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Oops – Paulson Bailout Stopped in House – Updated
HR-3997, the Paulson bailout, just failed to pass the House.
via CSPAN life stream
Dems – 140 Yea, 95 Nay
Reps – 65 Yea, 133 Nay, 1 Not Voting
Total – 205 Yea, 228 Nay, 1 Not Voting
Paulson, we have a problem …
adding on the fly:
Where does it go from here? I have no idea but would bet that everything financial will now go down hard – that includes oil and even gold – the system is deleveraging.
Roubini wrote shortly before the vote took place that the Paulson bill wouldn’t matter much anyway – the markets say the ‘Mother of All Bailouts’ is the wrong bill.
The US and global financial crisis is becoming much more severe in spite of the Treasury rescue plan. The risk of a total systemic meltdown is now as high as ever
It is obvious that the current financial crisis is becoming more severe in spite of the Treasury rescue plan (or maybe because of it as this plan it totally flawed). The severe strains in financial markets (money markets, credit markets, stock markets, CDS and derivative markets) are becoming more severe rather than less severe …
…
The next step of this panic could become the mother of all bank runs, i.e. a run on the trillion dollar plus of the cross border short-term interbank liabilities of the US banking and financial system as foreign banks as starting to worry about the safety of their liquid exposures to US financial institutions; such a silent cross border bank run has already started as foreign banks are worried about the solvency of US banks and are starting to reduce their exposure. And if this run accelerates – as it may now – a total meltdown of the US financial system could occur. We are thus now in a generalized panic mode and back to the risk of a systemic meltdown of the entire financial system. And US and foreign policy authorities seem to be clueless about what needs to be done next. Maybe they should today start with a coordinated 100 bps reduction in policy rates in all the major economies in the world to show that they are starting to seriously recognize and address this rapidly worsening financial crisis.
I don’t agree on the panic policy rate reduction – it would only reduce trust in the central banks’ abilities without having any meaningful economic relevance right now. Otherwise, Roubini is correct.
Last thought for now: 9/29 will be a marked day for historians – maybe even as big (bigger?) than 9/11. Osama Bin Laden’s goal to bankrupt the U.S. was achieved without him doing anything remarkable. The U.S. did it on its own.
An end of an era. As said in earlier comments, the end of the quarter tomorrow will be devastating for lots of financial entities. They will have to report real numbers instead of made up stuff because the Paulson bill, which gave the authority to fake balance sheets by ‘mark to fantasy’, was rejected. The Paulson bill could probably have helped to make the dive smoother.
Many hedge funds will be slaughtered as redemptions will come in at an unprecedented scale. All of the capital they have and which will now be redrawn is highly leveraged in risky bets on all kind of financial ‘products’. They will have to sell, sell and sell everything.
With those leveraged bets unwinding, the post WWII credit super cycle may end. The natural result would be deflation and a Greater Depression.
I am not sure that’s going to happen, but if it does, the experience will be quite extreme for all of us.
with ultra white Afrikaner family and friends, and a Black Panther husband and friends, not to mention a Muslim former Mujahadin friend; you could say I have close friends who are all radical religious and radical ethnically proud. I doubt any of them would share your opinion that I was race-baiting or religious baiting.
sorry, internet claims of associates don’t do squat for me.
I imagine the only people who would find themselves ‘baited’ would be those who are psychologically, emotionally and spiritually insecure in their religious or ethnic convictions.
sorry, ad hominem attacks are not a defense.
here’s your defense, more ad hominem. basically you criticize b’s right to critcize you based on a PC attack
. The Politically Correct Thought Police are of the following varieties:
(1) those who use PC thought policing, because they DO NOT WANT THE REAL ISSUES ADDRESSED AND EXPOSED
so you get to be a racist baiter because you allege your assertions are ‘the real issues’ ie (” possibilities is the call by radical intellectuals in the Islamic world for more than a billion Muslims to reject all forms of Western fiat currency”)
(2) those who are aware they are being manipulated by the former, but are too afraid to be politically incorrect, so as to get to the heart of issues, for resolution; and
(3) those who ain’t aware they are being manipulated by the former, nor of the latters cowardice..; the automatonic zombie sheeple.
ah, did you address the point of the criticism? no, just speculation why anyone wouldn’t persue your high falluten charges you assert are ‘real issues’, with NO supporting evidence. you completely ignored b’s rebuttal. did not address it period, nada zilch beyond this..
Interesting how you managed to come to such a conclusion, without much further enquiry.
from who? you? is there some deeper implication that further enquiry would produce ANY evidence of this ‘possibility’.
Far more dangerous than these possibilities is the call by radical intellectuals in the christianista world (james dobson etc) world for more than a billion christians to reject all forms of Western fiat currency, and adopt instead gold bars as their exclusive media of exchange, both perforce of their religious duties under biblical law and as a means to strike at the Great Satan’s greatest vulnerability.
bibleinvestments.com
Biblical Gold
King James Bible Investments was established as a place for family, friends, acquaintances and other Christians to be informed about world market conditions and as a place to preserve their capital by investing in the only form of real money, gold and silver.
Biblical records show that gold and silver are the first and oldest form of money, the only money that has not failed, and a source of notable value for over 5000 years! Can you name one fiat currency that has lasted through even a few centuries let alone a few millennia like gold and silver? We think not!
Biblical reasons why real money and wealth is gold and silver
* The Hebrew word for money is “keceph”, which is translated to mean “silver.”
* The King James Bible mentions gold 417 times, silver 320 times, and money, which is mentioned 140 times, refers to physical silver and gold. Not once does it mention a paper currency.
* Gold and silver are mentioned all through the bible as real wealth, even through the end of Revelation.
* From Genesis to Revelation, gold and silver are the only God-ordained monetary assets that will maintain their purchasing power until the day of the Lord’s wrath.
now, if someone suggests my NOT considering this as far more dangerous (than say….giving 700 billion dollars to the same bankers that got us into this mess, who last i heard were not for the most part of the islamic persuasion but in fact overly represented by another ethnic grouping here in the US) shall i say to them, as a defense..?
bwaaahhhhhh.. the thought police are out to stifle me.
benjamin, enjoy your good deed for the day! 😉 w/ your alleged black panther husband. but please don’t expect this sort of wacko unsupported islam baiting crap to fly here. and if you decide to respond further, perhaps you could address b’s rebuttal in post #13.
constantly making an ass of himself @23,
BM/b suppress people and their identity becomes all the more important to them so that in the end they come to suppress each other and off course try to silence all dissident voices while scapegoats are sacrificed (scapegoat = a goat upon whose head are symbolically placed the sins of the people after which he is sent into the wilderness in the biblical ceremony for Yom Kippur, Webster’s 9th NCD)
then why do you come here? go away you trolls
Posted by: annie | Sep 30 2008 18:07 utc | 32
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