11 thoughts on “the Christmas Tree is being loaded up”

1. from NPR

   Despite warnings of disastrous consequences, the House of Representatives failed to pass the $700 billion Wall Street bailout Monday. But on Tuesday, the sun came up; people still got up and went to work; they could still go to the ATM and get money. The economic world hasn’t ended, at least not yet.
   
   …
   
   Since the Bush administration proposed the bailout this month, more than 200 economists have signed a petition opposing it.

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2. from HuffPo

   Now that the government has been terrified into rubber-stamping the Wall Street bailout, what happens now?

   I wish the news were better, but in my opinion, here’s the most likely scenario:

   … lots of bad things ending with…

   The stock market continues to fall, as corporate earnings come under increasing pressure and hope for an early 2009 recovery fades. Analysts are still expecting huge growth in S&P 500 earnings for next year. These estimates will get cut by at least a third.

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3. I was hopeful things would get better, not worse, in the Senate. Trim the thing down and put in oversight to reassure Senators. Instead it has turned into a much worse measure.

   What ought to happen is to trim it to about 250 billion because Paulson said he’d need about 50 billion a month. If accurate 250 billion will take us through January with a nice cushion for debating it in February if more securities need to be purchased, possibly put someone else in charge, put in guarantees that we get assets from the banks if the loans we buy turn out to be less valuable than stated, and cut expenditures or increase taxes rather than loading the thing with cuts.

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   1. the Bill got worse.

      I really hate the change in the FASB mark to market rule.

      Hello Enron people.

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4. I’m afraid I am feeling a tad uninformed and I’m not inclined to believe a bunch of Senators from either party that have been proven to be nothing more than self serving liars in the past.

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5. According to story up on dKos this is preliminary to passing the amended bill by a similar margin.  

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   1. I really dislike this bill and how it was done by loading on the pork. But it looks like this will force the hand of the House so here’s hoping it actually does the job.

      And if it doesn’t, I think a lof of people in Congress are going to get voted out in 2 years. 700B is a lot of money.

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6. The international impact of Monday is clear.
   
   If the bank failures are allowed to grow into Duetsche Bank, RBS, Barclays, then intertwined US banks “too big to fail” will start to fall.

   How many US banks are left?
   
   Wells Fargo ..That’s Mr.B
   
   Chase
   
   BOA

   and a few regionals.

   Bernanke actually is doing a very good job of attempting to stave off complete collapse.

   For the 200 economists listed in the post below, just as amny or more attest to the ripple effect of globalisation of capital markets intertwined with the WTO.

   If the Fed hadn’t pumped nearly 150 billion or more of liquidity into the system, loaned AIG 85 billion, and put FNM and FRE in a conservatorship, then people would not be able to get money out of ATMs.

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   1. http://www.coloradopols.com/sh…

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7. ………………

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8. from Taxpayers for Common Sense

   http://www.taxpayer.net/resour…
   

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