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View Full Version : New IMPROVED bailout version, even worse????




thomaspaine23
09-21-2008, 11:15 PM
U.S. Treasury Widens Scope of Bad-Debt Plan Beyond Home Loans

By Dawn Kopecki

Sept. 22 (Bloomberg) -- The Bush administration widened the scope of its $700 billion plan to avert a financial meltdown by including assets other than mortgage-related securities.

The U.S. Treasury submitted revised guidance to Congress on its plan late yesterday as lawmakers and lobbyists push their own ideas. The department also adjusted its new plan to insure money-market funds to limit protection to balances as of Sept. 19, after complaints from bank lobbyists.

Officials made the changes two days after unveiling plans for an unprecedented intervention in financial markets in an effort to halt the deepening crisis. The change to potentially allow purchases of instruments such as car loans, credit-card debt and other devalued assets may force an increase in the size of the package as the legislation proceeds through Congress.

http://www.bloomberg.com/apps/news?pid=20601103&sid=aElikTnqq5yE&refer=news

tpreitzel
09-21-2008, 11:23 PM
`The costs of the bailout will be significantly higher than originally considered or acknowledged,'' said Josh Rosner, an analyst with independent research firm Graham Fisher & Co. in New York. ``How, given these changes, can the administration and Federal Reserve believe they are being forthright in their unrevised expectation of future losses?'

Good question, but we already know the answer, eh, Josh?