Washington Post: Lawmakers Reach Accord on Huge Financial Rescue

Posted by Kendall Harmon

Congressional leaders and the Bush administration this morning said they had struck an accord to insert the government deeply into the nation's financial markets, agreeing to spend up to $700 billion to relieve Wall Street of troubled assets backed by faltering home mortgages.

House and Senate negotiators from both parties emerged with Treasury Secretary Henry M. Paulson Jr. at 12:30 a.m. from a marathon session in the Capitol to announce that they had reached a tentative agreement on a proposal to give Paulson broad authority to organize one of the biggest government interventions in the private sector since the Great Depression.

Full details of the plan were not immediately available. Lawmakers said their staffs would be working through the night to assemble the package and post it on the Internet.

Read it all.

Filed under: * Economics, PoliticsEconomyThe September 2008 Proposed Henry Paulson 700 Billion Bailout Package

4 Comments
Posted September 28, 2008 at 7:39 am [Printer Friendly] [Print w/ comments]



1. Sick & Tired of Nuance wrote:

Well, everyone’s fears over a Depression will be calmed now.  When will the fears of hyperinflation begin?

“Hyperinflations are caused by extremely rapid growth in the supply of “paper” money. They occur when the monetary and fiscal authorities of a nation regularly issue large quantities of money to pay for a large stream of government expenditures. In effect, inflation is a form of taxation where the government gains at the expense of those who hold money whose value is declining. Hyperinflations are, therefore, very large taxation schemes.”
emphasis added

“Hyperinflations tend to be self-perpetuating. Suppose a government is committed to financing its expenditures by issuing money and begins by raising the money stock by 10 percent per month. Soon the rate of inflation will increase, say, to 10 percent per month. The government will observe that it can no longer buy as much with the money it is issuing and is likely to respond by raising money growth even further. The hyperinflation cycle has begun. During the hyperinflation there will be a continuing tug-of-war between the public and the government. The public is trying to spend the money it receives quickly in order to avoid the inflation tax; the government responds to higher inflation with even higher rates of money issue.”

“What effects do hyperinflations have? One effect with serious consequences is the reallocation of wealth. Hyperinflations transfer wealth from the general public, which holds money, to the government, which issues money. Hyperinflations also cause borrowers to gain at the expense of lenders when loan contracts are signed prior to the worst inflation. Businesses that hold stores of raw materials and commodities gain at the expense of the general public. In Germany, renters gained at the expense of property owners because rent ceilings did not keep pace with the general level of prices. Costantino Bresciani-Turroni has argued that the hyperinflation destroyed the wealth of the stable classes in Germany and made it easier for the National Socialists (Nazis) to gain power.”

http://www.econlib.org/library/Enc/Hyperinflation.html

Welcome to the New World Order.  To prevent identity theft, all citizens of the world will be required to bear a mark on either their forehead or on their right hand.  Those failing to bear the mark will not be able to make either purchases or sales.  Some of the superstitious among you may protest against these necessary and practical security measures based on irrational religious dogma.  These people, who would willingly put your children’s future at risk, want us to disregard centuries of progress and rational thought and return to medieval economics. This is a global economic emergency and we must take decisive action immediately.  While every effort will be made to make the transition to the Improved Economy as smooth and comfortable for everyone as possible, resistance will not be tolerated.  All people resisting these modest security measures are in fact aiding economic terrorism and are enemies of the World and will be dealt with severely.  Remember, we are all in this together.  We are all global citizens and we must all do our part to make a brighter future for our children.

September 28, 8:21 am | [comment link]
2. Jim of Lapeer wrote:

The two parties are so involved in the corruption that led to this mess that it boggles the mind.
The impetus for this quick solution was that any longer examination would expose both sides to a very critical analysis of what they had been doing, and what they had not been doing.
  They are fixing their corruption and others corruption with the money of people who were not involved at all.
  It is wrong on so many counts that I am disgusted with both the Republicans and Democrats.
  Nader or Barr will now get my vote as a protest to the broken Washington machine.

September 28, 8:40 am | [comment link]
3. Sarah1 wrote:

RE: “Nader or Barr will now get my vote as a protest to the broken Washington machine.”

I will not be voting for either main presidential candidate either.

I’m disgusted beyond words.

September 28, 11:05 am | [comment link]
4. Jeffersonian wrote:

The fix was in from the beginning, folks.

September 28, 3:15 pm | [comment link]
Registered members must log in to comment.




Next entry (above): A Follow up: Examples of Questions from the Heart from a current Adult Education Class

Previous entry (below): Bishop David Beetge RIP

Return to blog homepage

Return to Mobile view (headlines)