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Another Taxpayer Funded Bailout of Wall Street!!!

A

Anonymous

Guest
They've already bailed out Bear Stearns- with $28 Billion dollars of US Taxpayer funds- that many in the know call a very shakey high risk investment- now they're going to open the coffers more.... :(

Fed Eyes Extending Emergency Loans for Wall Street

Tuesday, July 8, 2008 8:30 AM

WASHINGTON -- The Federal Reserve is considering giving squeezed Wall Street firms more time to draw emergency loans directly from the central bank to help them overcome credit problems, chairman Ben Bernanke said Tuesday.


In an extraordinary action, the Fed in March agreed to let investment houses go to the Fed _ on a temporary basis _ for a quick, overnight source of cash. Those loan privileges, which are supposed to last through mid-September, are similar to those permanently afforded to commercial banks for years.


"We are currently monitoring developments in financial markets closely and considering several options, including extending the duration of our facilities for primary dealers beyond year-end should the current unusual and exigent circumstances continue to prevail in dealer funding markets," Bernanke said in prepared remarks to a mortgage-lending forum in Arlington, Va.


The Fed's decision to act _ temporarily at least _ as a lender of last resort for Wall Street firms was made after a run on Bear Stearns pushed the investment bank to the brink of bankruptcy and raised fears that others might be in jeopardy. It was the broadest use of the Fed's lending powers since the 1930s.


Bear Stearns was eventually taken over by JPMorgan Chase & Co., with the Fed providing $28.82 billion in financial backing.


Those controversial decisions have drawn criticism from Democrats in Congress and elsewhere that the Fed is bailing out Wall Street and putting billions of taxpayer dollars at risk.


Bernanke, in appearances on Capitol Hill has said he doesn't believe taxpayers will suffer any losses.

http://moneynews.newsmax.com/companies/fed_credit_crisis/2008/07/08/110817.html
 

Sandhusker

Well-known member
That's crap. People who make crappy investments and/or crappy loans should go broke. That's incentive to not make crappy investments/loans.
 

fff

Well-known member
And those who falsify financial reports/information should go to jail. Then there would be some incentive not to do that.
 
A

Anonymous

Guest
Since everyone on K street seems to be getting bailed out with taxpayer money-while the small business's and individuals are being kicked aside and allowed to go under - the slogan for GW's regime now is:
Capitalism for the Poor
Socialism for the Rich

:( :(
 
A

Anonymous

Guest
Government Mulls Fannie, Freddie Takeover

Friday, July 11, 2008 8:25 AM


HONG KONG -- The U.S. government is considering taking over Fannie Mae and Freddie Mac if their funding problems worsen, the New York Times said on Friday, causing shares of the mortgage finance companies to plunge.


Shares of Fannie fell 27 percent to $9.66 in pre-market trading, while shares of Freddie fell 35 percent to $5.18. Both have tumbled by well over 80 percent since August.


Fannie and Freddie are government-sponsored entities generally viewed as having the implicit backing of Washington, and considered the last bastions of support for a U.S. housing market in its worst downturn since the Great Depression.

http://moneynews.newsmax.com/headlines/housing_crisis/2008/07/11/111930.html

Capitalism for the Poor
Socialism for the Rich
 
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