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US set for ‘big bang’ financial clean-up

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posted on Jan, 31 2009 @ 11:07 PM
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I wonder what the big bang planned is?

freerepublic.com...

US set for ‘big bang’ financial clean-up
Financial Times ^ | January 31, 2009 | Krishna Guha
Posted on Fri Jan 30 2009 22:12:33 GMT-0800 (Pacific Standard Time) by BAW

The Obama administration is gearing up for a “big bang” announcement next week that will combine a bank clean-up with measures to reduce home foreclosures and probably steps to kick-start credit markets.

The plan will involve an overhaul of the troubled asset relief programme – the $700bn bail-out fund – including strict curbs on compensation at banks receiving public aid. The Tarp overhaul is intended to restore public confidence in what is a deeply unpopular programme and ensure that taxpayer money is not used to fund excessive pay, bonuses and dividends to shareholders.

“There will definitely be a cap of some sort on bonuses,” said a Wall Street executive who has taken part in talks with the authorities. “The political climate is such that there is a need to punish Wall Street.”

The announcement will follow Friday’s news that the US economy contracted at an annualised rate of 3.8 per cent in last year’s final quarter – less than analysts were expecting, but still the worst quarter since 1982. The fall was cushioned by ballooning inventories, which suggest the economy could shrink faster than expected in the first quarter.

The “big bang” approach reflects the belief of Tim Geithner, Treasury secretary, and Lawrence Summers, National Economic Council director, that the Bush administration was wrong to dribble out policy initiatives. Mr Geithner intends to present a “comprehensive” plan that policymakers hope will command market confidence.

Details of the financial overhaul are being finalised and have yet to be approved by President Barack Obama, but it may include both the purchase of toxic assets by a “bad bank” and insurance-style guarantees for problem assets remaining on bank balance sheets.

Anti-foreclosure efforts are likely to focus on subsidising programmes that reduce unsustainable monthly mortgage payments, though there may also be support for schemes that subsidise the partial writedown of loans that exceed the value of the home. Treasury may also unveil new efforts to revitalise dysfunctional securitisation markets.




posted on Jan, 31 2009 @ 11:10 PM
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reply to post by Dbriefed
 


Wow,I cant wait to see what he proposes.
He's stated it has to be big, and quick... and here it comes.

Will it work?



posted on Jan, 31 2009 @ 11:23 PM
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This is going to set the stage for a major rally in the markets. But it will fail eventually one way or another.



posted on Jan, 31 2009 @ 11:26 PM
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Originally posted by Dbriefed
I wonder what the big bang planned is?

freerepublic.com...

US set for ‘big bang’ financial clean-up
Financial Times ^ | January 31, 2009 | Krishna Guha
Posted on Fri Jan 30 2009 22:12:33 GMT-0800 (Pacific Standard Time) by BAW

Anti-foreclosure efforts are likely to focus on subsidising programmes that reduce unsustainable monthly mortgage payments, though there may also be support for schemes that subsidise the partial writedown of loans that exceed the value of the home.


WOW. I don't know how they would do this logistically and monatarily but it would help a lot of people. Or would it? I will be watching this one.


EDIT: I wouldn't be suprised to see the market tank if this is the big plan. Of course the market would tank no matter what the plan was. Buy on the rumor, sell on the news.

[edit on 1/31/09 by stikkinikki]



posted on Jan, 31 2009 @ 11:33 PM
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oh dear, this sounds like the sudden shock tactic which they used when russia dropped comunism -yes, the reason they're now a crime filled nation run by a few billionairs! Didn't they learn sudden shocks ruin markets, economies and lives?

part of me says yes they did learn, they learnt just how effect a weapon it can be....

either that or its more mindless retoric, plenty of talk at the moment which is little more than emptry air.



posted on Jan, 31 2009 @ 11:34 PM
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Or it may be a way of getting people to invest what they have left in to the stock exchange if it looks like it is rebounding and then pull out the rug and take everything.

you can't have a one world currency with multiple currencies



posted on Jan, 31 2009 @ 11:36 PM
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lol

this is so entertaining

every day is like an episode of of a wild unknown event

if you think about it

something happens every day

I wonder if he will announce this first thing monday



posted on Jan, 31 2009 @ 11:36 PM
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Originally posted by stikkinikki
EDIT: I wouldn't be suprised to see the market tank if this is the big plan. Of course the market would tank no matter what the plan was. Buy on the rumor, sell on the news.

[edit on 1/31/09 by stikkinikki]



The market will tank? No you don't get it. The government will be spending trillions. This will improve consumer spending, jobs, and lending. It will be superficial. But if you think the market will TANK if this is successful, then you are very wrong. We will rally this year and then tank once again. If you miss out don't cry for me argentina!



posted on Jan, 31 2009 @ 11:38 PM
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Can you say Amero?

I thought about typing a second line but thought that was good enough so I decided not to type a second line any way that one liner is my contribution.



posted on Jan, 31 2009 @ 11:56 PM
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Originally posted by SLAYER69
Can you say Amero?

I thought about typing a second line but thought that was good enough so I decided not to type a second line any way that one liner is my contribution.



Why Amero?

Like, why does we gots to ally with the canucks and the mexys?



posted on Feb, 1 2009 @ 12:20 AM
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"The more things change,
the more they stay the same"

and:

"Living in their pools,
they soon forget about the sea."

Quotes from RUSH

2 trillion in plsdtic,

that only leaves about 52 trillion to go



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