Bailout a Done Deal

Some pork was added, some threats and strong-arming was performed, and Congress has now allowed pretty much any bank in the world to dump their toxic sludge at our doorstep.

The bill just got passed, but already there are some ugly Easter eggs popping out.

Remember, this entire paragraph 12 was not supposed to go into effect until 2011.

Foreign banks were not in the definition of depository institutions until they changed the effective date from October1, 2011 to October 1, 2008.

If we rewrite the opening of the paragraph to use the words “foreign banks” it reads

Balances maintained at a Federal Reserve bank by or on behalf of a foreign banks may receive earnings to be paid by the Federal Reserve bank at least once each calendar quarter, at a rate or rates not to exceed the general level of short-term interest rates.

So, to summarize, by changing the effective date the following is now in effect.

Banks don’t have to have cash on hand.

The Fed does not have to maintain an Earnings Protection account for the supplemental reserve fees they charge banks which means they don’t have to give any of the money back to those banks.

They now include foreign banks as institutions they can pay earnings to. Let’s not forget, earnings is really just more American debt. Federal Reserve Notes are really debt, but that’s a topic for another monster blog entry.

link

And another:

The basic plan is to set up a federal money laundering operation. Bad assets come in, get laundered by the Treasury and put in a new AAA “wrapper” (as it’s termed on the call), and good assets go out, issued as Treasury guaranteed securities. Whether the final value of the legislation this week is $700 billion or $150 billion is irrelevant as long as the laundering operation can accommodate the throughput, as that number is only a cap on total extensions at any one time.

Link

So we’ve basically opened up the magic money machine for anyone holding crappy derivatives or pretty much anything else they don’t want anymore… and now we taxpayers are guaranteeing it all.  So much for letting the ‘free market’ work things out.  Some businesses have been tapped to survive, and the rest will be eaten.

I wish I could muster the outrage to be mad about this.  Unfortunately, it’s the way things are.  All the voter outrage that was mustered earlier this week accounts for naught.   If you’re truly pissed off about this, the best thing you can do is vote against your incumbent rep or senator if he or she is up for election this fall.  Blame falls equally on both sides, and is further proof to me that both parties are working together to support a certain group, and it sure ain’t the average citizen.

There will be more surprises coming out of the bill… just wait.  This is just like the Patriot Act… don’t read, just vote for it… we are always acting in the best interests of America… right?

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4 Responses to Bailout a Done Deal

  1. Jim says:

    I read somewhere that the final bill was just under 500 pages, up from the original 3 pages proposed by the Bush administration. Included in the bill, and relevant to me, is a tax deduction for employers who reimburse employees for bike commuting expenses.

  2. Bart says:

    Yeah, it metastasized impressively over the course of five days. Loaded with pork and hidden clauses that will probably surprise many folks, including those who voted for the bill.

    At least you’ll be getting something out of it besides an inflated tax bill. 🙂

  3. onestraw says:

    Bart,

    If it is any consolation -I am madder than I have ever been at our system for this giant pile of garbage. It was the final blow to what little faith I had in the system. America’s populace seems to get revolutionary about once a century. The first one worked. The second didn’t and the third one in the depression never even got started, instead replaced by a quiet one of the Corps. They won.

    I’ll get through it -daily life will replace the rage as it does for most of us. We’re too comfortable to be really mad at anything.

    -Rob

  4. Rose says:

    They are pretty much working at doing away with the middle class…it may take some time, but they’ve got the blueprint started now. Retire? Hell we will all be working until we drop…

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