350zCommtech's Account Talk

[KevinD]

BJ

Your idea adds another form to an already screwed up tax code that needs to be simplified, not added to.

If you want to use the tax code to spur growth? Look at the FairTax. It's so simple even I can understand it...
:nuts:
www.fairtax.org

 

[XL-entLady]

I'm watching Lou Dobbs right now on CNN. He seems to understand.

That Lou Dobbs segment was fascinating to me because I was watching intelligent, well-informed people with expertise on the subject and they were basically saying that Paulson should be strung up by his thumbs!

Here is more on the subject of the bailout from one of his guests:

A better bailout, from Joe Stiglitz
Posted on September 27, 2008
Enough Is Enough
"I Dissent" -- An essay against the government's unprecedented bailout


http://farmschool.wordpress.com/2008/09/27/a-better-bailout-from-joe-stiglitz/

 

[Show-me]

Amen!

BJ

Your idea adds another form to an already screwed up tax code that needs to be simplified, not added to.

If you want to use the tax code to spur growth? Look at the FairTax. It's so simple even I can understand it...
:nuts:
www.fairtax.org

 

[350zCommTech]

Under the tentative deal being finalized, the rescue program would be overseen by a board including the Treasury Secretary, Secretary of Commerce, head of the Securities and Exchange Commission and chairman of the Federal Reserve, said Conrad, who heads the Senate Budget Committee.http://money.cnn.com/2008/09/27/news/economy/Congressional_talks_over_bailout/index.htm

Are you #$%@% kidding me? You first give the foxes the key to the hen house, and then you're going to make them cops of the farm?

We either have the most corrupt politicians on Earth or we have the most dumbest politicians on Earth.

 

[XL-entLady]

Are you #$%@% kidding me? You first give the foxes the key to the hen house, and then you're going to make them cops of the farm?

We either have the most corrupt politicians on Earth or we have the most dumbest politicians on Earth.

So the Board will be made up of the guys who said, "De-regulate us. Let the markets do their work. No wait! Only let the markets work if we're taking home multi-gazillion dollar paychecks."

So our politicians are saying, "Okay, and by the way, here. We'll let you people who got us to this point handle getting us back out, because you have handled the situation so responsibly so far."

You're right, 350z, they either have the brains God gave a graham cracker or they're on the take.

Lady

 

[Braveheart]

Are you #$%@% kidding me? You first give the foxes the key to the hen house, and then you're going to make them cops of the farm?

We either have the most corrupt politicians on Earth or we have the most dumbest politicians on Earth.

I feel so much better that the SEC will have more power WTF !!!

 

[350zCommTech]

Don't give up yet. Keep those faxes going.

'Un-American' Bailout, Paulson Should Have Quit, Gingrich Says

September 28, 2008 12:46 PM

ABC News' Tahman Bradley and Arnab Datta Report: Former House Speaker Newt Gingrich, R-Ga., on Sunday described Treasury Secretary Henry Paulson's request for billions of dollars to buy debt from struggling Wall Street financial firms as "un-American" and said the secretary should have stepped down.

Gingrich even expressed concern with Paulson's connections to Wall Street. The treasury secretary served as the chairman of a major global investment banking and securities firm before joining the Bush administration.

"You have the former Chairman of Goldman Sachs asking for 700 billion dollars, and in his initial request, asking for it in such an un-American way that I think he should have resigned," said Gingrich. "I think Paulson has terminally misunderstood the nature of the American system. Not just no review, no judicial review, no congressional accountability. Give me 700 billion dollars, 700 BILLION dollars! 'I'll be glad to spend it for you.' That's a centralization of power that is totally un-American."

Watch Gingrich's remarks HERE.
Watch "This Week's Sunday Sound" webcast HERE.

Early Sunday, congressional leaders and the Bush administration reached a tentative agreement on the $700 billion Wall Street bailout proposal. The bill is expected to come up for a vote in the House on Monday.
Gingrich, who made his remarks on the "This Week with George Stephanopoulos" roundtable, conceded that he would probably vote for the plan if he were still in U.S. House because Congress was left with little choice.

Last week, Gingrich described the bailout plan as a "dead loser on Election Day" and urged Republican presidential candidate Sen. John McCain of Arizona to speak out against the plan. McCain, who appeared as the headliner on "This Week", signaled he's likely to vote for the bill in its present form.http://blogs.abcnews.com/politicalradar/2008/09/un-american-pla.html

 

[350zCommTech]

The raping of the American taxpayer. I need to go throw up.

4 (b) MEMBERSHIP.—The Financial Stability

5 Oversight Board shall be comprised of
6 (1) the Chairman of the Board of Governors of​

7 the Federal Reserve System;

8 (2) the Secretary;
9 (3) the Director of the Federal Home Finance
10 Agency;
11 (4) the chairman of the Securities and Ex
12 change Commission; and
13 (5) the Secretary of Housing and Urban Development.​

The bill has bee posted:

http://money.cnn.com/2008/09/28/news/pdf/firstdraft.pdf​

 

[350zCommTech]

Ofcouse.

22 SEC. 132. SUSPENSION OF MARK-TO-MARKET ACCOUNTING.

23 (a) AUTHORITY.—The Securities and Exchange Com
24 mission shall have the authority under securities laws (as
25 such term is defined under section 3(a)(47) of the Securi​

1 ties Exchange Act of 1934 (15 U.S.C. 78c(a)(47)) to

2 suspend, by rule, regulation, or oder, the application of State​

3 ment Number 157 of the Financial Accounting Standards

4 Board for any issuer (as such term is defined in section​

5 3(a)(8) of such Act) or with respect to any class or cat
6 egory of transaction if the Commission determines that
7 is necessary or appropriate in the public interest and is
8 consistent with the protection of investors.

 

[Birchtree]

From the print edition of TWSJ 9/27/08 - Democrats would send some Paulson profit back to housing groups.

"The House and Senate Democratric drafts contain an indefensible and well-hidden provision. It would mandate that at least 20% of any profit realized from the sale of each troubled asset purchased under the Paulson plan be deposited in either the Housing Trust Fund or the Capital Magnet Fund. Only after these funds get their cut of the profits are all amounts remaining...paid into the Treasury for reduction of the public debt.

What we have here essentially are a pair of government slush funds created in July as part of the Economic Recovery Act that pump tax dollars into the coffers of low-income housing advocacy groups, such asd Acorn.

Acorn, one of America's most militant left wing "community activist groups." is spending $16 million this year to register Democrats to vote in November. Along with the Urban League, Acorn has promoted laws like the Community Reinvestment Act, which laid the foundation for the house of cards built out of subprime loans. Thus, we'd be funneling more cash to the groups that helped create the lending mess in the first place.

This isn't the first time this year that Democrats have tried to route money for fixing the housing crisis into bank accounts of these community activist groups. The housing bill passed by Congress in July also included a tax on Fannie Mae and Freddie Mac to raise an estimated $600 million annually in grants for these lobbying groups. When Fannie and Freddie went under, the Democrats had to find a new way to fill the pipeline flowing tax dollars into the groups' coffers.

The idea that special-interest groups on the left or right should get a royalty payment for monies that are repaid to the Treasury is a violation of the public trust. We're told the White House and House Republicans are insisting that the Acorn fund be purged from the bailout bill. The Paulson plan is supposed to get us out of this problem, not start it over again."

No wonder Shummer and friend Barney are so opposed to McCain interjecting his views.

 

[350zCommTech]

From the print edition of TWSJ 9/27/08 - Democrats would send some Paulson profit back to housing groups.

"The House and Senate Democratric drafts contain an indefensible and well-hidden provision. It would mandate that at least 20% of any profit realized from the sale of each troubled asset purchased under the Paulson plan be deposited in either the Housing Trust Fund or the Capital Magnet Fund. Only after these funds get their cut of the profits are all amounts remaining...paid into the Treasury for reduction of the public debt.

What we have here essentially are a pair of government slush funds created in July as part of the Economic Recovery Act that pump tax dollars into the coffers of low-income housing advocacy groups, such asd Acorn.

Acorn, one of America's most militant left wing "community activist groups." is spending $16 million this year to register Democrats to vote in November. Along with the Urban League, Acorn has promoted laws like the Community Reinvestment Act, which laid the foundation for the house of cards built out of subprime loans. Thus, we'd be funneling more cash to the groups that helped create the lending mess in the first place.

Yup, it's there in section 106:

18 (d) TRANSFER OF A PERCENTAGE OF PROFITS.—

19

20 (1) DEPOSITS.—Not less than 20 percent of

21 any profit realized on the sale of each troubled asset

22 purchased under this Act shall be deposited as pro
23 vided in paragraph (2).​

24 (2) USE OF DEPOSITS.—Of the amount re

25 ferred to in paragraph (1)​

1 (A) 65 percent shall be deposited into the

2 Housing Trust Fund established under section​

3 1338 of the Federal Housing Enterprises Regu

4 latory Reform Act of 1992 (12 U.S.C. 4568);

5 and

6 (B) 35 percent shall be deposited into the

7 Capital Magnet Fund established under section

8 1339 of that Act (12 U.S.C. 4569).​

 

[nnuut]

I guess this is just like religion, you just have to believe?

 

[350zCommTech]

With the Repulicans caving in on the bailout, it sounds like a done deal. Congress is ignoring the people.

So, why are the futures red and why is the Nikkei falling? More importantly, how are the Chicago Bears winning?

 

[fedgolfer]

With the Repulicans caving in on the bailout, it sounds like a done deal. Congress is ignoring the people.

So, why are the futures red and why is the Nikkei falling? More importantly, how are the Chicago Bears winning?

Hell has frozen over, even the Cubbies look like the team to beat in the NL postseason.

 

[Minnow]

Hey 350z... I know the big talk around here is the bailout... but I was wondering what your take on the best time for the old "in-n-out" IFT was? (still don't think more than a day or two round trip is warranted given market conditions) I know you watch the bond and currency markets with a keen eye but it seems like the short selling ban may be kept in place so, given the euphoria that might last at least a day or two, would the bond and currency markets give us a quick enough signal to jump in then out?


O.T. -- not to brag(O.K. just a little), but my 8 yr. old daughter (and I) won her age group (6 - 9 yr olds) at the two person scramble with a 74 (we had to use a certain amount of her tee shots and putts -- no mulligans). If she keeps it up, she'll be breaking 100 before I know it. How's your golf game coming along? Remember, golf is 90% mental and 50% physical!!!

 

[350zCommTech]

Hey 350z... I know the big talk around here is the bailout... but I was wondering what your take on the best time for the old "in-n-out" IFT was? (still don't think more than a day or two round trip is warranted given market conditions) I know you watch the bond and currency markets with a keen eye but it seems like the short selling ban may be kept in place so, given the euphoria that might last at least a day or two, would the bond and currency markets give us a quick enough signal to jump in then out?


O.T. -- not to brag(O.K. just a little), but my 8 yr. old daughter (and I) won her age group (6 - 9 yr olds) at the two person scramble with a 74 (we had to use a certain amount of her tee shots and putts -- no mulligans). If she keeps it up, she'll be breaking 100 before I know it. How's your golf game coming along? Remember, golf is 90% mental and 50% physical!!!

Congrats Minnow. My game is coming along ok. I'm still trying to break 90.

As for the bond and currency giving us a quick enough signal to make a move, I don't think so. It's working great for day trading and I'm having a lot of fun with this volatility, going back and forth with SDS and SSO.

The failed back in Europe is currently killing the Yen carry trade. Nikkei futures are down 635. The USD/YEN was oversold and is trying to bottom out. We might have seen the lows for the day for the market.

The possibility of this bill not passing is also keeping this market down. Even if it does pass, a bounce might not last. This bill does not fix the underlying problems.

The move in the bond market today is too big, which would help the markets tomorrow.

IMO, too risky right now. Paulson has been lying all along about most of everything, including the urgency of this bailout. He intends to allow more banks to fail in the next week or 2.

 

[fedgolfer]

Paulson has been lying all along about most of everything, including the urgency of this bailout. He intends to allow more banks to fail in the next week or 2.

350, I don't understand what you mean by this? Where do you think Paulson has been lying? Why would he intend banks to fail, if he's for the bailout? I'm not saying you're wrong, just clarifying what you're saying.

I think the GOP insurance plan would have forced the free markets to play everything out, flushed out the banks and led to many more failures and more seizing of credit at even a faster rate. I do believe Paulson and Bernanke are students of history and know that the big fault of our gov't during the Great Depression was that the Governement tightened credit thus killing any chance of growth... versus flushing the system with liquidity and credit like they're doing now. It is risky and unheard of to date and feels awful to put it on the taxpayer, but they don't want it to be like Japan circa 1990 or the Depression. I truly think this bailout plan is better than letting the free market flush out the financials, that will be devastating, and longer lasting. Any business or person not hording cash on the sidelines will be crushed... and I think that group is larger than everyone suspects.

 

[Silverbird]

I don't think Paulson the power to orchestrate bank failures on demand. If he could do that, he could also save banks on demand, and wouldn't need to beg to Congress for anything. If he wanted money under those circumstances he could just tell Congress gimmie money now no strings, or I take down the system, oh don't forget the appropriation for Treasury needs a 25% increase to run this program.

 

[350zCommTech]

350, I don't understand what you mean by this? Where do you think Paulson has been lying? Why would he intend banks to fail, if he's for the bailout? I'm not saying you're wrong, just clarifying what you're saying.

I don't think Paulson the power to orchestrate bank failures on demand. If he could do that, he could also save banks on demand, and wouldn't need to beg to Congress for anything. If he wanted money under those circumstances he could just tell Congress gimmie money now no strings, or I take down the system, oh don't forget the appropriation for Treasury needs a 25% increase to run this program.

IMO, Paulson does not really work for us. He is still a GS man at heart.

Think about LEH, think about MER/BAC deal. Why was AIG not allowed to fail? It was a freaking, private insurance company. Yes, yes...it would have caused the end of the world...blah..blah...blah....Sounds familiar?

Paulson's lies:

US Treasury Secretary Henry Paulson

​

Date Quote July 12th, 2007 "This is far and away the strongest global economy I've seen in my business lifetime."
CNN
April 20th, 2007 "I don't see (subprime mortgage market troubles) imposing a serious problem. I think it's going to be largely contained."
Reuters
April 20th, 2007 "We've clearly had a big correction in the housing market. Retail housing was growing for some time at a level that was not sustainable," Paulson said in a speech to The Committee of 100, a business group in New York promoting better Chinese relations.
Reuters
August 1st, 2007 "The market has focused on this. There's a wake-up call, and there's an adjustment to this repricing of risk, but I see the underlying economy as being very healthy," he told reporters before leaving Beijing.

Reuters February 28th, 2008 "I'm seeing a series of ideas suggested involving major government intervention in the housing market, and these things are usually presented or sold as a way of helping homeowners stay in their homes. Then when you look at them more carefully what they really amount to is a bailout for financial institutions or Wall Street."
(Interview with Wall Street Journal)
March 16th, 2008 "We've got strong financial institutions . . . Our markets are the envy of the world. They're resilient, they're...innovative, they're flexible. I think we move very quickly to address situations in this country, and, as I said, our financial institutions are strong."
RealClearPolitics.com
May 7, 2008 'The worst is likely to be behind us,' Paulson told the paper, in one of the most optimistic comments by a top U.S. finance official since sub-prime mortgage losses set a domino effect in motion in mid 2007.
Forbes.com
May 16th, 2008 "In my judgment, we are closer to the end of the market turmoil than the beginning," he said. "Looking forward, I expect that financial markets will be driven less by the recent turmoil and more by broader economic conditions and, specifically, by the recovery of the housing sector."
USA Today
July 15th, 2008 "If you've got a squirt gun in your pocket, you may have to take it out.- If you've got a bazooka, and people know you've got it...you're not likely to take it out."

(Testifying before the Senate Banking Committee about government support of mortgage lenders Freddie Mac and Fannie Mae) July 20th, 2008 "I think it's going to be months that we're working our way through this period, clearly months. Of course the list [of difficulties] is going to grow longer given the stresses we have in the marketplace, given the housing correction - but again, it's a safe banking system, a sound banking system. Our regulators are on top of it. This is a very manageable situation."
CBS
July 21st, 2008 "You know how I feel about a strong dollar, and I believe the most important thing we can do support a strong dollar is to have confidence in our capital markets, confidence in our economy, taking the kinds of actions we're taking."
Reuters
August 10th, 2008 ``We have no plans to insert money into either of those two institutions,'' Paulson said in an interview with NBC's ``Meet the Press'' broadcast today from Beijing. He added that their earnings results were ``not a surprise.''
Bloomberg

September 7th, 2008 "Our economy and our markets will not recover until the bulk of this housing correction is behind us," said Paulson.
US Treasury - Press Release
September 7th, 2008 "Nothing about our actions today in any way reflects a changed view of the housing correction or of the strength of other U.S. financial institutions."



(Statement by Secretary Henry M. Paulson, Jr. on Treasury and Federal Housing Finance Agency Action to Protect Financial Markets and Taxpayers)
US Treasury - Press Release
September 8th, 2008 "I don't -- there is no specific analysis. This was not -- we didn't sit there and figure this out with a calculator. This was about our financial markets, it was about confidence in the financial markets, confidence in our economy, and the validity of the mortgage finance."
CNBC
September 15th, 2008 "Moral hazard is something I don't take lightly," Paulson said Monday. "I never once considered that it was appropriate to put taxpayer money on the line in resolving Lehman Brothers." Yahoo Business
September 19th, 2008 "We're talking hundreds of billions of dollars - this needs to be big enough to make a real difference and get at the heart of the problem," he said. "This is the way we stabilize the system."
CNN
http://www.fedupusa.org/node/50

 

[fedgolfer]

I think this bailout will help a select group of financials particularliy GS, BAC, C and JPM, but I'm leaning to thinking Paulson and Bernanke think the bailout is better than the alternative of letting it play itself out. all these bailout points so far haven't put an end to the crisis, but they sure have slowed down the death spiral.