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Wednesday, September 24, 2008

Who benefits most from the "urgent" bail-out plan?

Sept. 22 (Bloomberg) -- Goldman Sachs Group Inc. and Morgan Stanley may be among the biggest beneficiaries of the $700 billion U.S. plan to buy assets from financial companies while many banks see limited aid, according to Bank of America Corp.

``Its benefits, in its current form, will be largely limited to investment banks and other banks that have aggressively written down the value of their holdings and have already recognized the attendant capital impairment,'' Jeffrey Rosenberg, Bank of America's head of credit strategy research, wrote in a report dated yesterday, without identifying particular banks.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aUj_9.k13q7s&refer=home

What's the difference between this "urgency" and the "urgency" to invade Iraq? It's just who is pumping the idea. Bernanke had this to say yesterday:

Action by the Congress is urgently required to stabilize the situation and avert what otherwise could be very serious consequences for our financial markets and for our economy. In this regard, the Federal Reserve supports the Treasury's proposal to buy illiquid assets from financial institutions.
http://www.federalreserve.gov/newsevents/testimony/bernanke20080923a1.htm

Secretary Paulson said this:

"We want this to be clean, and we want it to be quick, and it's urgent that we get this done."
http://news.morningstar.com/newsnet/ViewNews.aspx?article=/DJ/200809211747DOWJONESDJONLINE000273_univ.xml

Is everyone miming Foreigner?

Remember Bush's "urgency" speech on October 7, 2002 about Iraq?

Tonight I want to take a few minutes to discuss a grave threat to peace, and America's determination to lead the world in confronting that threat. The threat comes from Iraq...

While there are many dangers in the world, the threat from Iraq stands alone -- because it gathers the most serious dangers of our age in one place.

how urgent this danger is to America and the world..

And that is the source of our urgent concern about Saddam Hussein's links to international terrorist groups....The risk is simply too great

If the Iraqi regime is able to produce, buy, or steal an amount of highly enriched uranium a little larger than a single softball, it could have a nuclear weapon in less than a year. America must not ignore the threat gathering against us..

We have an urgent duty to prevent the worst from occurring

Some have argued we should wait -- and that's an option. In my view, it's the riskiest of all options, because the longer we wait, the stronger and bolder Saddam Hussein will become.

http://www.whitehouse.gov/news/releases/2002/10/20021007-8.html

It looks like Foreigner has moved from the White House to Treasury!

You say its urgent
Make it fast, make it urgent
Do it quick, do it urgent
Gotta rush, make it urgent
Want it quick
Urgent, urgent, emergency
Urgent, urgent, emergency
Urgent, urgent, emergency
Urgent, urgent, emergency
So urgent, emergency
Emer... emer... emer...
Its urgent


Where's the line about "We refuse to live in fear?" Oh that's right. That happens after we pass the bill!

I'm not saying we shouldn't do a bail-out. But all this pumping, and urgency being floated is just getting too much!

And if this is so "urgent" why can't Congress do some work on their recess?

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