The $700bn bail-out was signed into law, October 3. Even with the news of the bail-out, stocks kept falling. Monday stocks kept falling, banks world-wide were on the brink of failing, and now the Federal Reserve is talking about EXPANDING the $700bn bailout.
The global financial crisis has taken a perilous turn: As government efforts to tame it grow more aggressive, markets are becoming less confident those efforts will succeed.
On Monday, the Federal Reserve and European governments stepped up relief efforts, above and beyond the $700 billion rescue package approved by the Congress last week. But markets around the world responded with a massive vote of no confidence. European stocks saw their biggest drop in at least 20 years, and the Dow Jones Industrial Average dropped below the 10000 mark, a stark sign that the crisis may be outpacing policy makers’ ability to contain it.
[...]The Fed, 12 months into a sometimes makeshift campaign that is rewriting textbooks on central banking, unveiled more measures Monday to unblock the stoppage that has plagued short-term-lending markets for the past few weeks. It said it will begin paying interest on the reserves that banks leave on deposit with the central bank, a key addition to its playbook. The move will make it easier for the Fed to manage interest rates while it floods a damaged financial system with loans that nobody in the private sector will make.
That $700bn elephant sitting in the corner was supposed to alleviate the credit crunch, wasn’t it??? Apparently not, when the Fed is now talking about corporate “lending,” a nicer term for bail-out.
The government is weighing a bold plan to buy massive amounts of unsecured short-term debts in a dramatic effort to break through a credit clog that is imperiling the economy.
The Federal Reserve is working with the Treasury Department on the plan to buy “commercial paper,” a short-term financing mechanism that many companies rely on to finance their day-to-day operations, such as purchasing supplies or making payrolls, according to a person with knowledge of the plan.
The person spoke on condition of anonymity because the plan is still being put together. The market for this crucial financing, which relies on investors rather than banks, has virtually dried up.
These folks are still getting it wrong. The “bail-out” should be going to the people and small businesses that are being stiffed and gouged by the blood-sucking CEO’s and executives that are only beholden to greed.
Take a look at the failure of Lehman Brothers, and their crying for money as executives reaped millions.
Days from becoming the largest bankruptcy in U.S. history, Lehman Brothers steered millions to departing executives even while pleading for a federal rescue, Congress was told Monday.
As well, executives who feared for their bonuses in the company’s last months were told not to worry, according to documents cited at a congressional hearing. One executive said he was embarrassed when employees suggested that Lehman executives forgo bonuses, and cracked: “I’m not sure what’s in the water.”
This is why the people are pissed off beyond belief, you simply do not reward people for failures. Failures are penalized. Geezy wheezy, when the hell are these folks (Fed, Congress, Wall Street) going to get it right?
The bailout was the wrong thing to pass. It’s time to do
something right.
Please support this proposal and get your Congressional
representative to sponsor this solution to our current
monetary crisis.
A complete list from the Detailed Executive Summaries of
the National Economic Stabilization and Recovery Act:
http://nesara.org/bill/index.htm
Immediate Relief and Results
# Eliminates more than $1 trillion of the nation’s public
debt
# Reduces future private debt by more than $1 trillion
# Immediately eliminates some private debt, especially for
many homeowners
# Workers maintain better control of their earnings
# Production is no longer taxed, just consumption
# Most of the necessities of life are not taxed
# Encourages production thus revitalizing industry in
America
# Encourages rebuilding of inner cities
# Discourages wasteful uses of natural resources
# Exposes the true cost of government
# Greatly eliminates the struggle between tax “protesters”
and bureaucracy
# Allows the “underground” to resurface and become a viable
contribution to production of goods and services
# Greatly restricts the influence of special interests and
lobbyists
The Federal Reserve System
# The Federal Reserve Act of 1913 is amended
# The Federal Reserve System is abolished and replaced by a
new Treasury Reserve System
# Control of the currency is moved from private control of
the Fed to public control of Congress and the new Treasury
Reserve System
# Congress sets the standards for the new monetary system
but the people create as much or as little currency as they
need
# Functions of the Federal Open Market Committee are
transferred to the Board of Governors of the new Treasury
Reserve System
# A new mechanism, the Treasury Reserve Account, is created
to provide the Treasury Reserve System Board of Governors a
better method to fine-tune the money supply, effectively
eliminating inflation
# The Treasury Reserve System Board of Governors will
continue using the previous three mechanisms for
controlling the money supply: 1. Setting reserve
requirements. 2. Setting the national discount rate. 3.
Purchasing U.S. Treasury securities on the open market.
# All U.S. Treasury securities purchased by the Treasury
Reserve System Board of Governors will be immediately
turned over to the U.S. Treasury and cancelled out of
existence.
Monetary Policy
# People are provided with several alternatives for
currency
# Constitutional currency is restored
# Currency becomes debt free as the people stop paying
interest payments for their use of a public utility
# Unlike previous policy, the new Treasury Reserve Board is
provided one very specific mandate: maintain a stable
currency
# Expansion of the economy is returned to the free market
# Private coinage is encouraged
# Exchange ratios for the various currencies are published
at least weekly
# Printing of redeemable gold and silver certificates is
allowed
# Postal money orders are made available in denominations
of gold and silver coin
Banking
# Returns the banking industry to serving public interests
# For secured loans, compound interest is outlawed and
replaced with a monetization fee
# Provides stricter banking controls by imposing excise
taxes to discourage high or runaway monetization fees
# On secured loans obtained from a fractional reserve bank,
principal must be paid in full before the bank begins
collecting its monetization fee
# Eliminates the facade for banking insurance (FDIC)
# Except for fraud and criminal activities, virtually
eliminates bank failures
# Banks are prohibited from using as reserves any
commercial paper
# Only Treasury credit-notes can be used as bank reserves
# Banks are prohibited from purchasing government issued
debt, effectively removing banks from influencing monetary
policy
# Checking accounts against gold and silver deposits are
prohibited
# Commingling of funds among the various money accounts
without owner’s permission is prohibited
# All currency deposits with banks are general warrant
deposits and custody accounts.
The Income Tax
# The Income Tax Act of 1939 is amended
# People need no longer fear the IRS
# Billions of hours of nonproductive labor are eliminated
# Mounds of paper work are eliminated
# The cost of the income tax is no longer hidden and
embedded in the cost of doing business and passed down the
chain with the consumer paying the final tab
# Most likely eliminates state income tax plans because
state income taxation piggybacks on federal income taxation
# The IRS is reformed into the National Tax Service
# Volumes of complicated tax code are history
# Eliminates personal income taxes
# Eliminates corporate income taxes
# Eliminates gift taxes and estate taxes
# Eliminates capital gains taxes
Sales and Use Tax
# Tax rate of 14%
# Government entities are exempt
# Government mandated expenses such as licenses, permits,
passports, are exempt
# Sales of bullion, coin and currency are exempt
# Sales made by or to nonprofit schools are exempt
# Sales of prescription drugs, medical supplies and
services are exempt
# Real estate rents and leases are exempt
# Sales of groceries are exempt
# Sales of plants, livestock and fish used in the
production of food for human consumption are exempt
# Insurance sales are exempt
# Segregated portions of labor in retail service contracts
are exempt
# Incidental or occasional sales such as garage or rummage
sales are exempt
# Sales for the purposes of recycling are exempt
# Meals provided by companies at company expense are exempt
# Sales that are nonprofit in nature are exempt