Citing Grave Financial Threats, Federal Government Readies Massive Rescue
The Bush administration is urgently preparing a massive intervention to revive the U.S. financial system, including a plan to sweep away the unpaid loans that are choking banks and blocking the flow of money to borrowers.
Congressional leaders gave bipartisan support to the administration’s efforts after a meeting last night with Treasury Secretary Henry M. Paulson Jr. and Federal Reserve Chairman Ben S. Bernanke.
Paulson and Bernanke presented a “chilling” picture of the state of the financial system, according to a participant in the meeting who spoke on condition of anonymity. Lawmakers were told that the consequences would be grave if they failed to pass legislation by the end of next week. Sen. Harry Reid (D-Nev.) and Rep. Nancy Pelosi (D-Calif.) committed to meeting that deadline.
The plan involves using hundreds of billions of dollars in government funding to buy bad loans, leaving banks with more money and fewer problems, according to two sources familiar with what was said at the meeting.
After the meeting, Paulson told reporters the proposal was “an expeditious solution that is aimed right at the heart of this problem.”
Also last night, the Fed was considering offering backing for money-market mutual funds, which have had massive withdrawals in recent days, said a source familiar with the discussions.
The United States is in debt by Trillions,so where is the bail out monies coming from?
The Gulf coast along the southeast corner of Texas has been ravished by Hurricane Ike, where is the monies coming from for Aid?
We are financing freedom wars around the world where is the monies coming from?
Free enterprise that has made this democracy succeed has just been sold to
foreign investors.
Good time to read Revelation 18 / Babylon the great has fallen and they stood afar off and wept. She used to sit as a queen and believe no harm would come to her shores. I know I paraphrased these passages but I believe Time is at hand.