U.S. to propose $500-$800 billion asset-buy plan: sources

[UpInArms]

Source: Reuters

WASHINGTON (Reuters) - The U.S. Treasury will propose a $500 billion to $800 billion government program to take toxic mortgage-related assets off the books of U.S. financial firms, banking industry sources said on Friday.

The sources said the government would acquire residential and commercial mortgages and mortgage-backed securities under the proposal, which needs Congressional approval.

<snip>

The moves capped a week in which financial markets faced their most serious confluence of crises since the Great Depression in the 1930s and threatened national economies and the worldwide banking system.

The sources said the government would conduct reverse auctions for $50 billion tranches, with one source saying additional increments would be taken in $10 billion blocks and that five outside asset managers would help manage the purchases.

The government would not face a deadline for disposing the assets it acquires under the plan being sent to Congress, according to one source. The source said any assets being offloaded would have had to have been on the books of any participating financial firm as of September 15.

Read more: http://news.yahoo.com/s/nm/20080920/bs_nm/financial_bailout_details_dc

---

What do these "participating" financial firms have to give up other than "bad" assets?

Do the CEOs and their lobbyists get to continue to fleece the taxpayers and consumers?

This is such a crock barrel of shit.

:headexploding:

[Warren Stupidity]

1. 800B: Healthcare for everyone. Renewable energy infrastructure.

Universal public education through university level.

Instead, this mountain of new debt is going to bailout billionaires while they lie to us and tell us it is bailing out you and me for making bad choices when we took out a mortgage and blame us for their crooked disaster.

I am Warren Stupidity and I Do Not Approve This Plan.

[UpInArms]

2. You said it, Warren

and I wholeheartedly agree and endorse your message.

UpInArms

[Virginia Dare]

3. That trillion dollars plus that went down the rat hole known as Iraq..

would sure be nice to have right about now. Of course, they'd probably just throw that at the billionaires too.

[UpInArms]

4. a trillion here - a trillion there - pretty soon you're talking about real money!

"It's clearly a budget. It's got a lot of numbers in it."

— George W. Bush

[fasttense]

6. Bailout:

This is just one more tax break for the ultra wealthy. Once again the little guy gets the bill and the fat man takes his millions and goes home. How can these people sleep at night? Don't they understand that if they wipe out the american tax payer they are destroying their own wealth?

[InkAddict]

22. ENERGY is neither created nor destroyed.

Just depends who owns it and controls it. Once upon a time, Mother Nature made "black gold" through climate change; now she sends hurricanes and wind storms. The owners have everything under control :sarcasm:

[Hugin]

7. How many bags of S-CHIPs could we get for that?

A couple of billion?

[ixion]

5. this 'bailout' meme is despicable

it's a naked give-away to the very people who caused this mess, at the expense of people who actually work for a living. Why there isn't more of an uproar is beyond me.

[mcollier]

11. What does this mean for property values?

This must be one of the largest socialized program in the history of America.

This is likely to end the republican party...

Now acting as this is some big surprise and couldn't see this coming... I saw this coming over a year ago when oil prices shot up 80 t0 100 dollars pb... Even though the dow market was at 14,000 points... Main Street was not sharing in the prosperity.

There such a lack of confidence in the bush adminstration I think congress and the judgical branch should temporarily take over responsibility for all executive decisions from the executive branch...

[UpInArms]

8. $800 Billion

Paulson Faces Demands From Democrats as He Sells $800 Billion Bank Rescue

excerpt:

The program may be worth about $800 billion, split into $50 billion tranches, said four people briefed on drafts of the Treasury's proposal who spoke on condition of anonymity because details haven't been finalized. The funds, which would last for at least two years, will likely accept mortgage-backed securities and collateralized debt obligations, they said.

The Treasury plans to hire asset managers to purchase the assets through so-called reverse auctions, seeking the lowest prices, one of the people said. Congress will need to raise the limit for the federal debt to allow the government to borrow enough to fund the program, the person said.

[UpInArms]

10. Congress will need to raise the limit for the federal debt

holy mother of goddess!

the fed debt limit is currently $10,600,000,000,000 (yeppers - that Trillion!)

[bronxiteforever]

9. America eats its young-What are we doing to our posterity with this endless debt?

An American Patriotic Value is not to shaft future generations in a red ink flood

Are we to leave the average person with no health insurance, no energy plan, no infrastructure and just debt?

My God what a sad, vain and stupid people we are.

[anarch]

21. well, not just debt

I mean, there's also the ill-will of most of the rest of the world, and the ravaged and polluted landscape.

Hi,next several generations! Here, hold this bag....

[RedEarth]

12. AP: Bush asks Congress for $700 billion for bailout... national debt from $10.6 trillion to $11.3 t

WASHINGTON (AP) - The Bush administration is asking Congress to let the government buy $700 billion in bad mortgages as part of the largest financial bailout since the Great Depression.

The plan would give the government broad power to buy the bad debt of any U.S. financial institutions for the next two years. It also would raise the statutory limit on the national debt from $10.6 trillion to $11.3 trillion - making room for the massive rescue.

A draft of the proposal obtained Saturday by The Associated Press does not specify what the government would get in return from financial companies for the federal help.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information

http://apnews.myway.com//article/20080920/D93AFNMG2.html

[whistle]

13. The Great Crony Swindle of the 21st Century, it is a dump truck load of shit!

[Oregone]

14. Buy out my mortage, you dickheads

[nightrain]

15. What a disgusting way to spend taxpayer money. There goes

infrastructure repair, single payor healthcare, etc. All to pay off some altogether too greedy moguls. THEY should reimburse their corporations most of their HUGE compensation packages and get real.

If there's any bailout, it should partially be those who took out the loans, not the corporations!!! Planned f**kup!

[glinda]

17. CIVIL CASE NEEDED

Geeeeeeze. That is the only way.

[sam kane]

18. can we file Monday?

honestly.

[Frank Booth]

16. Who's going to be going to jail for this?

Are we just going to let the people who made millions off these fraudulent real estate loans get off scott free after nearly causing the second great depression?

It's not the $700 billion that bothers me so much (though I'm not too happy about it). It's the fact that there are no consequences for the people who caused this disaster.

So many people near where I live got extremely wealthy from the fraud -- these people are driving Bentleys, Aston Martins, Ferraris.
And they're just laughing at the dumb sap, responsible citizens who have to clean up their shit.

These people should be sent to jail and their illegitimate profits should be taken away. They've caused more harm to this country than almost anyone else.

[closeupready]

19. As I said in another thread,

their taxes will have to go way up, even as taxes on the middle class will need to either remain static or even go down, so as not to depress economic activity.

[scisyhp1]

20. What the hell? How about taking good loans along with the bad

to pay for the losses? Should every business now unload its
money losing assets on the taxpayer and keep only the good ones?
And why just limit it to capital? Where do I send my maxed out
credit cards?

[Buenaventura]

23. a trillion dollar bailout changes NOTHING! the behavior remains

the same, the corporate thieves keep there wealth (for a while) and working people lose again. no more bailouts - change the fucking system!