Radical Measures May Be In The Wings

[swag]

Source: CNBC

As the financial crisis threatens to spiral out of control, Treasury Secretary Henry Paulson is prepared to take extraordinary steps through the extensive authority granted to him under emergency rescue legislation.

With the legislation’s main mechanism—an auction system to purchase bad mortgage-based securities—still weeks away from implementation, Paulson is now expediting plans to inject capital into banks, CNBC has learned.

According to senior government officials, the plan is to offer a term sheet, offering capital injections to all banks. An announcement won't happen for several days.

Even before details of the latest measures began to trickle out, there was heightened concern about the health of big institutions and the need for direct government support.



Read more: http://www.cnbc.com/id/27114651

[RUMMYisFROSTED]

1. Guillotines?

[Xipe Totec]

8. That just leads to decapitalization n/t

[Dover]

13. ...or decapitation.

hehehe...

[Gman]

16. LOL!

[ixion]

2. more of that "letting the free market work it out" thinking

:sarcasm: :eyes:

[peacetalksforall]

3. Most likely, some wealthy got stuck in the middle of the fall and the banks need

to be fed to jump start 'special' loans. Sorry, I can't think anything but negative motives for these people. Mostly a BLANK CHECK !!!

[GetTheRightVote]

4. I am right in there with you, very negative from my part.

:grr::grr:

[dmosh42]

5. Throwing good money after bad---

This is called rewarding the 'risk takers'..

[Cronopio]

11. This isn't a handout.

The companies lose part ownership of their own company, and the government gains it. It's using market mechanisms to nationalize the financial institutions. So they are paying dearly - and long term - for the help.

It's the exact same deal that Warren Buffett got when he invested $5 billion in Goldman Sachs a couple of weeks ago, and (under normal circumstances) it's the same deal that mortgage lenders get when the homeowner defaults on their mortgage. That's assuming that Paulson doesn't game the solution too much.

[Tansy_Gold]

12. Bullshit

Buffet actually has control and invested voluntarily.

OUR MONEY is being used to bailout/rescue/whatthefuckever the people who caused the "crisis" in the first place. Our money, but we have no say whatsoever in how it's used.

This is a hand-over pure and simple.

Free market my ass.


TG

[Cronopio]

14. The government, as the taxpayer's proxy, will actually have control of the companies.

There is no difference between the two, other than one counterparty is a wealthy individual and the other is the U.S. Government. This risks and opportunities are the same.

"Our money, but we have no say whatsoever in how it's used."

You got a better idea of how to use it? Considering that your (mine and everyone else's) job and livelihood is at stake?

Every taxpayer had a say in how their tax money is used in 2000 and 2004, on Election Day. If more voters had chosen more wisely then, we would have the likes of Robert Reich or Paul Krugman coming up with the plans, rather than one of the people who caused the crisis in the first place.

[Peace Patriot]

17. "Every taxpayer had a say...in 2000 and 2004." Do the Supreme Court and

Diebold & brethren pay taxes? Probably as little as humanly possible, but maybe some. And, heck, they get a lot of loopholes for their votes.

[gopbuster]

6. Nationalizing Morgan Stanley and Goldman?

“I don't wish to spread alarm on the line people but the big issue confronting the market is I'm afraid the health and sustainability of Morgan Stanley and Goldman Sachs
Hugh Hendry, Partner and CIO at Eclectica, told CNBC early Friday. "It is unimaginable that they can be allowed to go, I suspect that they will be nationalized at some point today or over the weekend," he add.

[HomerRamone]

7. Paul Krugman approves

and I trust him as much as anybody:
http://krugman.blogs.nytimes.com/2008/10/09/doing-the-right-thing/

[olddad56]

9. This could qualify as a catastrophic emergency and force Bush to invoke...

presidential directive 51. That would suspend the election and Bush would remain the president.

Hey, if I can think of it, you can bet Karl Rove has thought of it.

[sarcasmo]

15. I think they are waiting to see who wins the election and when Obama wins you have the

nightmare of directive 51. Do you really win if there is no inauguration?

[Cronopio]

10. "An announcement won't happen for several days."

They'd better start announcing it now. Dot the i's and cross the t's later, they just need to show that they're doing something constructive.

[joeching]

18. why the bailout is impossible

forget about:"the only thing to fear is fear itself".

what we are facing is: "the only way to regulate is
to deregulate".

[not fooled]

19. Has the US military Unit...

destined to act in the US, against US citizens if ordered to do so, landed back home yet? Maybe they're waiting for the military to be ready.

Posse comitatus? we don't need no stinkin'...


:scared: