SEC extends short sale ban to give Congress more time

October 1, 2008 by · 1 Comment
Filed under: Stock Market News 

All I have to say is the biggest drop for the Dow Jones Average happened with a short sale ban in place. It looks like our government is set on saving and propping up these failed banks instead of letting the market re-balance itself. I hope the SEC does adopt the “uptick” rule again. I was doing some reading on it and it did seem reasonable enough of a regulation that looks to do what it is set out to do.

Press Release:

U.S. securities regulators on Wednesday extended an emergency ban on short selling in more than 950 financial stocks to give Congress time to finish legislation to rescue the financial system.

The Securities and Exchange Commission said the ban would expire three business days after a $700 billion federal bailout bill was enacted, but would not last beyond October 17.

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Newest Outline of U.S. Congress’ draft bank bailout plan

September 27, 2008 by · 2 Comments
Filed under: Economic News 

Well as I have said I do not believe in this plan on a fundamental and precedent setting basis going forward. This is intervention plan and simple, interferes with the free-market and rewards companies for making bad decisions and instead buys their bad investments. This is corporate welfare and only rewards these companies in the end because these prices levels are unsustainable and the U.S. taxpayer is maxed out and will not be able to pay down all these mortgages. The recession will still happen because we have not address the real underling issues such are middle-class job creation, international trade imbalance not in favor of America, federal budget deficits and a debt based monetary system. If you don’t believe me then go about your business and watch and maybe magically all these things I stated will be solved or maybe will just go away.

New Outline of U.S. Congress’ draft bailout plan:

U.S. lawmakers pressed forward on Saturday with talks over a proposed massive financial system bailout, hoping to nail down an agreement by Sunday.

The Bush administration last week asked Congress to give the Treasury secretary authority to buy up to $700 billion in bad assets from banks and other companies in a bid to ease the most serious U.S. financial crisis since the Great Depression.

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U.S. Congress gets $700 billion financial bailout plan

September 20, 2008 by · Leave a Comment
Filed under: Legal News 

Well one of the largest bailout plans ever made is now in the hands of our representatives.  In the press release it has a couple interesting points I will highlight before you dig into it.  I finally found a couple of it online and I am going to post it next.  First off it the fact that the U.S. public debt will be increased to $11.315 trillion from $10.615 trillion.  Second which is really interesting that this would even be in this bill was this statement “Decisions by the treasury secretary related to the buyback program could not be reviewed by any court.”  I guess our leader are infallible and are above any real scrutiny.  I am not debating the situation is dire and time sensitive but I do not think we are taking to right course of action to set the right precedent.

News Release:

The Bush administration on Saturday sent a $700 billion financial markets rescue plan to Congress where Democrats immediately questioned its impact not only on Wall Street, but on homeowners and taxpayers as well.

The plan to move toxic mortgage-related debt off the balance sheets of U.S. banks and other institutions, and into a massive government portfolio, represents an all-out attack on the worst financial crisis since the Great Depression.

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