If we are investors in these banks now, should not these little "Treasury Club" meetings now be open to the public? Should these firms now be obligated to their shareholders (the American taxpayer) to start disclosing the true state of their asset valuation?

Originally posted by Mainer
Should these firms now be obligated to their shareholders (the American taxpayer) to start disclosing the true state of their asset valuation?

Oh, thanks for the best laugh I've had all day!!

Yep, nothing to worry about here, just the US gov't "investing in" the country's largest, supposedly strongest banks. We still have no idea which banks are solvent and which aren't, but nothing to worry about anymore - the government has saved the day!!

Originally posted by anachryon
... nothing to worry about anymore - the government has saved the day!!

Yaaaa government.

Good job guys.

INVEST? Is that what they're calling it now? Monetizing Debt is an Investment? The herd will soon receive its reward for being poor historians.

Guess which bank holds the contract for electronic benefit transaction (EBT) cards for food stamps & welfare & supportive services paid to recipients of said benefits AND is also entitled to service charges deducted from welfare & supportive services deposits on these EBT/stored value cards?

J P Morgan Chase.

I'm not certain, but I believe that this contract is federal, not state-by-state, and involves all US territories.

Originally posted by Mainer
If we are investors in these banks now, should not these little "Treasury Club" meetings now be open to the public? Should these firms now be obligated to their shareholders (the American taxpayer) to start disclosing the true state of their asset valuation?

Careful, your nobility is showing. We are now preferred stockholders... Our representation at the board meetings etc would be assured....

Therefore I suggest the secret meetings will now be even deeper and darker.

Also, they are now 'inside' our government..., look at the damage they have done from the outside ... can you imagine the possibilities now?

This is not, in anyway, a 'big win' for people like me, who lives paycheck to paycheck, waiting for one unforeseen event to destroy my family's and loved ones well-being in this "credit rich" society we've created.

I thought a national bank was already bad as it is like some presidents saw those. But "investing" in private banks just is the mother of all. How can you people of America allow this, I don't understand.

Originally posted by broli
How can you people of America allow this, I don't understand.

Because the media and educational system is controlled. They have dumbed down the population.

The private bank is sucking the life out of America and the leeches who have sold thier souls are making money and enjoying lavisous lifestyles by supporting the private banks efforts.

The people who know and care what is going on have been isolated and muzzeled by the private bankers and thier minions. The rest of the population is too stupid to understand much of anything.

Make no mistake, the devil is in firm control of America. The light is about to be extinguished. Enjoy the darkness.

I personally plan on going out fighting. It's a losing battle but what the hell.

[edit on 14-10-2008 by In nothing we trust]

Why Not Just Meltdown ALL the Banks NOW while we have the chance

Essentially banks make their money by borrowing from the government (the Federal Reserve) at wholesale (2%), or from foreign banks that the USdollar is stronger than, and retailing that money as loans to business and as home loans, car loans and credit cards at higher interest .

They justify the higher interest by saying that they the banks are the ones taking the risk if these retail loan buyers don't pay.

Now we have a situation where the Bush executive government - a Republican administration - has stepped in with taxpayer dollars to the tune of about 1 trillion ($1,000,000,000,000) - the largest single act of socialism in the history of mankind - to buy the failed part of that risk that the banks insist they have been taking.

There is a problem here.

Not so much IMO that it adds a trillion to the bill that taxpayers and their grandchildren's grandchildren will have to pay - though that is bad enough.

The problem is it sets a precedent. They will do it again, it's structural, and they know that the government will again step in and taxpayers will flip for the bill. Next time, they won't be so cautious. Next time, it will be even bigger. Next time, they will want the treasury to step in earlier to prevent financial stocks from lead ballooning.

Banks justify retailing money on the basis of risk. Their executive calculates the risk is acceptable. They - the owners of the bank - take the fall if the loan turns bad.

Now there's no risk, what need is there of banks? If they're to be rescued by the taxpayer when they fail, why not save the taxpayer trillions over generations, and simply make federal reserve funds available to the ordinary citizen, small business or company?

Everyone; homeowners, entreprenuers, small business, credit card, car loans... to re-finance their debts through the Fed at a wholesale price of 2% interest!

actually this isn't the first time that the government has stepped in and bought shares of banks. During the great depression the government did the exact same thing they are doing now. so the precedent was already in place.

From what i heard of this "new" plan is its only temporary. expires when the bailout bill expires, the same bill that gave the treasury the authority to do this. my question is does this $250 billion come from the $700 billion from the bill or will this be tacked on to the total?

also why only the 9 largest banks? they are dividing up $125 billion of this. are they close to collapse? closer than they are saying publicly?

then the other $125 billion will go to "other healthy" banks to "recapitalize" them.
also

Under the plan to be announced today, the government will also guarantee for three years banks' newly issued senior unsecured debt, making it easier for them to refinance their liabilities, the people said.

so not only are we handing over $250 billion to the banks but we are gong to guarantee for three years their unsecured debt?

this really isn't a good thing and smells of desperation and a more direct power grab than the $700 billion bailout bill

[edit on 10/14/2008 by Mercenary2007]

those 7 major banks, aka: primary dealers,
are going to be 'blessed' with $250bn for starters...

(i think that $250bn is from the $700bn awarded by congress under threat of duress)

next we need to read the fine print on this 'buying' of perferred securities in these 7 banks.
we also need to understand why this 'investing' in bank corporations will be ongoing for three (3) years... while less stature banks and financial institutions will only be 'bailed-out' with gov't buying short-term bebt from those firms (short term paper only up to 84 days)


i really see this as developing an 'insiders' advantage into the workings of these 'private' bank-corporations...and govt having the discretion to either tax or not tax the money making operations of these 7 'sacred' banks.

While all the other financial firms/banks/loan makers, which voluntarily signed-up for government loans & bailout monies...will have allowed the govt to have greater surveilance & tax leverage on these lower status firms.


the round about purpose of all this govt intrusion... is to have better info on any black-markets that will develop among the masses as the economy steadily contracts and only those accept the mark will have access to employment, wages, credit, etc.