Credit markets to Washington: Bailout isn't enough

[lligrd]

Source: Associated Press

NEW YORK - The credit markets finally got a bailout bill, but the stranglehold hasn't let up — a troubling sign that lenders and investors believe the package will only be a baby step in the long road to economic recovery.

The credit markets, where companies go to get cash loans, have seized up since the bankruptcy of Lehman Brothers Holdings Inc. and in anticipation of the $700 billion plan initially voted down by the House. The House passed a revised version of it Friday following the Senate's approval earlier this week, but anxiety about its effectiveness kept demand for Treasury bills high and nearly nonexistent for other types of debt.

Overall, market participants have begun regarding the rescue plan as a medicine for what's ailing the financial system, but not a cure-all.

<snip>

Some are worried, though, that the plan will not work at all.



Read more: http://news.yahoo.com/s/ap/20081003/ap_on_bi_ge/credit_markets;_ylt=Am0EJQ7QfDMk03Io1Rr2Z1Cs0NUE

---

Surprise, Surprise.

[daninthemoon]

1. That's what happens when you pay an extortionist. They come back.

[pfitz59]

3. You betcha!

We've all been had!

[llmart]

73. Is that you Sarah?

:)

[ozone_man]

36. Is that why the markets were down today?

They want another hand out already. And it's not even Halloween!

[superconnected]

52. It's going to be touted like iraq - to win you really have to quintuple the sum.

so they say. Really there is no way to win with them. They'll keep raising the price. They are the credit industry and the banks who own them who SPECIALIZE IN THAT.

What do you expect from an industry that raises your rates to extortion for no reason on money you already borrowed at a much cheaper rate.

People here actually believed those loan sharks NEEDed money after all they already have taken from us in beyond belief interest rate increases. Foooools.

[daleo]

67. Time for a surge

None of this "cut (a check) and run".

[DJ13]

2. Can we start building some gallows now? Please?

[Gin]

7. extortion....from Wikipedia

In extortion, the victim is threatened to hand over goods, or else damage to their reputation or other harm or violence against them may occur.Under federal law extortion can be committed with or without the use of force and with or without the use of a weapon. A key difference is that extortion always involves a written or verbal threat whereas robbery can occur without any verbal or written threat

[leftupnorth]

25. I dunno, I always preferred guillotines. That way you can use pikes later on.

[tclambert]

60. Viva la guillotine!

Viva la Revolucion! And then comes the Reign of Terror! Oh, wait, we already have that one.

[Hydra]

4. OMFG

I never expected to be vindicated in the same day.

:puke:

[polpilot]

41. Allow EVERY U.S. citizen to re-fi into a 3% 50 yr. fixed rate mortgage. INSTANT RECOVERY.

WE now own Fannie/Freddie. Instant relief to EVERY STREET.

[Hydra]

43. That's what we were telling people all week

Keep the people in their homes paying the mortgage at a low fixed rate and help with jobs and wages...BUT NO! We had to give the Chimp an early Christmas present!

[lostnotforgotten]

111. Yes And Remember All The Outside Infiltrators That Stormed DU

Demanding that this bailout abortion be passed.

Where are those SpamTroopers today?

[Stellabella]

68. Yes, exactly.

And that's such a simple fix.

[gopbuster]

89. You can't modify the mortgages as they are tethered to the MBSs

You have to own the MBSs or force the owners to somehow approve it.

This is the problem

[Marie26]

103. That's already being done, to an extent.

"Fed: Bailout will help borrowers

September 18, 2008

The government's takeover of mortgage finance companies Fannie Mae and Freddie Mac should provide an opportunity to modify more home loans for troubled borrowers, government officials said yesterday. ...

Such an effort could have a tremendous impact because Fannie and Freddie own or guarantee more than $5 trillion in loans, about half of the nation's total.

"There are still a lot of mortgages out there that need to be restructured and families that can still be helped," Sheila Bair, chairman of the Federal Deposit Insurance Corp., told lawmakers yesterday. With 1.5 million foreclosures last year and 1.2 million already in the first six months of this year, the foreclosure crisis is accelerating, she noted.

The FDIC has rolled out a plan to help refinance more than 1,200 delinquent IndyMac Bank borrowers into 30- year mortgages with interest rates capped at 5.9 percent. The program is meant to be a loan-modification model for the industry."

http://www.newsday.com/services/newspaper/printedition/thursday/business/ny-bzmort185847660sep18,0,1754197.story


So the FDIC knows that mortgage modification is a way to stop foreclosures & avoid a collapse. BUT, this bailout bill has absolutely no mortgage modification provisions that would allow people to keep their homes. It's for the banks & the banks only.

[bread_and_roses]

44. This is when I want to let loose my "worser" nature

and be childish and go "BBBBWWWWWHHHAHAHAHAHAAAAAAA," even grim as the situation is. You seem to have the moral fibre to resist the tempation.
(I've read your stuff in the Market Watch thread and elsewhere on this over the past few weeks.)

[Hydra]

46. Thanks!

I am "BBBBWWWWWHHHAHAHAHAHAAAAAAA,"ing, though, but not because the people are stupid. I'm laughing because Congress blatantly ignored everyone in America. One of the Congresswomen admitted that on Monday that the calls to her office were 100-1 against the bill, and she fudged later saying that more people called up later in the week once the fear set in(but she never said how many).

None of us have any say in this- Bushco is going to rob us blind, and we can do nothing. The concept of Democracy in this country was laughable enough previously. Today, it became utterly irrelevant.

Go ahead and laugh- it's better than crying. This is going to be ONE HELL OF A SHOW soon, and it's time for this:

:popcorn:

[gratuitous]

5. NOW we find out the financial moguls don't think this will work?

Delightful. Well, it's not like anyone could have anticipated . . . {BLAM!}

[pleah]

6. A whole lot of us have been saying that this would not work. I am not

surprised in the least. We just got taken to the cleaners and they want more.

[Cronus Protagonist]

28. I wish I could slap all the people who believed the Bush admin with a stick of wet celery

To remind them for next time that they ought to quit acting like a vegetable.

[pleah]

39. Well said.

:rofl:

[Zhade]

100. Me too, minus the celery.

Fucking fools. Same type that fell for the WMD bullshit.

Which reminds me, time to go kick a thread...

[earth mom]

8. You have got to be fucking kidding me!

:argh:

:grr:

[Yuugal]

9. BOHICA as usual nt

[UpInArms]

10. did not the USoA have a line in the sand about not negotiating

with terrorists?

:sigh:

[bluesmail]

11. I never saw this coming, never. Greedy effing sociopaths

all I want at this point is OFF THE PLANET.

[mcollier]

13. Bull Shit! Made In The USA!

Reminds me of the IRAQ WAR VOTE!!!!!


FOOL ME ONCE!


MASTER CARD, VISA, AMERICAN EXPRESS... (MARKS OF THE BEAST) HOWS THIS FOR A REVELATION...

[polpilot]

42. Bailout Plan: Give more money to those who created the mess. BRILLIANT!!!

[Norrin Radd]

12. No dice.

[lib2DaBone]

14. I can't even argue about this anymore..... I'm tired.

Between Sarah "You Betcha" Palin and this Banker Bailout... my head hurts. I called and wrote and sent e-mail.. so much for Democracy. The Titanic is going down...I can't argue with the Repukes and the Dems in CONgress.. what will happen ,will happen. What is amazing.. is that after 8 years of Bush.. the Dems in CONgress still don't get it....

[Hydra]

47. It's not that they don't get it

They're in on the game. Kucinich and a few of the others fought like demons to prevent this, and they are to be commended for the effort. In the end, though, this is the United States of Corporations, and that's the end of it.

[girl gone mad]

74. The titanic is going down and they just gave one of our life rafts..

to the iceberg!

[barbtries]

15. it tears me up

that the bill passed. and you say already they're crying more?

[fascisthunter]

16. Well, Don't Say Nobody Warned You...

[RoyGBiv]

17. Cure All ...

Well, anyone who thought it was a cure-all was a flippin' moron in the first place.

It has never been billed as such.

[frylock]

24. it didn't cure shit..

but keep rationalizing...

[RoyGBiv]

29. Rationalize what?

What are you talking about?

[frylock]

30. i take it from your OP that you're pro-handout..

was i incorrect? if so, my apologies.

[RoyGBiv]

32. Check your terms ...

Then we can talk.

[frylock]

33. "rescue"

better now?

[frylock]

78. cat got your tongue?

[Zhade]

101. HAHAHAHAHAHAHA!!!!!!!!!!

Oh, the flailing. It is to laugh.

Why can't you just admit you were wrong?

Because you were.

[ForeignSpectator]

18. Well, that didn't take too long...

"Some are worried, though, that the plan will not work at all."

Just lol. Nancy, don't go on vacation just yet, they are not done with you.

[defendandprotect]

64. ..but did pro-bailout DU'ers learn anything .. ???

[ForeignSpectator]

81. No, they just shut up for now. Or they'll come back soon with the two things they repeat

A) "You don't understand anything about the economy"
B) "This is just the first of many necessary steps"

Well guess what, it's the first step alright because the heist is not over yet.

[Zhade]

102. Yeah, those of us who were RIGHT know less about the economy than those who were wrong.

:rofl:

[yy4me]

19. The ink isn't even dry yet, I give up. Surprise, surprise... n/t

[tama]

20. It's all fraud

stop believing and getting hypnotized by how TPTB frame the situation. 401K is not going to be saved anyway, so what's the point in whoring for extortion? When you got nothing to loose, only then you are really free.

Who really, deep down, wants to be Chaplin in the movie Modern Times?

[greyghost]

21. Great analogy.

[Marie26]

105. Freedom's just another word for nothing left to lose.... nt

[greyghost]

22. What a surprise...

:sarcasm:

[frylock]

23. well gee gosh who couldn't foresee this happening..

i mean, i don't know jack shit about economics according to many very well informed insiders here at this very progressive website, but even stupid ol me knew this shit was just the tip of the iceburg for the corporate handouts. this is one issue i won't hesitate to get up in the ugly little grills of each and everyone of the GDIs here who claimed we absolutely needed this. fucking idiot assholes.

[LatteLibertine]

26. Lou Dobbs

reported folks in the House and Senate were told by the Department of Commerce that if they opposed the bailout they would "turn loose 527 groups on them" and that "their political careers would effectively be over".

Note they left a lot business undone that could have helped the middle class before they left DC. Paulson and Wall Street got their hook ups though.

[SammyWinstonJack]

95. FUCKING COWARDS! If they can't stand up for us, they don't deserve their jobs!

They can shove their political careers, most of them suck at their "careers" anyway.

[Cobalt Violet]

27. Do these crooks want our first born too?

No more for them. Nothing. Sink or swim like the rest of us.

[Hannah Bell]

31. where are all the supporters? get them over to tell everyone how they don't understand

that complicated finance stuff.

[frylock]

35. they're in hiding with the lieberman fanboys

[Pastiche423]

34. Duh

[pokercat999]

37. "all lies and jest, still a man hears what he wants to hear and

disregards the rest" Simon and Garfunkle from "The Boxer" 1968/9 I think.

[whosinpower]

38. It all grinds to a halt -

760 000 jobs lost. 11(?) TRILLION dollar debt. Confidence lost. 700 billion won't bring back squat.
The mother of all corrections.

The cure? No easy answers, except to say that somehow you have to create jobs, consume less, and export more. It is a generational cure - not an easy fix.

One thing to be pointed out - conservatism is dead. The era of Reagan went out with a worldwide groan. Good riddance.

[OhioChick]

40. Didn't we already know this? n/t

[Zhade]

104. Yes. WE did. The pro-bailout fools here argued against us and have now been proven wrong.

And to think, they could have listened to us over PROVEN FUCKING LIARS.

But noooooooo, they'd rather protect their cushy investments and pretend crooks aren't crooks.

There are some DUers here I'm so angry with, I wouldn't brake if they were crossing the street.

(But I wouldn't kill them. Just make them jump back. Idiocy shouldn't be deadly, though goodness knows they're trying to make the opposite true with their misplaced hubris and trust in criminals.)

[newfie11]

45. I hope this country holds together long enough to see the end of bush's reign.

and God help us if mcidiot and mooseburger get in. Of course the way it's going there won't be anything left by then anyway.

[KamaAina]

48. Isn't *enough*?!

Very well. Here you go. Come and get it!

[superconnected]

56. About what our moneys going to be worth if they keep it up.

[Kitsune]

49. America to greedy bastards: go fuck yourselves.

Unfortunately for America, Congress to greedy bastards: oh please sir don't hurt me ;_;

Fucking worthless, the lot of them. :mad:

[sarcasmo]

50. Greedy FUCKERS want more.

[superconnected]

53. LOOK WHO THEY ARE! LOOK AT THE INTEREST RATE SCAM THEY PLAY.

We're talking about the credit industry.

People are sooo stupid for giving them a bail out.

[sarcasmo]

54. The sad thing is that many average citizens didn't want this, but hey, who are we to count.

[superconnected]

55. True. But many here believed it in. I think Obama went with what he thought

the people wanted, to get elected. I think the dems in congress did too. Except the corrupt ones like Pelosi who did it for a kick back.

[sarcasmo]

57. I know, and I just don't understand why they fell for the fear mongering.

[Marie26]

107. Except the people were massively against this.

Even in conservative districts. No, this was done for one of two reasons. 1.) They truly, idealistically believed that it was the best way to protect Americans & avert a new Great Depression - and were willing to risk their political position in order to do the right thing, or 2.) They are so tied to the financial services industry that they are forced to support this bill in order to keep their political position. I vote for #2, but then I'm a cynic.

[lligrd]

94. Yep, We Attempted To Bailout The Usury Industry.

Notice the one Biblical law the Right does not care to enforce is the law against usury. Of course, they don't especially care for the "Do unto others..." either.

[superconnected]

51. FIGURES. KNEW IT. Thanks you all you DU geniuses who thought

a bail out to nobody in particular but everyone and nary a real plan was going to help our financial situation.

[Acadia Blue]

58. I want to demonstrate against this theft.

[pleah]

59. Credit markets to Washington: FEED ME!

:-(

[MannyGoldstein]

61. No Shit.

Nobody trusts anyone. Only thing left is for the feds to buy a bunch of banks and take them over.

But Goldman Sachs execs now have an extra $700B to cushion the blow.

[olddad56]

62. It wasn't designed to work. If your money isn't out of Wall Street's pyramid scheme, you are screwed

[defendandprotect]

63. Bail-outs don't work -- taking hold of the industry and re-regulating it will --

[btpull1]

86. Simple Solution

Require the financial firms that make loans to bear the risk of the loans.

No Bailouts + No Risk Transfers = Problem Solved.

[depakid]

65. No one expects it to happen overnight

We should know over the course of the next several weeks how things are going.

[ibegurpard]

66. Can we send you the bill if it doesn't?

eom

[girl gone mad]

76. Then why the rush?

[frylock]

79. just as we could have without throwing billions down the shitter..

but what the hell do i know.

[Zhade]

106. And there's the rationalization. No way you could have been wrong, so time to change your story.

Fucking. Transparent.

[unkachuck]

69. aren't we out of the woods?

....isn't our economy fixed? isn't unemployment coming down? can we all get mortgages now? can I get an auto loan? are foreclosures ending? Surely the banks are no longer failing....

....has anyone been arrested? is anyone going to prison? how's your 401k doing? are you getting your job back?

....I don't know the answer to any of these questions....the only thing I do know is the rich have just gotten richer, the poor have gotten poorer thanks to the corporate shills in our government giving the rich a trillion dollars of our children's money....

....haven't we seen this movie before? doesn't anyone remember who we're dealing with? does anyone really believe the bailout lie? listen to them....

"...lenders and investors believe the package will only be a baby step..."

....a trillion dollar 'baby-step'....won't we feel abused in a few weeks when they're back threatening for more?

....that huge corporate cock has just been shoved all the way up our ass....bushco's job is complete....enjoy!

[Blue_Tires]

70. what gratitude....

whined and begged for a bailout; now it isn't enough...

[Odin2005]

71. What a bunch of whiny wankers.

The bill was just signed today and they are complaining it's not working? WTF are these nitwits smoking?

[neverforget]

72. Shock and awe isn't going to work? I'm shocked!

:sarcasm:

[AlphaCentauri]

75. They want more?

time to dump them and substitute them with an army of small business.

[dixiegrrrrl]

77. Guess where one of my retirement accounts was?

8:30 pm....yes, tonight...got a call from my bank's broker's assistant.

She wanted to tell me personally that when I get my fund statement,
"don't get upset when you see a zero balance".

Seems she wanted to call me 2 hours before bedtime so I would not get upset if I got the letter tomorrow....when I will be awake after the good night's sleep which I am not going to get now.

I took a retirement fund out of AIG couple years ago, and put it in what I thought was my bank's cds.
The bank's cds were in Lehman.
I had no idea. The statements come from Pershing.

She promises I will get my money in Jan. when the cd's are up " because of course we have FDIC".


yeah, right. And we have democracy, too.

Gonna be a long night.

[lligrd]

90. Ugh, I Had No Idea That Could Even Occur nt

[EFerrari]

80. And who decided to let Lehman Bros. tank? Hmm?

[BelgianMadCow]

82. I'm sure you've read the shock doctrine.

It is soo obvious.

:hi:

[EFerrari]

98. I haven't -- no book budget lately. But, I have read the pieces

posted to DU and watched her interviews whenever possible. :hi:

[workinclasszero]

83. 700 BILLION was just the first payment folks

Now the ass raping of the American public REALLY begins! Gotta love that free market capitalism eh?:sarcasm:

[Hugin]

84. They sound... So... So.... CONfident.

:eyes:

Thanks for shitting in my bed Congressional sellouts.

[xchrom]

85. recommend

[lonestarnot]

87. Shock and awe is moving right along I see.

[BadgerKid]

88. "No one could have foreseen"

:sarcasm:

[ohio2007]

92. No prob, we can have congress pass a tax on gasoline. $ for everyone next year !

:sarcasm:

[shanti]

91. "...but we'll take your billions anyway."

:eyes:

[gopbuster]

93. It's THAT bad and there is more that will need to be done immediately

Roubini: Financial and Corporate System is in Cardiac Arrest

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4168533

[Xenotime]

96. All I can say is we would have never been in this mess had Gore been president.

[lligrd]

97. Yep, The Lock Box Doesn't Seem So Funny Now nt

[Zhade]

99. Well, it sure didn't take long for those of us against the bailout to be proven right.

PAGING OMC, who was once again proven WRONG...

[lostnotforgotten]

112. Bingo - And Remember How We Were Castigated In The Process

eom

[Bryn]

108. Can I just stop paying credit cards?

Ignore them? They want hand outs, so do I likewise. Fair enough? :)

[JeanGrey]

109. No shit sherlock. Let's give them 700 billion of more

pork, shall we? My god it boggles the mind the idiots that are in charge................

[lligrd]

110. I Say We Just Print Them 7 Zillion And Get It All Over With Quick nt

[workinclasszero]

113. Give us more tax money...or else!

Fuckin Wall Street thieves! More proof that free market capitalism has failed and is rotten to the core.

[roamer65]

114. The credit crisis will be like a 2-3 year long, slow moving train wreck.

...as it rolls through every inch of the world. It's gone viral now. Frankly, folks, it's too late and you should be preparing yourselves for the coming depression.

It started in August 2007 and this is only the first year of it.