Much has been said this week about the so-called USD 700 Billion bail-out plan for banks by the current U.S. administration and finally the right question was asked in congress yesterday - How did you arrive at that USD 700 billion number?
From Marc Ambinder’s blog:
“…Sec. Paulson told congress yesterday that the plan was to spend roughly 50 billion a month,
Sen. Schumer asked: why not $150 billion then, and let the next administration do a re-evaluation in January? No real answer….”
While Marc Ambinder asks what will prevent Paulson taking over a key position at one of the “bailed-out companies after he leaves office, we say lets just have a look what is happening with Goldman Sachs today. The majority of commentators agrees that Goldman Sachs is already profiting from the announcement of the plan alone.
So many vested interests and so much money still left to steal.
More information:
Marc Ambinder’s blog post at The Atlantic
Note: Henry Merritt “Hank” Paulson Jr. aka United States Treasury Secretary aka “Leader of U.S. government economic bailout” previously served as the Chairman and Chief Executive Officer of Goldman Sachs. His stock holdings in Goldman Sachs were valued on 23-Sep-2008 at USD 403,914,501.19 after the GS share price rose back to around 133.00 from its 85.88 low during the last days due to the bail-out announcement. This is roughly a USD 127 Million gain on Paulson’s stock in GS alone within less than 5 days.
October 2nd, 2008 at 16:59
How many of these loans had PMI? How many of these loans were 80/20? Have any of the PMI companies filed for bankruptcy? My opinion of relief for stupid bankers is wrong, let them take what is due. All of congress and the Presidential candidates should let the market take it’s own medicine. The market will recover much faster than the debit they are wanting to assume.With this plan only the large companies would receive help. The average person collectively is just as important to the economy. We all will need to tighten our belts,but I feel if we don’t require our financial system to act responsibily, they won’t. There are many answers to this problem and the first principal is that money canNOT fix Everything. There must be a change of attitude,in government and the people. If the wrong Bill passes our goverenment is no longer by the people or for the people. STOP THE LUNICY.
October 3rd, 2008 at 23:27
Here’s some more bailout humor - a really funny song about the Wall Street mess. Anything to lighten up a grim topic: <a href=”http://evamoon.net/blog/2008/10/02/bailout-man/”>Bailout song</a>