Paulson’s Secret Talking Points Reveal Banks Were Forced to Surrender Ownership Stakes to Government

New guys in command now, it should all be great and fantastic.

Unless it doesn't matter who our elected officials are.
That couldn't possibly be.

Don't listen to the drunk guy, he knows nothing!

Edited to correct drunken grammar.

Last Edited by Joe Six Pack on 06/10/2009 07:10 AM

While I don't agree the govt needs to get into the private sector, I don't think these banks are or were in such great shape. They are still not lending and that is how they make money. Our credit rating in almost 800 and couldn't get a refi doesn't matter now as rates are back up. The entire global banking system was under immense pressure with numerous large electronic withdrawals (hmmm I wonder who was requesting these withdrawals) all on one day and within a short time period. They would have all gone under. No fan of the Feds but no fan and no trust for the Banksters either.

Feds and bankers are the same critters. They both screw us in the end, so to speak...

Feds and bankers are the same critters. They both screw us in the end, so to speak...

YAOW Now ! There's some bald face strong arm Piracy .

I see, so The Plan was conceived under the Bush administration.

Too bad the bushbots don't understand this.

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... maybe it would have been wiser to let the repubs win as it would confirmed this ...
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... now it is just conjecture, conjecture, conjecture ...
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Where are the responses where is the outrage?

Because the ones complaining think this is all Obama's fault.

the banks weren't in great shape because the banks over leveraged like 20 to 30 times more than they should have. But some insider wall street government officals opened up pandoras box with allowing over leveraging and the direvitive market.

It was a contrived disastor. Set up. Done on purpose. And now the usa tax payer is on the hook for trillions and the bankers that caused the bank disastors walked away with billions in their bank accounts. Go figure.

Why is no one talking about the Chrysler, Fiat, Supreme Court decision.

A total disregard for bankruptcy laws and rule of law in this country?

That is really serious, along with many other serious issues in this country right now.

Uh, I am wondering why you stupifucks keep discussing red versus blue and let the Paulsonopoly just walk and continue to smile at the cameras?

When I go to traffic court, the judge wants to make sure I know who's the boss. He will get his ten fucking dollars, I assure you.

WAKE THE FUCK UP SO CALLED PATRIOTS! YOU JUST GOT SERVED!

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Don't forget that Nancy and Harry held the top spots and the Dems owned both houses for the last 2 years of Bush's presidency. Bush is certainly not blameless in this whole fiasco but assigning full blame to the Repubs in this is unbelievably ignorant.

Goldman Sachs made billions by PREDICTING the mortgage meltdown in 2007. During 2008, BY HIS OWN WORDS (CNBC Special Report, March, 2009) Paulson said, "We kept going into the President (Bush) and telling him that home values HAD TO GO DOWN. Why? Who benefited? Goldman Sachs would have failed completely if home prices did not decline precipitously as they pushed the market lower and lower so that ultimately, the banks had to stop lending on home mortgages.

badger badger badger badger badger badger badger badger badger badger badger badger badger badger badger badger badger badger badger badger badger badger badger badger

:-D

So you are saying that the Bush I and II Supremes are violating the U.S. Constitution? Must be a bunch of communists! :5:

I am saying Obama changed the deal to reverse bankruptcy law to pay the UAW over bondholders and other secured creditors.

This is major breach of bankruptcy law and is incongruent to rule of law in this country.

What can we actually believe anymore if rule of law is not respected?

I am saying Obama changed the deal to reverse bankruptcy law to pay the UAW over bondholders and other secured creditors.

This is major breach of bankruptcy law and is incongruent to rule of law in this country.

What can we actually believe anymore if rule of law is not respected?

SEPTEMBER 15 2008 UNDER THE BUSH REGIEM LOOK IT UP!!!!!!!!

Obama did this? Please provide a link. No linky; you stinky.

Forget NOW for a second and ASK WHO DID THAT ON SEPT 15 2008 during Bush's exit stage left. MASSIVE WITHDRAWAL! BILLIONS BY THE SECOND.

WHO started this?

ac #...456 said Nancy and Harry had control of both houses for 2 yrs. while Bush ran roughshod over the American public. Well in the case of the bailout I don't recall any actions being brought before congress re specific actions taken. They were only asked to vote to fund trillions or else "Economic Doomsday." That said, remember when Bush sent that rhino of a man (asst sec of state who later said he outed Valerie Plame) to Pakistan to seek their aid in the war on terror. Pak. Pres. Musharef later spoke of that meeting saying: The US promised to bomb us back to the stone age if we didn't help them." This is just the way Bush did business. Why should we expect any less when it comes to domestic policy? Wall ST JOurnal just ran story that $27.5 Trillion of toxic assets are still viable debt as of 6-5-09. This whole bailout charade is just another scheme to keep taxpayers on the hook while transfering $ to the selected haves.

To me there are basically 3 political viewpoints in this country. You have the democrat who hates something that a Republican does, only to support it when their democrat is in office and does the same thing.

You also have the Republicans that do the same thing.

Then you have the rest of us who realize that what is important is the action and what it will do to our country. Regardless of what party the president is in, they are all working for the same goals. Power over everyone else. They are all on the same team. It's really dumb for you people to come to a forum like this and still hold on to your partisan crap.

BINGO!

As I stated in another thread; We are watching Communism in action. The State has assumed all financial, physical and legal control of what is supposed to be a free market and free country. For them the quickest way to guarantee both perceived Constitutional failure and Socialistic success is to destroy faith in the USA. They demonized our Constitutional Republic through the implementation of Democracy. The natural progression of a democracy is to Communism.

Another trick they played on us all is to create the “Leftist, Centrist & Rightist” personal governmental stance and belief system. Simply put none of this exists at all since a true picture is best described as on the one hand is FREEDOM and on the other hand CONTROL. The more government is in our lives the less FREEDOM we have and the more CONTROL the government gains.

All of the government forms like DEMOCRACY, COMMUNISM, SOCIALISM, DICTATORSHIP & FASCISM are all under the umbrella of what is known as an OLIGARCHY. If you must view it all on a line than the best way to describe matters is that we have a sliding dimmer switch. Freedom is the full power and brightest setting while we slide it to the other end and the people’s power turns completely OFF and we fall into tyranny.

+1 for the sliding switch analogy.

But some slider switches have a little motor behind the panel which would create a determined resistance if the motor wants to turn the lights down and your finger wants to turn the lights up. If you feel resistance, you gotta unscrew the bezel or facade and see the workings of the slider mechanism.

Thanks! Let us not create more confusion than the government has done already. We hear and see in the media each and every day that the Fox stations lean Right and the CNNs lean Left. Naturally this is all fictitious on all levels. (I don't know if the format will work?)

Slavery.....................................................​..............................Liberty
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That is all there ever was and currently Communism best fits what we are seeing what was our government do! What we are not seeing is a government that operates within the scope of its founding documents! We no longer have a Constitutional Republic. So take any descriptive tag you like and affix it to what we do have except "Constitutional Republic" and what becomes clear is that we are closer to slavery than to freedom!

Last Edited by Cranky on 06/10/2009 12:28 PM

Agreed OP

But what is really going on is simply this: First, all the banks had to get on the same page and expose the "toxic" assets. Paulson got involved first before the BushCo switch out of office in order to "buy the most repulsive and most toxic of assets".

The stress tests now then, level the playing field and allow the remaining SIV's or toxic assets to be valuable rather than worthless and valueless. The accounting rules changes to allow the SIV (special investment vehicles [sic] toxic assets remaining) OFF of the balance sheets under the STRESS TEST RULES. Now that all has settled down, the banks are repaying the loans which they did and did not really need. What WAS needed was the leveling of the field, hiding those really bad assets under payoff from Paulsons bailout money, and new accounting procedures.

Under the current plan, evolved, the SIV's are being valued under DCF (discounted cash flow-rather than MTM "mark to market" [sic] the cash selling price for 100% all cash purchase to get off the books for good).

All well and good and therefore, with the FEDs allowing SIV's off the books as the NEW normal reporting procedure, the only remaining problem is what to do with the SIV's.

The current solution allows for them to remain in suspension...no payments to the loan assets and non performing assets are OK and no forced foreclosure either thereby saving the commercial real estate market from complete collapse.

The RUSH to pay back and get out from under the thumb of the FEDs is because this thinking (SIVs off the books) may change under the whim of Geitner or the Treasuery...so the rush to remove the "healthy" banks from the pressing thumbs...trusting Geitner to "let sleeping dogs lie" until 2010 or 2011.