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NEW YORK (AFP) - The US economy is in imminent peril if Congress delays approving a 700-billion-dollar rescue, Treasury Secretary Henry Paulson warned Tuesday as global markets rang the alarm.
The head of the Federal Reserve Ben Bernanke also piled pressure on lawmakers to vote the debt rescue "urgently ... to avert what otherwise could be very serious consequences for our financial markets and for our economy."
Merrill Lynch Chief North American Economist David Rosenberg said the US economic rescue package would provide only limited relief for markets.
"We do not think it seriously changes the endgame -- the US economy is in recession and likely to remain so," he said.
"At best (it) merely removes what was looking like the worst case scenario: the entire collapse of the global financial system and a deep global depression."
Originally posted by SEEWHATUDO
reply to post by Maxmars
Congress is due for their 4 month holiday so they will most likely pass it without understanding or reading it (Patriot Act anyone?)
[edit on 23-9-2008 by SEEWHATUDO]
Washington - In recent weeks Henry Paulson Jr. has become one of the most famous and, perhaps, consequential US Treasury secretaries since Alexander Hamilton assumed the office on Sept. 11, 1789.
Secretary Paulson is not the sole architect of the Bush administration's bailout strategy for the US economy, of course. By all accounts he is part of a troika of top policymakers with Federal Reserve Chairman Ben Bernanke and New York Fed Chief Timothy Geithner.
But as the public face and dealmaker of the plan, Paulson is the one most in the spotlight. Moreover, bailout legislation submitted to Congress by the White House over the weekend would transform Paulson's office into that of temporary overseer of America's entire financial system.
Under the proposal, the United States Treasury would have the power to buy virtually any financial instrument from any institution, as a means to relieve it of bad assets and pump credit back into the economy. New Treasury staff would help manage this program, although the administration foresees contracting with private firms to manage its new asset holdings.
Originally posted by Maxmars
Is it me, or is the meme of $700 billion being developed to make everyone blind to the reality that it is $700 billion at a time!
People seem to be posturing their content (accidentally or otherwise) to 'overlook' the fact that this is not a 'one-time' 700 billion dollar check. It's anytime, at their whim, as long as each time it is no more than $700 billion.
Am I wrong?
..the American government, at best, plays double or nothing, with all the money you have, and that of multiple generations of your offspring, in a bet on the crap table that they very well know they can’t win. You know who will win the bet? The bank.
The only money left in the US is the $8-9 trillion in customer deposits at commercial banks, plus whatever is left in pension funds, money funds etc. And they’re coming for it. Just watch them.
What we see is that Goldman Sachs and Morgan Stanley are the by far biggest beneficiaries of the $700 billion plan, which will provide them with the credit space to buy up hundreds of smaller banks. Paulson will get the authority to let those banks fail, and he will do so. The customer deposits in those banks will subsequently be used to keep the game rolling.