Bailout plan voted down!

[Dave S]

Well, it can't be too bad... congress is taking the next two off... :smt021

 

[ruf1967]

Wall Street meltdown

Economic recession

Credit crunch

Ex-president Clinton actually scored in the Whitehouse

The falling dollar

No gasoline in southeast states

China space program is advancing past the US's

Rising sea levels

Nuclear technology in third world countries

Polar bears having to swim 50 or more miles to hunt seals

Hugo Chavez is a communist lover

Communists love Hugo

The media twisting the truth to spawn fear in every redblooded american

Tainted Chinese milk products

Pelosi speaking about anything

Afghan police firing on and killing US troops

All of these problems will be corrected when the Large Hadron Collider, aka Doomsday Machine, finally starts working. God help us all.

 

[mrsrobinson]

Hey, the sun came up today, I came into the office, I am still getting paid to do this. Let the economy take care of itself...note, spoken by an Economics grad who has not used that degree at all to date.

 

[midway]

In all of this Citigroup has now bought up Wachovia Bank, which was about to go under and be the second banking institution to fail in 2 weeks. I have mixed thoughts about all of this, on one hand I feel that the lending people should have to suffer the consequences of over extending consumers payback abilities, I also understand that cannot happen as it would be a fatal blow to not only our economy but to the world economy. About the only thing that can happen is a bailout. With all that has happened in the past our so called leaders and legislators should have done something before now, actually we the people should have made them do something about this. We the people have to accept some responsibility for this happening after all we have been watching it happen for years and did not contact our respective legislators and tell them to get off their duffs and do something. So do we blame the Democrats, the Republicans, the President or ourselves? We all saw this coming and did not do anything either.

 

[mrsrobinson]

In all of this Citigroup has now bought up Wachovia Bank, which was about to go under and be the second banking institution to fail in 2 weeks. I have mixed thoughts about all of this, on one hand I feel that the lending people should have to suffer the consequences of over extending consumers payback abilities, I also understand that cannot happen as it would be a fatal blow to not only our economy but to the world economy. About the only thing that can happen is a bailout. With all that has happened in the past our so called leaders and legislators should have done something before now, actually we the people should have made them do something about this. We the people have to accept some responsibility for this happening after all we have been watching it happen for years and did not contact our respective legislators and tell them to get off their duffs and do something. So do we blame the Democrats, the Republicans, the President or ourselves? We all saw this coming and did not do anything either.

+1

And why do you think everyone sat back and watched? I think it's called greed.....everyone was making money, lots of it. Has anyone seen the bonus #'s from some of the top execs at Mac and Mae? Unbelievable.

We had friends buying overpriced homes with interest only loans planning on selling them every 2 years. Worked, for a while.....

 

[douglee25]

What kind of risk is associated with having savings/checking and/or mortgages with banks like Wachovia after they are about to fail? In Wachovia's case, does being bought up eliminate the risk?

Doug

 

[First Born]

Do you have over $100K in any account besides a retirement account :huh:

 

[VTSeaRay]

She looked like a scared ghost at their press conference afterward. Surely someone took her aside and said "What the *$#% were you thinking?". Barney mouth-full-of-poop Frank would not let her answer when a reporter asked "why did you do that."

Has anyone found this video? I can't find it yet. Not sure what to search on "barney mouth-full-o-poop" or "pelosi ghost"...

No, seriously, I can't find it, anyone?

-VtSeaRay

 

[midway]

Greg, you make a valid point, greed as the motivation for all concerned.

Doug, I certainly hope so, I have checking, CD's and loans there.
Wachovia is my bank.

The article I read quote "Citigroup will assume the first $42 billion on losses tied to Wachovia’s riskiest mortgages and will pay the Federal Insurance Deposit Corporation $12 billion in preferred stock and warrants. In exchange, the F.D.I.C. will absorb all losses above that amount."

So we shall see.
Link to the article: http://www.nytimes.com/2008/09/30/business/30bank.html?em

 

[Boulder GT3]

Hey, the sun came up today, I came into the office, I am still getting paid to do this. Let the economy take care of itself...note, spoken by an Economics grad who has not used that degree at all to date.

I more or less agree with you. The thing that scares me is that the greatest suffering as these issues vet will be by the middle class who in my opinion need the most help already. Main Street is justifiably outraged but they are going to have the most damage if a solution is not brought forward.

I just don't think people are understanding the facets on this.

There is a lot of talk about the $700B but nobody is talking about tax loss. $1-1.4 trillion was lost yesterday in the markets. Kind of an ethereal number but the tax loss has to be understood. The people that lost that money will not be paying taxes against gains for a long time.

I pay a lot of tax. I would be surprised if I pay anything for 2 years. That money will not be in the general fund to distribute. Is spending going to be cut? Doubtful. More deficit on top of more deficit.

 

[midway]

Do you have over $100K in any account besides a retirement account :huh:

In my case, no, but who insures that money, someone like AIG, FDIC. Is the insurer stable, even the gov has and is putting money out there to save AIG and possibly others, who is covering them.

 

[Pakmule]

In my case, no, but who insures that money, someone like AIG, FDIC. Is the insurer stable, even the gov has and is putting money out there to save AIG and possibly others, who is covering them.

It is insured by the FDIC. Your money is safe.

 

[Four Suns]

It is insured by the FDIC. Your money is safe.

It just depends... not all products are FDIC insured. Talk to your bank about where your $$ are.

 

[Pakmule]

It just depends... not all products are FDIC insured. Talk to your bank about where your $$ are.

Yeah I was talking about savings and checking accounts. Those are insured by the FDIC.

 

[douglee25]

According to FDIC - they will still be insuring all Wachovia deposits.

http://www.fdic.gov/news/news/press/2008/pr08088.html

Citigroup Inc. to Acquire Banking Operations of Wachovia
FDIC, Federal Reserve and Treasury Agree to Provide Open Bank Assistance to Protect Depositors

FOR IMMEDIATE RELEASE
September 29, 2008

Media Contact:
Andrew Gray (202) 898-7192
angray@fdic.gov ​

Citigroup Inc. will acquire the banking operations of Wachovia Corporation; Charlotte, North Carolina, in a transaction facilitated by the Federal Deposit Insurance Corporation and concurred with by the Board of Governors of the Federal Reserve and the Secretary of the Treasury in consultation with the President. All depositors are fully protected and there is expected to be no cost to the Deposit Insurance Fund. Wachovia did not fail; rather, it is to be acquired by Citigroup Inc. on an open bank basis with assistance from the FDIC.
"For Wachovia customers, today's action will ensure seamless continuity of service from their bank and full protection for all of their deposits." said FDIC Chairman Sheila C. Bair. "There will be no interruption in services and bank customers should expect business as usual."
Citigroup Inc. will acquire the bulk of Wachovia's assets and liabilities, including five depository institutions and assume senior and subordinated debt of Wachovia Corp. Wachovia Corporation will continue to own Wachovia Securities, AG Edwards and Evergreen. The FDIC has entered into a loss sharing arrangement on a pre-identified pool of loans. Under the agreement, Citigroup Inc. will absorb up to $42 billion of losses on a $312 billion pool of loans. The FDIC will absorb losses beyond that. Citigroup has granted the FDIC $12 billion in preferred stock and warrants to compensate the FDIC for bearing this risk.
In consultation with the President, the Secretary of the Treasury on the recommendation of the Federal Reserve and FDIC determined that open bank assistance was necessary to avoid serious adverse effects on economic conditions and financial stability.
"On the whole, the commercial banking system in the United States remains well capitalized. This morning's decision was made under extraordinary circumstances with significant consultation among the regulators and Treasury," Bair said. "This action was necessary to maintain confidence in the banking industry given current financial market conditions."
Wachovia customers with questions should call their normal banking representative, service center, 1-800-922-4684 or visit www.wachovia.com. The FDIC's consumer hotline is 1-877-ASK-FDIC (1-877-275-3342) or visit www.fdic.gov.

 

[mrsrobinson]

We had our first experience with FDIC a few months ago with some CDs. I was impressed, FDIC paid out within 4-6 weeks.

 

[Four Suns]

I want one more thing added to this "bill". If the government gets all these bad loans, I want them to pull the records on the idiots that lied on their applications to get the mortgages. They had on the news interviews with people that made up tax returns so they would get a mortgage knowing there was no way the bank could verify the returns. People that did that should 1. lose their house and 2. serve a little jail time or community service and 3. lose everything else they have of value.

 

[Nehalennia]

I want one more thing added to this "bill". If the government gets all these bad loans, I want them to pull the records on the idiots that lied on their applications to get the mortgages. They had on the news interviews with people that made up tax returns so they would get a mortgage knowing there was no way the bank could verify the returns. People that did that should 1. lose their house and 2. serve a little jail time or community service and 3. lose everything else they have of value.

if they had anything of value they would have got the loan legitimately, but I'm with you.

 

[fc3]

I want one more thing added to this "bill". If the government gets all these bad loans, I want them to pull the records on the idiots that lied on their applications to get the mortgages. They had on the news interviews with people that made up tax returns so they would get a mortgage knowing there was no way the bank could verify the returns. People that did that should 1. lose their house and 2. serve a little jail time or community service and 3. lose everything else they have of value.

It's fraud, which is illegal everywhere, except in NJ when committed by an elected official. Since no one applies for a mortgage on a whim, it's at least second degree. Some serious jail time.

Best regards,
Frank