Ford Mustang | Mustangs  
Black Menu Tabs
Go Back   Mustangs Insanity > BS Area > BS Room
Home Register Members List Social Groups Mark Forums Read History Pictures/Videos Vendors Ford News

BS Room
BS about what ever you want to in here.

Closed Thread
 
Bookmark and Share LinkBack Thread Tools Display Modes
Old 09-24-2008   #1 (permalink)
Car Enthusiast
Real Name: Doug
 
hotwheels's Avatar
 
Join Date: Aug 2006
Location:
Cheyenne, Wyoming
Posts: 21,597
Twitter ID:
insanemustangs
iTrader: (0)
Friends: (418)
 

Last Online:
04-28-2018 10:44 AM
Time Spent Online: 4 Weeks 11 Hours 40 Minutes 24 Seconds
My Album's:
hotwheels's album

Thanks: 4
Thanked 32 Times in 31 Posts
Smile $700 Billion Dollar Bailout all of the sudden (March 2008)

Not sure how many have really paid attention to what has been going on lately, but Bush and the federal reserve bank are playing the public. This entire bullshit session started in march:

Proposal will give the Federal Reserve new regulatory power..........;

March. 31, 2008
WASHINGTON - In proposing the broadest overhaul of financial oversight since the Great Depression, the Bush administration has kicked off a fierce debate. It pits those eager to revamp an antiquated system against an industry opposed to excessive regulation.

The administration is aware of the hardening lines. The 200-page plan set for release Monday comes with the financial system in the midst of the most severe credit crisis in two generations.

That crunch has meant billions of dollars of losses for big banks and investment houses. It has caused the near-collapse of the country’s fifth largest investment bank, made it harder for consumers and businesses to get loans and pushed the country to the brink of a recession.

The market turmoil has presented an opening for critics to make the case for strong federal rules to crack down on abuses that they believe were at the heart of the current crisis.

But Treasury Secretary Paulson, who has led the effort to rewrite regulations, rejects that criticism.

“I do not believe it is fair or accurate to blame our regulatory structure for the current turmoil,” according to a draft of a speech he planned to give Monday when he outlines the administration’s proposals.

In interviews over the weekend, administration officials sought to frame the proposals as an effort to devise a system that would help keep U.S. companies competitive in an increasingly connected global economy.

Fact file: Financial overhaul
The main elements of the Bush administration's plan to overhaul financial regulation:

— Expand the role of the President's Working Group on Financial Markets to include the entire financial sector and not just financial markets.
— Create a federal commission, the Mortgage Origination Commission, to develop uniform, minimum licensing standards for mortgage market participants.
— Close the Office of Thrift Supervision, which regulates thrift institutions, and move those functions to the Office of the Comptroller of the Currency, which regulates banks.
— Merge the functions of the Commodity Futures Trading Commission into the Securities and Exchange Commission to create one agency to provide unified oversight of the futures and securities industries.
— Establish an Office of National Insurance within the Treasury Department to regulate those in the insurance industry who want to operate under an optional federal charter.
— Work to establish as a long-term goal three major regulators: the Federal Reserve as a "market stability regulator"; a "prudential financial regulator" to take over the functions of five separate banking regulators; and a "business conduct regulator" to regulate business conduct and consumer protection.
Source: Associated Press


“Despite the fact that there will be a temptation to view this through a lens of what is happening now in credit markets, this has been a process that has been going on for a year,” said David Nason, Treasury’s assistant secretary for domestic finance. “These are very complex issues that require a serious amount of debate.”

Treasury began work on the review in early 2007. It came in response to complaints from the financial services industry that U.S. businesses were losing their edge in global competition because of over-regulation by Washington.

The yearlong review produced a plan calling for the greatest changes in financial regulation since many of the current oversight institutions were created in the 1930s.

The Federal Reserve would be a big winner, gaining new powers to serve as the protector of stability for the entire financial system. The plan would abolish some institutions such as the Office of Thrift Supervision and the Commodity Futures Trading Commission; their responsibilities would shift to other agencies.

According to a 22-page executive summary obtained by The Associated Press, the Paulson plan envisions a three-stage process that would lead to establishing three main regulatory agencies.

The Fed would sit at the top with expanded responsibilities as the “market stability regulator.” But the Fed would lose its current powers over bank holding companies.

The proposal would combine the five agencies now responsible for regulating banks, thrifts and credit unions into a single regulatory agency.

The powers of the Securities and Exchange Commission would go into a super agency responsible for business conduct and consumer protection.

Some in the financial industry are concerned that Congress could rush to legislate. They make the comparison to the Sarbanes-Oxley law, passed in 2002 four months after it was introduced in response to the accounting scandals at Enron and other large companies. That effort produced some unintended consequences that, the industry believes, has hurt the global competitiveness of American companies.

“These are phenomenally complex issues and a thoughtful and deliberative approach is what is needed,” Rob Nichols, president of the Financial Services Forum, said in an interview Sunday.

The administration’s proposals got a mixed reaction on Capitol Hill.

The chairman of the Senate Banking, Housing and Urban Affairs Committee, Sen. Christopher Dodd, said in a statement the recommendations deserved careful consideration. But the Connecticut Democrat said he believed they “would do little if anything to alleviate the current crisis.”

House Financial Services Committee Chairman Barney Frank, D-Mass., said Paulson’s plan was a “very constructive step forward.”

“By rejecting the argument for the status quo ... he has narrowed, albeit by no means removed, the differences between his position and that of many Democrats,” Frank said. He has led the effort to look at regulatory changes needed to prevent a repeat of the current mortgage and credit problems.

Click here to be taken to hotwheels's Blog...
__________________
Webmaster in training and owner of a mini Jay Leno Poorman's car collection

hotwheels is offline Submit to Clesto

Submit to Digg Submit to Reddit Submit to Furl Submit to Del.icio.us Submit to Jeqq Submit to Spurl  
Old 09-24-2008   #2 (permalink)
Car Enthusiast
Real Name: Doug
 
hotwheels's Avatar
 
Join Date: Aug 2006
Location:
Cheyenne, Wyoming
Posts: 21,597
Twitter ID:
insanemustangs
iTrader: (0)
Friends: (418)
 

Last Online:
04-28-2018 10:44 AM
Time Spent Online: 4 Weeks 11 Hours 40 Minutes 24 Seconds
My Album's:
hotwheels's album

Thanks: 4
Thanked 32 Times in 31 Posts
Now the so called bailout (September 2008)

Federal Reserve Chairman Ben Bernanke was back on Capitol Hill Wednesday, warning that the current financial crisis is the most significant in more than 60 years, and that even tougher times are ahead without quick Congressional approval of a controversial Wall Street bailout.

Bernanke, testifying before the Joint Economic Committee, found a lot of senators and representatives voicing support for taking action to address the crisis - even if they had problems with some aspects of the Bush administration's proposal to have the Treasury Department buy as much as $700 billion in mortgage-backed securities.

But members of the panel repeatedly asked Bernanke for arguments they could use to explain to angry voters back home why they voted for such a plan.

Bernanke, a former college economics professor, obliged by giving them a rundown of the problems that would ripple out from Wall Street to Main Street due to the current credit crunch.

They included small businesses not being able to get financing and therefore not being able grow and hire workers, consumers not able to get car loans and automakers having to cut back production and idle more auto workers and plants, college students not able to get loans they needed to attend school, and home prices continuing to fall because potential buyers won't be able to get mortgages.

"Credit will be restricted further. That's not just an inconvenience; that will affect spending and economic activity," he said in response to one question. "It will affect the unemployment rate. It will affect real incomes. It will affect everybody's standard of living."

"It's about the overall performance of the U.S. economy over perhaps a period of years," Bernanke added. "The choking up of credit is like taking away the life blood away from the economy."

Banks and Wall Street firms essentially stopped lending to each other last week in the wake of the government takeover of mortgage giants Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500), after the failure of Lehman Brothers, the Fed's $85 billion bailout of insurer American International Group (AIG, Fortune 500) and the sale of Merrill Lynch (MER, Fortune 500) to Bank of America (BAC, Fortune 500).

Plenty of blame to go around
Bernanke said there is plenty of blame to go around for the current crisis, as he named Wall Street firms and banks that underestimated risk of the securities they were creating, rating agencies and regulators.

But he said the primary problem is a drop in home prices, which sparked a rise in foreclosures that have cut the value of trillions of dollars of mortgage-backed securities to what he termed "fire sale" prices.

The lack of demand for those securities, in turn, forced banks and Wall Street firms to take $500 billion in charges that dug into the capital they use to make loans.

Bernanke said that when the government starts buying the mortgage-backed securities from the banks, it will provide a market that doesn't exist now, and allow the prices to rise from the current depressed levels to ones more justified by the fundamentals of the loans, most of which are not in default.

"I realize it's a very complicated story," Bernanke said. "The bottom line, though, is banks are holding all these complex hard-to-price securities and their capital is low. Those two things together don't allow them to make adequate loans. This approach is one way to address the problem."

And he stressed repeatedly that while the Treasury Department plans to spend up to $700 billion buying the securities, it can expect to recoup most if not all of that money by selling them at a higher price later on, once markets have stabilized. He argued that doing nothing would cause the economy to slow so much that there would be a bigger hit to tax collections than the program will eventually cost taxpayers.

Bernanke said he expects most of the securities will be bought through a reverse auction, in which holders would offer them for sale and the government would buy those offered at the best price.

The Fed chief's comments come a day after he appeared with Treasury Secretary Henry Paulson before the Senate Banking Committee to urge action on the bailout package. The two were also set to testify on the proposal before the House Financial Services Committee later Wednesday.

Supporters of the measure are pushing for Congress to act on the bailout before its recess. The recess had originally been scheduled to start at the end of this week, but the current session could be extended to debate and vote on the plan.

Sen. Charles Schumer, D-N.Y., the chairman of the economic committee, said he would work in a bipartisan manner to pass the bailout but he vowed changes.

"Let us be clear, Americans are furious. And they are right to be astonished and very angry," Schumer said.

Sen. Sam Brownback, R-Kan., said lawmakers were receiving reports of real-world problems facing businesses and individuals.

But Brownback questioned some of the terms of the Bush administration's plan. He joined Schumer in pushing for a provision of the rescue plan that would give taxpayers equity in firms that sell assets to the government.

"I believe it would be irresponsible to not act, but we must act responsibly," Brownback said.

But many senators and representatives also said that their voters back home are too angry to accept the bailout.

"I think President Bush did properly diagnose it when he said the problem was that Wall Street got drunk and has a hangover. The problem is the people who are asked to clean up all the broken furniture, they didn't get invited to the party," said Rep. Lloyd Doggett, D-Texas. "That's why so many of the people that are contacting me are not just against this bailout, they're very angry they're even being asked."

Changes in bailout proposed
Several members of the committee, both Democrats and Republicans, suggested imposing a tax on Wall Street firms and banks to help pay the cost of the bailout program. Bernanke didn't object to the idea, although he suggested that the tax not take effect in the near term because of the current problems facing the sector.

"We don't want to impair [them] in the near term," Bernanke said. "Doing something with a longer horizon might be worth considering." But he said that is up to Congress and the Treasury to negotiate, and not for the Fed to take a position on.

Bernanke was more reluctant to support the idea proposed by several senators and representatives that banks who sell the securities to the government have to offer equity in the firms as well. And he also was reluctant to back the proposal to limit the pay of Wall Street executives whose firms sell the securities, though his objections were somewhat less strenuous than his opposition to demanding equity.

Bernanke said such provisions would stop many firms from selling their assets to the Treasury Department, which could leave it with only the worst performing assets from the most troubled companies.

"You have the risk that no one will participate, there will be no competition in the auction and it won't work," he said.

Some members of the committee indicated they will vote against the measure, no matter what provisions are included. Rep. Ron Paul, a Texas Republican who formerly belonged to the Libertarian Party, charged that the bailout plan amounted to price fixing, which he said was a major cause of the depression.

He argued trying to lift the value of mortgage-backed securities and keeping home prices from falling further only will cause deeper economic problems long term.

"Most illiquid assets are illiquid because they're not worth anything," he said. "All the blame is put on the fact that there is a downturn in housing. That means they were overpriced. All our efforts right now is to keep those (house) prices up, but the prices should come down. That's what the market is saying."

Bernanke agreed with Paul that price fixing was one of the causes of the depression, but he denied that the purchase of assets amounted to the government setting prices. He argued the auction process to be used to buy the securities would try to find a fair market price of the assets, even if it is above current "fire sale" prices.

And he said one of the causes of the Great Depression was the Fed being afraid of intervening to prevent bank failures.

"One has to balance concerns about intervening in financial markets with concerns about macroeconomic stability," he said.

Rep. Baron Hill, D-Ind., asked Bernanke whether there is a risk of a depression if the bailout doesn't pass.

While the Fed chairman quoted investor Warren Buffett as saying the economy would go "over a precipice" without the plan passing, he said he wouldn't compare it to the Great Depression. But he said without the bailout, there would be a lot of unnecessary problems and costs for the economy and the American consumers and businesses.

"My response is the pain would be very significant, It would be very difficult for Main Street if this credit system broke down, and very costly to average people," he said. "Here's a better solution, to recognize that things went wrong but there's a problem now that we can solve."
hotwheels is offline Submit to Clesto

Submit to Digg Submit to Reddit Submit to Furl Submit to Del.icio.us Submit to Jeqq Submit to Spurl  
Old 09-24-2008   #3 (permalink)
Super Moderator
Real Name: Allen
 
already7's Avatar
 
Join Date: Mar 2007
Location:
North Little Rock, AR.
Posts: 9,012
iTrader: (2)
Friends: (53)
 
Last Online:
09-25-2013 07:26 PM
Time Spent Online: 2 Weeks 1 Day 22 Hours 22 Minutes 29 Seconds
My Album's:
already7's album

Thanks: 28
Thanked 14 Times in 14 Posts
Send a message via Yahoo to already7
Re: $700 Billion Dollar Bailout all of the sudden (March 2008)

I don't know what is going to happen pretty soon, but I don't think that there is a magic bullet for it. It is going to take some sound minded decisions and action, to get things headed back in the right direction.

All of these bail outs are scaring the hell out of investors, and guess where they are starting to put their money back into>>>>>> gas and oil futures.... Yep, the price will probably start easing on back up soon!!!!!!! Just when I thought that we were going to see them easing on down, they are going to start back up!
already7 is offline Submit to Clesto

Submit to Digg Submit to Reddit Submit to Furl Submit to Del.icio.us Submit to Jeqq Submit to Spurl  
Old 09-24-2008   #4 (permalink)
Leader of Men
Real Name: Brian
 
Intmdtr's Avatar
 
Join Date: May 2007
Location:
Wasaga Beach, Ontario
Posts: 9,551
iTrader: (1)
Friends: (34)
 

Last Online:
09-26-2018 05:26 AM
Time Spent Online: 2 Weeks 5 Days 22 Hours 27 Minutes 14 Seconds
My Album's:
Intmdtr's album
My Garage:
Intmdtr's Garage

Thanks: 0
Thanked 28 Times in 27 Posts
Send a message via MSN to Intmdtr
Re: $700 Billion Dollar Bailout all of the sudden (March 2008)

well you guys feel free to store your stangs and money up here with me in the great white north...i'll look after it.
__________________
HELLO My Name is BRIAN

"Without Warning, Without Conscience"



"Live life to the fullest, it's not a dress rehearsal"
Intmdtr is offline Submit to Clesto

Submit to Digg Submit to Reddit Submit to Furl Submit to Del.icio.us Submit to Jeqq Submit to Spurl  
Old 09-24-2008   #5 (permalink)
Car Enthusiast
Real Name: Doug
 
hotwheels's Avatar
 
Join Date: Aug 2006
Location:
Cheyenne, Wyoming
Posts: 21,597
Twitter ID:
insanemustangs
iTrader: (0)
Friends: (418)
 

Last Online:
04-28-2018 10:44 AM
Time Spent Online: 4 Weeks 11 Hours 40 Minutes 24 Seconds
My Album's:
hotwheels's album

Thanks: 4
Thanked 32 Times in 31 Posts
Re: $700 Billion Dollar Bailout all of the sudden (March 2008)

What bothers me is how this is being reported. In the first post, that is what bush and his buddy's first proposed, only to have it fail terribly. Now the second post, which as everyone know's, we are on the brink of bankruptcy and everyone need's to support the bill, how it stands, with no one overseeing how the money is to be spent.

The same thing happened with the oil at this point. Bush wanted to open up The Arctic National Wildlife Refuge (ANWR), and it too was denied. Within 6 months of this denial, our price at the pump started going up and continues to this day. The CEO's of the oil companies are becoming rich beyond belief, and the Bush admin sit's back and let's them continue to earn profits that have never been seen before by mankind.

Once people started paying $4.00 bucks a gallon for gasoline, it is now becoming clear that the oil companies will now be allowed to drill off our shores, with no income going back to any state as we currently do with mineral right's. Which has opened up the door to even higher profits for the oil companies. After we are told that it is no longer making them money, ANWR will then be opened to the oil companies.

All the while, our press ignores the real truths behind these lies, and make's everything into a crisis, which put's the public in to the "do whatever it takes" mode. Bush is really really good at using the press as his tool for continued wealth for the rich.
hotwheels is offline Submit to Clesto

Submit to Digg Submit to Reddit Submit to Furl Submit to Del.icio.us Submit to Jeqq Submit to Spurl  
Closed Thread

  Mustangs Insanity > BS Area > BS Room

Bookmarks


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
Exxon Mobil posts record $45.2 billion profit in 2008 hotwheels Ford News 5 02-03-2009 07:31 PM
$700 Billion Dollar Bailout all of the sudden (March 2008) DugDug BS Room 0 01-31-2009 08:10 PM
Ford Loses $14.6 Billion in 2008 but Forges Ahead hotwheels Ford News 1 01-29-2009 08:15 PM
March 2008 Ride of the Month Poll hotwheels InsaneMustangs Polls 36 04-01-2008 06:13 PM
March 2008 Wallpaper Gallery hotwheels Ford News 0 02-15-2008 03:47 PM


All times are GMT -6. The time now is 10:10 AM.


Powered by vBLies® Version 3.8.2
Copyright ©2000 - 2018
Insanemustangs is not Affiliated with ford in any way. All Image's are property of insanemustangs.com