American banks rescue commences!

American banks rescue commences!
Feb 11, 2009 03:10
ZOEY Points: Join Date: Nov 29, 2004 Status: offline	On Feb 10th, the new US Treasury Secretary announced a new financial rescue plan to clear "bad assets" in those troubled financial institutions and stabilize the financial market. This time, the government won't pay the bill alone. It is said that the government will cooperate with private partners to buy 500 billion dollars bad assets from those banks. This rescue plan would be extended to 1000 billion if necessary. Strangely, the New York stock market didn't react positively to this plan. The three indexes all fell more than 4 percent.

Feb 11, 2009 03:10

ZOEY
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Join Date: Nov 29, 2004
Status: offline

On Feb 10th, the new US Treasury Secretary announced a new financial rescue plan to clear "bad assets" in those troubled financial institutions and stabilize the financial market.

This time, the government won't pay the bill alone. It is said that the government will cooperate with private partners to buy 500 billion dollars bad assets from those banks. This rescue plan would be extended to 1000 billion if necessary.

Strangely, the New York stock market didn't react positively to this plan. The three indexes all fell more than 4 percent.

Feb 11, 2009 07:54

GARYKINKADE
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Join Date: Jan 8, 2008
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No doubt the private investors with their $500bil. will reap the rewards and net gain assets of
this transaction while the government(taxpayers) and it's(their) $500bil. donation will
gain absolutely nothing and will probably be donating to the private investors as well.
Another financial sham in which I am sure the major players of Wall Street are
aware of and therefore has little bearing on Wall Street action + or -

Feb 11, 2009 20:22	#2
MARRIE Points: Join Date: Jan 7, 2008 Status: Offline	It means government will have more power in excessive deregulated fiancial market after it helps banks recover doubtful assets accounts.

Feb 11, 2009 20:43	#3
GARYKINKADE Points: Join Date: Jan 8, 2008 Status: Offline	Hellol MARRIE...how have you been doing?....haven't talked to you in a while... hope your family is doing o.k. The government may have more control in the deregulated financial market(s) The question is....Who controls the government, the people(taxpayers) or the corporations(corporate welfare)?

Feb 12, 2009 20:18

MARRIE
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Join Date: Jan 7, 2008
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Our family is doing much better than we expected this year. Thank you Gary.

Fed Reserves manipulate macro economy thru t-bill, t-bond and interest rate. The committee that regulates capital market is independent regulatory body and financial players are corps whose only liabilites to gov is tax. Once capital market has more state shares, its behaviors that could do harm to macro economy can be regulated by laws passed by congress, which means the wallstreet guys who did ''embezzlement '' in disguise of making market would be brought to justice.

Feb 13, 2009 09:51

GARYKINKADE
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Join Date: Jan 8, 2008
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What I am getting at is this.............
Madoff (that person that embezzled $50 bil. in a ponzi scheme) is still under house arrest
instead of being sent directly to jail (prison) like any ordinary person would have.
Karl Rove has been "thumbing his nose" at congress when they requested him to testify.
The main banker and brokerage firm ceos have been "talking in circles" when questioned by congress.
Justice by our congress means absolutely nothing.
They have the "too big to fail mentality".

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