Plan pushed for government to buy bank stocks

And you think the republicans had nothing to do with this at all? ROTFLMFAO I think Phil Gramm has more to do with this mee than Frank or Dodd. Actually you can put most of the blame on Milton Friedman and the conservative morons who believe in an unregulated economy. Yes in a classroom economic model it may work but when you add humans (i.e. GREED) to the equation you get what we have everytime the Repubs are in charge for any length of time RECESSION OR DEPRESSION.

You will never get the dems to admit to wrong doing. They lay it solely at the feet of Bush.  Here is the truth.

 http://www.youtube.com/watch?v=TxgSubmiGt8

so now youtube has all the answers? gee if that was the case why don't we let youtube run the country? You shouldn't believe everything you see on youtube? Try studying world economic history over the past 40 years and you will see that Milton Friedman is solely responsible (and those who follow his economic model)

conservative morons who believe in an unregulated economy

If you watch that "youtube" piece you will see that it was not deregulation that caused this, but a regulation that bank loan to minorities and the poor. That is  the problem. There are some people that are not fit to own a home and the Government mandated that these people get loans. Watch the video. It is in there.

I do not need to watch a youtube movie made by cons trying to cover their ass to know what made this mess. I have a Masters in Economics and have worked with many of the governments  around the world affected by Friedman Economics (reganomics as you may know it by)

Hey Adam If you had any sense at all you could read what worky wrote, he said blame was everyones including republicans.  The democrats are more responsible esp Barney Frank and Dodds, even the great Pelosi is right there too.  Even the 3 crooked senatore running for office are involved.  The blame is on all of them and they all need replaced.  If  you are to  dense to see this then stay in your little box and live in your little make believe land.  You fit right in with the democrats and the state of denial they are all in.  Before you cry I am a republican you are wrong I am an independant as of last month before that I was a democrat for the last 28 years.  But I do have my own mind and I can see the real actions of the ones there.

How stupid to say Barney Frank and Chris Dodd had anything to do with something that started in 2003

Here is another example of a smart american with no ability to think on there own.    Do you think they just popped on the scene, Barney Frank and Chris Dodds have been around forever and dirtier than anyone in congress.  Do you remember Barney Franks using his power to make male pledges have sex with him.  Check out Franks dealings with Fannie Mae you are a bigger idiot than I thought could be alive if you can't see the democrats involvement with this.  You give the regular democrats defense DENY, DENY, DENY, bit you will see tomorrow or later on this week when they want to take more of your it will be 150 billion dollars for each state they want to give now, but if you have no problem with that then just stay hidden in your little box

Logdump-

It started during the Carter administration,  was exacerbated during the Clinton administration, and was ignored during the last decade with a lot of dem help.  I'm not saying the repubs a guiltless but the lion share of the problem can definitely laid at the feet of the dems.  

Get your head out of your ass and do some real research.

The democrats cannot accept these things.  They believe up until this year it was only republicans running the country.  They refuse toaccept the facts the democrats had votes in both the hosue and senate.  They don't realize the President needs the votes from the house and the senate before any bills go through.  The democrats believe the President can say soemthing and it gets done right then.  They think if Obama gets in it be be one week and everything will be changed,  well people wake up it doesn't work that way.

scarab333

Logdump-

It started during the Carter administration,  was exacerbated during the Clinton administration, and was ignored during the last decade with a lot of dem help.  I'm not saying the repubs a guiltless but the lion share of the problem can definitely laid at the feet of the dems.  

Get your head out of your ass and do some real research.

Are you that ignorant ? Only a fool would make such an idiotic statement and think that anyone with at least a kindergarten education would believe your stupid lie.

Anyone with an I.Q. of 60 knows it falls directly on Reagan' policies of DEREGULATION. And continued with Bush Sr. & his dumb offspring, George Jr.

But, you already knew that, but you and the other simpletons defending Bush / McCain think you can trick the feeble minded into believing your party' lies.

Take some advice, you can NOT fool people with stupidity, even McBush knows that.

Instead of only blaming the CEO's why not put the blame squarely where it belongs, on the current BUSH administration. This fiasco didn't happen overnight, it has been building for a while now, and hidden by BUSH & Co. It did not start because of Freddie and Fannie, they're only a part of the problem. This has happened because of deregulation, pushed by people like McCain and other Republicans promoting the Reagan policies of trickle down econonomics. I think that means when the RICH pee it is supposed to trickle down on us. This whole 'experiment' has been a disaster on America.  
 
REAGAN and DEREGULATION
 
While much of the blame for this mess goes back to Republicans of the past, this current situation goes back to Ronald Reagan. He started this country on the road to ruin with his policies, especially deregulation, making some people rich and fooling people that the rich would make the country grow. After all, the rich are the people who invest and make jobs grow, right.
 
The truth is since his presidency, we now have 6 million millionaires. Many of the good jobs have gone overseas. Many others are no longer good jobs because of being filled by illegal aliens that he gave a free pass to. Our children now earn less than we did. CEO's are paid obscene salaries for losing money and outsourcing jobs. This financial experiment has been a TOTAL failure for average people and a financial windfall for the rich. When will it end. With the exception of Bill Clinton who gave us a surplus, America has been run to the ground by Republican administrations since 1980. Had enough, end this insane experiment of "voodoo" economics.
 
While some blame goes to the Democrats, much more goes to the Republicans.
 
Before this mess is over, it will cost us Gazillions. ( There is no name yet for what this will add up to ). This BAILOUT is just the tip of the iceberg, and the name of our ship is Titanic.
 
This is UNACCEPTABLE.

who da thunk, George Bush could have destroyed the constitution and the Bill Of Rights, destroyed the environment, the economy, restarted the cold war, pissed off more countries and allies than any other world leader at 1 time, started 2 useless wars, divided America more than at any other time in history including the Civil War, devastated the National debt and budget, and now he is destroying Capitalism, ---- WOW even the USSR couldn't have done that.
 
Way to go Bushie, you're doin a heck of a job. 
 
Make sure you vote for McCain and continue this INSANITY. Instead of talking about and discussing the economy, he is talking about the Weather Underground, what a fruitcake. Clearly, he has NO plan, or ability to comprehend this mess. Send him to retirement, he is done.

You said it Adam was a black man greed was the whole cause of this and how do you put a check on greed with out regulation. You let them fall flat on their asses and go broke that way they will never do it again. But nope not use lets bail them out so to do so mean we must have regulation.

 Oh and Adam was all colors it stands for man kind and if it was one man he was more indian, what eve it sure wasn't white.

The US financial system needs to clean house.

LET THE INSOLVENT BANKS GO BANKRUPT.  You do not NEED a bank to live your life. Simply live your life debt free and you will never have to worry.

 "On Friday afternoon - 3:13 Eastern - (The Dow) jumped from approx. 8,100 to almost 8,900 in 40 minutes - with this volume this is a minimum of a $1 Trillion dollar movement. Now who in the world on a Friday afternoon is going to buy so Bullishly into a massive Bear Runaway - who has this kind of money? Then within 20 minutes the market then again backs off to 8,3000 - Wow - Double Wow!

My belief, and the belief of almost every market watcher i know is that the Plunge Protection Team dumped another $1 Trillion of our money (actually debt credits) - and all of this (our) money went straight to 'Money Heaven' - bye, bye!
    

So obvious a blind man could see it - yet - not one word from the media."

It makes much more sense to buy stock than to buy bad mortgages. It should be done by buying short term Preferred Stock with a phase out term. This will provide the liquidity needed because for every $Billion in stock, the bank can lend $10-12 Billion in new loans because of the low reserve requirements. By buying Preferred Stock, the final cost of the bad sub-prime mortgages should remain with the regular stock holders - where it belongs. Preferred Stock holders get their money back before any regular stockholders get anything.

The  time  is  chaotic.  Blame  is  widely  spread out. For  me  the  blame  includes  the  Supreme  Court's  misguided  prohibition  that  the  states  defend  themselves  from  bad  mortgage  lending!  Judge  Ruth Bader  Ginsburg's  decision  in  this  respect  came  as  early  as  April 2007. In retrospective, was her decision on Roe v. Wade any better? No way! It was America's killer number one, the number two being the current mortgage crisis! Why  no  one  talks  about  it? Sen. Arlen  Specter is  also  flaundering  in  ruling  out  what  is  good  in  other  political  systems.  We  should  by  all  means put  some  controls  similar  to  the  Chinese!  All  that  is  good,  serves  Capitalism,  Messers.  Senators  and  Representatives!

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Obama may well win, but most people don't know what they're getting. For example, he has voted against extending the Bush tax cuts – even for the middle class, which expire in 2010. This means -for families with taxable income of:

$17,000 - increased taxes of $400

$29,000 - increased taxes of $1,100

$72,000 - increased taxes of $2,300

$251,000 - increased taxes of $6,900

Source - www.smartmoney.com/tax

When he says that people making under $250,000 won't see a tax increase, he means no increase above the scheduled increase at the end of 2010. And if you have anything that sells at a profit (capital gains), there will be more taxes on that as well. McCain voted to make these tax cuts permanent, but the Democrats in Congress voted against it. Watch your wallets when Obama gets in and he has control of Congress.

ROY WILSON-336103

Obama may well win, but most people don't know what they're getting.

No Roy, we know what we are getting.

We are not getting 4 more years of the same failed Bush policies.

We are getting someone who has a grasp on the financial mess that was created by failed Republican policies.

We are getting someone who talks about the issues, and has ideas about fixing them.

Not a buffoon who is talking about the Vietnam War and The Weather Underground.

Nice try but you lose again.

You are the typical Obot, White Bear.   You just hate the republicans so you don't want to see the truth. Everything I said is easily verifiable but you choose to just believe everyone is lying to you.   You are the type of voters the founding fathers were terrified of and today's politicians count on...the uninformed voter.

There are people that should not have been able to get a loan. They could not aford to repay it.  REGULATIONS that required lender to give these people loans is the problem. Regulations that Obama fought to inforce (ACORN) and still embraces caused this. He is not the answer. He is the problem.

 http://www.youtube.com/watch?v=TxgSubmiGt8

Roy,

I'd like to think that the banks will be stupid enough to sell preferred stocks, the last I know of it'll be crap stocks which would not benefit the taxpayer in terms of a logical investment in a failing institution. What's in it for us except further inflation and more taxes.

We give banks more capital to operate with and they give us much higher interest rates on loans than the 1.5% interest rate on their loans from the central bank, real nice deal being shafted again.

You just stole my line. LOL Why are these idiots smiling?

First thing congress should do is pass a regulation on Banks and lending institutions that is so strict it makes their jewels shrivel up every time they go to make a loan. They send out their trolls to point you to a worthless video on utube when the real answer is right in fromt of your nose. It was unregulated credit swaps.

BTW the banking industry worldwide is suffering. Did Barney Frank and Chriss Dodd have something to do with that also.

Want to watch a real video on how this happened. go here

http://www.cbsnews.com/video/watch/?id=4502673n?source=mostpop_video

They are smiling because you just gave the keys to the sheep pens to the wolves.

Adam_was_a_Black_Man

....The three stooges.....Moe...Larry...Curly....Shemp...take your pick...comedy of errors

except they are laughing and the CITIZENS are crying....some thing is wrong with

that picture...should be OTHER WAY AROUND...THEY SHOULD BE IN TEARS

You can bet posting that picture with this article was done on purpose. It fits it well.

They're smiling because a just had a real nice session with Barney Frank on backend strategies.

 Also, they need to create tax incentives to encourage Americans to save other than for retirement.

They could just raise the interest rates for that. Those who still have money would put money in the bank. The banks would have money to work with. Yes, loans would cost more, but there would be less frivolous loans out.

Right it was Bush who took the money, did you not notice it was the house which is run by democrats on television trying to rush this bailout bill through, and they were crying when the republicans voted the first one down.  Take a look at who the pushers were, lets see if you can accept it, it  was Franks, Dodds, Pelosi, all of who chaired and set on the finance committee who were supposed to be overseeing the wall street crooks.  They did a great job esp since franks new boyfriend is a top exec at fannie mae, and Dodds was giving a special mortgage from countrywide.  That sounds like they were in more than they should have been.  As a democrat I am ashamed to say they represent my party, so I switched to independant.

Check out C-Span of California Rep. Brad Sherman on the house floor discussing the bill and the pressure that was put on 'several members' to hurry up and pass this bill OR ELSE! Ca. Rep Brad Sherman and Martial Law.  Wake up America, the world is watching what we as citizens are going to do as far as who is going to run this country.

What  no  one  is  commenting  upon  is  whether  our  10  trillion  national  debt  is  in  stocks  or  in  hard  cash. The question is: are world stocks secured by governments, or not. If not, to say that in-stocks debt is secured is an oxymoron, a contradiction in terms!   If  in  stocks,  the  debt  may  itself  has  fallen  victim  of  this  crisis.  This  may  be  the  reason  why  our  trio  is  smiling ... while  the  debt  holders  are  so  serious!

The money shouldn't go anywhere until they get the crooks out of congress and the senate and keep their hands out of it.  Everyone from each side should be held responsible for their votes and investigated as to how far in they are to the wall street boys.  Then they should be prosecuted to the fullest extent of the law.

"They" is you and me, my friend. You want a new government?? Vote them ALL out. Put away your party politics and when you are in the booth VOTE OUT INCUMBENTS. Contact your representatives before hand and tell them why. Eventuall they will get the picture. Do our bidding or you are GONE!

Done!

Well said, they pushed a bill that the amercian people said clearly "No" to, as money to buy bad morgage assets from the ailing banks and place them under Freddie and Fannie. Then hopefully they could minimize the amount of loss if possible and also allowing the banks to use the money from the purchase to loan back out and free up credit in the market.

Now that its passed, they plan to use part of it to buy into the banks themselves which was never mentioned by any of them. Our govenment is not to own parts of private companies period.

Glad to see someone else sees the big picture here.

Where in the hell do these a-holes think that they will get all this money ? Oh I remember we can print it -- hmmmm seems like a good idea -- maybe we should all just print money when we can't meet our obligations, pay our bills, want a new car, want to buy a bank so I can become KING, PRESIDENT, BUY SOME VOTES -- did I say that  --  Makes great sense especially for this group of morons in the story -- VOTE INDEPENDENT 

CSAL -

It is the bail out money that has already been authorized put to a use

TexMan
         would you buy one of there homes that had 10,000 dollars in back taxes,(like buying a automobile)there credit was so horrible they rolled closing and down payment into the loan,DO YOU THINK THE GOVERMENT ARE THE BANKS WILL EAT THIS EXTRA NO THEY WANT,THATS WHY I DIDINT BUY THESE SUB-PRIMES AND SIT ON IT UNTIL THE MARKET CAME BACK,THESES HOUSES ARE WORTHLESS

Not worthless.   But certainly not worth the loan value.

Rather than let them sit there empty with the former owners living with relatives, in an apartment or in a shelter if job has been lost why not finance the REAL value of the house at an interst rate that does not double in two years and which can be repaid.

If you are aftair that the home owner might sell and make a profit if the economy gets better require repayment of the write down amount if the home is sold in  "X" number of years.

I do not care whose fault it was, loans including home equity loans should not have been made to people who were able to make the payment at the time the loan was made and then became unable to make the payment because the interest rate went up and caused the payment to go up to an amount that the borrower could not pay.

You might not like my solution but the alternative may be to let the Chineese ande Arabs come in and buy they up.  If that happens more than it already is all will be lost.

Sorry, but it is just that bad

what about all the creative financing that came about like interest only loans with a balloon payment in 10 yrs. it sure made your payments lower but what happens at the end of the loan and people can't refinance? there are a hell of alot of people that took advantage of that financing and when the ballon is due they are screwed(thank god i didn't)this bailout will not help them at all. so in a few yrs when these ballons start becoming due the banks and mortage companies will be in the same prediciment they are in now. nomatter what congress does now will not cure the problem,only time and the end to bad ceo's who collect massive salarys will help end this crisis. oh wait a minute that won't work either because we will still have all the crooks in the government.

I agree  that  the  salaries  of  the  CEO's  who  exported the  American  tax  base  and  jobs  to  China  should  be confiscated!  They  are  criminals,  running  a  criminal  enterprise  of  bankrupting  America!  They  do  it because  they  only  recognize  Wall Street  economy,  not  Main Street! They  do  it  under  the  pretext  that  this  is  Capitalism! Mentira!  Capitalism  was  meant  to  serve all the  people! They cannot get  away  with  their  treasonous agenda!

this is another reason your seeing the meltdown,on WallStreet there scared to death of Obama,remember there is one thing wallstreet doesnt like its UNCERTANY,if you go back this market has sold off ever since he got the Democratic Nomnation,and yes BWIII YOUR RIGHT THEY DONT LIKE SOCIALISM ON WALL STREET

BWIII:  No, it is not Socialism.  Socialism would be sharing the wealth with ALL...from bottom to top.

Fascism is what America has been consumed by: continuing nationalism, controlled media, support of the rich at the expense of all others, military supremacy, supressed labor, corporate power protected, fraudulent elections, etc., etc.

I'd bet there would be a lot of folks at the bottom of the economic ladder that wouldn't mind trying something new... 

If NOBAMA gets elected this whole issue will be hushed away on his orders.....Why don't you think this isn't going anywhere now??? It ties NOBAMA directly to his thugs at ACORN and alll the criminal(in my opinion) activities they've been involved in.

Nobody is goint to jail for any of this. If anyone does that person will be well compensated by the dems for taking the fall!

BWII -

That is another discussion.

WHY DONT YOU SET OUT SOME FORM OF PROPOSAL HERE THAT YOU THINK WILL SOLVE THE PROBLEM RATHER TO MAKE IDLE RANTS ABOUT OOBAMA AND DEMOCRATS.  (AND I AM TALKING ABOUT A PROPOSAL RELATING THIS PROBMEN ...   NOT JUST A BARE PLEA TO JUMP ON THE MCCAIN EXPRESS)

Well, there is a book out about arresting President Bush; difficult to do not the greatest read...the Economies section in "Uncompromising Truth for a Compromised World" is short and sweet and to the point!

Our  Capitalist  system  needs  quick and  thorough revamping in  the  area  of  politics,  economy  and  education. The current   Congress  only  works  in  theory:  the  rest  is  perks  and  vacations.  We  may  need  a  parallel People's  Congress -  a  Congress  that  serves  all  people! It's not socialism: it's common sense stemming from grave urgency! In  the  area  of  economy,  we  need  a  similar  People's  Comptroller Entity - an  entity  that  protects  the  Main  Street.   Insofar education,  we  need  a parallel  People's  Education  Ministry,  which puts  the  Nation  first ... before liberal  agendas!  These  "check-and-balance" institutions  should  be  set  up without  delay  or  we  will  lose  America! 

That would be true if this was an accident, but this hi-jacking of america is no accident. This fiasco was created by the same people that bailed out Wallstreet with american tax payer money, and created by the same people that are receiving the bailout money.

Let them die at the scene of their greed.

Sheep -

You and similaryly situated Americans are the patient in the analogy.

Yes, we are the patients and the doctor wants to let us bleed to death financially to save the "blood banks."