This can happen here

All we need is a bailout bill to light the fuse…

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“No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law” -Article 1, Section 9, U.S. Constitution

Pic o’ da day

[Hat tip]

Bread or Freedom?

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You can’t buy confidence.

CONGRESS – LISTEN UP!

This one gets it

The Trillion dollar tax bill

Cos really, that’s what it is. Over a trillion $$$ by some estimates, though generally referred to by it’s revolving credit line of $700 BILLION, whatever, it amounts to one thing: TAX.

Whether it’s to prop up the primary dealers so they have enough reserves to vend US Treasuries to foreign entities needed to fund this nation’s operations during NEXT YEARS PROJECTED RECORD DEFICITS, or IT’S GOING TO REPLENISH THE FEDERAL RESERVE’S BALANCE SHEET because they used up eighty years of reserves in the last nine months stick-saving failing private enterprises, or to reward the banking establishment for a job well done (transferring a record amount of wealth to a discreet few during the last two bubbles), it amounts to nothing more than a tax.

But make no mistake, this sucker is the MOTHER OF ALL TAX INCREASES.

Most folks don’t mind the necessary evil of taxation when they can see it in deed or action- building roads, developing infrastructure, funding an equitable legal system, defense, improvements, etc.

But this money being forcibly extracted from US will be used for paying down the interest on our HUMONGOUS debt service run up by the TWIN BUBBLES of tech and housing.

How much is that? Well, this year, about $400 BILLION. Next year? About $700 BILLION.

Happy now? Does knowing the truth make it hurt a little less?

Welcome to Weimerica. Would you like a coffee? That’ll be $10,000.00 please. Large notes only, we find the small ones often have traces of fecal matter.

***UPDATE***

We are asked to believe the two liars, Bukkake and Panky, have it right this time (remember “subprime is contained”). OK, two questions:

1. What if it doesn’t work? (Probability: 85%)
2. What will they do then-  come back for more?

It’s been in planning for months…

…. and they waitied to spring it just before recess.

…

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“These are the same geniuses who got us into this mess. They can get themselves out.” -Walter Howard [LATimes]

Ah, memories…. when subrpime was contained

[Hat tip]

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“Isn’t it bizarre to have officials who miscalled so much … confidently declaring that they know better than the market what a broad class of securities is worth?” -Paul Krugman

Pure, unadulterated BOLLOCKS

“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.”

-From the Bailout Biatches Bill, proposed by Colonel Klink (Hanky Panky)

“Paulson’s plan to revive the banking system by buying up hundreds of billions of dollars of illiquid mortgage-backed securities (MBS) and other equally poisonous debt-instruments; ignores the fact these complex bonds have already been “marked to market” in the recent firesale by Merrill Lynch. Just weeks ago, Merrill sold $31 billion of these CDOs for roughly $.20 on the dollar and provided 75 percent of the financing, which means that the CDOs were really worth approximately $.06 on the dollar. If this is the settlement that Paulson has in mind, than the taxpayer will be well served. But this will not recapitalize the banks balance sheets or mop up the ocean of red ink which is flooding the financial system. No, Paulson intends to hand out lavish treats to his banker buddies, while interest rates soar, pension funds collapse, the housing market crashes, and the dollar does a last, looping swan-dive into a pool of molten lava. Thanks, Hank.

“Economist and author Henry Liu summarized the current maneuvering like this: ‘The Fed is merely trying to inject money to keep prices not supported by fundamentals from falling. It is a prescription for hyperinflation. The only way to keep price of worthless assets high is to lower the value of money. And that appears to be the Fed unspoken strategy.’”

- Market Oracle

OMFG – a congresscritter with a clue!

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“American consumers might benefit if lenders provided greater mortgage product alternatives to the traditional fixed-rate mortgage.” -Alan Greenspan, February 2004