Paulson plan accepted 700 billion ok but ... question!

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Paulson plan accepted 700 billion ok but ... question!




by Christophe » 03/10/08, 20:33

Yep! The financial system is saved ... but for how long? This plan is nothing more than one more patch on a system that has been rocking out of breath for 10 years ...

Cf: https://www.econologie.com/systeme-monet ... -3939.html

Either the government is going to "release" $ 700 billion to buy out bad debt okay so it also buys back the object of the debt then? That is to say the houses ...? The government will become the 1st real estate owner of the USA then?

US House of Representatives Approves Paulson Plan
NOUVELOBS.COM | 03.10.2008 | 20: 20


The $ 700 billion bank bailout, already passed by the Senate, was passed with 263 votes in favor, against 171. George W. Bush promises to promulgate it quickly, calling it vital "to help the US economy to recover. survive the financial storm ".

The US House of Representatives approved the $ 3 billion bank bailout on Friday, October 700, rejected at first reading but already passed by the Senate.
A majority of 218 votes was necessary to pass this text to the House which had rejected it on September 29 by 228 votes to 205.
The Senate had adopted hands down Wednesday (74-25) the text slightly revised on the merits, but heavily amended by various additions that may satisfy the recalcitrant elected officials.
With the approval of the House, this law, which provides historic means to the US Treasury to intervene in the financial sector, is ratified by Congress, which sends it to the office of President George W. Bush for signature.
The American president immediately welcomed the adoption of the plan, promising to promulgate it quickly and calling it vital "to help the American economy to survive the financial storm".

The plan of the secretary of the Treasury, Henry Paulson aims to clean up, with 700 billion dollars, the financial institutions weakened by the real estate crisis.
The text negotiated by the Republican and Democratic leaders gives historic means to the State to intervene in the private sector, and the political leaders aim to widen the majority in favor of the Paulson plan beyond the two parties.
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by Remundo » 03/10/08, 23:16

Good evening Christophe,

As I wrote, the Americans had to swallow this plan ...

They could not do otherwise, unless they blocked their entire economy, from the private individual to the multinational, bringing the rest of the world with them ...

However, it is a dupe market, just like the subprimes were.

I suspect that many of the houses / buildings are currently being bought cheaply by private investors who have remained solvent and opportunistic.

So the debts of the famous investment banks are a bit reduced, provided it's nothing but debts et abyssal. So the state is in the process of flushing the system, by simply making the American taxpayer bear the financial hole. The operation finally seems to me to be fairly neutral for the US State.

To finish, certain economists are right to villipender on the moral plane this whole story: the "subprimers" win every time with the sponge of the State. it can only make them want to start over, in another form ... let us trust the US to find us a new stock market and speculative adventure very dangerous :|
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by toto65 » 04/10/08, 10:49

So the state is flushing out the system, just making the American taxpayer bear the financial hole
.
By the American, French, Chinese, English taxpayer etc.
The US has spent the money in the US system and it is the global system that pays.
Did I misunderstand, or is that it?

It would seem that the French and European system is little subject to the subprime. But the real estate crisis overlapping the subprime crisis visibility is difficult dixit RTL yesterday noon.

Nevertheless it reminds me of the Chernobyl cloud which stopped at the borders. You see what I mean.
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by Christophe » 04/10/08, 10:53

So Paulson bought only "WIND" with nothing behind ??
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by Remundo » 04/10/08, 11:55

@ Christophe,

I think so. And I even have the cynicism to think that the same ones who really made billions on subprimes of the time when the bubble was inflating, and who, well aware of the limits of their own system, withdrew at the right time, are in the process to buy houses for a bite of bread, because it is obvious that in the medium term (until taxpayers plug the holes), they will have value, because they are very real and well constructed...

@Toto65,

You are quite right to point out that in addition to the Paulson plan, there are similar small international plans, but much lighter because if Europe is undeniably affected, it is also much less: the State takes participations for recapitalize troubled banks and finance the hole on taxpayers.

But it is only routine because the States (French in particular ...) permanently indebted the taxpayers for a whole lot of things. A little song?

Taxpayers from any country
I want your savings
And every day
Stay at my mercy

Taxpayers, don't be ashamed
Continue your work
You have on your account,
the happiness of speculators

It's in your hands
That tomorrow
our benefits
Will be entrusted
To perpetuate our vice
And your sacrifices.

So eat the dust
in your sufferings
we see our chance
to stay in the light

Don't take up arms
But sometimes shed a tear.
And make our high diginitaries
small billionaires ...

Remundo Macias :|

The original which is worth more than the copy ...
http://musique.ados.fr/Enrico-Macias/En ... 83429.html
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by Christophe » 04/10/08, 12:13

Remundo wrote:@ Christophe,

I think so. And I even have the cynicism to think that the same ones who really made billions on subprimes of the time when the bubble was inflating, and who, well aware of the limits of their own system, withdrew at the right time, are in the process to buy houses for a bite of bread, because it is obvious that in the medium term (until taxpayers plug the holes), they will have value, because they are very real and well constructed...


Excuse my ignorance and insistence but these houses should they not belong to the one who bought the debts therefore the American state?

In fact, it's not a system rescue plan, it's the biggest real estate transaction of all time. : Mrgreen:
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by Remundo » 04/10/08, 12:48

I'm not sure the state is buying all the houses. I think he essentially buys financial debts with no tangible assets attached to them.

Perhaps the banks even keep the remaining houses in their "patrimony" because they will always have a value, unlike their loans. It is moreover this decoupling between the value of goods and the value of credit that created the crisis.

What would be interesting to know is, among all subprime loans, what is the% of buildings already sold and the% of buildings not yet sold by credit-bearing banks, and in this case, who retain ownership of the real estate : Idea:

Phone Paulson, don't you have his number? : Cheesy:
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by Christophe » 04/10/08, 13:32

Remundo wrote:I'm not sure the state is buying all the houses. I think he essentially buys financial debts with no tangible assets attached to them.


Ah because you know a credit that is not used in a concrete good?

If the State does not become the owner of the property linked to the debts it buys back, it is even worse than I thought ... unless it is only the "interests" which constitute the 700 billion.

So the stuffing is even bigger and “they” you / us all fucked hard!

In all cases it is the financial mafia that has won ...

I don't understand that you are protecting this system: https://www.econologie.com/forums/post98916.html#98916
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by Remundo » 04/10/08, 15:12

Hey Christophe ...

You will read my posts and you will see that I advocate the credit and deposit bank. That's all.

And yes, Christophe, the US state essentially buys financial holes without the barracks that go with it.

Because in the meantime, some banks were reselling the barracks, keeping the maximum of these resales, then reinjecting the debts they had in the form of "bonds" or similar product suggesting that they were very own loans. It was the magical way to get rid of debt.

This is called wrapping a shit in a gift box. As long as the product looks good, there were buyers, because it came from US "monuments" like Lehmans Brothers, Morgan ...
: Cheesy: In reality, cuffed and unscrupulous puppets who cheated on each other.

It was the great time of the securitization... and they are securitized debts that they sometimes pass on to each other, and which have spread around the world, especially in Europe. These are the securitized assets and very often not backed by concrete that the taxpayer will mop up.

This is my opinion ... :|
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by Remundo » 04/10/08, 15:17

Christophe wrote:So the stuffing is even bigger and “they” you / us all fucked hard!

In all cases it is the financial mafia that has won ...

Well, we agree : Cheesy:

Ah ... I would specify that it is not dry, but with glass crushed in sand. :D
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