TARP. Try Again Rascally Paulson. The economy is broken.

[galileoreloaded]

"The U.S. Treasury Department plans to start directly injecting capital in U.S. banks as soon as the end of October in exchange for passive investment stakes according to a financial policy source familiar with Treasury Secretary Henry Paulson's thinking.
...
White House spokeswoman Dana Perino said later on Thursday that Paulson is "actively considering" capital injections into troubled U.S. banks.
...
The source familiar with Paulson's thinking said Treasury was working "extremely fast" to put together a capital injection plan ... the injections would likely be made public ..."


http://www.reuters.com/article/businessNews/idUSTRE4986RB20081009

What?? How??? MORE MONEY!?!?

Roubini called it, this TARP 850 B was the biggest back door EVER. The greatest heist ever undertaken.

http://www.rgemonitor.com/roubini-monitor/253956/how_authorization_to_recapitalize_banks_via_public_capital_injections_partial_nationalization_was_introduced_-_indirectly_through_the_back_door_-_into_the_tarp_legislation

"So how come that "to inject capital into financial institutions" was the first item that Hank Paulson listed as his priority in his press conference yesterday, thus suggesting that now the US, like the UK, will undertake a partial nationalization of its distressed banks?

The reality is that the TARP legislation passed by Congress (formally the Emergency Economic Stabilization Act) does not in any explicit way allow for such recapitalization of banks via injection of public capital. The US Treasury has initially resisted including explicitly such authority in the Act for several reasons: the banking industry that helped drafting the legislation was against it; there was ideological resistance to the idea of the government taking equity – however preferred – in financial institutions; there was concern that being explicit about public recap of banks would lead to banks’ resistance to participate in the toxic asset purchase program. That is why the Treasury formally resisted putting any explicit wording of public recapitalization of banks into the legislation.

So how come Treasury now says that its first priority is to inject public capital in banks? And where is Paulson getting such authority since there is nothing formally explicit in the Act to allow such recapitalization?"

Keep pumping boys, and my gold and ammo investment just tripled AGAIN. Thanks!

PSST...Bond markets are wrecked. We tried to sell 10B worth of 10Y UST Bonds last week, but nobody wanted them. So they sold yesterday after being "rolled down the curve" as 5 years. BUT, they required a $240 MILLION premium, just to get rid of them, a treble increase. Our debt, all of it, is no good anymore. Be prepared for shortages of most everything, and hourly repricing of basics(food, fuel, everything), as well as MASSIVE interest rate hikes on everything from mortgages to cars.

Hmmm. 1 in 6 homes underwater, your "stuff" worth 50 cents on the dollar on craigslist, and we no longer have sufficient credibility to ensure the ability to pay for the thing that really makes the ol USA tick, oil. Countries are pulling the cash OUT, as evidenced by the contrarian action of Bond yields rising, while the stock market sinks. Where is the money going you ask?? Home, because they need to shore up their own finances.

Not to mention the additional "bank capitalization" referenced above (by the way, there are no caps on how much, only how many UST can be sold to willing buyers), the 2.6 Trillion we spent last week, and the 750B which WILL go overseas, never to be seen again. LIBOR, the rate used to calculate ARM and credit card rates is through the roof, and will stay there, and the TED spread is at all time levels, meaning NOBODY wan'ts to lend the banks money, and you get what the 750B TARP was supposed to not let happen.

Keep pumping it in pump monkeys, I'll get the gatorade.

See ya at COSTCO!!!