New bank bailout could cost up to $2 trillion

New bank bailout could cost up to $2 trillion

www.reuters.com

(Reuters) - U.S. government officials seeking to revamp the financial bailout have discussed spending another $1 trillion to $2 trillion to help restore banks to health, the Wall Street Journal said, citing people familiar with the matter.

(visit the link for the full news article)

Well, it does not look like there is an end. And the more money are placed on the bailout, the more economy goes bad as the 2 trillion do not exist at the moment- the 2 trillions must be created from nothing, as form of debt . This will lead to an inflation of 20 % or more as I believe.. or maybe more?

And today China promoted the ideea of a "new world order" .. so everyone joins in ! All the strugle was not for nothing - things that would not be accepted 2 years ago are now claimed as solutions. Is this not an intelligent work?

www.reuters.com
(visit the link for the full news article)

reply to post by sty


Well, I`ve come to the conclusion that those Reps. that voted for this package don`t care a bit about the future of our children and grandchildren by placing this added burden on them. I listened to a show yesterday that said the amount of taxes they would have taken from them would be 60-80% of their pay. Ok, now how is one to live with what`s left? I don`t think they really care if they have any money left, as long as they get their way with this package. These scum that we have in office are no better then crooks. I think we should let them all know how we feel about it, by sending them an e-mail addressed to Jesse James. They can rob our childrens futures and say they did it legally.





[edit on 29-1-2009 by FiatLux]

You know the last bail out was for 750billion on paper. This one is for 1-2 trillion? I emailed and called my congressmen on the last one. This one I would get out on the corner for, hand out flyers of there numbers, and email them every 5 minutes on. My concern though is that if I am willing to do that, what are others willing to do. If this hits mainstream if could get VERY, VERY, VERY, ugly. I hope this is just specualtion.

Camain

They already increased the money supply by 75%. What will this bring us to? The inflation still hasn't hit because banks still haven't started to loan. The effects of monetary policy can take up to 3 quarters to be obviously visible.

It is rather pathetic that the way the Govt. is bailing us (banks, institutions, and soon individuals) out is of the same manner in which the crisis was conceived. I agree that something needs to be done, but I think this is the wrong course of action.
It is similar to being "hung over". You could either:

A. Drink alot of water and let it run it's course.
B. Drink more alcohol to feel better.

The Govt. has chosen option "B". After Wall Street went on a 3 year financial "bender" with the general public supplying the drinks (from the lending institutions open bar), we are now paying the price.
Every financial crisis is different. Many believe that the Great Depression was caused by Govt. inaction. They simply did not know how to deal with such a huge amount of losses in such a short amount of time. Bernanke, the Chairman of the Fed, is a scholar of the Great Depression.
What makes this reccession different from those in the past is the sheer amount of corruption involved. Even after so much of it has been exposed, it is still going on in plain view and there is nothing that is being done to stop it. In fact it is getting worse.
In a few years from now, the Govt will own most everything. Maybe not as obvious as changing G.M. to "Government Motors", but their exposure to the liabilities of their holdings will eventually make the U.S a bad investment to foriegn investors. When this happens in full effect, there will be no one to buy our debt. It will only be a matter of time that inflation kicks in and coupled with the aforementioned, the dollar could be replaced by O.P.E.C as the standard of measurement for oil prices. There will be little incentive from foriegn interests anymore to keep the dollar strong.
I really hope I am wrong. I would hate to see this country that so many have sacrificed for go to the dogs. Equally, I hope the best for Obama and his administration. They are faced with a daunting task and I really would hate to see their plans backfire. Can you imagine if it got to the point where Obama gets impeached? April 26, 1992 a million fold.
One last thing. There is no way that this finacial situation was "created" to set the Dems up for failure. This situation has mauled personal finance at all levels of society and the only way to benefit from it, (by shorting your holdings), would be so obvious that it would only be plausible if "12 Jews ran the world". Then again...

I`ve come to the conclusion that those Reps. that voted for this package don`t care a bit about the future of our children and grandchildren by placing this added burden on them.

I think they do care. However, instead of seeking expert advice they try to create their own bill or rely on lobbyist to draft it for them. Furthermore, they vote on a 1,000 page bill without even knowing what it contains. Least they could do is to take the time to read it all and ensure that it is a bill that will truly help and not a bill that will only create more heartache.

To hell with that crap!!!

I think the banks need to be allowed to go under.

I think there needs to be a law in place not allowing our govt to spend OUR money anymore until they can get their stuff straight. They want more money? Then they should take it out of their own wages.

Can I stop paying them??? I guess it doesnt matter, if we stopped paying them, they would just print the money they needed anyway.

This has gone too far, and needs to be stopped!

Don't act so surprised, the actual figure was bound to come out sooner or later. They always knew that the original bailout money was nowhere near enough and that it was inevitably going to reach into the trillions.

reply to post by sty


AAAH i get it!
The other banks ceo'S need to buy brand new Jets too!
And i am sure that all the CEO's need new Limo's!
And the financial year is over and they all need their BONUSES!
AFTER ALL IT IS NOT EASY BRINGING THE WORLD TO ITS KNEES!!!
When are you as a nation going to tell your Govement - ENOUGH IS ENOUGH!!!

WELL, some people talk of a total of 4 billions on bailout . however there is no clear data on how this bailout money suposed to work , it has never ben tested and there is no guaranty this is actually going to work. There is no way you can help the economy by simply giving some more trilions to the rich bankers.
The ONLY way out for the economy is actually to abolish the FED and ALL the private banks of the country. Then a new currency should be created (let us call it new us $ , sau NUS$) and this currency to be regulated by a fully transparent government institution . The money should not be created as debt , actually there should be illegal to lend money (with or without interest ) . The government bank should be the only one allowed to give loans (using their transparent institution ) , and all the loans should be interest-free. Why do you have to pay 2 houses while living in one etc etc.
You cannot have a sustainable economy with a financial system based on debt.
From the moment a us$ is leaving the FED, that US $ is already a form of debt, that also bears the interest on the FED . This creates perpetual debt!

If the governments still hopes to keep the existing system alive by enslaving people using perpetual debt as mechanism , in my opinion i believe that people should simply self-organise, make their currencies and bypass the official currency. And with the help of the Internet we will see this happening instead of a great depression as engineered by some ..

Originally posted by Daniel666
reply to post by sty

 

AAAH i get it!
The other banks ceo'S need to buy brand new Jets too!
And i am sure that all the CEO's need new Limo's!
And the financial year is over and they all need their BONUSES!
AFTER ALL IT IS NOT EASY BRINGING THE WORLD TO ITS KNEES!!!
When are you as a nation going to tell your Govement - ENOUGH IS ENOUGH!!!

Proof everyone is living in their own life bubble. When people are living in their own bubble they only think of their own gain and profit. A sort of selfishness. The only way out of it is if we break all the bubbles.

But if we break all the bubbles would that not be socialism?
And if capitalism has caused all of this. Are we ready to try socialism?

It's all a scam. Just like global warming and y2k. Claim there's a huge problem and demand money to "fix" it.

Is there some kind of agenda to collapse the dollar quicker than the WTC collapsed?

Is there some kind of race to see which country can screw over their own citizens the fastest?

What the hell is going on?