Comments on: Paulson to America: Your Money is the Banks’ Money http://firedoglake.com/2008/12/17/paulson-to-america-your-money-is-the-banks-money/ Firedoglake weblog Thu, 26 Nov 2009 00:35:45 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: damagedone http://firedoglake.com/2008/12/17/paulson-to-america-your-money-is-the-banks-money/#comment-1763954 damagedone Thu, 18 Dec 2008 16:25:01 +0000 http://firedoglake.com/2008/12/17/paulson-to-america-your-money-is-the-banks-money/#comment-1763954 <p>Here is how Paulson former employer apparently used the money.</p> <p><a href="http://www.financialweek.com/apps/pbcs.dll/article?AID=/20081217/REG/812179977/1036" rel="nofollow">http://www.financialweek.com/a.....79977/1036</a></p> Here is how Paulson former employer apparently used the money.

http://www.financialweek.com/a…..79977/1036

]]> By: MarkH http://firedoglake.com/2008/12/17/paulson-to-america-your-money-is-the-banks-money/#comment-1763623 MarkH Thu, 18 Dec 2008 08:09:35 +0000 http://firedoglake.com/2008/12/17/paulson-to-america-your-money-is-the-banks-money/#comment-1763623 <blockquote><p>I thought banks were required to maintain a cash reserve so they wouldn’t need to be bailed out.</p></blockquote> <p>A lot of banks apparently used Mortgage Backed assets and the mortgages became less valuable either because they were finally recognized as bad/toxic or because the houses associated with them were quickly losing value after the housing bubble burst. That reduced the value of a bank’s reserves and caused them to place more other assets with those assets to build up the reserves — thus leaving them less capital to loan out.</p> <p>Whomever allowed mortgage lending to create bad mortgages made a boo boo.<br /> Whomever allowed mortgages to be splintered and distributed to the winds in various CDOs made a boo boo.<br /> Whomever caused rating agencies to call these toxic assets AAA made a boo boo.<br /> Whomever made law which wouldn’t let mortgage servicers modify a mortgage to keep it from defaulting made a boo boo.<br /> Whomever bought a Credit Default Swap on bad mortgage assets from someone who didn’t have proper reserves made a boo boo.<br /> Whomever refused to let Credit Default Swaps be regulated made a boo boo.<br /> Whomever refused to let New York regulate the offering of Credit Default Swaps as insurance made a boo boo.</p> <p>There are a LOT of boo boos which is a red flag telling me it was done intentionally (at least a large part of it). Somebody wanted this disaster to befall us.</p>

I thought banks were required to maintain a cash reserve so they wouldn’t need to be bailed out.

A lot of banks apparently used Mortgage Backed assets and the mortgages became less valuable either because they were finally recognized as bad/toxic or because the houses associated with them were quickly losing value after the housing bubble burst. That reduced the value of a bank’s reserves and caused them to place more other assets with those assets to build up the reserves — thus leaving them less capital to loan out.

Whomever allowed mortgage lending to create bad mortgages made a boo boo.
Whomever allowed mortgages to be splintered and distributed to the winds in various CDOs made a boo boo.
Whomever caused rating agencies to call these toxic assets AAA made a boo boo.
Whomever made law which wouldn’t let mortgage servicers modify a mortgage to keep it from defaulting made a boo boo.
Whomever bought a Credit Default Swap on bad mortgage assets from someone who didn’t have proper reserves made a boo boo.
Whomever refused to let Credit Default Swaps be regulated made a boo boo.
Whomever refused to let New York regulate the offering of Credit Default Swaps as insurance made a boo boo.

There are a LOT of boo boos which is a red flag telling me it was done intentionally (at least a large part of it). Somebody wanted this disaster to befall us.

]]> By: MarkH http://firedoglake.com/2008/12/17/paulson-to-america-your-money-is-the-banks-money/#comment-1763621 MarkH Thu, 18 Dec 2008 07:53:28 +0000 http://firedoglake.com/2008/12/17/paulson-to-america-your-money-is-the-banks-money/#comment-1763621 <blockquote><p>Is this the reason the M3 (how much money is in circulation) report is no longer being done?</p></blockquote> <p>Back during the general election campaign I suggested Palin be asked if M3 should be printed again. And THAT was long before this bailout stage of the Bush disaster began.</p> <p>I’d guess Paulson wants to run the presses hot, so they can flood the economy with dollars and keep it ruined long after Bush is out of office.</p>

Is this the reason the M3 (how much money is in circulation) report is no longer being done?

Back during the general election campaign I suggested Palin be asked if M3 should be printed again. And THAT was long before this bailout stage of the Bush disaster began.

I’d guess Paulson wants to run the presses hot, so they can flood the economy with dollars and keep it ruined long after Bush is out of office.

]]> By: dmac http://firedoglake.com/2008/12/17/paulson-to-america-your-money-is-the-banks-money/#comment-1763494 dmac Thu, 18 Dec 2008 05:55:08 +0000 http://firedoglake.com/2008/12/17/paulson-to-america-your-money-is-the-banks-money/#comment-1763494 <p>i wrote a diary about him, and why i think obama invited warren.<br /><a href="http://oxdown.firedoglake.com/diary/2512" rel="nofollow">http://oxdown.firedoglake.com/diary/2512</a></p> i wrote a diary about him, and why i think obama invited warren.
http://oxdown.firedoglake.com/diary/2512

]]> By: Mukei http://firedoglake.com/2008/12/17/paulson-to-america-your-money-is-the-banks-money/#comment-1763382 Mukei Thu, 18 Dec 2008 04:03:25 +0000 http://firedoglake.com/2008/12/17/paulson-to-america-your-money-is-the-banks-money/#comment-1763382 <blockquote><p>Let me translate this…</p></blockquote> <p>Ooops. My bad. Though with these guys it’s so easy to believe…</p>

Let me translate this…

Ooops. My bad. Though with these guys it’s so easy to believe…

]]> By: Petrocelli http://firedoglake.com/2008/12/17/paulson-to-america-your-money-is-the-banks-money/#comment-1763374 Petrocelli Thu, 18 Dec 2008 03:55:17 +0000 http://firedoglake.com/2008/12/17/paulson-to-america-your-money-is-the-banks-money/#comment-1763374 <p>He thought Obama was serious about lovin’ teh rugged Western look …</p> He thought Obama was serious about lovin’ teh rugged Western look …

]]> By: Blub http://firedoglake.com/2008/12/17/paulson-to-america-your-money-is-the-banks-money/#comment-1763370 Blub Thu, 18 Dec 2008 03:52:24 +0000 http://firedoglake.com/2008/12/17/paulson-to-america-your-money-is-the-banks-money/#comment-1763370 <p>a train in this state they goes 85 miles an hour? what a concept ;-)</p> a train in this state they goes 85 miles an hour? what a concept ;-)

]]> By: Mukei http://firedoglake.com/2008/12/17/paulson-to-america-your-money-is-the-banks-money/#comment-1763367 Mukei Thu, 18 Dec 2008 03:49:03 +0000 http://firedoglake.com/2008/12/17/paulson-to-america-your-money-is-the-banks-money/#comment-1763367 <blockquote><p>“We will print as much money as we have to to make sure no more banks fail. We gave or guaranteed 350 billion to Citigroup, after all. We’re willing to spend however much taxpayer money it takes.”</p></blockquote> <p>Did our “Treasury Secretary” just fail to understand the vast difference between acquiring money through taxation, and manufacturing it out of thin air?</p> <p>Truly, a Bush Administration official.</p>

“We will print as much money as we have to to make sure no more banks fail. We gave or guaranteed 350 billion to Citigroup, after all. We’re willing to spend however much taxpayer money it takes.”

Did our “Treasury Secretary” just fail to understand the vast difference between acquiring money through taxation, and manufacturing it out of thin air?

Truly, a Bush Administration official.

]]> By: selise http://firedoglake.com/2008/12/17/paulson-to-america-your-money-is-the-banks-money/#comment-1763365 selise Thu, 18 Dec 2008 03:47:55 +0000 http://firedoglake.com/2008/12/17/paulson-to-america-your-money-is-the-banks-money/#comment-1763365 <p>maybe krugman stole it from the same place? that kind of “balance” we can do without.</p> maybe krugman stole it from the same place? that kind of “balance” we can do without.

]]> By: Hugh http://firedoglake.com/2008/12/17/paulson-to-america-your-money-is-the-banks-money/#comment-1763363 Hugh Thu, 18 Dec 2008 03:42:47 +0000 http://firedoglake.com/2008/12/17/paulson-to-america-your-money-is-the-banks-money/#comment-1763363 <p>Hey he weighed in on FISA and the $700 billion bailout even before he was elected.</p> Hey he weighed in on FISA and the $700 billion bailout even before he was elected.

]]>