Bush To Announce - What?

Bush to announce new details of bank rescue plan

WASHINGTON - The Bush administration will spend $250 billion this year to purchase stock in banks and take a number of other bold steps in an effort to combat a global credit crisis that is threatening to push the country into a deep recession, industry and government officials say.

President Bush was scheduled to announce the new initiatives early Tuesday after executives of the country's biggest banks were summoned to a remarkable meeting at the Treasury Department on Monday. Treasury Secretary Henry Paulson basically told the bank CEOs that they had to accept the government stock purchases for the good of the U.S. economy.

I'm too disgusted for words.

There are so many issues in this article and we still have to wait to hear the whole story today. All I see are red flags.

The Bailout Bill is what? 2 weeks old and the rules have changed. (Well, actually it's clear now that there were no rules.) Did any of you see/think they could use it this way? Check out the part about the FDIC Insurance limit in certain circumstances.

yeah, i am very upset with the government right now. they need to seriously lay off. I think were feeling pressured to do something radical because UK came out and whipped their system into shape and did some strong moves and i think here in the USA we are trying to flex our muscles at the UK and say, Any thing you can do we can do better!

But im just sick of the government, They got us in this situation and they wont let us get out of it without stating more problems.

Just get ready for some rough inflation soon.

Be very afraid when anyone takes financial advice from Gordon Brown. This ridiculous equity purchase idea is a monster of his creation.

Im against this in moral terms. This is a flagrant violation of the free market, yet again.

In pragmatic terms however, this is a brilliant deal for taxpayers. Shares are severely underpriced as compared to book values at the moment. Taxpayers will make a large amount of money via this deal, in about 5-7 years.

reply to post by 44soulslayer


Can you explain how the tax payers will see money from transactions like these? I have heard that mentioned a time or two during this bailout fiasco, but I haven't heard exactly how the taxpayer will see any of it? I mean, realistically they could just throw whatever profits that they see into the bottomless pit we like to call the national debt, couldn't they?

i do not really understand it , what will happen with the 700 billions now? or they 700 are already gone in fat accounts from misterious banks ? and who is going to be the shareholder of the 250 investment? the private bank that people call FED? i hardly understand how thigs work in US .
The first thing I REALLY do not understand is how the FED works! (Eastern Europe here) . The Interent says that the FED is a private corporation, with private share-holder, and your government cannot audit the activity of the bank . They make money out of nothing (as many as needed ) and lend them at interest to the other banks .The private shareholders of the FED are unknown , undisclosed.
Well, maybe I am not great in finances - but how in the world is this actually working for the benefit of the people????
Regards,
Stefan

Note: as i understood the FED become privat during a misterious vote in the 1913 . the Gold standard was suspended durin Nixon..

Google Video Link

reply to post by Karlhungis


Essentially the plan is deviously simple. To halt falling market prices, the governments buy any and all stock that is being sold. This drives up demand artificially, and takes the stock price along with it. Normally this sort of cartel buying would be considered illegal, but since its the governments doing it...

The net result is that governments will have significant shareholder stakes at a preferential dividend rate in private institutions. This means that where Goldman Sachs may have been paying out cumulative dividends of 10 billion last year, the government will get a slice of that pie.

Also, government ownership means that they have a vested interest in the banks so they will not allow banks to fail. This is the implicit guarantee that allows investors to know that they can stick a few thousand into a stock, since the government has a few million in that same stock and will hence not allow it to collapse.

So in 5 years time, not only will the dividend paid at a preferential rate to the governments have almost paid off the debt, the stock will also have gained in value. This should be good news for the taxpayer.

So are stock futures going to drop like they normally do when Bush speaks? haha. im taking bets. haha


Dow at +192 at beginning of speech.

[edit on 14-10-2008 by ghostlandseller]

So basically, the American public was lied to once again. The $$ from the Bailout was sold to CONgress as a means to buy up all those bad Mortgage backed securities.

But as we are quickly seeing, it was to begin the process of turning the US into a Socialist country.

Capitalism is truly dead.

Buying preferred stock in banks vs. buying up toxic paper

So... Who is still getting stuck with all the toxic paper?

reply to post by 44soulslayer


So essentially, the only benefit that the tax payer (not in the market) is going to see is that their banks won't fail? When the government claims that "the tax payer could actually make a profit off of these assets" that doesn't really mean anything?

And yes, it does seem funny that they are launching full scale investigations into market manipulation at the same time they are implementing a plan for massive market manipulation.

I think I liked it better when the government felt like they had to hide this type of thing from the public. It seems strange to have them flaunting it now.

It is stunning to think about how much the financial landscape of the United States has changed in less than a Month. No wonder the markets are so confused. This seems like years and years of incremental encroachment all accomplished in a Month.

The more that happens, concerning the world markets, the more and more the NWO conspiracy bulb starts getting brighter.....


Who got together this past weekend? Why? To devise a strategy to combat (manipulate) the global markets... We now have nations taking shareholder status in global financial institutions...

Who pumped up the US markets yesterday? I don't know but it does make one suspicious that such a one day (record making) spike....

As some have said, how did this (taxpayer investment), turn back into a bailout in such a short amount of time?

Too many questions, and once again, at least here in the US... Those in power seem to think that the taxpayers lack the intelligence to see when they are being lied to(entire federal government), ignored (Congress)..

Who caused the market collapse? was it an organized effort? was it done so the global nations could take some financial stake in the banks, on the cheap?

Market manipulation is one of the things that the US president has mentioned for the reason for the taxpayer investment bailout...


As smart as those in power think they are...

Why can't they see that what THEY are doing is MARKET MANIPULATION :bnghd:


And using the taxpayers hard earned dollars to do it is sickening

US citizens, Vote them ALL OUT, every last one before it is too late...

It just might be the last time you have the chance to vote them out [tin foil hat on]

Originally posted by 44soulslayer
So in 5 years time, not only will the dividend paid at a preferential rate to the governments have almost paid off the debt, the stock will also have gained in value. This should be good news for the taxpayer.

Or in two weeks time, several more countries will have joined Iceland in default and the resulting panic will cripple the world's financial system and cause a mass exodus of capital out of the banking system, which leaves us holding preferred shares of totally insolvent banks. At least buying mortgages left us holding actual real estate, about the only thing that can't ever vanish.

reply to post by ghostlandseller


Futures are up +313 right now. Have we slipped into some parallel dimension? Not only does the market always tank after Bush speaks, I was sure that yesterdays rally would be immediately followed by another large drop.

I am still betting it ends up in the red by closing bell.