Geithner Wants Another $1 Trillion For The Banks

[red states rule]

The money pit the Obama administration is digging is getting deeper


Giethner Unveils Overhauled Financial Bailout, Expands Lending Program to $1 Trillion

Treasury Secretary Timothy Geithner unveiled an overhauled version of the financial bailout plan Tuesday, announcing a program that could direct well over $1 trillion in public and private support to get credit flowing and aid struggling banks.

The Obama administration detailed its new approach to the bailout as the Senate was preparing to vote on a more than $800 billion economic recovery package -- a separate measure aimed at saving or creating up to 4 million jobs.

But Geither said the battle against recession must be fought on two fronts: "We have to jump-start job creation and private investment, and we must get credit flowing again to businesses and families."

The new plan details how the administration will spend the remaining $350 billion of the $700 billion financial rescue program. But the plan goes well beyond that, envisioning big investors buying more than $1 trillion in troubled assets from the banks.

http://www.foxnews.com/politics/first100days/2009/02/10/overhauled-financial-bailout-aims-ease-consumer-business-credit-crunch/

[Trigg]

At least there is a little honest reporting coming from the MSM.


http://www.cnbc.com/id/29119665


Some market watchers remain skeptical over the benefits of the plan and legendary investor Jim Rogers told CNBC it could even make things worse. The bailout will plunge the US further into debt and it is designed by the same people who failed to forecast the crisis in the first place, Rogers said.


I remain firmly AGAINST this bailout and I don't care how many times bambam calls it a "recovery", it just doesn't change the fact that it's a bailout.

As for bambam coming to lowly Indiana. The reason the Elkhart area is in such financial straights is because of the gas prices. That area is heavily into RV manufacturing, when the gas prices went over $4 a gallon, people stopped buying RVs.

[red states rule]

At least there is a little honest reporting coming from the MSM.


http://www.cnbc.com/id/29119665




I remain firmly AGAINST this bailout and I don't care how many times bambam calls it a "recovery", it just doesn't change the fact that it's a bailout.

As for bambam coming to lowly Indiana. The reason the Elkhart area is in such financial straights is because of the gas prices. That area is heavily into RV manufacturing, when the gas prices went over $4 a gallon, people stopped buying RVs.

Obama said over and over spending got us into this mess - yet he wants to spend trillions to try and fix it

Problem is, it will make things much worse. Looks like Dems will double the national debt as they fill this huge money pit

[TheStripey1]

Deregulation of the banking industry is what got us into the mess we are in... not spending.

The federal government is the ONLY kid on the block with allowance money right now, so if we are to get the economy rolling again, the feds have to do the spending...

But I suppose we could just sit on our hands and watch the country disappear into oblivion as most republicans seem to want us to do.

How unamerican of them.

[TheStripey1]

1) Obama said over and over spending got us into this mess - yet he wants to spend trillions to try and fix it

2) Problem is, it will make things much worse. Looks like Dems will double the national debt as they fill this huge money pit.

1) Got a link?
2) Got a link?

[Trigg]

Obama said over and over spending got us into this mess - yet he wants to spend trillions to try and fix it

Problem is, it will make things much worse. Looks like Dems will double the national debt as they fill this huge money pit

I tend to agree. I see this leading into an inflation, the gov can't just keep printing money and hope everything works out.

One economist already said this will cost 100,000 for every job created, it simply isn't worth it.

Our unemployment is at 7.6%, no where near the Great Depression which was between 25-30%. Why then does bambam keep fearmongering about this being the next Great one??

Here is a little info, the unemployment rates by state as of Nov.

http://money.cnn.com/pf/features/lists/state_unemployment/

[red states rule]

Deregulation of the banking industry is what got us into the mess we are in... not spending.

The federal government is the ONLY kid on the block with allowance money right now, so if we are to get the economy rolling again, the feds have to do the spending...

But I suppose we could just sit on our hands and watch the country disappear into oblivion as most republicans seem to want us to do.

How unamerican of them.

No, it was Dems tinkering with lending requirements that got us into this mess

Pres Bush tried to head off the problem, but Dems blocked the bills, and Dems said there were no problems with Fannie and Freddie

[red states rule]

I tend to agree. I see this leading into an inflation, the gov can't just keep printing money and hope everything works out.

One economist already said this will cost 100,000 for every job created, it simply isn't worth it.

Our unemployment is at 7.6%, no where near the Great Depression which was between 25-30%. Why then does bambam keep fearmongering about this being the next Great one??

Here is a little info, the unemployment rates by state as of Nov.

http://money.cnn.com/pf/features/lists/state_unemployment/


I'm not even sure who can keep a straight face when they see a man trying to act as though he can handle our tax dollars yet something as simple as Turbo Tax confused him.

[Trigg]

Deregulation of the banking industry is what got us into the mess we are in... not spending.

The federal government is the ONLY kid on the block with allowance money right now, so if we are to get the economy rolling again, the feds have to do the spending...

But I suppose we could just sit on our hands and watch the country disappear into oblivion as most republicans seem to want us to do.

How unamerican of them.

I agree with you on this point. Deregulation and the housing bubble lead to this mess, add $4 a gallon for gas on top of that and the American people started falling behind.The banks were lending to anyone and everyone and giving credit cards out like candy.

However, we've already seen all the help the previous 3 "stimulus" provided. ZIP. The car companies now want even more money and the bank CEO's threw a party for themselves.

If left to their own devices the banks would be forced to renegotiate the loans that are in trouble. If the gov. keeps lending them money when is their incentive to help the people?????????? NOTHING

[red states rule]

I agree with you on this point. Deregulation and the housing bubble lead to this mess, add $4 a gallon for gas on top of that and the American people started falling behind.The banks were lending to anyone and everyone and giving credit cards out like candy.

However, we've already seen all the help the previous 3 "stimulus" provided. ZIP. The car companies now want even more money and the bank CEO's threw a party for themselves.

If left to their own devices the banks would be forced to renegotiate the loans that are in trouble. If the gov. keeps lending them money when is their incentive to help the people?????????? NOTHING

People forget, or do not know, Pres Bush and McCain wanted to fix the pending problems of Fannie and Freddie

If these reforms went through, would we have the economic issues we have right now?

Note the date

September 11, 2003


New Agency Proposed to Oversee Freddie Mac and Fannie Mae
By STEPHEN LABATON
The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.

Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.

The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.

The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac -- which together have issued more than $1.5 trillion in outstanding debt -- is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates.

''There is a general recognition that the supervisory system for housing-related government-sponsored enterprises neither has the tools, nor the stature, to deal effectively with the current size, complexity and importance of these enterprises,'' Treasury Secretary John W. Snow told the House Financial Services Committee in an appearance with Housing Secretary Mel Martinez, who also backed the plan.

Significant details must still be worked out before Congress can approve a bill. Among the groups denouncing the proposal today were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing.

''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''

Representative Melvin L. Watt, Democrat of North Carolina, agreed

http://query.nytimes.com/gst/fullpage.html?res=9E06E3D6123BF932A2575AC0A9659C8B 63&sec=&spon=&pagewanted=print

[TheStripey1]

I tend to agree. I see this leading into an inflation, the gov can't just keep printing money and hope everything works out.

One economist already said this will cost 100,000 for every job created, it simply isn't worth it.

Our unemployment is at 7.6%, no where near the Great Depression which was between 25-30%. Why then does bambam keep fearmongering about this being the next Great one??

Here is a little info, the unemployment rates by state as of Nov.

http://money.cnn.com/pf/features/lists/state_unemployment/

The bush administration failed economic policies which caused the hemorraging of jobs didn't stop in November... They're on going...

Just keep doing what the obstructionist republicans in congress want to do... that is to say... keep doing nothing and jobs will continue to vanish.

Is that what you want? What if it's your job on the line next? Will you still say it's ok?

[TheStripey1]

People forget, or do not know, Pres Bush and McCain wanted to fix the pending problems of Fannie and Freddie

If these reforms went through, would we have the economic issues we have right now?

Note the date

September 11, 2003


New Agency Proposed to Oversee Freddie Mac and Fannie Mae
By STEPHEN LABATON
The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.

Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.

The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.

The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac -- which together have issued more than $1.5 trillion in outstanding debt -- is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates.

''There is a general recognition that the supervisory system for housing-related government-sponsored enterprises neither has the tools, nor the stature, to deal effectively with the current size, complexity and importance of these enterprises,'' Treasury Secretary John W. Snow told the House Financial Services Committee in an appearance with Housing Secretary Mel Martinez, who also backed the plan.

Significant details must still be worked out before Congress can approve a bill. Among the groups denouncing the proposal today were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing.

''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''

Representative Melvin L. Watt, Democrat of North Carolina, agreed

http://query.nytimes.com/gst/fullpage.html?res=9E06E3D6123BF932A2575AC0A9659C8B 63&sec=&spon=&pagewanted=print

Too bad the republican controlled congress didn't pass it then, huh RSR? Or are you conviniently forgetting who was in charge back then?

[TheStripey1]

No, it was Dems tinkering with lending requirements that got us into this mess

Pres Bush tried to head off the problem, but Dems blocked the bills, and Dems said there were no problems with Fannie and Freddie

Senator Phill Grahmm isn't a democrat, RSR... he's a republican.

But I'll play...

got a link?

[red states rule]

Too bad the republican controlled congress didn't pass it then, huh RSR? Or are you conviniently forgetting who was in charge back then?

Dems in the Senate blocked it. Remember the 60 vote rule?

Seems some people forget about that. Now when Republcians ask questions about the mega pork bill, and the trillions Obama wants it is obstructionist

Again, Dems said there was no problem with fannie and Freddie. You ignore that as well

[Trigg]

The bush administration failed economic policies which caused the hemorraging of jobs didn't stop in November... They're on going...

Just keep doing what the obstructionist republicans in congress want to do... that is to say... keep doing nothing and jobs will continue to vanish.

Is that what you want? What if it's your job on the line next? Will you still say it's ok?

Once again the housing bubble, bank deregulation and sky high gas prices are what lead to the mess we're in.

IF THE BANKS ARE FORCED TO NEGOTIATE WITH PEOPLE THEY WILL. Unless the gov. keeps printing money for them, if that keeps happening, what is their incentive for helping out the people with questionable mortgages???

The republicans in congress have realized that the FIRST THREE "stimuluses" did absolutely NOTHING!!!!!!!!!!

bambam wants to yell about the "failed policies of the past 8 years", all the while he wants yet ANOTHER bail out. JUST LIKE THE PREVIOUS PRESIDENT. What exactly is he going that's NEW?????????????????

[red states rule]

Senator Phill Grahmm isn't a democrat, RSR... he's a republican.

But I'll play...

got a link?

Again note the date

From the Congressional Record: Again, Note the Date!

FEDERAL HOUSING ENTERPRISE REGULATOR REFORM ACT OF 2005
The United States Senate, May 25, 2006

Sen. John McCain [R-AZ]: Mr. President, this week Fannie Mae’s regulator reported that the company’s quarterly reports of profit growth over the past few years were “illusions deliberately and systematically created” by the company’s senior management, which resulted in a $10.6 billion accounting scandal.

The Office of Federal Housing Enterprise Oversight Oversight’s report goes on to say that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives. In the case of Franklin Raines, Fannie Mae’s former chief executive officer, OFHEO’s report shows that over half of Mr. Raines’ compensation for the 6 years through 2003 was directly tied to meeting earnings targets. The report of financial misconduct at Fannie Mae echoes the deeply troubling $5 billion profit restatement at Freddie Mac. …

For Years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac — known as Government-sponsored entities or GSEs— and the sheer magnitude of these companies and the role they play in the housing market. OFHEO’s report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO’s report solidifies my view that the GSEs need to be reformed without delay.

Democrats blocked both attempts to reform Fannie Mae.

http://www.govtrack.us/congress/record.xpd?id=109-s20060525-16&bill=s109-190#sMonofilemx003Ammx002Fmmx002Fmmx002Fmhomemx002 Fmgovtrackmx002Fmdatamx002Fmusmx002Fm109mx002Fmcrm x002Fms20060525-16.xml

[red states rule]

Once again the housing bubble, bank deregulation and sky high gas prices are what lead to the mess we're in.

IF THE BANKS ARE FORCED TO NEGOTIATE WITH PEOPLE THEY WILL. Unless the gov. keeps printing money for them, if that keeps happening, what is their incentive for helping out the people with questionable mortgages???

The republicans in congress have realized that the FIRST THREE "stimuluses" did absolutely NOTHING!!!!!!!!!!

bambam wants to yell about the "failed policies of the past 8 years", all the while he wants yet ANOTHER bail out. JUST LIKE THE PREVIOUS PRESIDENT. What exactly is he going that's NEW?????????????????

Remember the talking point being tossed around how the banks needed to modify the loans?

Well more the 50% of those home loans that were rewritten are back in default

http://money.cnn.com/2008/12/08/news/economy/mortgage_summit/index.htm

[red states rule]

Wall St gave a big thumbs down to Tarp 2

Dow down near 400 points today