Bailout Rejected!

The overpriced $700 billion bailout bill? It didn’t pass the House! A coalition of conservative Republicans and liberal Democrats refused to grant the government extra ordinary powers to buy up distressed loans. Opponents said the package granted the U.S. government too much power and was beyond the cost the government should pay to address the worldwide financial crisis. They ignored President Bush and congressional leaders of both parties who said that the economy could nosedive into a recession without it. As the House debate continued all morning Monday, opponents were skeptical that the bailout would staunch the financial bleeding. A member of the house said "We're flipping coins here,"."What happens if this goes down today — the markets tank and you are an accessory to the crime? But what happens if you vote 'yes' and the market tanks anyway?" The vote went 228-205 against, with 95 Democrats and 133 Republicans opposing the Paulson/Dodd/Frank/Pelosi/Blunt plan. With one member not voting. Stocks plummeted on Wall Street even before the 228-205 vote to reject the bill was announced on the House floor. The Dow Jones Industrial Average fell by more than 700 points at one point as the outcome became clear. After the vote, the Dow remained down by more than 550 points. The Dow is self-destructing. So what now?

It might go back to another vote. According to some people something doesn’t smell right. That’s because usually votes don't go to the floor of the house until party leaders know how the rank and file will vote. Bills don't make it out of committee unless they're going to pass. Some are suggesting that Pelosi lost control of her own party, that this was entirely too volatile and rushed or that Boehner lied to her about how many House Republicans would just go with it.

Due to the upcoming Jewish holiday of Rosh Hashanah nothing will get done until Wednesday. There are 43 Jewish congressman, almost all of them Democrats. Barney Frank stated “It's a well-known rule; God will only hear your prayers if you're in your congressional district." So yeah nothing is getting done until Wednesday. When asked about the next step, Financial Services Chairman Barney Frank (D-Mass.) said it would be up to those who opposed the bill." Whoa what a mess!

"I feel that it is too much bailout and not enough workout," said Rep. Jeb Hensarling, R-Texas.

On the opposite end of the ideological spectrum, liberal Democrat Lloyd Doggett of Texas called the bill too generous to the nation's financial kingpins. "The vultures have no come home to roost," he said.

"It's like a big cowpie with a little bit of marshmallow inside and I don't want to eat the cowpie," said Rep. Louie Gohmert, R-Texas.

The next six weeks will tell whether the coup d'etat in the House on Monday has created a political crisis to match the financial one.

Why can't the government simply loan these institutions the money, with interest? Why can't we just let the financial industry go bankrupt and establish a government commercial lending institutions? Why can’t the government just replace WaMu, AIG, etc.?

$700 Billion Dollar Bailout Here We Come WooHoo!!!

On 9/29/2008 Congress finally came to a tenative agreement on the overpriced bailout. The senate and house still has to ratify the plan. For all of us non financial people out there a nice reporter from Reuters has laid out the key terms of the plan.

-The $700 billion in buying power would be doled out by Congress in stages. After the first $250 billion is authorized, the President could request another $100 billion. The final $350 billion could be cleared by a further act of Congress.

- Washington will take a stake in companies helped through the program so that taxpayers can share in the profits if those companies get back on their feet.

- A new congressional panel would have oversight power and the Treasury secretary would report regularly to lawmakers in two elements of a multi-level oversight apparatus.

- Compensation limits would be set for the chiefs of participating firms to prevent excessive pay and "golden parachutes" for those who might tap government aid and then quit.

- The federal government may stall foreclosure proceedings on home loans purchased under the plan.

- Alongside the plan to buy securities outright, the Treasury Department will conceive an alternative insurance program that would underwrite troubled loans and would be paid for by participating companies.

- If the government has taken losses five years into the program, the Treasury Department will draft a plan to tax the companies that took part to recoup taxpayer losses.

Here's another description:
-Authorize $700 billion for the government to purchase troubled assets and buy equity in distressed financial firms.

-Require the Treasury Department to make rules to prevent excessive compensation for executives whose companies benefit from the rescue.

-Establish a strong oversight board with authority to halt the program, a special investigator general to monitor it, and egular government audits.

-Require the government to renegotiate mortgages it acquires under the program with the aim of helping borrowers keep their homes.

-Phase in the money for buying troubled assets, with $250 billion available immediately, $100 billion to be released if the Treasury secretary certifies it is needed, and the last $350 billion available with another certification, but subject to a congressional vote to block it.

This so called plan is supposed to save us from the greed of Wallstreet.
David Cay Johnston had some very interesting points on our little economic problem.
He says:
1.) Let. The. Banks. In. Trouble. Collapse. It's called capitalism. (Actually Johnston is only speculating that "perhaps" once we know what we have, then we can let the worst offenders die off. Frankly, I don't see how my ability to pay rent has anything to do with whether Lehman Brothers exists or not.)

2.) Paulson was a former CEO of Goldman Sachs. His views, and the views of people wanting to grant monarch powers to him, come from that world. Goldman Sach just turned itself into a bank holding company, which means it will make money off the bailout.

3.) Small businesses are still able to take out their usual loans, as usual. Banks are still advertising crappy mortgage deals on the Internet. And you're still receiving offers for new credit cards.

4.) Most important: The media isn't doing its job asking the simple question: what are the alternatives to spending $700 billion of our money?

The markets have a long way to fall before they reflect the magnitude of debts incurred by corporations and government. The US has been living off credit and inflated corporate expectations for at least two decades. There is no way to borrow or print hundreds of billions of dollars without creating inflation or devaluing the dollar. A very long recession is quite probable...a recession by which the nation is already firmly gripped.

A guy on gawker wrote a probable letter for the Wallstreet people
Wall Street, NYC.

Attention: the President/Ceo Dear Sir, Confidential business proposal

Having consulted with my colleagues and based on the information gathered from the chambers of washington, i have the privilege to request for your assistance to transfer the sum of $700,000,000,000.00 (seven hundred billion united states dollars) into your accounts.

The above sum resulted from over-valued mortgage contracts, executed commissioned and paid for about five years (5) ago by a citizens of the nation. This action was however intentional and since then the fund has been in a suspended account at the central bank of ny bank. We are now ready to transfer the fund and that is where you come in. It is important to inform you that as civil servants, we are forbidden to operate a private bank; that is why we require your assistance. The total sum will be shared as follows: 95% for you and 5% for local and international expenses incident to the transfer (ie bonuses).

If you find this proposal acceptable, we shall require the following documents:

(a) your banker's name (preferably goldman sachs affiliated), telephone, account and fax numbers.

(b) your letter-headed paper stamped and signed The business will take us five (5) working days to negotiate through congress.

Please reply urgently.

Best regards

An analogy: Let's say you want that candy bar but it costs $1.50 and you only have 50 cents. I say to you here is a loan of a dollar, go buy it. What you don't know is that I own the candy store. So I get your 50 cents plus my dollar back, but now you owe me a dollar. Brilliant! Now that candy bar that cost $1.50 I sold to you for $2.50 and now I get interest on top of that. Suka!

Overpriced Bailout

All this talk about the US financial markets collapsing is a bunch of hogwash. I mean Tuesday, Wednesday, Thursday and Friday passed and we are all still here and nothing has collapsed!!! I think they want to scare the American public into buying the over priced bailout. It's a bunch of bs.

WTF with the economy!!!!!!!!!!!!!!!

The Funniest Legos!

No Country For Old Men, I Mean Chihuahuas

This photo was taken by NASA. This kind of event occurs once in 3000 years.

NASA took this photo with the Hubbell telescope. It is called 'The Eye of God.'

It's too awesome.

Thanks for all the laughter. Rest in peace.

What a changing world we live in..........

California performed its first legally recognized same-sex weddings yesterday and opened its doors to gay and lesbian couples from around the country.

Octogenarians Del Martin and Phyllis Lyon took the first vows in San Francisco's ornate City Hall in a ceremony presided over by Mayor Gavin Newsom, who said California was leading a trend that would sweep the nation.













What do you guys think of this?

One for the girls
Now I lay me down to sleep
I pray the Lord my shape to keep.
Please no wrinkles, Please no bags
And please lift my butt before it sags.
Please no age spots, Please no gray
And as for my belly, Please take it away.
Please keep me healthy, Please keep me young,
And thank you Dear Lord, For all that you've done.

Five tips for a woman.....
1. It is important that a man helps you around the house and has a job.
2. It is important that a man makes you laugh.
3. It is important to find a man you can count on and doesn't lie to You.
4. It is important that a man loves you and spoils you.
5. It is important that these four men don't know each other.

Foot Note:
One saggy boob said to the other saggy boob:
'If we don't get some support soon, people will think we're nuts.'