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Bailout becomes buy-in as U.S. gov't moves into banking

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If Americans hadn't elected such an incompetent loser as GWB, they would not be watching $700 billion of their money being used to purchase bottom-of-the-barrel toxic mortgages or used to capitalize banks.

This really is payback time for those Americans who voted for The Worst President Ever.

And it will get worse before it gets better.

I guarantee we'll see misguided Republicans on this thread trying in vain to defend this latest action by the most incompetent administration in nearly a century.

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Somehow, I don't think that the road to prosperity consists in borrowing money from China to buy stock in banks or printing money to buy short term debt.

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Well, it took you a long time to get there and you wasted tens of millions of lives, gazillions of dollars and any street cred you may have had to sit now where you never wanted to sit, in a state controlled nation. Velcom to the United Socialist States of America. What a joke, the ideological struggle, the whole kabang was --all along-- just an absolute was-away-in-a-week illusion.

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Sushi - I don't agree with this bailout. Whaddya think of that?

BTW, Bush is not the cause of this debacle, the Democrats are. Did you check out the link I gave on the other thread?

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I thoroughly disagree with all you nay-sayers. I voted twice for this man who had a "tough row to hoe" and he did his best while the Democrat Party gave him nothing but trouble. If I were to point out the problems, I would point at Pelosi and her munchicans. Bush is now doing something the Congress wouldn't - they would rather talk.

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Seems the congress and the president feel they need to bail out their campaign contributors... Hate to have the feel meal tickets go broke..

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feel =free

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"Mission Accomplished"- Financial crisis over !

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BTW, Bush is not the cause of this debacle, the Democrats are. Did you check out the link I gave on the other thread?

The link refers to a 1999 decision made by Fannie Mae to ease credit. We are to believe that Bush and the Republicans held no power since 1999 and were thus victims of the minority party. Pretending Bush could have done nothing to force Fannie Mae to tighten its ship is simply crazy.

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I voted twice for this man...

Well, I rest my case.

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yabits - Don't you know this was all the democrats problem. For 6 years the republicans controlled the congress, george bush was the president.

They gave away $4Trillion to the richest 1% bof the population.

They pushed through everything from a prescription plan that benefitted the drug companies with billions of dollars.

Started a war based on lies. (Just for you SuperLib)

And they never saw it coming? They never saw or heard the the warnings?

Boy I can't wait till Barack is president and we have a democratic congress. We can blame everything on the republicans then.

Neat!! < :-)

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And they never saw it coming? They never saw or heard the the warnings?

They never were very good at connecting the dots, but they excel at sloughing off responsibility.

Boy I can't wait till Barack is president and we have a democratic congress. We can blame everything on the republicans then.

That's a terrific line, and sums up their logic to a T.

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From : http://en.wikipedia.org/wiki/Structured_investment_vehicles

In October 2007 the U.S. government announced that it would initiate (but not fund) a Super SIV bailout fund (see also Master Liquidity Enhancement Conduit). This plan was abandoned in December 2007. Instead, banks such as Citibank announced they would rescue the SIVs they had sponsored and would bring them onto the banks' balance sheets. On Feb. 11, 2008, Standard Chartered Bank reversed its pledge to support the Whistlejacket SIV. Deloitte & Touche announced that it had been appointed receiver for the failing fund. Orange County, California has $80 million invested in Whistlejacket.

It appears that this type of investment was created while Ronald Reagan was president. You remember Reaganomics and the trickle down effect?

What trickled down was this whole catastrophic investment systems that Main Street will have to bail out Wall Street from. < :-)

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Of which 100BN will end up in pockets of CEOs.

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Velcom to the United Socialist States of America

Hugo Chavez eat your heart out! You ain't got nothin' on us.

FYI: Bush is only one of millions of culprits in this fiasco. By millions I mean not only the politicos on both sides of the aisle, not only the Wall Street risk-takers, but also all the Americans living beyond their means - you know, the kind of people who think a new credit card is a new source of income.

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sdmsec - all the Americans living beyond their means - you know, the kind of people who think a new credit card is a new source of income.

I partially agree with you.

The people living beyond their mean aren't the ones to blame.

There is absolutely no way to find out who owns your loan if you want to refinance it. It gets wrapped up in a package with loans totalling $Billions of dollars and multiple people or investment groups have a piece of the pie. These loans couldn't be refinanced.

It wasn't the Main Street folks that backs these bad loans with paper. Not money or calateral or anything of value. These investments were backed by "swaps", not money.

It wasn't the folks on Main Street who wrote contracts that had balloon payments, ARMs or any other fine print that the mortgager didn't know about.

There are people who couldn't afford these loans. They applied for loans they couldn't afford. Damn thing is, they didn't write that check themselves. They requested the loan. If they didn't have the money or the finances coming in to make payments when they ballooned, the bank shouldn't have made the loans.

Bad loans to home owners that defaulted only goes back to the bank. That's it. These people didn't sell their loans later to Wall Street or to some investment vehicle that got sold over seas. The home buyer only did business with the bank or the mortgage company.

It's the crooks on up the food chain that screwed America. It's the crooks before the loan was made who screwed the home buyer. The home buyer's responsibility stops at the bank. < :-)

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I hear that this economic crisis is causing lay-offs of used-car salesmen. Just goes to show you, there's a silver lining in every cloud.

Jay Leno
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The people living beyond their mean aren't the ones to blame.

You are bang on.

October 22, 1999. The day the day the Clinton administration and the Congressional Republicans agreed to legislate to do away with the Glass-Steagall act in place since Roosevelt's presidency. In November 1999 the the Gramm-Leach-Bliley Act passed into legislation. It's also known as the Gramm-Leach-Bliley Financial Services Modernization Act, and that is has likely been the most recent direct cause of the financial collapse in Wall Street.

The bill has been criticized by economists as amounting "to corporate welfare for financial institutions and a moral hazard that will make taxpayers pay dear".

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BTW, Bush is not the cause of this debacle, the Democrats are. Did you check out the link I gave on the other thread?

I think there's plenty of blame to go around here, from Democrat efforts to free up home loans to low-income borrowers who could never afford such loans at any interest rate, to Republican-stacked financial interests looking to make a quick buck through the swapping and selling of said bad loans, despite knowing it would in all likelihood come back to bite them in the butt later.

Warnings had been in the air about this metldown for years, and no one on either side lifted a finger to stop it. Democrats were happy because their conciences were soothed at the thought of low-income families being able to partake in the American "dream" of home ownership. Republicans were happy because their stock portfolios were going through the roof. And no one did a damned thing in the meantime.

Everyone shares the blame for this mess, not just Democrats or Republicans.

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Scary when Government plans to invest in banking. I for one do not like it too much of a Right Wing Neo-Nazi feel to it!

Let us see, if you are a Republican who`s Republican President has been in office for nearly 8 years who do you blame for all the problems of today?

Well you have to blame the Clinton Administration for all the problems!

You can not blame this C grade President for all the problems! That would be unreasonable to blame Bush! It is not his fault that we are in this mess darn it it is not!

It was not Bush that got us into Iraq when we should have been in that other place! You know the place Bin Laden and his mates are at.

It is not his fault that he has allowed all out outsourcing of American jobs!

It is not his fault that we are in such a state that the Banks are in deep trouble.

It is not his fault that unqualified people were put into position of policy and power!

It is not his fault he he can not say a line without making an ass of himself.....Opps that is his fault, but to hell with it, it is not his fault!

No none of this is his fault, it is all Clintons fault he should have been wiser than to let all this happen to our country! Yeah the Clinton Administration took all the W and then no one could type anything and that is why the United States is in such a terrible state right now!

Yep blame the Democrats they have been in power too long, time to bring Delay back!

Darn Democrats and their bad leadership! Sure the Republican`s have had the White House for almost 8 years and had the Congress for almost 16 years but it is not their fault!

Blame those darn Democrats and that evil evil Clinton for the problems of today 8years later!

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I'm kind of angry at my ex-girlfriend right now so I'm going to go ahead and blame her.

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George Bush started the Iraq war based on lies.

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Jimmy Carter blasted President Bush, blaming the fincial crisis on him, calling it the worst financial crisis since... the Carter administration.

I don't think President Bush really understands this financial crisis. Like today, when he was asked about General Motors, he said, "I think he's doing a fine job in Iraq."

Jay Leno
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“not intended to take over the free market but to preserve it.” just a few more steps . .

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"just a few more steps . . ."

Until . . . ? You don't mean nationalization of the country's financial systems? GASP!!

This is what socialists have been warning capitalists about for years. Unchecked capitalism leads to these sorts of disasters. Just as pure socialism can't work because humans need incentives to progress, pure capitalism isn't exactly a cure-all either, because the human capacity for sheer, unadulterated greed is equally potent, and leads to . . . . . Well, the mess we're currently in.

My goodness, the "Socialists" just might win, with the richest irony being that capitalists, unable to wrap their brains around the idea that yes, there just might be such a thing as wanting too much wealth, are almost entirely to blame.

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Until . . . ? You don't mean nationalization of the country's financial systems? GASP!! This is what socialists have been warning capitalists about for years. Unchecked capitalism leads to these sorts of disasters.

You confuse the obfuscation with the lies and coming up with total nonsense.

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