Bailout creep: What the hell is Hank Paulson up to now?!
George Bush’s Treasury Secretary Hank Paulson is rubbing his grubby paws with glee. Fresh off of executing the massive bank equity purchase, he has now signaled that it will be expanded — to include insurance companies.
The auto companies are lining up next. The ethanol industry wants in.
And they’ll tell two friends. And they’ll tell two friends. And so on. And so on. And so on.
How’s that crap sandwich tasting?
Via the WSJ:
U.S. Mulls Widening Bailout to Insurers
The Treasury Department is considering buying equity stakes in insurance companies, a sign of how the government’s $700 billion rescue program could turn into a piggy bank for a range of beleaguered industries.
The availability of U.S. government cash in the middle of a global credit squeeze is drawing requests from insurance firms, auto makers, state governments and transit agencies. While Treasury intended for the program to apply broadly, the growing requests could put a strain on the $700 billion, a sum that only last month stunned lawmakers.
MetLife Inc. and Prudential Financial Inc., two of the nation’s largest publicly traded life insurers, and New York Life Insurance Co., one of the highest rated insurers in the U.S., are interested in exploring a sale of equity stakes to the government, according to people familiar with the matter.
Broad participation in the rescue program would put more power in the hands of government to reshape the finance industry. On Friday, PNC Financial Services Group Inc., said Treasury would buy $7.7 billion of preferred stock and warrants. The cash injection will help the bank purchase struggling National City Corp., a move pushed by federal regulators. (Please see related article.)
In September, the government extended an $85 billion rescue loan to giant insurer American International Group Inc. in exchange for an 80% stake.
The Heritage Foundation, which sadly supported Crap Sandwich 2.0, weighs in: “We cannot afford the stomachache such government action will give the economy, and the market system. Treasury should just say ‘no” to this temptation.”
Too late.
***
Sing with me: I am changing my name to Fannie Mae…
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This is not the America I grew up in.
Well they need to buy out the insurance companies to make way for universal health care. Socialism…taking away your freedom one small step at a time.
Once the damage is done, Paulson will come before the microphones and say “I made a mistake”. I’m sorry”. Just like Alan Greenspan did recently. As if that fixes anything.
No one is held accountable for their actions any more. There are no consequences for bad choices except to the victims.
Here’s to the New Yo’Bama Times demise.
I am sure John & Sam Adams, Thomas Jefferson, Alexander Hamilton, Geroge Washington, James Madsion, James Monroe, John Hancock, the brave men and women who gave their lives to keep us free, et Al are all rolling in afterlife to the point there are huge amounts of dirt piling up and around their graves and mausoleums at stupidity of this boondoggle.
On Nov. 4th the lemmings of this country will march to the poles (some states have already started the march) and re-elect the idiots who made this all possible. Thanks to all who have voted to sell this once great nation to our own government with no accountiblity. We have yet to see the wrath we have wrought on ourselves.
Bailouts and earmarks and Obama, oh my!
This cartoon says it all.
In my opinion it appears that…
Hank Paulson is part of the Vast Left-Wing Conspiracy.
Bill Ayers and Barack Obama are Revolutionary Communists.
I’m assuming 10% of that bailout money goes to bonuses.
Yes, I will be changing my name to “Freddie Mac”.
Hank, GWB, Barney, Nancy, Dingy Harry….Help Me…
But will they help a lowly taxpayer?
Don’t count on it!
First, the binge, next, the purge. May God help us all.
This is so unbelievable. On foxnews.com the headline is they may be bailed out “due to bad investments”.
Seen my 401k lately? Its full of “bad investments”.
My Congressman (Baird D-WA3) is running against a like minded Democrat (so a write in it is) is still trying to convince us that this is for “the good of the nation” and we will all benefit from this. I wrote back and asked him to stay out of the state for awhile as I fear the lightning strikes.
So the upper class gets a bailout and the lower class gets more welfare and the middle class gets the mill stones. Nice.
Even if Obama is not lying (but I think he is) about his plan of taxing only those small businesses that make over 250k in profit (they still have not been clear on that point), it will still kill employment because most of these smaller business will not be able to afford the tax and absorb/hire the masses of unemployed workers now losing their jobs at larger companies.
An Obama administration would guarantee an across the board hiring freeze at companies large and small, and his tax plan the worst thing to happen to our economy since Jimmy Carter’s urban renewal plan.
Right on both counts, Red Pill!
We all remember what Michelle Malkin posted on her web site on September 11th of this year. The tributes were powerful and a needed reminder of what is at stake.
Do you know what Bill Ayers posted to his blog on the eve of 9/11/2008?
If he removes that post, here is the WebCite for it.
The Illustrated Road to Serfdom
This all could be one HUGE gamble to try and sell these preferred shares further down the line for such a big gain that the government will be able to tackle the $53Trillion dollar disaster that is heading our way in the form of the social security bucket running out.
Of course if Obama gets in it will all be for nothing.
Hopefully next time, rather than voting for the lesser of two evils, like they have done the past five Presidential elections, “conservatives” will actually vote for a “conservative”. (A novel idea, I know.) Otherwise, we’ll continue to have this result every time the Republicans win.
What does the United States Constitution matter to Revolutionary Communists?
On October 25th, 2008 at 11:38 am, Send_Me said:
I agree. This time, though, we MUST vote for LOTE (McCain and other RINOs) in order to:
1) Prevent Revolutionary Communists from gaining complete control of our government
2) Hope that Sarah! can “clean house” (aggressively go after corruptocrats) and influence RINOs to shape up.
This is the last election where we should allow anything less than Reagan Republicans to win Republican primaries.
With Oabam in control of the Executive, and Reid and Pelosi the Legislative, there will be no going back to free-markets and industrial privatization.
Can anyone recommend a good site that lists all the politicians that will be on your local ballot, and profiles for each?
On October 25th, 2008 at 11:45 am, DBNinKY said:
Much worse than that.
I smell a revolt coming…it ain’t gonna be pretty folks.
When your Repukican Sen. campaigns he stands in the middle to work with both sides, how can a conservative vote for him(or her), I’ll be writing in Mickey Mouse or Joe the Plumber they seem to be getting a lot of press lately.
I will not submit, not now or ever!
To answer my own question, smartvoter.org looks good - enter your address and zip code, and you get a full list of everyone that will be on your ballot come election day. With the exception of McCain (in order to keep Obama out) we don’t want to be voting in more RINOs instead of true conservatives.
It increasingly looks like the election doesn’t much matter. We’ve already uncorked the bottle containing the socialism genie, and even McCain’s goals show little inclination to put that cork back in. Pretty soon we’ll no doubt all be driving hybrid Yugos.
#24On October 25th, 2008 at 11:47 am, ITookTheRedPill said:
On October 25th, 2008 at 11:45 am, DBNinKY said:
With Oabam in control of the Executive, and Reid and Pelosi the Legislative, there will be no going back to free-markets and industrial privatization.
Much worse than that.
It’s really not a surprise that William Ayers and his followers want to kill 25 million+ capitalist Americans.Just look back over the last 90 years of Communist and Nazi control and you’ll see that some 100 million people have been killed in purges,gulags,and government induced famines.It would be the usual pattern of revolution,purge,and control.That’s SOCIALISM AT WORK!
Bush/Paulson/Bernanke personally are culpable for the loss of 40% of my retirement savings.
Sowing fear into a market is by far the dumbest and most dangerous act of this administration- and that is saying something.
Like this? Also, considering that the government, under a Republican executive, has already nationalized our largest banks, federalized the credit industry, and grown our government to likes we’ve never seen, I fail to see how electing McCain would help very much.
To shape up and fall in line, as she has, with McCain’s solution to illegal immigration, right?
I guess I have to ask: does the “conservative” movement give its allegiance to the Republican party or to its own political philosophy and public policy platform? And secondly, if it claims to stand by the latter, why is it so weak-kneed by not standing by those principles when choosing political candidates? They wonder why McCain runs roughshod over them, yet fail to realize that they’ve already given him all of their political power to him by promising to vote for him solely because he’s not the other guy. He’s already met the criterion to get the “conservative” vote, so why should he go above and beyond that to meet any of their other demands?
Too late indeed. Far too many pseudo-cons lined up for this when a moment’s reflection would have told them the dangers and just where this was heading. If I weren’t so terrified as to what is to come after the election, I would be overcome with rage at establishment conservatives and their RINO buddies, weenies all. With a few exceptions, MM, Steyn, Hanson, Goldberg, the lot of them as has capitulated to this. But I can only hold so much emotion. Somebody should hang for this. The entire Administration and Congree would be a good start.
I can’t remember who’s show it was on,but they summed up an Obama administration quite well.He would be nothing more than a figurehead and Nancy Pelosi would be more like a prime minister…she and congress would orchestrate massive socialist spending and government annexations of whole business sectors,while Obama would replace his veto pen with a YES rubber stamp and try to lull the people with smooth and debonair sophistications as to why they should freely give their very existance over to the government. AARRRGH!!:-(
My property is paid for, I just paid off my vehicle, and I escaped the market meltdown unscathed.
But will my dollar be worth anything a year from now?
If these people hate capitalism and our way of like so much, why don’t they leave. There are plenty of other places in the world that have what they want, Cuba for example.
The problem is they are the “DAISNAID” crowd. Notice they (Ayers, Obama, Kennedys, etc.) live or expect to live above the system they want for us. They will be elites and will have the ability to opt of the they system they want for us and live in the exclusive system they want for themselves.
Notice how once these socialist liberal elites have wealth, they don’t want to share it with anyone else and want to establish a system to prevent the rest of us from experiencing what they want and have.
#11, mngirl
You won’t need to worry about the bad investments in your 401(k).
Seems the government is planning on taking it to shore up Soc Sec.
But, they’ll give it back to you.
Riiiggghhhttttt.
When I heard of the plan by Reich Furher of Treasury Paulson I knew the free market system that made this country great was doomed. Now the same Government that gave us the present crisis in the real estate and lending industries are going to fix the global financial melt down by throwing more printed money at it. Those printing presses at the US Mint are going to breakdown soon at the rate they have them printing money day and night. I guess I should run out and buy a wheelbarrow today so I will be able to carry enough paper money to buy a loaf of bread in the next few months.
Welcome to the United Socialist States of America! We’re boned!
There goes the neighborhood! The government is here to help and is moving in next door. Capitalism and conservatism are being eroded by a Republican administration who has claimed to champion them in the past.
When the government has a “stake” in a company, employees, shareholders, and executives all assume that the government will not let them fail. This attitude diminishes the fear of losses and reduces the drive to work hard to become profitable.
With the government as a major shareholder, the threat to layoff lazy employees or downsize non-producing departments becomes negligible. Politicians simply won’t allow job losses that might anger voters. Instead, they will pressure executives to hire more workers and bloat the company.
Governments almost never downsize. If employees don’t perform, management simply hires more workers to do the same job. Efficiency and competence are seldom rewarded and customer service goes the way of the DMV.
Fear of failure and the drive to succeed are the two sides of the capitalist coin. For the government to try to eliminate fear of failure, it has to take control, which action replaces capitalism with socialism. In the long run socialism is always inferior to capitalism because it destroys the incentive to achieve and to achieve efficiently:
Private Profits, Socialized Losses. Ain’t it grand?
All of Heir Paulson’s moves are clearly written into the crap sandwich so the only ones surprised are the people who didn’t bother to read the bill.
And by-the-way, when this all goes to hell and Paulson offers his apology don’t look for any restitution or retaliation against him because he wrote an immunity clause into the legislation as well. Guess that is why Frank, Pelsoi and crews dont feel any threat for their dupliciousness in the FMFM failure. In fact, they are real proud of their parts and now they are real proud in legislating the fixes too.
By all means lets vote them back in so they can fix everything.
If the D’s take control in January, this will look like chump change over the next four years………..
I hope President Obama turns out to be the change everyone is hoping for. Sure I cringe when I think of the socialist tack we are about to take, but the Replublican party under Bush and McCain really offers nothing different. We live in the era of big governments where everone is entitled to a handout.
I’m hearing from friends who own small businesses that they are sitting their employees down and explaining what will happen to jobs under Obamanomics. In essence, the employees learned that they may be voting themselves out of a job come jan.
People are cutting their losses, paying off debt and hording their money. Obama is not going to get additional tax money from them under any circumstances.
I’m seeing McCain/Palin signs going up and Obama sign coming down. There is an Obama campaign headquarters near by and no McCain headquarters at all.
ACTION ALERT!
If you live in New York City or LA, we need your help tomorrow.
We need people to go like Jason did at the DNC and infiltrate the Marxists:
No Joke, we need to know what they are planning…
Same cadence as…
The Red Commies are coming!
The Red Commies are coming!
(Modern-day Paul Revere)
Remember how Roosevelt extended the depression with his interference in the economy. Well, it is happening again.
The Liberal Republicans and the Democrats in the Administration are setting up an ireversable chain of events.
Don’t forget Paulson and Goldman Sacks made a lot of money helping China.
great.
It was said that one of Paulson’s qualifications for the job was his study/work concerning the Great Depression while in college. It seems that he learned a great deal, not so much in terms of how to prevent or even lessen the effects of the causes of a depression, but rather the potential for power-grabbing by politicians during a depression. It seems that lesson is the one that took.
“Government is not the solution, Government is the problem” RR
Clearly, many have forgotten the recent past.
Paulson has gone far off the reservation.
His plan to buy stock in banks was not discussed as part of TARP. And yet, he is doing that now. Now just to help ailing banks, but to facilitate mergers.
PNC is buying National City. For $5.2 Billion in stock. BUT, only AFTER the US Treasury buys almost $ Billion in PNC preferred stock.
Now, on norml times there is no way PNC would be allowed to buy National City - their marketsd overlaps so much that they would have a great deal of difficulty in passing any antitrust analysis. But not in these times.
I suppose this is the 21st Century take on carpetbagging.
But who else benefits? Why, Goldman Sachs!!!! Goldman is the investment banker to National City on this deal, and with the deal valued at over $5 billion, they will see one hell of a payday. Cha-ching!!!!!
Paulson has gone far off the reservation.
His plan to buy stock in banks was not discussed as part of TARP. And yet, he is doing that now. Now just to help ailing banks, but to facilitate mergers.
PNC is buying National City. For $5.2 Billion in stock. BUT, only AFTER the US Treasury buys almost $ Billion in PNC preferred stock.
Now, on normal times there is no way PNC would be allowed to buy National City - their markets overlaps so much that they would have a great deal of difficulty in passing any antitrust analysis. But not in these times.
I suppose this is the 21st Century take on carpetbagging.
But who else benefits? Why, Goldman Sachs!!!! Goldman is the investment banker to National City on this deal, and with the deal valued at over $5 billion, they will see one hell of a payday. Cha-ching!!!!!
And this is why I am going back to school once again in January. They are building a whole market that the average person will not be a part of or can easily understand. Its one of those cases of - if you cant beat them, join them.
BAIL OUT SCAM!!!!
http://latourette.house.gov/NewsRoom.aspx?FormMode=Detail&ID=115