Geithner Unveils New Bank Bailout: Devil's in the Details (Really)

--Aaron and Henry -- In case you monitor the commentary -- Here is a question you might want to cover. I think a lot of people might be interested to know the answer; I know I would. Exactly where is the US gov’t going to get this Trillion $ it is about to toss to the four winds: i.e., from whom will it borrow? Are foreign sources likely to supply much of it, given that they have plenty of liquidity and other problems of their own right now (e.g., China and Japan) and may be inclined to take a “once burned, twice shy” attitude toward sending more $$ here? To the extent that it is borrowed internally from the private sector, individuals and institutions, isn’t the gov’t just sucking up and “redistributing” the very assets that the private sector needs in order to fund a real, sustainable recovery? Finally, to the extent that it has to be “borrowed” from the Fed that is essentially just the gov’t printing new money, and given that the entire sum of physical currency in circulation until just recently was only about 0.8 T$ how can this fail ultimately to cause terrible inflation? Strangely, nobody seems to have pointed out what this is going to do to people on fixed incomes, people who have done the right thing and saved; AARP e.g., doesn’t seem to get it. I have heard our “star” economists (like helicopter Ben) glibly say that we will just soak it back up later on. Oh yeah? HOW? And at what cost? I apologize if you have already covered this in a focused segment and I somehow missed it. It would be great to hear some serious, reasoned, expert opinion. Thanks!

80% of the people being layed off are men...there seems to be a gender war going on in America...women are taking over.

Thank you Yahoo for not putting commercials in front of these videos!

First of all everyone, we need to stop the spending because we as a Nation have consumed ourselves in terrible Debt. Our Savings rate is around -2.9% and our deficit is in the Trillions. The Multinational Corporations have been enticed for the last decade by the Institutionalized Slavery Market, orchestrated under the tyrannical rule of the Chinese Communist Party in China. Therefore Our US manufacturing sector has Direly depleted. Ever since the bursting of the Tech bubble in 2001-2002, We have been in a Recession. Greenspan was the Mastermind behind this Monster of a recession we have now, since he delayed the mild recession and cut rates, instead of allowing the Free Market to run her course and "Clean" out all the phony jobs, dirty money, corrupt business's and let the Market run its course based on the Natural flow of Free Market economics. So in actuality we have been in a recession since 2001, but now its as if there is a 200 Trillion Pound Weight resting on top of a very thin slate of ice, which is cracking, and guess what...We are all under it. The System already collapsed in 2008 on September 15, and then again a crash occurred on Oct 9. The 2 Bailouts have failed and cutting taxes and printing the rest will cause Massive Hyperinflation, the likes we have never seen before. We need to take our medicine, The Cure IS THE RECESSION. However because of the spending, cutting of interest rates, and government intervention, The free market is very sick and i believe that now even if Mr. Obama passes the Bailout it will cause a greater Depression worse than the Great Depression. If the Bailout does not pass, well then we will see also a terrible Catastrophe, but it won’t be as bad as what we will experience if the Government is going to pass this Bailout Tomorrow. Watch for a Major Doom Crash come on February 13th, as sourced by Reinhardt, who has predicted the previous major crashes, in 2008. The US dollar, if it does not collapse, will devalue by at least 60% and I am being a hopeful Bear on this, but in reality in might collapse completely. So therefore, if these people think they can pass a Bailout of Printed money, cause Ultra Hyperinflation, and think that the Consumer market will bounce back and everything will be fixed and people can resume lending from banks, and shopping at the Malls, and buying and selling houses, well...When the Bow breaks the Cradle will Fall and it has FALLEN my friends, It has Fallen. I wish you all the Best...But It is now Inevitable. We have entered the beginning stages of a Depression, and you think it is the end? Well brace yourself, because it is ONLY the Beginning. However I believe in America and Once the Chinese Communist Party Collapses, America will rise again.

Change we can believe in . . . . . This is going to be the worst administration ever . . . . "Paulson is an idiot" so my plan is to exactly what Paulson did except on a much larger scale. So lets PRINT SOME MONEY BABY. Screw the tax payer. I hate my country right now.

"Owners of capital will stimulate the working class to buy more and more expensive goods, houses and technology, pushing them to take more and more expensive credits, until their debt becomes unbearable. The unpaid debt will lead to bankruptcy of banks, which will have to be nationalised and the State will have to take the road which will eventually lead to Communism." Karl Marx - Das Kapital 1867

Hey prepare for economic chaos and then an one world government which is run by the devil but that kingdom too shall come to an end. Rev 19:19

Henry, keep pushing on the banks. Word is getting around, see: http://blogs.ft.com/maverecon/2009/02/good-banknew-bank-vs-bad-bank-a-rare-example-of-a-no-brainer/#comments “We can save banking without saving the banks or the bankers.” Cheers!

Now you know why Obama delayed Geithner rolling out the plan. He didn't want to have to answer any questions why this is more of Bush, or why free markets don't like his plan, or why he can't answer any questions on the details.

"Owners of capital will stimulate the working class to buy more and more expensive goods, houses and technology, pushing them to take more and more expensive credits, until their debt becomes unbearable. The unpaid debt will lead to bankruptcy of banks, which will have to be nationalised and the State will have to take the road which will eventually lead to Communism." Karl Marx - Das Kapital 1867

I love it. These two ultra liberal morons are trying their best to avoid mentioning the bad smell of "BO" (Barack Obama) in this mess. However, their silence regarding who is running the show speaks volumes to their lack of confidence and flat out disappointment in their new messiah.

I love it. These two ultra liberal morons are trying their best to avoid mentioning the bad smell of "BO" (Barack Obama) in this mess. However, their silence regarding who is running the show speaks volumes to their lack of confidence and flat out disappointment in their new messiah.

April 15th voluntary non-compliance.

is speech was extremely vague and in the future dont let him speak anymore.

Us that are on a fixed, or low, to no income get no relief, only the ones that really doesn't need it like us struggling old folks that have payed into the ststem and are now getting the royal shaff. is there any help for us out there probably not? wish Obama would respond to this ?????

Thanks for all those no-down 125% loans, bankers. And while I'm at it, thanks Bernie Madoff and the geniuses who sold $500 trillion in credit default swaps, soon to default. Maybe some of our titans of Wall Street should be in jail instead of being guests on cable TV stock shows and this forum.

Keep it up guys, keep it up. You are a widely heard voice speaking on behalf of many increasingly frustrated American taxpayers. Your analysis continues to be right on point.

Republicans want tax cuts without cutting the spending of the government, Democrats want to increase the government role by printing more money and tax more on the rich, Either party is going to lead to disaster. People should get rid of the notion of the right and left wing. Gerald Celente and Peter Schiff on youtube have better answers than these so called economists and politicians

US Banking = Financial Terrorism! US Government = Financial Terrorism!

Sometimes the desire for instant gratification tends toward the shortsighted position of hating the devils on the doorstep and overlooking the devils in the details and in the weeds. If our deep recession slips into a decades long depression and/or triggers hyperinflation, stimulus and bailout will look like sweet bargains. But that will be the view in retrospect, from the curb not the porch. Most wannabe rich folks are financially and psychologically tapped-out. They have nothing left to lose, and they're suffering from Sisyphean exasperation. To hell with the damned rock. Get out of the way and let 'er roll. When the market finds a bottom, we may not like what we discover.