeks in an intial response to the deleveraging of all that Debt is crazy.

Just do a search on Yugoslavia, Weimar Republic, or more ecently Zimbabwe and Vietnam to see what printing money can do to a country.

The thing is, we have already 'printed' more than enough money to destroy ourselves. There is some 15 Trillion in 'dollars' around the globe because we have had 'reserve currency' status. By taking on all this bad debt from banks OTC Derivatives we could lose that status very soon. At that point all the bad paper (15 Trillon worth of dollars) would return in a flood that would rip this country apart.

Reserve Currency status was a huge responsibility. We misused it and now there will be a HUGE price to pay.

posted on Sep, 20 2008 @ 03:32 PM
Well then, why is it so hard for anyone in Washington to grasp the thought that "THIS BANKING SYSTEM DOES NOT WORK"? What really got me was, I was watching a financial expert talking about the situation with the markets. While talking, he said something to the effect that the two parties had no clue how to fix this, and that he wasn`t going to vote for either one. But if Mr. Paulson would run, he would get his vote. He said that this man setted forward and knew just what he was doing. I couldn`t believe this idiot had so little understanding of all of this, and what the outcome could end up being for all of us.

This banking system is so one sided it is beynd belief. I mean think about it. How much money do you make from the interest on your savings? Very little at all. And to think, the banks use this money to make other loans with, and they get the majority of the interest made on the loan. Sure is fair isn`t it? Your money being used, and you get hardly a thing for them using it. You may as well make personal loans with it yourself, and set your own interest rate, you would make more with it that way.

By the way, your signature says it all. Very nice.

[edit on 20-9-2008 by FiatLux]

posted on Sep, 20 2008 @ 03:53 PM
People fail to realize that the banks are bankrupt and if the gov don't bail them out than no one will be financing your homes and we would be in a bigger deppresion.

Homes would be dirt cheap because people would have to paid them in full, thus, US would fall into a deap depression due to the decline of all businesses.

There will be more foreclose home because no one would be able to sell their house when the investors are all gone and no one can get financing.

posted on Sep, 20 2008 @ 04:00 PM

People fail to realize that the banks are bankrupt and if the gov don't bail them out than no one will be financing your homes and we would be in a bigger deppresion.

You are correct, however by having so much money in circulation the exact same thing will happen. Too much money means it becomes worthless and stuff becomes more and more expensive.

I think Ron Paul has it right. He says that you have to bite the bullet and let them go bankrupt. It will be painful for many, however it is the only way to fix the problem. They are just prolonging the inevitable doing this bail out.

posted on Sep, 20 2008 @ 04:22 PM
I'm in the process of putting a lot of my money in gold, I would advise you to do the same. The experts in the past recommended that you put 10 percent of your savings in gold. But this day in age I don't know if that holds merit, call me crazy and paranoid but I'm transferring most of my savings into gold.

This thing is obviously going to get a lot worse before it gets any better so I'd rather be safe then sorry. I wouldn't be surprised if we start seeing bank runs like we did during the great depression.

I'd get caned foods, water, survival equipment and a few guns for good measure. If you haven't taken any survival classes, I'd sign up for one asap. I know this sounds crazy but stories like this just back up my reasons for doing so.

But until then I'll continue with my life with my normal 9-5.

posted on Sep, 20 2008 @ 04:26 PM
reply to post by ModernAcademia

the $700Billion will only be the 'entry fee'...

the Fed/Treasury combined to take over Freddie-&-Fannie
and the mortgages that corporate giant held.

And now there is a new $700Billion entity being created--i call it a dark-pool but the powers that be call it a resolution-trust...
But this new RTC 2.1 (resolution trust rehabilitated) will not be a simple thing,
the private mortgages that include ARMS and other exotic debts are not basic 15-30 year, simple interest, mortgage contracts.

i expect that the bad debt paper, what they say is limited to just private party mortgages, will spread out to include the enormous volume of CDS
(credit default swaps) which bet that some mortgage financiers would either go bust or default.
imho the $700billion will indeed grow to the multiple Trillion$ as things progress.
just like the relatively 'cheap' Freddie/Fannie bailout will eventually involve the whole $5Trillion of mortgages that are insured by Freddie/Fannie (FRE+FNM)...and not the modest $80Billion cost we were led to believe !

[edit on 20-9-2008 by St Udio]

posted on Sep, 20 2008 @ 10:45 PM
excuse me but I fail to see, where do all these billion dollars come from ? united states has so far probably sent over 5 trillion dollars, for the war and these 700 billion 500 billion etc to banks etcc.

so im wondering where is this money come from ? is it printed or what !

i just dont see USA making trillion dollars every week or month or year.

yet usa is spending billions every month on something like this where the hell is this freaking money is coming frommmmmmmmmmmm ?>

i never see anybody asking this crap here ! where is the money frommmm

im going to ask again where is the money coming frommmmmmm god damit !

posted on Sep, 20 2008 @ 10:49 PM
Hahahaha! The Republicans themselves who have thrown endless mud at the dems for years accusing them of "big government" and overspending. In its eight years, this admin will end up spending more than all previous combined in US history!

[edit on 20-9-2008 by whatsup]

posted on Sep, 21 2008 @ 12:26 PM
I am not suprised about the BUSH move, he wants congress to rush it up.



posted on Sep, 21 2008 @ 12:42 PM
A desperate attempt to fix the mess with our money, money we have to borrow and pay back. All this maybe unconstitutional, illegal, Bush breaking the law again!!

posted on Sep, 21 2008 @ 12:43 PM
No doubt this will help the well off and hurt the poor. Inflation will rise because we will print more money with nothing to back it up. Im not an economic smart guy but Ive kept track of what the smart guys say. Oh well, China will loan us more money........argghhhh!

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