Senator _____,

What’s next? What will you do when this bailout fails? Will the next bailout plan give Paulson a blank check to gather up a gang of thugs and go from house to house so they can literally rob from the middle class and cut out the IRS middleman? No! This must stop now. If you believe in capitalism (if you are not a socialist), you must stop subsidizing losses to the wealthiest Americans today!

I will be watching how you vote on this matter. If you vote for it, I will vote against you for the rest of your career. Even if you are running against Joseph Stalin, I will vote against you. Further, I will explain to every person I know why you are unfit for the Senate.

Thank you for your time.

From the Washington Post: Away from Wall Street, Economists Question Basis of Paulson’s Plan. A couple of quotes:

“There is a kind of suggestion in the Paulson proposal that if only we provide enough money to financial markets, this problem will disappear,” said Joseph Stiglitz, a Nobel Prize-winning economist. “But that does nothing to address the fundamental problem of bleeding foreclosures and the holes in the balance sheets of banks.”
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“The root of the issue is recapitalizing banks,” said Glenn Hubbard, dean of Columbia Business School and a former chairman of President Bush’s Council of Economic Advisers. “That could be done more efficiently through the government injection of preferred equity. Then the market could figure out the prices of the assets.”
Initially many of us expected a Depression era Reconstruction Finance Corporation (RFC) type preferred stock investment to recapitalize the banks. Instead, the Paulson Plan intended to recapitalize the banks by paying a premium for troubled assets. The compromise bill discussed yesterday was a step in the right direction because of the equity sharing provision (although there was no details).

Considering the interest spread, it’s likely that the government will be generating billions of interest INCOME while holding the securities.

If they are so profitable why would investment banks be so eager to let them go? Hmmmmm.

Because they still have to mark down their value and take a loss if their marketable value has significantly fallen (It doesn’t matter if it’s still generating cash flow), and the market for these securities collapsed due to fear. By unloading these assets, they can get rid of uncertainty on their balance sheet. The buyer of these assets would be assuming risk obviously, but if he gets them at a good discount and if future default rates stay largely within his prediction, the probabilities of profit is actually quite good.

Here is a Bloomberg article that compares the Paulson plan to a carry-trade.

The people responsible for this crisis are any and all people who supported the policy of MASSIVE DEREGULATION that’s been going on in this country since the Reagan administration. Mostly, that’s been REPUBLICANS, but the Clinton administration did not do much, if anything, to stem the tide when they had a chance.

Without regulatory safeguards backed up by stern enforcement, the powers of greed were finally unleashed on Wall Street, and they exploited every loophole they could to attain maximum personal profit. These same people exploited the ignorance of the “poor and dumb” to create more wealth for themselves in much the same way McCain and his minions are right now using “smoke and mirrors” to fool much of the electorate into believing that his non-stop lies are “straight talk” and that he’s actually putting “Country First.”

The bailout is clearly a negative impact on the economy. Unfortunately, the alternative is so very much WORSE! Stop being fooled by this insipid right-wing propaganda. They DO NOT CARE about you or your jobs or life savings. They care only about staying in POWER, and clearly are not ashamed to try just about anything to keep it.

De-regulation has had its chance. IT FAILED!! Wake up and grow up and stop whining about whose fault it is. It’s YOUR fault for continuing to support this failed policy by continuing to vote BOOBS and MORONS into office. The right had its chance and BLEW IT! How easily you all forget that at the end of the last Democratic presidency, this country had A SURPLUS!! The national debt was around $5 trillion, and we were starting to PAY IT DOWN! Now after eight years of a “C” student who can’t even pronounce the world “nuclear,” lo and behold, we are on the brink of an $11 trillion debt and have a $500 billion deficit!

Will it really matter if some woman you don’t know gets an abortion when YOUR job gets outsourced? Will you really care if gays get married or if protesters burn the flag when your entire life savings gets wiped out in a DEPRESSION? Will you regret to your dying day voting yet another babbling dittohead into the oval office when your son or daughter is killed in a war that did nothing for this country but allow the oil companies to open up shop again in Iraq?

You ppl are arguing about the greedy and the dumb, when you should be WAKING UP to how much you’ve been PLAYED by your governments THAT YOU VOTE INTO OFFICE!! They poll constantly to find out exactly what pushes your buttons, then they tell you just what you want to hear to keep them in power in order to make profits for their rich friends, and future profits for themselves.

They are PLAYING YOU so well like a fiddle that many of you are actually planning on keeping the same party in power that has put you in this mess in the first place; AND has you blaming the other party FOR THEIR MISTAKES!! You are chumps of the greatest magnitude.

America USED TO throw out the incumbent party when things went sour during their watch. THAT’S what kept the parties relatively honest… and I do mean RELATIVELY. Only now they’ve got you so hypnotized with their talking points that you will swallow anything they shovel. They are corn-holing all of you without even giving you a reach-around, and you simply smile and beg for more.

If the Republicans end up tanking this bailout bill and we end up in an actual depression because of their politicizing the crisis, I swear I will spit on every "golly" right-winger I ever meet for the rest of my life. You people and your self-righteous ideology have brought this once-great country to the brink of ruin, and you STILL don’t have enough integrity to admit you were wrong, apologize for your mistakes, and give the other guys a go at fixing it.

You all need to get out! Go up to Alaska and wait for the end times with Sister Sarah and the rest of the kooks. You’re all so twisted, you’ve even turned the word “elite” into a bad thing, for crying out loud! ELITE means the BEST of the BEST! So how ridiculous is it to use that word to SMEAR the opposition? I say, consider the source.

The only way to atone for supporting failed policies is to SHIFT YOUR SUPPORT to give new ideas a chance.

Rant over. I sincerely hope you all have both the money and the credit to even purchase a home again at the end of this crisis. Think about it.

syl

JP Morgan would be on the hook for Mr. Fishman’s “golden parachute”, right?

One small angry voice…….

“Mr. Fishman, who has been on the job for less than three weeks, is eligible for $11.6 million in cash severance and will get to keep his $7.5 million signing bonus, according to an analysis by James F. Reda and Associates.”
http://www.nytimes.com/2008/09/26/business/26wamu.html?hp

Projections on the value of WAMU’s mortgages seem optimistic. Time well tell if they overpaid.

T.J.- These are indeed historic times. Tomorrow and Monday should be interesting to say the least! Not to mention the election has been turned upside down.

However those Several Loans are from Boeing Workers and couple of Friends outside Boeing.. Just that BECU is seems to come in first when I talk to friends of a place locally that people went too to get these shady loans…

Gotta love my 72% gain realized last week on this stock.

So Chase is going to have a lot more branches here now, hopefully they replace the Wamu Cash machines which are outdated.

Paulson Plan and JPMorgan WaMu
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“If money isn’t loosened up, this sucker could go down.”
President Bush, Sept 25, 2008

Michael wrote: Who else should be added to the list?

Here are people to add to the list of who should pay:
- All the individuals who bought more house than they could afford.
- All the people who chose high yield money market or mutual funds in their 401Ks
- All the people who decided to spend, or go in debt, rather than save.
- All the people who put their money in banks or institutions because they liked the service, convenience, or interest rates rather than because they were conservative and prudent.

In short, I think the average American is even MORE responsible for allowing this credit bubble to grow. All these people should PAY by losing their savings, homes, and pensions. It is only when individuals are forced to pay for their bad decisions that the lesson of the need to save, and not over-extend, can be learned.

Anyone here Buy Guns.. Should I buy cheap guns for Resale in another Year or go for higher end Guns? .. Magnum 45– hear have a lot of kick, and scare the Jitters out of anyone.

Im serious about buying some guns…. I personally think it could get that bad, Maybe.. Heck- “I dont know for sure whats going to happen.. even if it doesnt From everyone I have so far spoke to “Guns hold there Value- so it seems like a fool-proof way of also keeping my savings.. its has to better than keeping so much of my money in savings.

I Have been thinking the same thing, about them… They have so MUCH BAD PAPER… Only reason there not done for probably is there in Seattle and Were Special- however When SEATTLE BECOMES NOT SPECIAL, which is happening I wouldn’t be surprised to see them go under.

I know personally several people that are in Very Risky Positions with loans at BECU.. One person Refinanced there home for almost 200,000. dollars more than any property has ever sold for on his street.

Tricky part is that this person lives on & inlet that the Tide Flows in and out and a great deal of the time there actually is a Mudhole where the water flows out because of the tide…

I figured when they did the Appraisal they were using Comps on the other side of Which is actually facing the Bay- and is of course always on the Water… however to appraise the house at 175,000. more and give that person money to go out and Buy Motorcycles/Cars ..hahahaha.. now that person is trying to sell the Property to recoup the 595,000. dollars..Oooops…

…add to the list.

George Bush (R) – Kills all preditory lending law. “The bankers are hailing a House bill that would preempt state regulations and set national standards for predatory lending. The catch: The federal rules would be weaker than laws now on the books in some states.”

Chris Dodd (D) and Barnie Frank (D) – The ultimate Freddie Fannie Lobby. Take huge donations. Get people into houses that they can neither afford in the name of the American Dream.

Phil Graham (R)

Commodity Futures Modernization Act of 2000. Creates completely unregulated insurance (Credit Default Swaps) that mascarads as an investment.

Gramm-Leach-Bliley Act
Repeals the set of laws left from the great depression that regulated banking including the wall between commercial and investment banking.

Who else should be added to the list?

Report: J.P. Morgan Chase To Buy Some Wamu Assets
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SEATTLE — J.P. Morgan Chase has agreed to acquire the deposits and some branches of troubled Seattle-based Washington Mutual under a deal brokered by the government, the Wall Street Journal reports…….

Breaking- Bush won’t sign a bailout bill that includes limits on executive pay. Unbelievable. I’m ashamed to say I voted for him, twice. Oh well.

http://www.reuters.com/article/newsOne/idUSTRE48O9RT20080925

wonder where Paulson finds all the time. Do you think he is an alien?

http://www.housingwire.com/2008/09/25/wamu-to-be-purchased/

http://www.youtube.com/watch?v=npUMUASwaec

look out below.

BEIJING, Sept 25 (Reuters) – Chinese regulators have told domestic banks to stop interbank lending to U.S. financial institutions to prevent possible losses during the financial crisis, the South China Morning Post reported on Thursday.
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The Hong Kong newspaper cited unidentified industry sources as saying the instruction from the China Banking Regulatory Commission (CBRC) applied to interbank lending of all currencies to U.S. banks but not to banks from other countries.
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“The decree appears to be Beijing’s first attempt to erect defences against the deepening U.S. financial meltdown after the mainland’s major lenders reported billions of U.S. dollars in exposure to the credit crisis,” the SCMP said.
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A spokesman for the CBRC had no immediate comment. (Reporting by Alan Wheatley and Langi Chiang; editing by Ken Wills)
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From ABC News a half hr ago:

“Stephanopoulos: Paulson Fears Deal May Collapse
Email
Share September 25, 2008 6:05 PM

ABC’s George Stephanopoulos Reports: Treasury Secretary Henry Paulson fears the Wall Street bailout deal is falling apart after a chaotic White House meeting, sources say.

Paulson walked into today’s the room where Democrats were caucusing during today’s meeting at the White House and pleaded with them ‘please don’t blow this up,’ Stephanopoulos reports.

House Financial services Chairman Barney Frank, D-MA, was livid, saying ‘Don’t say that to us after all we’ve been through!’

Democrats believe that House Republicans are torpedoeing the framework deal reached in the bipartisan agreement of principles released by the Senate Banking Committee today….”