Anyone else scared about all these bailouts?

[bicker]

They didn't cause "this mess".

 

[AndyLL]

Seriously, whose responsibility do you think it is to deal with this and who do you think is giving the whole bailout thing the nod? Congress has "The power of the purse", it Political Science 101.

All congress has approved is th 700 Billion and only half that is spent.

The rest of the 3-7 trillion dollars is Bush and the Fed.

 

[LuvOrlando]

All congress has approved is th 700 Billion and only half that is spent.

The rest of the 3-7 trillion dollars is Bush and the Fed.

Bush has nothing to do with any of this and I'm confused how anyone could say either overtly or subversively that this belongs in his lap. I am also irritated that this is a completely baseless redirection. Presidential power as the head of the Executive branch does not at all include influence over our money, the Federal Reserve or otherwise. At most the President can appoint members to the Board of the Fed but saying they are in his back pocket is as erroneous as saying our Supreme Court Justices bend to a President's will. Power of the Purse, and all influence over spending of any kind is completely in the hands of Congress (same goes for a Declaration of War which is again strictly Congress). All these limitations are a part of the System of Checks & Balances which the USA's forefathers expertly crafted to prevent any leader from ever being able to craft a Totalitarian Government.

 

[golfgal]

What happened in 1939?

OOPS, that should read 1929--that's what I get for trying to think before I had my coffee in the morning

 

[AndyLL]

Bush has nothing to do with any of this and I'm confused how anyone could say either overtly or subversively that this belongs in his lap. I am also irritated that this is a completely baseless redirection. Presidential power as the head of the Executive branch does not at all include influence over our money, the Federal Reserve or otherwise. At most the President can appoint members to the Board of the Fed but saying they are in his back pocket is as erroneous as saying our Supreme Court Justices bend to a President's will. Power of the Purse, and all influence over spending of any kind is completely in the hands of Congress (same goes for a Declaration of War which is again strictly Congress). All these limitations are a part of the System of Checks & Balances which the USA's forefathers expertly crafted to prevent any leader from ever being able to craft a Totalitarian Government.

How much of of this 8 trillion was approved by Congress:

• Up to about $1.8 trillion in Fed purchases of top-rated US dollar commercial paper under a facility launched in October.
• Up to about $1.9 trillion in new Federal Deposit Insurance Corp guarantees for banks
• Up to $800 billion in Fed support for mortgage and consumer credit markets, including purchases of up to $600 billion in debt and mortgage-backed securities issued by government-sponsored enterprises.
• Up to $600 billion in Fed purchases of US dollar commercial paper and certificates of deposit under a Money Market Investor Funding Facility announced Oct. 21.
• Up to $900 billion in Fed Term Auction Facility loans was offered to meet financial institutions' cash needs over the year-end period, including $600 billion in normal auction facilities and two $150 billion "forward" TAF auctions conducted this month. As of Nov. 19, $415.3 billion in TAF credit was extended.
• Unlimited commitments to lend through discount window to banks and broker dealers. Credit extended under these facilities totaled $296.82 billion as of Nov. 19.
• $700 billion for the Treasury to buy equity stakes in financial institutions.
• The Treasury, the FDIC and the Fed have agreed to shoulder up to $249.3 billion in losses from a Citigroup portfolio of $306 billion in risky assets.
• Unlimited temporary Fed currency swap lines with the European Central Bank, and central banks in England, Japan and Switzerland. The Fed maintains $165 billion in swap lines with other central banks to address elevated pressures in US dollar short-term funding markets.
• Up to $50 billion from the Great Depression-era Exchange Stabilization Fund to guarantee principal in money market mutual funds to provide the same confidence that consumers have in federally insured bank deposits.
• At least $26.57 billion in Treasury direct purchases of mortgage-backed securities since September.
• $200 billion to backstop Fannie Mae and Freddie Mac
• Up to $144 billion in additional MBS purchases by Fannie Mae and Freddie Mac
• AIG will get up to $152.5 billion in support from Treasury equity purchases and loans from the Fed.
• $300 billion for the Federal Housing Administration to refinance failing mortgages into new, reduced-principal loans with a federal guarantee
• $4 billion in grants to local communities to help them buy and repair homes abandoned due to mortgage foreclosures.
• $29 billion in financing for JPMorgan Chase's government-brokered buyout of Bear Stearns in March.

http://www.cnbc.com/id/27912307

Saying the treasurey and Fed is not in control of the President is like saying the SOS is not in control of the President because Congress has to approve the nomination.

Even the amounts Congress has approved were based on Bush and Paulson's begging them to.

Bush has done nothing which is why the Treasury and Fed have gone hog-wild and stuck the USA on the hook for 8 Trillion dollars.

 

[LuvOrlando]

How much of of this 8 trillion was approved by Congress:

• Up to about $1.8 trillion in Fed purchases of top-rated US dollar commercial paper under a facility launched in October.
• Up to about $1.9 trillion in new Federal Deposit Insurance Corp guarantees for banks
• Up to $800 billion in Fed support for mortgage and consumer credit markets, including purchases of up to $600 billion in debt and mortgage-backed securities issued by government-sponsored enterprises.
• Up to $600 billion in Fed purchases of US dollar commercial paper and certificates of deposit under a Money Market Investor Funding Facility announced Oct. 21.
• Up to $900 billion in Fed Term Auction Facility loans was offered to meet financial institutions' cash needs over the year-end period, including $600 billion in normal auction facilities and two $150 billion "forward" TAF auctions conducted this month. As of Nov. 19, $415.3 billion in TAF credit was extended.
• Unlimited commitments to lend through discount window to banks and broker dealers. Credit extended under these facilities totaled $296.82 billion as of Nov. 19.
• $700 billion for the Treasury to buy equity stakes in financial institutions.
• The Treasury, the FDIC and the Fed have agreed to shoulder up to $249.3 billion in losses from a Citigroup portfolio of $306 billion in risky assets.
• Unlimited temporary Fed currency swap lines with the European Central Bank, and central banks in England, Japan and Switzerland. The Fed maintains $165 billion in swap lines with other central banks to address elevated pressures in US dollar short-term funding markets.
• Up to $50 billion from the Great Depression-era Exchange Stabilization Fund to guarantee principal in money market mutual funds to provide the same confidence that consumers have in federally insured bank deposits.
• At least $26.57 billion in Treasury direct purchases of mortgage-backed securities since September.
• $200 billion to backstop Fannie Mae and Freddie Mac
• Up to $144 billion in additional MBS purchases by Fannie Mae and Freddie Mac
• AIG will get up to $152.5 billion in support from Treasury equity purchases and loans from the Fed.
• $300 billion for the Federal Housing Administration to refinance failing mortgages into new, reduced-principal loans with a federal guarantee
• $4 billion in grants to local communities to help them buy and repair homes abandoned due to mortgage foreclosures.
• $29 billion in financing for JPMorgan Chase's government-brokered buyout of Bear Stearns in March.

http://www.cnbc.com/id/27912307

Saying the treasurey and Fed is not in control of the President is like saying the SOS is not in control of the President because Congress has to approve the nomination.

Even the amounts Congress has approved were based on Bush and Paulson's begging them to.

Bush has done nothing which is why the Treasury and Fed have gone hog-wild and stuck the USA on the hook for 8 Trillion dollars.

I don't understand, are you agreeing with me or not, I can't tell.

Please explain a little more.

 

[Charade]

All congress has approved is th 700 Billion and only half that is spent.

The rest of the 3-7 trillion dollars is Bush and the Fed.

Completely untrue.

 

[AndyLL]

Completely untrue.

Then out of that list how much was approved by Congress?

The 30B to JP Morgan for Bear Sterns?
The 150B to AIG?
The 300B backing CitiGroup?
The 600B & 1.8T commercial paper buy up?

Just a drop of what the Fed and Treasury are on the hook for.