Good Morning Folks,
I put this in the comments last night, but I wanted to make sure everyone watched this segment from Larry Kudlow's show.
Karl Denninger does a nice job explaining the repercussions of this below. Our rescue plan does nothing but guarantee that hundreds of billions of dollars will go right out of the country to bailout foreigners that bought our subprime sandwiches. In return. they will continue to buy our treasuries.
As I have said before, the game is over if foreign countries stop buying our treasuries. This is why Paulson and Bush are desperate to stop this. They have told the Senate that they will veto this bill without the provision that allows the Treasury to put buy back these subprime sandwiches, and put them onto our own balance sheet at the cost of the taxpayers.
We are not bailing out America with this bill. We are bailing out the world!
Do you have any desire to watch the US buy other countries bad debts with your taxpayers dollars? We cannot allow this bill to pass.
Here is the the section in the bill that allows The Treasury to buy this garbage:
"SEC. 112. COORDINATION WITH FOREIGN AUTHORITIES AND CENTRAL BANKS.The Secretary shall coordinate, as appropriate, with foreign financial authorities and central banks to work toward the establishment of similar programs by such authorities and central banks. To the extent that such foreign financial authorities or banks hold troubled assets as a result of extending financing to financial institutions that have failed or defaulted on such financing, such troubled assets qualify for purchase under section 101."