On Monday morning, President Bush addressed the financial bailout or “rescue plan” worked on by the US Congress.Here are his comments:
Good morning. Yesterday, leaders here in Washington reached an extraordinary agreement to deal with an extraordinary problem in our economy. Working closely with my administration, congressional leaders from both parties produced the Emergency Economic Stabilization Act -- a bold bill that will help keep the crisis in our financial system from spreading throughout our economy.
This legislation deals with complex issues, and negotiators were asked to address them in a very short period of time. I appreciate the leadership of members on both sides of the aisle, who came together when our nation was counting on them. Negotiations are sometimes difficult, but their hard work and cooperation paid off.
The bipartisan economic rescue plan addresses the root cause of the financial crisis -- the assets related to home mortgages that have lost value during the housing decline. Under the Emergency Economic Stabilization Act, the federal government will be authorized to purchase these assets from banks and other financial institutions, which will help free them to resume lending to businesses and consumers.
The bill also includes other important ideas put forward by members of Congress from both parties. For example, the bill requires the establishment of a guarantee program that will insure assets at no cost to the taxpayer. The bill provides strong, bipartisan oversight so Americans can be certain that their tax dollars are used carefully and wisely. The bill ensures that failed executives do not receive a windfall from your tax dollars.
With this strong and decisive legislation, we will help restart the flow of credit, so American families can meet their daily needs and American businesses can make purchases, ship goods, and meet their payrolls. We'll make clear that the United States is serious about restoring confidence and stability in our financial system.
I know many Americans are worried about the cost of the bill, and I understand their concern. This bill commits up to 700 billion taxpayer dollars, because a large amount of money is necessary to have an impact on our financial system. However, both the non-partisan Congressional Budget Office and the Office of Management and Budget expect that the ultimate cost to the taxpayer will be far less than that. In fact, we expect that over time, much -- if not all -- of the tax dollars we invest will be paid back.
Now that this legislation has been agreed to by leaders of both parties, it must be passed by houses -- both houses of Congress. And I fully understand that this will be a difficult vote. But with the improvements made to this bill, I'm confident that members of both parties will support it. Congress can send a strong signal to markets at home and abroad by passing this bill promptly. Every member of Congress and every American should keep in mind: A vote for this bill is a vote to prevent economic damage to you and your community.
This has been a volatile time for our financial system and our economy. Even with the important steps we're taking to address the current crisis, we will continue to face serious challenges. The impact of the credit crisis and the housing correction will continue to pressure our financial system and impact the growth of our economy for some time. But I'm confident that this rescue plan -- along with other measures taken by the Treasury Department and the Federal Reserve -- will begin to restore strength and stability to America's financial system and overall economy. And I'm confident that in the long run, America will overcome these challenges and remain the most dynamic and productive economy in the world.
Seems like we don't have all of the background facts on this. I learned a few things on the internet under " credit Defaults swap". JP Morgan Chase, Citibank AIG Bear Sterns and 20 other finance entities hold more than 14$ Trillion dollars in CDS contracts. This Insurance like market is unregulated and was introduced in 2000 by Phil Grahamm as part of a Commodity futures Modernization Act. This CDS contaract is bundled credit loans and subprime mortgage loans that is sold as insurance against defaults to third party investors and investment banks all over the world. It's a 55$trillion market here and that is larger than the world's GNP. The 700$ Billion bail out is a bit small for stering that ecomomic influence in the credit market place. Written by Winger 2
on 10/3/2008
REPORT SPAM OR ABUSE
Seems like we don't have all of the background facts on this. I learned a few things on the internet under " credit Defaults swap". JP Morgan Chase, Citibank AIG Bear Sterns and 20 other finance entities hold more than 14$ Trillion dollars in CDS contracts. This Insurance like market is unregulated and was introduced in 2000 by Phil Grahamm as part of a Commodity futures Modernization Act. This CDS contaract is bundled credit loans and subprime mortgage loans that is sold as insurance against defaults to third party investors and investment banks all over the world. It's a 55$trillion market here and that is larger than the world's GNP. The 700$ Billion bail out is a bit small for stering that ecomomic influence in the credit market place. Written by Winger 2
on 10/3/2008
REPORT SPAM OR ABUSE
Our unesteemed, unelected president said, 'The bipartisan economic rescue plan addresses the root cause of the financial crisis -- the assets related to home mortgages that have lost value during the housing decline. Under the Emergency Economic Stabilization Act, the federal government will be authorized to purchase these assets from banks and other financial institutions, which will help free them to resume lending to businesses and consumers.' WHY NOT TAKE THE $700B AND DISTRIBUTE IT TO THE HOMEOWNERS, INSTEAD OF TO THE LENDERS? The homeowners have done less wrong than the lenders because they acted in ignorance, whereas the lenders knew they were deceiving the lenders. IF THE MONEY IS DISTRIBUTED TO THE HOMEOWNERS, AT LEAST THE OWNERS WILL STAY IN THEIR HOMES AS A RESULT. As we know in New Orleans, vacant homes are in themselves a factor in the decline of community. BRAVO TO THE LOUISIANA DELEGATION FOR OPPOSING THIS BAILOUT. The lenders should be looking for bail, not for a bailout. Written by Robert Desmarais Sullivan
on 9/29/2008
REPORT SPAM OR ABUSE
Bond ratings KPF, Bond ratings……… Now if they want to pursue a bailout that is equitable to the taxpayer, which means something like a 2.5:1 return, well then a resounding yes, because that is an investment….. But if it is just to prop up faltering markets, which is the case in many instances I agree with you, and let them slip… I suppose on a case by case instance the entities need to be evaluated, and their holdings tallied up….. What is worthwhile, salvage, and return to work….. and that which has no equity or substance, toss it on the trash heap…… Credit, for the traditional market to absorb all of these entities is unachievable… And then there are problems like WaMu…….. Folks in fear and panic made a run on the bank, it collapsed….. Feds stepped in, it is running, but asset losses? And there are going to be more because each infrastructure is dependent upon another……. Yes, the fallout is going to be experienced next year by a large segment of society, just after the first quarter, but in the following year, it will compound one thousand fold…. Public Schools? Yes, no property taxes, no schools……. Which may or may not be a good thing depending on how you look at it and what is being taught…. California thinks it is having a rough time now, wait until 2010……….. I am fairly sure that unemployment levels are going to jump…… For the same reasons the dollar is not based on gold, are the same reasons we have to fix this energy problem… It is a fundamental key element…….. The economy is sound, but certain segments are going to feel quite the pinch…… Rather than depending upon the Treasury, it is up to each individual state to consider what it can contribute, and to the contributors go the rewards…… States have two useful tools to dedicate towards this; Property, and sales tax………… A 2 – 3% surcharge fee on all stocks and commodities transactions on the stocks and bonds markets. That is what common sense mandates, and that is what the market is going to have to surrender if federally insured programs are to continue to survive… That is the cost of doing business… It is simply another business deal, like Chrysler….. But no, the taxpayer a’la the Treasury shouldn’t be directly asked to shoulder the load… The taxpayer already pays enough, now put to work and to good use that which was contributed……… A 2.5:1 return of principle within 9 months….. It is do able… Yes, Treasury infusion, coupled with State/Market infusions, and the primaries that are bailed out? Well, work them until they pay it back…. 30 years? Oh well…… That is merely additional lagniappe that will add an additional 1.5:1 contribution that can be applied towards interest….. Written by
on 9/29/2008
REPORT SPAM OR ABUSE
REMEMBER ALL YOU BUSH HATERS: George Bush is stupid! George Bush is FOR the bailout... ahem... I mean... "rescue" plan. Draw your own conclusions. The alternative to the bailout? Let the market work; it will reward those who were not foolish vis-à-vis those who made foolish greed-inspired choices. Don't fall for the scare tactic that "if we do not bail out Wall Street" then we "won't have a paycheck" or "be able to send our kids to school." Really I am surprised we haven't been warned that if we do not bail out these fat cat greedy bastards we will develop acne or suffer the pain of psoriasis or some such nonsense. Written by kpf
on 9/29/2008
REPORT SPAM OR ABUSE
