Posted by
rycK on Tuesday, November 18, 2008 9:03:08 AM
Paulson Speaks and
Squeaks and Speaks of Confidence while He Cannot Seem to Tell Us How Much Money
has been Spent.
The New York Times—aka
the Walter
Duranty Papers--is a
strange platform for a Republican to talk about success and confidence. Apart from staying toward Dewey in 1948, the Times
has a solid history of blindly rubber-stamping any Marxist dictator, any tax
increase on anything, Castro’s phony healthcare system and celebrating the
death of every American solider since the Korean Conflict. Today, they must
have some arcane design in mind as they let somebody who does not know what to
do tell us just that.
Paulson brings a partial account
of what our government is doing in the US and brings us
nothing but a revisionist version of a FDR Fireside Chat.
“I am very proud of
the decisive actions by the Treasury Department, the Federal Reserve and the
F.D.I.C. to stabilize our financial system. … We have preserved the flexibility
of President-elect Barack Obama and the new
secretary of the Treasury to address the challenges in the economy and capital
markets they will face.”--Fighting the
Financial Crisis, One Challenge at a Time
By Henry M. Paulson Jr. Op-Ed Contributor Published: November 17, 2008 [Emphasis is mine in all quotes.]This link references all
quotes in this essay unless otherwise stated.
This,
after he seems to have told us that we wisely spent 250 billion, but the notion
that we could cover ‘troubled assets’ is now out of reach.
“A
troubled-asset purchase program, to be effective, would require a huge
commitment of money. In mid-September, before economic conditions worsened, $700 billion in
troubled asset purchases would have had a significant impact. But half of that
sum, in a worse economy, simply isn’t enough firepower.”
“If we
have learned anything throughout this year, we have learned that this financial crisis is unpredictable
and difficult to counteract. We decided it was prudent to reserve our TARP money,
maintaining not only our flexibility, but also that of the next administration.”
We keep wondering
just how much money was spent when we look at this chart:
“Given the
speed at which the federal government is throwing money at the financial
crisis, the average taxpayer, never mind member of Congress, might not be
faulted for losing track. CNBC, however, has been paying very close attention and keeping a running
tally of actual spending as well as the commitments involved.”--
Financial Crisis Tab Already In The
Trillions By CNBC.com |17 Nov 2008 |
|
FINANCIAL
CRISIS BALANCE SHEET
|
|
Government Entity
|
Sum
in Billions of Dollars
|
|
Federal Reserve
|
|
|
|
|
|
(TAF) Term Auction Facility
|
900
|
|
Discount Window Lending
|
|
|
Commercial Banks
|
99.2
|
|
Investment Banks
|
56.7
|
|
Loans to buy ABCP
|
76.5
|
|
AIG
|
112.5
|
|
Bear Stearns
|
29.5
|
|
(TSLF) Term Securities Lending Facility
|
225
|
|
Swap Lines
|
613
|
|
(MMIFF) Money Market Investor Funding Facility
|
540
|
|
Commercial Paper Funding Facility
|
257
|
|
(TARP) Treasury Asset Relief Program
|
700
|
|
Other:
|
|
|
Automakers
|
25
|
|
(FHA) Federal Housing Administration
|
300
|
|
Fannie Mae/Freddie Mac
|
350
|
|
|
|
|
Total
|
4284.5
|
Note: Figures as of Nov. 13, 2008
How do we reconcile this fraction of the $700 bln prattle with this list? Fannie Mae is a dumpster to hide the
phony ‘affordable
housing’ giveaways like the CRAto people who cannot afford houses and the only asset value left
is the current market price of the housing. Are we taxpayers expected to cover
the losses of bad debt? This is a socialist monster that we must
handle by [1] halting the phony notion that we have to give away housing to
anybody and [2] that we must give them ‘loans’ or ‘adjust’ their mortgage
payment and stick the banks and loan institutions with the losses.
One
billion dollars is about 8$ in taxes for workers who pay taxes so 1.0 trillion
dollars is $8000
in some kind of tax liability so this works out to the interesting value of $34 trillion
dollars. We know that the household asset value in the US is about $58 trillion so we have just put
in jeopardy more than half of our citizen’s assets. For the individual worker
we are looking at $34,000 per worker except that the lower half
pays essentially no taxes so let us double that just to be fair and add in a
few bucks for the illegal aliens. This rises to about $80,000 in debt against an average
of about $200,000[58 trillion divided by 300 million citizens is $193,000] in
total assets for home owners.
To this mess we are supposed to add in socialized medicine, aid to Africa, and
spend a few hundred billion supporting the unions in Detroit who will not budge
from their cushy $60-$80 dollar per hour wages and benefits that make the auto
business in that area untenable. We have just a few trillion here and there in
unfunded mandates in Social Security and entitlements to think about as well.
With a GDP of about 16 trillion we tax ¼ of this to about 4 trillion [3 trillion to the fed] and
we now just spent another 4 trillion?! This looks like an effective tax rate of 50% on everything we do and we just elected some liberal who wants to
‘change the world?’
Well, the world has
already changed. We have to keep the banks solvent and
dump a lot of government rules and regulations like the Clean Air Act and the Carbon Cap taxes because they will consume a few more trillion dollars per
year if we do not.
We are going broke
and the liberals want to raise taxes?
rycK
Comments:
ryckki@gmail.com
"Zeese-a two intities—Foonnie-a Mee-a und Freddie-a
Mec—ire-a not fecing uny kind ooff finoonciel creesis,"
said Representative Barney Frank of Massachusetts, the
ranking Democrat on the Financial Services Committee. " Zee-a more-a people-a
ixeggerete-a zeese-a problems, zee-a more-a pressoore-a zeere-a is oon zeese-a
compoonies, zee-a less we-a will see-a in terms ooff iffffordeble-a
hooosing"."
“Iffffordeble-a hooosing” is
what burdened Fanny Mae with three trillion dollars worth of phony mortgages and
we still have failing mortgages that were given to 5 million illegal aliens. We
can solve this finoonciel creesis by
simply printing more money! http://www.usnews.com/blogs/sam-dealey/2008/9/10/barney-franks-fannie-and-freddie-muddle.html
“The CRA [the phony Community Communist Reinvestment Act] created mountains of bad debt by
forcing banks to give away free houses to the uncreditworthy low class in
exchange for their votes under penalty of prosecution by the government. You
were supposed to wipe out Redlining
and replace it with Greenlining.[5] Minorities must have loans [free if necessary] so they can participate
in the American Dream. This is known as ‘affordable housing’—you cannot afford, but the
illegal aliens and criminals and ‘poor’ certainly can. The cost is essentially zero. The thrust by
the left now is to ‘suspend’ foreclosures that were a result of not paying off
their loans and use some bank or government money [what else from a socialist?]
to pay for the monthly mortgage payments.
Illegal aliens and dope dealers are most welcome.” The Obama Depression and
Surviving the Leftists: Free Homes and Debt Forgiveness for your Votes.
http://rycksrationalizations.blogtownhall.com/2008/11/14/the_obama_depression_and_surviving_the_leftists_free_homes_and_debt_forgiveness_for_your_votes.thtml