Interesting take on the bailout over at www.tickerforum.org

[billjarrett]

http://www.tickerforum.org/cgi-ticker/akcs-www?post=64590

Not "real" news (but what is nowdays), but from the post:

Just got off the phone with my Congressman's LA. He and I speak as you can imagine quite regularly. He feels from what he is hearing that this will pass both the Senate and House. After digging deeper into the issue he stated that there are other factors besides what is being broadcasted to the public driving this decision. After talking with him I'm convince that 1. this bailout is essentially a margin call on our debt and 2. sure the rest of the world is ****ed, but we're ****ed MORE. TROW is going to make us, the US Taxpayer, eat this **** or no more buyee Treasuries.

[billjarrett]

And another post, same conclusion:

http://www.tickerforum.org/cgi-ticker/akcs-www?post=64606

Here is, from what I can tell, what is really behind the Paulson Plan:

1) The government's fiscal year ended yesterday
2) The interest on the national debt this year is going to be about $1 trillion dollars
3) The Treasury is about $700 billion short of being able to pay the interest
4) The Paulson Plan purchases about $700 billion in toxic foreign assets
5) The foreign banks and investors then will take that money and purchase US Treasuries
6) The USA does not default on its debt immediately, as is about to happen (financial Armageddon)
7) Foreign countries are threatening "panic selling of US debt": http://www.bloomberg.com/apps/news?pid=n....
8) Paulson/Bush will veto any Bill that does not have this provision

[ronpaulforprez2008]

Even if a margin call is true, and I don't believe it for a minute, let them go thru with their margin call....I say call their freaking bluff.

If in fact it is a margin call, then we would not be witnessing the attempted power grab by the executive branch. This "margin call" is a cover story to make congress look good, as if they are bending to the pressure but still acting in the publics best interest. It's bogus. Don't buy this story.

But if by some miracle this story is in-fact true, then Congress should start treating us like adults and just tell us what's up. I'm tired of them always treating us like children.

But sorry, this ain't true.

[Mini-Me]

Two questions:
1.) $700 billion spent on toxic foreign assets? I thought the bailout was $700 billion spent on toxic mortgage loan packages and similar crap from failed domestic financial institutions?
2.) Why would the rest of the world threaten to sell dollar assets if we don't continue to inflate the currency? You'd think that foreign banks would threaten to dump dollars if the bill DOES pass...

[angelatc]

What is TROW ?

[Mini-Me]

What is TROW ?

The Rest of [the] World, I think...

[acptulsa]

Here's how I just treated the subject on another site:

There's an unconfirmed rumor on the internet that the Chinese are telling those who alledge to be our represenatives that either we, the U.S. taxpayers, eat this bailout package or the T-Bill market will dry up.

Our defecit spending has finally led to our enslavement.

It may or may not be true. But it is food for thought.

Yeah, fiscal conservatives are kooks. At home, they're kooks who don't get harassed by collectors. In the political arena, they're the kooks who (had they been listened to) could have steered the ship clear of the rocks.

So, the question becomes do we kowtow or do we do what it takes to balance our budget and be free of foreign blackmail (even if it means giving up on being an empire)?

[billjarrett]

Two questions:
1.) $700 billion spent on toxic foreign assets? I thought the bailout was $700 billion spent on toxic mortgage loan packages and similar crap from failed domestic financial institutions?
2.) Why would the rest of the world threaten to sell dollar assets if we don't continue to inflate the currency? You'd think that foreign banks would threaten to dump dollars if the bill DOES pass...

SEC. 112. COORDINATION WITH FOREIGN AUTHORITIES
4 AND CENTRAL BANKS.
5 The Secretary shall coordinate, as appropriate, with
6 foreign financial authorities and central banks to work to7ward
the establishment of similar programs by such au8
thorities and central banks. To the extent that such for9
eign financial authorities or banks hold troubled assets as
10 a result of extending financing to financial institutions
11 that have failed or defaulted on such financing, such trou12
bled assets qualify for purchase under section 101.

According to what I've read other places, this basically translates to:

1. Bank of Country X holds "toxic" US assets
2. Bank of Country X transfers asset to subsidiary Bank of Country X, Hometown, USA
3. Bank of Country X can now dump the asset on the treasury.

I'll see if I can find the article I was reading. Somewhere a congressman said that if the bill read "Bank of Country X, Hometown, USA" can only ditch assets if they were owned here before September 20th Paulson said he would tell Bush to Veto it.





EDIT: Found the link I just mentioned: http://globaleconomicanalysis.blogspot.com/2008/10/rep-brad-sherman-on-bailing-out-foreign.html

[HOLLYWOOD]

Even if a margin call is true, and I don't believe it for a minute, let them go thru with their margin call....I say call their freaking bluff.

If in fact it is a margin call, then we would not be witnessing the attempted power grab by the executive branch. This "margin call" is a cover story to make congress look good, as if they are bending to the pressure but still acting in the publics best interest. It's bogus. Don't buy this story.

But if by some miracle this story is in-fact true, then Congress should start treating us like adults and just tell us what's up. I'm tired of them always treating us like children.

But sorry, this ain't true.

Truth is TREASON in an EMPIRE of LIES!

I think we all know... the Imperial Empire is out of CASH

How do you generate CASH... STEAL IT

HOW DO YOU MAINTAIN your CASH GRAVY TRAIN?

ARTIFICIALLY INFLATE PRICES! Remember, Government loves when prices are high! Taxes ARE A percentage... higher the valuation... higher their CUT for the same piece!

It's all a CHARADE for theft!

[Mini-Me]

SEC. 112. COORDINATION WITH FOREIGN AUTHORITIES
4 AND CENTRAL BANKS.
5 The Secretary shall coordinate, as appropriate, with
6 foreign financial authorities and central banks to work to7ward
the establishment of similar programs by such au8
thorities and central banks. To the extent that such for9
eign financial authorities or banks hold troubled assets as
10 a result of extending financing to financial institutions
11 that have failed or defaulted on such financing, such trou12
bled assets qualify for purchase under section 101.

According to what I've read other places, this basically translates to:

1. Bank of Country X holds "toxic" US assets
2. Bank of Country X transfers asset to subsidiary Bank of Country X, Hometown, USA
3. Bank of Country X can now dump the asset on the treasury.

I'll see if I can find the article I was reading. Somewhere a congressman said that if the bill read "Bank of Country X, Hometown, USA" can only ditch assets if they were owned here before September 20th Paulson said he would tell Bush to Veto it.





EDIT: Found the link I just mentioned: http://globaleconomicanalysis.blogspot.com/2008/10/rep-brad-sherman-on-bailing-out-foreign.html

Even if that's true though, the only foreign entities who'd want this to happen are the ones who can dump their debt onto the federal government (and by extension taxpayers, through inflation). That way, although the currency is being inflated, they're receiving the inflationary money, thereby increasing their net worth. However, every OTHER foreign entity is still going to lose value from their current dollar holdings...so unless our very biggest creditors are blackmailing us, most of them have much to lose from a bailout plan.

I guess a good question to ask is: Is there any breakdown by dollar of exactly who will get all of this bailout money?

[acptulsa]

Bump this puppy. Even if the rumor isn't true, it is great food for thought. I don't think anyone with more than three brain cells in working order would disbelieve the possibility of this--or fail to be chilled to the bone by it.