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Holding Pattern
Author: Raine    Date: 11/24/2008 13:31:54

While we are all waiting for that day in January, it is sometimes easy to forget that we still have a president *ush. While some are practically pleading for him to do nothing until January, I find myself in the peculiar position of thinking that this is not really a good idea, especially when you take a look at who is actually running things right now.

Hey wait a minute... who IS in charge right now? CitiBank is in major rescue talks with the White House, and yet, yesterday spokeperson, Dana Perino said they were not aware of any talks. She said this aboard Air Force One, while traveling with the current pResident. Interesting considering some papers are reporting this plan has already been approved. Here is just a taste of it:
Under the agreement, Citigroup and regulators will back up to $306 billion of largely residential and commercial real estate loans and certain other assets, which will remain on the bank's balance sheet. Citigroup will shoulder losses on the first $29 billion of that portfolio.

Any remaining losses will be split between Citigroup and the government, with the bank absorbing 10 percent and the government absorbing 90 percent. The Treasury Department will use its bailout fund to assume up to $5 billion of losses. If necessary, the Federal Deposit Insurance Corp. will bear the next $10 billion of losses. Beyond that, the Federal Reserve will guarantee any additional losses.

In exchange, Citigroup will issue $7 billion of preferred stock to government regulators. In addition, the government is buying $20 billion of preferred stock in Citigroup. The preferred shares will pay an 8 percent dividend and will slightly erode the value of shares held by investors.
The Financial Times is calling this a 'Bad Bank' Plan
The “good bank-bad bank” structure being discussed by Citi and US regulators resembles the October plan under which UBS said it would shift up to $60bn of illiquid securities to a fund owned by the Swiss National Bank, said a major Citigroup shareholder who was briefed on the plan by someone with direct knowledge of it.

However, significant obstacles remain before the plan to revive Citi can be put into effect, people familiar with the matter said. “How do they justify doing it with Citi and not for the others?” asks one. “If they guarantee everything only at Citi, they would be putting Citi’s competitors at a huge competitive disadvantage.”

Another potential stumbling block could be the resources of the government’s Troubled Asset Relief Program (Tarp). Helping Citi would substantially reduce the money available to help other banks.
Please Note the mention of the bank UBS. UBS was also a client of famous lobbyist... Phil Gramm-- I digress. I am left here seriously wondering who the hell is in charge and what the hell is going on. *ush was off at the Apac Summit in Peru, touting how wonderful his economic plan when the crap is coming down heavy and hard back here at home.
Offering no hint of remorse for the lack of regulation of Wall Street and the US sub-prime mortgage market that was a root cause of the worldwide turmoil, he said: "It is also essential that governments resist the temptation to overcorrect by imposing regulations that would stifle innovation and strangle growth.

"One of the enduring lessons of the Great Depression is that global protectionism is a path to global economic ruin." [...]

"Expanding trade and investment has been one of the highest priorities of my administration," he said. "When I took office, America had free trade agreements in force with only three nations. Today, we have agreements in force with 14."
Right now all I am asking for is until January, that he be actively engaged and accountable for what he and his Neo-conservative ideologues have wrought on our nation. Is that too much to ask? I think it is, considering some people don't seem to realize that *ush has all but checked out of the White House. This weekend Joe Lieberman espoused some of his magical knowledge and intellect.
But some members of Congress said Sunday that even that might not be soon enough — Senator Joseph Lieberman, independent of Connecticut, said that President George W. Bush and Obama should work together now to put a stimulus package in place by early next year. Otherwise, he said, the Obama approach would probably take until the second quarter of next year, "and that's too long."
How can they work together when the current HEAD of the administration has no idea what is going on right in front of his eyes? HE shows no interest on working on anything at all.

I should not be shocked. George W. Bush has NEVER taken a position without totally destroying any of the successes it may have had in the past or the future. What makes me so angry is that THIS time, THIS time it is a COUNTRY. Not an oil company, not a baseball team... it the United States of America, and he has totally checked out.

It's going to be a long winter spent in a holding pattern until competent people take over to try to land this chaotic flight of fancy the *ush administration and the Neo-cons have taken us on. I don't envy them. The task is huge.

At least know they will have to go the distance, instead of skipping out totally right before the end of it all. That called maturity and responsibility... Maybe in the end, it was a good thing *ush went awol instead of becoming a pilot, huh?

:peace: and
Raine

 

217 comments (Latest Comment: 11/25/2008 03:01:18 by Random)
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