Treasury Bailout has Changed yet AGAIN!!!

Excerpts from:

http://www.usnews.com/usnews/politics/bulletin/bulletin_081113.htm

Treasury Secretary Henry Paulson's announced changes to the $700 financial bailout plan -- to focus on shoring up financial institutions that offer consumer credit

The Politico, for example, reports Paulson's "announcement was a public acknowledgment by the administration that the hundreds of billions of dollars spent thus far to buy up complex mortgage-related assets were not solving the economic crisis

the government would continue flooding financial institutions with cash, but would also try to increase the availability of student loans, auto loans and credit cards

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OK, no wonder Dow is dropping. Essentially, FED has just pumped 1 trillion into Wall Street... and it took this long for everyone to suddenly realise that they were only rewarding the board of directors and such, but not actually solving anything.


This guy says it very well. Better than I can, actually:
http://www.blueoregon.com/2008/11/henry-paulson-b.html

This is good too:
http://www.latimes.com/news/nationworld/nation/la-fi-paulson13-2008nov13,0,6205412.story
"Illiquidity in this sector is raising the cost and reducing the availability of car loans, student loans and credit cards," Paulson said during a speech in Washington. "This is creating a heavy burden on the American people and reducing the number of jobs in our economy."

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The problem is that Paulson is wrong AGAIN. He doesn't know it yet though. Well, I guess student loans are a good idea. It's REALLY going to mess up your countries economy if a large section of your population who should have been able to complete their education did not go to college.

But... car loans?

People are worried that they might not have a JOB next month! Look at the ridiculous number of lay offs! Frankly, you talk about restoring confidence? How can you have confidence when just about EVERYONE who has felt job security working for a major corporation is now suddenly in fear of being retrenched... and with no new job offers in sight for possibly years to come???

You... think they're going to put a down payment for a new car, do you?

Really?

... see, this is why I keep calling these so called experts dumb. I'm not REALLY that eager to be insulting (ok ok maybe I am) but seriously, these guys are just BEGGING for me to point out their idiocy.

It has taken this long for the rest of America to realize it too, but I think that it is starting to become rather clear that the Treasury has no idea what they are doing...

As I said. They are trying to fit a round peg into a square hole. They are putting their GREAT DEPRESSION EMERGENCY PLAN into action... but the situation now and 1929 is actually rather different!

They are trying to fix the short term (liquidity)... which frankly, left to it's own devices would simply blow up. Not blow over, but blow up. Like explode. Into a million pieces. Leaving the financial world in tatters. Something like the Tech Bubble, in fact. But... the world rebuilt after the tech bubble. Everyone acknowledges that it HAD to pop, in fact a lot of people insist that the tech industry was in fact more streamlined and grew more efficiently after the bubble burst.

Why won't they let this Derivatives Bubble pop? well... cause all their good buddies are working in that line, for one...

Instead of looking at the FINANCIAL world, they should be looking more at PRODUCTION.

Do you know how they ended the Great Depression? Look it up.

No, I am not suggesting another World War. Duh.

I am suggesting that America pumps money into the PRODUCTION sector. Only instead of war production, it's got to be something... more long term beneficial.

Ideally, the finished products should be something that the government can buy and use, since consumers won't be buying much. But something that gives back to the people too.

Er... actually, this is actually one case where the fact that America has good infrastructure is working against it.

See... China has quite neatly done exactly this. I didn't realise it until now, but basically constructing 10 nuclear reactors in China (assuming they don't mess up and create a 2nd Chernobyl... or even 10 Chernobyls!)... this creates a lot of jobs, industry, AND unlike America's clever quotes about paying 10 men to dig holes and 10 men to fill them up, or someone else's quote about building 1000 homes, and then burning them down... China will have their cake and eat it too! Assuming nothing goes wrong, China has just launched on some very large projects that will keep the construction industry going strong, AND it will give cheap clean power for generations to come!

Assuming they don't blow up of course. That would be bad.

... Frankly, I've never really been a fan of China. That was my grandfather's favourite though. Personally, I never forgave them from going from the most educated, most advanced culture, to some lazy country going nowhere. But it looks like they are more than redeeming themselves again now.
Seriously, China. A system where the SMARTEST and MOST EDUCATED and MOST QUALIFIED became the leaders. Not the MOST POPULOUR, MOST CHARMING ones.
Well, of course that was the intention of their government exams, but having poetry be the deciding part of the exam might have nixed the entire thing. Still, IMHO, that is the best system of choosing your leaders. Have them take an exam. The CONTENT of the exam... well, I assume that a Finance Minister should know something about economics, finance, etc etc. You know that sort of thing.

Or if you still want democratic elections, that's fine too. But I think EVERY candidate should be forced to take an exam in the related areas to doing his/her job... and the results should be made public.
And if your citizens decide that they want to vote for someone who thinks that the Russia is next to Alaska, doesn't know that what a bank run is, doesn't know how a stock's value is related to it's growth, earnings, and dividends... etc etc... then you deserve whatever you get. (ok, 1 cheap shot at palin there.)
BTW, thanks American voters for restoring my faith in your country. Well done.

Back onto topic:

To summarise: Henry M. Paulson. You and your team obviously have no idea what you're doing. Passionately begging for the 700b bailout package to save mortage owners. Then abandoning that to buy shares in banks (which was not what congress voted to allow!!!). And now abandoning that halfway to help offer more loans to the American public??? (which in fact used the STIMULUS PACKAGE... to pay off their existing debts!!! They don't WANT to increase their debts you idiots! ... except for the ones who can't afford to service their currents debts, who are in fact so desperate that they are willing to dig themselves into a bigger hole. Basically, anyone who WANTS to increase their debt, should not be allowed to do so.)

Henry M. Paulson and team. You are all a bunch of idiots. Please resign. And please admit that you are stupid on National TV too.