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 Daily Blog
Tiger Software

  11/14/2008 -  11/15/2008

We're Doomed with
Paulson Running
Things.

Actually, He Knows
Exactly What He's Doing. 
He Is Robbing The
US Treasury Bare.


  Why Should The Public Trust
  Washington or Wall Street?

  This Bodes Poorly for The Stock
  Market and The US Economy

   
  
 
by William Schmidt, Ph.D.
       www.tigersoft.com


      Send any comments or questions
      to william_schmidt@hotmail.com

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      Previous TigerSoft Blogs on Paulson, Bankers and Socialism for the the Rich.
    
March 19, 2009   Long Wars Hurt The Stock Market.
     
Marcg 13, 2008  Carlyle, Fannie Mae and Freddie Mac Bailouts?  
   September 20, 2008     Paulson Takes Corruption and Cronyism To Dizzying New Heights.
   September 21, 2007   Monopoly Finance Capitalism Is Out of Control
   October 20, 2008     The Foxes from Goldman Sachs Are In The Hen House.  

                 
          We're Doomed with Paulson Running Things.

           To recap: Paulson has gotten the taxpayers to give him $700 billion
         to give to banks, so that the banks can then charge the same
         taxpayers interest on their money.    It takes a government that
         thinks like this to destroy the US $8 trillion economy.


           The original Paulson Plan had the following wording:
                 "Decisions by the Secretary pursuant to the authority of this Act are
                   non-reviewable and committed to agency discretion, and may not be
                   reviewed by any court of law or any administrative agency."
                           (
I have found arrogance often is used to disguise incompetence.)

           
         After giving free reign to predatory bankers for years and wasting many trillion in
            a war started on false pretexts, the Bush Administration has now shackled Americans
            with the worst   economy since Herbert Hoover.  They never take any responsibility
            for their mistakes.   They think only in terms of giving more taxpayer money to their
            special clients, the biggest banks.  Like Hoover, Bush and Cheney insist that most
            Americans must blindly trust in the efficiency of the "free market".

                     Bush and Paulson talk only of "stabalization"and bank liquidity and resist all
            "demands for   "stimulus", "recovery"  and  government jobs to make up for
            the disappearance of private sector jobs.  Making matters worse, the Bushies
            deny the obvious; namely,  that we need to create market confidence now is
            more regulation of exhorbitant CEO pay, of Wall Street (credit default swaps
            and short sales) and bankers (what they can do with the billions given them),
            and hedge-fund managers   (who are chiefly rewarded for using excessive leverage).
            They seem unaware ob the obvious, namely that the collapse of the financial markets
            and its unnerving volatility, is a DIRECT RESULT of the Bush administration's failure
            to curb dangerous over-leveraging, over-speculation and short sales.  Until they admit
            their central role in the debacle, we are in deep trouble as long as they are in power.
            And there are two more months of Bush and Paulson we have to endure
.


           
There is a Much Simpler Solution? Give everyone in the US $2600 in crisp $100 bills.
            Let them spend it anyway they want.  2650 X 300,000,000 = about $700 billion.
            The banks would soon be flooded with liquidity. 
Problem solved!


                         
         ------- SCAMMING AMERICA-------

                           
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                                 Henry Paulson - by day                              Henry Paulson - at night.
             Paulson Admits He Has NO CLUE
                    How To Rescue The Economy.

                     But He Is 100% Sure He Wants The Banks
                    To Get The Taxpayers' 700 Billion.


                             

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   At least Paulson did not say "Mission Accomplished."

                     A month after Paulson told Congress that the solution was for the government to
                 buy the banks' toxic assets.  Now he just wants to give them the money outright.
                 Of course, he doesn't say this.  He calls it a "capital injection".  Why doesn't he
                 just give the money back, if this approach will not work?  The answer is, of course,
                 helping the economy was just a pretext for a huge heist, a bank robbery of
                 unprecedented proportions.             

                                    The Robber Baron Gang That Could Not Shoot Straight.

                     On 11/15/2008 Bush told the summit of foreign leaders why he has taken the
                 bailout steps he has.  This comes from Yahoo
                                            "
Underscoring how bad things have gotten this time,
                                         President George W. Bush, the summit host, said he
                                         had agreed to the recent $700 billion rescue plan for
                                         U.S. financial institutions only after being told the nation
                                          was at risk of falling into
"a depression greater than the Great Depression." "
                Bush may have just scared the stock market down another 1000 points! What a bungling
                idiot.   He is dangerously deranged idiot!           

                     The truth is that Paulson has no  idea what he is doing, except helping his cronies
               who run banks, rob the US Treasury and taxpayers blind.  On September 19th
                he said "
these illiquid assets are choking off the flow of credit that is so vital to
                the US economy... The federal government must implement a program to remove
                the illiquid assets that are weighing down our financial institutions and threatening our
                economy.
Now he says we should forget the original plan. We should trust his judgement
                once again.
(Until March 2008, Paulson maintained there was no financial crisis.)

                    In September, Paulson, Bush and Cheney scared timid, backboneless Congressional
                 Democrats into giving them this colossal sum (10% of the value of the nation's goods
                 and services for a year!) with hardly any strings, very little transparency  and tardy,
                 only token Congressional review.  TigerSoft warned readers what the consequences
                 of this would be: complete failure of stated objective, huge new indebtedness and
                 a bailout for one of the least deserving Úlites in America.  Again, we played the role of
                 Cassandra. (See our Blog of July 27, 2008.)
                                           
                                                          Scare Tactics and The Crash.

                     Paulson and his band of thieves said if the money was not forthcoming, there would
                be a "global meltdown:".   Not surprisingly, reckless talk like this dropped the stock
                market 30% in three weeks.  The DJI fell from 11388 on September 19th to a low of 8000
                on October 10th.   And, in fact, the market has not recovered.  The $700 billion has
                proved to be one vast theft!  It ranks right up there with the $3 trillion Iraq war blunder
                and, the entirely avoidable destruction of New Orleans, because levees were denied
                Federal funds that would have fortified them before Hurricaine Katerina.  So, too, the
                Paulson Plan has proved to be another abject failure for the Bush Administration, the
                country and the global economy.  At the same time it has been a huge boondoggle for
                banks, bankers and those that are receive dividends from them.  (Where previously it
                it was Dubai-based Halliburton that has benefitted, now it is huge banks like Bank of
                America, CitiGroup, Goldman Sachs, JP Morgan and Wells Fargo.)

                    What are the banks doing with our money?  They are certainly not lending it out.
                Long-term interest rates have risen!  Banks are buying other banks, paying deferred
                bonuses to top bankers and paying dividends to bank investors.  Only very, very low credit
                risk borrowers can get loans.  Needless to say, not a single banker has been brought
                up on charges of corruption and fraud.

                   Confidence is disappearing quickly.  With no requirement that they loan the money
                that was given, they are doing everything else but loan money.  Unemployment is rising
                very sharply.  New claimed wer emore than one half million last week. Nearly 3.9
                million are now being forced to live off unemployment chacks.  The labor market
                is deteriorating quickly.  (Source.)   Another 84,868 homes were foreclosed on in October,
                a million since July 2007, when we got our famour SELL  The Bush Administraton's
                response has been Hoover-like.  Or to put it charitably as the NY Tines did, "pathetic".

                               "
Paulson from intervening forcefully — using taxpayer dollars — on behalf of
                           an ever-expanding cast of bailout recipients. The tight fist is reserved for homeowners.
                           That is a huge policy error. The whole point of the bailouts is to stabilize the financial
                           system. But the system will not stabilize until house prices stabilize, and house prices
                           will not stabilize until the government finds a way to stanch foreclosures on a large scale
."
                           ( http://www.nytimes.com/2008/11/13/opinion/13thu1.html?ref=opinion )


                                              
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                    It would have been infinitely better if each person in the country had been mailed
                a check for $2300, the amount of the bailout.  Many would have spend it immediately
                on necessities.  That would have boosted the economy.  With a multiplier of 3:1,
                that would have boosted the economy by $2 trillion!  Think of the jobs that would
                have created. 

                   Obama, Pelosi and Reed each voted for this bailout.  Obama does not walk on water.
                Investors will soon see his desire to make friends with the powers-that-be and reach
                across the aisle will not serve him well in fixing the economy.  He will be compromising
                with the very people on Wall Street and in Banks who have created this horrible
                mess.   This, I fear, will be wholly inadequate for solving the immense financial and economic.
                We will be watching Obama's new Administration closely.  Comparisons with FDR's aggressive
               financial reforms will make for fascinating reading.


             

                   Socialism for Rich Bankers, More Indebedness for Everyone Else.

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             THE US ECONOMY IS BEING UNDERMINED
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