Paulson can not be respected as not being in an interest of conflict. I can not understand how that was overseen, but now here we go the next open question:

“The irony is, Paulson will not be able to find asset managers to run this that don’t already have distressed assets on their own books; there’s no one else to do it,” says one source who is closely following the talks. This person warns that Paulson has to be careful in how he brings those people in, ensuring there are strong enough firewalls and other safeguards to avoid a further public backlash: “If Main Street was already concerned about writing a big check to Wall Street, imagine how they are going to feel when they hear the government is now hiring the guys who created the problem in the first place, and, by the way, their firms will benefit?”

Paulson can not be trusted and no one of the other asset managers. Do they grow on trees? Hardly….

So whom to trust?

To accept the failout plan. despite the wish of the majority. What’s your turn now?
At first you are the voter and you have voted for the curren congressmen and women. As you know they have to “obey” their conscience. So it’s their right to ignore your wishes.

However they are obliged to serve you also. If you feel they served you well, you must accept their choice. If you don’t feel served well, you must stand up and outvote them. I for my part would outvote them. They have lied to you mor than once and hardly anything they deciced the last few years have brought anything good to America. They said yes to the Iraque war (which was founded on lies of His Insanity), they did not impeach His Insantiy after that and they did not impeach him after he has to admit to allow torture as an interrogation means. He has shown over and over again that he did not have clues about things he decided.

The chances are very slim he’s got that this time. Noone have come up in Congress with an readl alternative plan. So they all seem more or less accept the lies His Insanity and crew have given them.

Now even McCain or Obama havn’t come up with an alternative. So if you really feel that this was all ok, then you can vote for any of them. If you do not feel it was ok, then you have not choice but not to vote at all or vote for some other party. There are other parties, you may loose your vote, but at least you set a hallmark about your wishes. Let that be enough and none of them will get voted. Very slim chance, but still there it is.

I wish you better luck with your next president.

A…. word

Food for thought, for people caring yes, for the others….

Senators passed the failout plan, I hope they fail miserably in Congress …
It’s a shame that no other plan is discussed. Indeed it seems every other plan seemed to be
swept under the carpet.

If anyone believes that this can be “healed” with more money, you’ll have a harsh awakening, and
easily another trillion down the drain, for nothing.

US citizens emigrate to your nothern neighbour…..

You can come back in a few years in a devastated region, maybe then it’s high time to spend again some money in Jeeps, you may need them on the dusty roads. Don’t expect you can trust any bridge…

And if you come into the regions of those gangster, you may have some fun driving through their nice mansions…

Keep in mind both McCain and Obama have said yes. So you may have seen the worst president in the history of the US (His Insanity), one could think it won’t get worse…. — think again.

From http://biz.yahoo.com/ap/080930/financial_meltdown.htm

I cite:
“Because the government would be purchasing troubled assets and selling them once the market recovers,” he said, “it is likely that many of the assets would go up in value over time. Ultimately, we expect that much – if not all – of the tax dollars we invest will be paid back.”

If it’s likely to make a profit why shouldn’t everyone take the chance? Or at least most of them, it’ old good doing “buy low, sell high”. So let me say if the stuff bounces back why must it be bought from governement?

This is IMHO as clear, that he does not even see this contradiction. There are also a few assumptoins:
1) market will recover (well somehow, someday it surely will)
2) they get the assets below their value, and can wait long enough to wait for their recovery (let me ask why can’t Mr Paulson as private person wait for recoverey. If he’s spend 100 Mio he would not even notice that much less money. Does he own a few planes, boats etc.
3) it also implied that there will be some losses (may be/ may be not)
4) but buying them overprices would give those having collected this fould credits a premium. What should prevent them trying the same again?

I’m sorry but His Insanity simply does not get this things

It’s dead it won’t stand up and run afresh. Don’t mess around with the failout plan any longer, take another way. If I read they are planning to “refresh” the b(f)ailout plan I start shivering again. See my other entry on how I’d think you should proceed.

As written before he sketch was done. Now they all go wild:
Bingeley (F)ailout

the Failout plans looks for around 700 MRD, but still and without any word
another 25 Mrd were given to the GM, Ford, credits for low consumption cars.

Guess what this car managers are not able to manage also. Their business is to build cars people want to buy. They failed and got b(f)ailed out also.

You got the smell?

The Big-Bailout was minomed, while getting through that mess again I realized.
It had to be write as the Big-Failout

Or is it Fallout?

Bad, the link is gone, so be it. No idea how to get it back. Sorry guys…

Yes Paulson and Bernake surely knew what’s going on. Their only plan is to avoid that, and read the fine print “it’s the end of your econmic system”. Let’s assume it’s true. Then the system has proved to be unsustainable now. It does not mean it will show this unstustanability later. But guess one enlarges it’s life artificially . Will the end be more merciful?

This plan does nothing for a softer landing, it’s just prolonging the suffering. If at least one could see some effort addressing the base problem: too much money creation. Is there anything provided for limiting it? What’ll happen if banks has to back up their loans with much more own capital. Even a larger distrust could be suspended. The leverage in all the loans and assets is it what has lead to this plight. The leverage must be broken. The bailout-plan has nothing in it for that. So it’s not a plan it contains no “healing” component. It’s making the same error over and over again just with “more hot air”.

Now let’s see. If the system would be fundamentally fine. Why the hell can it not cope without this “money infusion”? The 700 Mrd are nothing in comparisan to the “real” money held in the system. How comes that this system can not even deal with less than a few per cent of what they deal with every day?

Take a look at:
http://biz.yahoo.com/ap/080925/bush_markets.html

I dare to ask. How can anyone believe anything from this proved liar? This nail to the coff of democracy. Having been in charge for too long and just getting out in just 2 months. He and his burocrats, have run the US in the ground. And congress was not that “active” to hold him back. They surounded to this FUD, Fraud, Lies. I can not understand that no-one dares to really put him into court.

Just this sentence:
“Bush stressed he was reluctant to put taxpayer”

is a straigtforware lie. He hasa put taxpayer money in everything he deemed “ok” The price tag (just money) for the Iraque war reaches the 700 Mrd till end of next year or so. All for the “safety” of Americans? How many have been slaugthered in Iraque? How many sorrows has he brought over at least two countries? Who has asked for dictatorship-like privileges?

Who has run round and round of tax deductions for just a handful people?

If one sees how much in debt each US citizen is, people must be aware that 700 MRD will be simple not enough. We’ve to see also how much worth houses are if loans busted. The price is that high as people are willing to sell it for. if building a house has costed let’s say 100 000 then that was it’s worth one build. Howerver the money for it is gone, and now the debt can not be paid. So you have to write down this price to whatever you find acceptable. The difference to 100 000 is a loss. Now this isn’t a big thing if that happens a few times, but if it happens on mass, then nothing can stop this avalanche crumbeling down. Impossible in theoretical and practical means. If you look at the figures of Fay and Fred Mac you’ll see the loans exceed 5 Billions.(Trillion in US speack) 700 Mrd are a bit above 10% of that value. Howerver let us try to estimate how much worth the houses are. Let us assume that at least a bit money was “ones” own. So let’s say 20 % that’s around 1 Billion. So the housing are “worth” let’s day roughl 6 Billions. (I know it’s too low but let’s just take it for some calculations) This was the prices the lend the money for. let’s assume that 2 Billion were spend on the mortgages in the last 6 years. During that time the prices have risen by 85 per cent. Let’s calculate the value that money has had 7 years ago with an inflation rate of 3 % we have
2 / 1.03^7 = 1,62 Billions, we must also take into account that hardly anyone will buy for that prices so let’s assume a discount at around 30 % then we have 2,11 billions for the costs of the debt for the houses of this large failures. This alone is 3 time as much as the asked 700 Mrd.

And guess what that just covers a fraction of the real loans. So I’d argue with a quite high probability the 700 Mrd will be just the tip of the icebrg. You have to see that the greedy manages have put everything to put out risk on different areas. So we can be 100% sure that the mess us magnitudes larger than implied by this incredible 700 Mrd $. Now say something about throwing good money after bad money.

I just can hope I’ve made some error in my calculations, otherwise the devastating “news ” is : “Game over”.

The only “signs” that is may be a bit less worse is that, the bad credits were spread all over the world. So in fact everyone having invested in this kind of stuff, really is “busted”. Don’t expect to see much from that money back. It’s time to prepare for even worse times…