You have been told repeatedly by George Bush and Henry Paulson that this bill is about a "rescue" of Main Street, not Wall Street.
You have been lied to repeatedly.
The bill The Senate intends to try to ramrod down your throat is neither about Main Street or really even about Wall Street.
You are going to get VERY angry. Sit down before you read further.
""Hundreds of billions of dollars are going to bail out FOREIGN INVESTORS. They know it, they demanded it, and the bill has been carefully written
to make sure that can happen." - Brad Sherman , D-California"
That's right folks. You are going to have $700 billion - about 25% of the total federal budget - put on your personal credit card (via taxes forever)
in order to bail out foreign investors.
Oh, and the best part of it is that the underlying assets involved do not even have to be in the United States!
Here is the definition of a "troubled asset", right from the bill:
"(9) TROUBLED ASSETS.—The term ‘‘troubled assets’’ means— (A) residential or commercial mortgages and any securities, obligations, or
other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before March 14, 2008, the purchase
of which the Secretary determines promotes financial market stability;
and (B) any other financial instrument that the Secretary, after consultation with the Chairman of the Board of Governors of the Federal Reserve
System, determines the purchase of which is necessary to promote financial market stability, but only upon transmittal of such determination, in
writing, to the appropriate committees of Congress."
Notice that conspicuously missing from the definition is the requirement that the asset's underlying thing (that is, the property that was mortgaged,
etc) lies within the United States. Also note that Treasury must tell Congress if they add "new types" of debt, but that Congress has no right of
review or censure.
That is, it is perfectly legitimate under the bill for a foreign bank to sell or swap any "crap sandwich" it may hold (irrespective of how or where
it originated, so long as a mortgage is the basis for it somewhere) with a bank domiciled in the United States, and said bank may then "PUT" it into
Note also that Representative Sherman said on Kudlow last night that when this was raised with Secretary Paulson he was told that if Congress tried to
restrict the ability of the Secretary to purchase assets "laundered" in this fashion from foreigners, that the bill would be vetoed.
Here 'ya go folks.
You better make this viral and spread it to everyone you know.
Right here, right now.
You better get on the phone to your Congressfolk at www.house.gov...
and make clear that you will not stand for this
bill being passed.
IF THIS BILL PASSES YOU WILL WIND UP EATING $700 BILLION OR MORE - REMEMBER, THIS IS A REVOLVING CREDIT LINE, NOT A MAXIMUM AMOUNT - OF FOREIGN BAD
DEBT FROM THE CHINESE AND ELSEWHERE.
THAT'S RIGHT - THE PURPOSE OF THIS BILL IS TO SCREW YOU, THE AMERICAN TAXPAYER, BY OFFLOADING ALL OF THE TROUBLED DEBT AROUND THE WORLD ONTO YOUR
ARE YOU GOING TO LET CONGRESS GET AWAY WITH THIS?
YOU HAVE LESS THAN 48 HOURS TO STOP IT.
NOW YOU KNOW WHY IT WAS SUCH A "RUSH JOB" - THE AMERICAN PEOPLE WERE BEING CONNED OUTRIGHT BY BOTH PAULSON AND BUSH.
"Sept. 29 (Bloomberg) -- The Federal Reserve will pump an additional $630 billion into the global financial system, flooding banks with cash to
alleviate the worst banking crisis since the Great Depression.
The Fed increased its existing currency swaps with foreign central banks by $330 billion to $620 billion to make more dollars available worldwide. The
Term Auction Facility, the Fed's emergency loan program, will expand by $300 billion to $450 billion. The European Central Bank, the Bank of England
and the Bank of Japan are among the participating authorities.
The Fed's expansion of liquidity, the biggest since credit markets seized up last year, came hours before the U.S. House of Representatives rejected
a $700 billion bailout for the financial industry. The crisis is reverberating through the global economy, causing stocks to plunge and forcing
European governments to rescue four banks over the past two days alone."
Now let's think about this folks.
The Fed threw $630 billion into the market before the vote, and yet the S&P 500 was down 40 handles anyway, and in fact tanked after the vote.
Note carefully - Paulson's plan was $700 billion, and Bernanke spent $630 billion - almost the entire amount proposed - but failed to fix the
We were about to piss $700 billion into a tornado and lose it forever.
Fortunately sane people prevailed in The House of Representatives and voted NO.
If they hadn't, we'd have had our proof but the money would be on its way into the vortex and you the taxpayer would have been utterly screwed.
IF we are truly facing an economic catastrophe you have just seen proof that Paulson's $700 billion will do nothing. It is my contention that to
actually arrest this mess we'd need up to $5-7 trillion, and taking on that sort of debt would essentially destroy the value of our currency, cutting
it in half (which means your cost of living doubles); that is, "fixing" this mess will be worse than doing nothing at all!
IF we are indeed facing a deep recession (or worse) then we will need that $700 billion to feed and house the displaced Americans here in our nation,
and cannot afford to hand it to a bunch of rich (and pissed-off) bankers around the world who made bad bets and now are screaming with their hand out
like a 2-year old who wants another candy bar.