do you really think, 700 billion can stop this? if you do not read the answer?

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The proposal before Congress for a mega-bailout 700000000000 $ is far too little to the damaged debt and derivatives, repair … and at the same time, too much for investors and taxpayers, have to put up the big Geld.Wie is really the problem? In the past, Congress has repeatedly asked us for data and analysis on these issues, we have before the Congress and white papers provided. In the same tradition, is less than a first partial draft a white paper, we present in this issue: Why is the amount of the mortgage loans and derivatives crisis overwhelmed the plan of 700 billion rescue discussion Congress (partial first draft of Weiss Research Submissionden Congress and Federal Banking Regulatory Commission) announced last week the chairman, the finance minister and chairman of the Federal Reserve believes that Congress must at the root of the debt crisis United States and offers a total solution that really brings the crisis to an end kommen.Doch the magnitude of the crisis, mortgages, other debts and derivatives clearly overwhelms the proposed bailout $ 700 billion during discussion. To better understand the problem …

First, we urge members of Congress to collect data on the list of troubled banks by the Federal Deposit Insurance Corporation (FDIC) FDIC retained list has only 117 basis ignorieren.Die 78 billion U.S. dollars to institutions with assets. But given the current proposal of 700 billion U.S. dollars rescue package, it is clear that government officials tacitly recognize that the FDIC list underestimate the problem. There are many other financial institutions in danger or need help with their most toxic Papier.Wie many? We believe a more accurate number comes from our analysis: (a) risk derivatives supported by large banks, (b) the mortgage portfolio of the largest regional banks and (c) all banks and credit of Savings with TheStreet.com ‘s financial strength rating of D + (weak) or less. Based on this analysis, we believe: 1,479 FDIC member banks are at risk of failure with total assets of $ 2400000000000.Darüber of 158 savings institutions and loan risk with U.S. $ 756 billion in total Vermögenswerten. In banks and S &; Ls at risk assets of $ 3200000000000 or about 36 times the assets of banks on the FDIC Merkliste.Diese numbers alone show that the 700 billion dollars could be envisaged to the rescue Congress should seriously consider unzureichend.Zweitens heavily on developments in the second quarter, the Federal Reserve Flow of Funds report Report.In Posted on 18 September, just a day before the president announced that the administration appreciates 700.000.000.000 proposal $ bailout, the Fed, the mountain of the nation’s interest-bearing debt of $ 51000000000000 now, it provides additional knowledge gewachsen.Darüber critical width of the debt problems of the nation, as follows: 1 property residential mortgages has spread in many different sectors. It $ 12100000000000 by mortgages on single family homes in the United States. But are not limited by banks and S & Ls. They belong to a variety of institutions and individuals who may have similar claims to federal assistance verbreiten.Insbesondere … 2 Fannie, Freddie and GSA are still in danger. As a first priority, the plan would be the recently announced rescue plans for Fannie Mae and Freddie Mac to extend it to properly secure the residential mortgages by government-sponsored enterprise (GSE) and agencies (GSA) in place. These now total $ 5400000000000 after Fed.Plus … 3 Private sector and local governments also own residential mortgages in substantial quantities. The rescue plan also includes: investment banks and others, the issuance of asset-backed securities, now holding $ 2100000000000 mortgage, non-banking financial companies (426 billion), credit unions (332.4 billion U.S. dollars), the state and municipalities (159 billion U.S. dollars), the life insurance companies (61.6 billion U.S. dollars), pension funds more … private pension funds and government budgets sich.4. Commercial real estate is now less than good. The current debate seems only to residential mortgages. But many regional and national banks, most of the current risks in the mortgage business, where recent data denotes many of the difficulties the same as in the housing market. To really get to the root of the problem, they can either Congress is not auszuschließen.Es 2600000000000 $ in commercial mortgages outstanding in the United States. As with residential mortgages, they are also scattered on the banking sector – $ 644 000 000 000 by the issuers of securities backed by assets instead of $ U.S. 263 billion by life insurers, 65 billion dollars for non-banking finance companies and $ 37 billion of real estate investment trusts (REITs) .5. Mortgages are less hal5. Mortgages are less than half the problem. While the current debt crisis in America originated in the mortgage market, it is not correct to say that is the root of the crisis in the sector one strictly. Instead, the debt crisis in many and varied roots, with excessive risk in credit cards, auto loans and virtually all other forms of private Verschuldung.Derzeit ago 14800000000000 $ in mortgages in the United States. But beyond mortgages, there is another $ 20400000000000 corporate bonds and consumers. This means that only 42% of problem mortgages of private debt in America vertreten.6. Local governments are a higher priority. With regard to the debt problems of state and local governments would also be a serious mistake. In fact, the nature of their services, including where they play a central role in homeland security, one might say that their credit challenges priority estimates banks, S & Ls and Wall Street firms werden.Derzeit the Fed $ 2700000000000 in local elections in circulation, most of which have been given instructions to apply for deposit insurance, said bleibt.Kurz on the verge of collapse, to really get to the root of the problem as President, Congress would rescue plan for too new field more than the banking sector decken.Drittens we ask Congress for a better grip on the huge backlog of products in America, beginning with a thorough review of the quarterly report of OCC on the Commerce and derivatives activities, derivatives of the first quarter 2008.Obwohl was originally designed to reduce risk, it is generally accepted that their volume and use of extremes, as it were been made since, but the speculative paris greatly increase the risk of systemic global financial Märkten.Und, although regulators have few details of these derivatives indicate that most officials now realize they may be the cause of thBeamte panic now that they can cause the panic that has spread throughout the global banking system in the wake of the bankruptcy of Lehman Brothers on Sept. 15 began sein.Daher must by all members of Congress to that block, with possible renewal waves is heard worldwide panic, the bailout would be at the following facts: the notional amount is required (nominal) amount of derivatives by U.S. commercial banks 180.3 billion. $ 000. Credit risk derivatives (partners of commercial credit risk) is 465 billion dollars, up 159% compared to banks Vorjahr.US the largest credit exposure from derivatives HSBC (with $ 7.21 to the dollar in the risk of capital), JPMorgan Chase (with $ 4.11 of risk on the U.S. dollar), Citibank ($ 2.79), Bank of America ($ 2.15) and Wachovia ( $ 0.77). Further, after Bank of America merged with Merrill Lynch, reported $ 4,000,000,000,000 in derivatives, and maintains martin for a possible merger with Wachovia Morgan Stanley, $ 7, $ 7,100,000,000,000, says it is likely to increase demand werden.Der Congress should conduct its work with its eyes open, realizing that any rescue plan does not contain such banks and other players in the vast market for derivatives has a gaping hole, propagated by the financial panic können.Viertens leave again for all these debts and derivatives, a bailout that would require under normal circumstances (a) a realistic estimate of the amount already delinquent or in default, and (b) a reasonable estimate of how many more will probably enter a prolonged recession schlecht.Doch the only estimates currently available are those who recognized their real depreciation of major global financial institutions – over $ 500 billion. $ This figure does not include the thousands of other institutions, which are among the sectors we cite above or losses, but not yet properly accounted -. let alone losses not yet incurred sind.Bisher keineBis today is not a government agency, estimates. But without them is not a budget for this rescue mission impossible. Nobody will know that in hindsight, if the bailout actually removed from the hatching of the cancerous debts economic body or leaves sum most of them and verbreiten.In should not imagine that the estimated 700 000 million U.S. dollars may actually proposed by the administration, even close to offering a comprehensive solution to the current American crisis of debt. It may well be a drop in the bucket sein.Too Much, Too Soon for U.S. government securities markets should not the illusion that the market for U.S. government bonds, the additional burden of a 700 billion bailout without traumatic consequences $ absorbieren.Im fiscal 2009 Mid-Session Review, Budget of the U.S. government, the Office of Management and Budget (OMB) projects the deficit from 2009 to 482,000,000,000 dollars this projection was steigen.Allerdings gemachtvor rescue of Fannie Mae, Freddie Mac and AIG and the White House $ 700 000 000 000 Vorschlag.Selbst bailout if no budget overrun of 700 billion U.S. threatens to double or even triple these bailouts OMB Staatsdefizit.Das tries his deficit projection of $ 482000000000 stating that it is estimated that 3.3% of GDP, to reduce them as manageable. But after the Addition of the cost of rescue operations and announced proposed – about $ 1000000000000 – the deficit of 8% and 10% of GDP könnten.Kein reasonable person can deny that this dramatic increase in the deficit is a dramatic impact on the Interest levels have. To attract investors, the U.S. Treasury will have to pay much higher price … and these higher prices, which in turn drive up rates for mortgages, credit cards and almost all the light of these facts Kreditaufnahme.Im we have four recommendations: Recommendation 1. Before tinkering with a rescue package of some sectors of the debt markets, the impact of the huge national debt to all sectors of the debt markets and the U.S. dollar. Die proves the story, there was a less dramatic increase in public debt, millions crowded with private borrowers, raises interest rates and severely damaged the economy Ganzes.Also it is reasonable to assume that massive increase in loans for a bailout of this magnitude would be unprecedented upward pressure on interest rates being so required, may complicate considerably the debt crisis, the U.S. dollar sink further damage more to the economy than in the Vergangenheit.Zur avoid these consequences, we recommend that Congress reject the proposed rescue plan administration $ 700 000 000 000 and all files related to the right, moving forward, rather than Our Recommendation 4 unten.Empfehlung No. 2, if it is offered, despite the risk that interest rates much higher and a sharp decline in the dollar, that Congress intended to buy the legislation to create a further loss of the passport authority debt, we recommend that the new agency pay strictly fair value of debt, including a substantial reduction in their liquidity widerspiegelt.Außerdem poor, it must be clear: Given the recent decline soaring market values and market liquidity, most bad debt on the books of U.S. financial institutions now stand at only a fraction of their Nennwertes.Als the government buys these debts at fair value, it will always be Most of these institutions with serious Verlusten.Viele these institutions do not have the capital to cover their losses and, despite the rescue plan. Recommendation No. 3 The Congress should clear the public wants to provide information: There are several significant risks to the financial system DIEESE are several significant risks to the financial system that the government does not deal with the new legislation, including the delay of other major debt and derivatives, which could cause a chain reaction of bankruptcies ist.Ob sufficient legislation to rescue or not the debt crisis of the trunk and prevent financial panic, the government will need to protect their own Credit to prioritize and seek the stability of U.S. Dollars to gewährleisten.Der private sector, which must in turn spread the debt crisis largely without government financial assistance to behandeln.Empfehlung No. 4 instead primarily a safety net for imprudent institutions and speculators, Congress should devote more effort. strengthen safety nets for prudent individuals and savers, including: The FDIC insured bank depositors, but has inadequate funding and staff to manage a large wave that Bankenpleiten.SIPC decktSIPC alleged that covers brokerage accounts alleged but in practice do not compensate the losses of investors in most Fällen.Staatliche guarantee associations, which promise to cover insurance, but repeatedly failed to live up to their promise when large failure scheitern.Ein insurers of the debt crisis in progress and the creation of a new series of crises that spread terror and to extend the pain to resolve: Unless Congress approaches its monumental task with enormous caution, it could produce for the worst of both worlds.
Please advise me on my options. I am a single mother struggling to the point where I do not even know my children to McDonalds. I am recently divorced and has created since the divorce, the following debts (I get child benefit but still): Why Credit 1: $ (pay $ 47 per month) 2334.59 Chase credit card 2: $ ( pay $ 80 per month) 4008.00 Sovereign Bank loan 3: $ 8.560 ($ 179.52 pay per month) Credit Union car loan $ 6964.00 ($ 125.46 pay per month) that I own my own house and pay a mortgage of $ 1,443 per Monat.Der mortgage balance is $ 161,145.00. What are my options here? I wonder if I should sell and buy the house, refinance a building or should I? I’m not particularly happy with the apartment that I have and moving to a condominium are a possibility. I would appreciate your advice, help me to reduce the monthly payment would be. Is it possible that I can payments over a longer period of time, etc. distributed willkommen.Credit advice by qualified staff is good, maybe ausgezeichnet.1 second before – 3 days to respond

10 Comments
  1. Reply
    Angela Q
    January 20, 2011 at 4:03 am

    $ 700 billion is no guarantee that we will avoid a complete economic collapse.

    http://www.flickr.com/photos/matthewkendig/2892037701/

  2. Reply
    Trout
    January 20, 2011 at 4:30 am

    I was just reading fox — and here is a surprise they are all for this bail out

    not only does Weiss say this so does Keiser another economist based out of Paris has a similar take on all this

    As Does Paul Craig Roberts the former treasury secretary under Regan – he not only fears collapse but warns of Fascist doctrines coming to light in these bailouts being offered –

    He points out that as a tag along to it all the Treasury will no longer have oversight from the Congress or the courts

    An all powerful Treasury dept ?

    I was worried there when the sale of Treasury bonds would have to be sold to mostly forriegners in order to finance the pay back of this 70 billion dollar investment

    But – then I heard that Fox was on side – Yes the Bush network of disinformation told me to just relax – this bail out is going to make all of America rich ….

  3. Reply
    bittermeds
    January 20, 2011 at 4:35 am

    Yes, but it may slow the rate of decline of home values and as such ‘prop up’ the economy for a slower decline. This is why I blame the Republicans since they were completely in charge for the first 6 years out of 8 and did nothing. Not only that but doubled the national debt with their tax policies and irrational Mid East fears. Soon half of all individual income taxes will be needed to service the debt- money, essentially lost forever. Derivatives, a rich man’s game, are largely to blame as well and will give those non pension funded people a chance to bail and enter less risky markets. It’s all designed to bail out the wealthy and not immediately destroy the average investor and home owner. That’s the way that I see it, anyway. Deregulation or a lack of regulations created the first great Depression as profits from advanced manufacturing processes went into fewer pockets, not unlike today’s extreme Executive compensation packages no matter which way the wind blows. Why so many still vaunt the Republican agenda is one of the mysteries of ideology and assumption of false information

  4. Reply
    pacer
    January 20, 2011 at 4:46 am

    First off the reason ALL these problems arose is basically simple; corruption and greed. Corruption is money – the next line here in quotes was from an article I read yesterday on a proposal to fix this huge economy mess – “the priorities of the vast majority of the American people” (he was stating the people must come first): in this sense it is all well and good, but the vast majority always has to have a leader and the leaders are always those with the money (power) and control. You’re not just looking at people losing money many are losing all three; with their money goes their power and control. They will fight this ‘change of life’ cycle and a few will commit suicide.

    The corrupt are not just at the top, it goes right down to the salesman selling you the loan and the credit cards. How many credit card applications do you get a day in the mail, and on the internet? Right by the local VA here is a city finance office, when a few older veterans had to enter the nursing home; their home was then owned by city for a small amount still owed on a small loan the veteran took out of necessity to survive. The last loan they got me for, their salesman was 24 and my daughter was 15. Several times he asked if I would object to him “seeing” her. The corruption and greed is at the very top and the very bottom of the barrel.

    Your number 6 detail stating the how the state’s financial budget short fall will come first is a very interesting one. Look at Pennsylvania we have the worst highways in the whole nation and no funds to fix them, our governor wants to lease them to Citi and a Spanish owned company – which by the way would add even more illegal’s to our very small inadequate, outdated sewer system, and their families would over crowd our schools even more and unemployment would climb over the now 6% rate.

    A few years ago the permits where granted and Mohegan Sun was allowed to build their second-largest casino on to our race track. The casinos taxes are higher than in any other state, and as the residents here we were promised hundreds of dollars of savings in our taxes, and improvements to our schools and towns. This year the relief was seen with a $ 135 tax credit that did not even match the increase in my school taxes. Very recently it has been discovered much of the state revenue from this casino is MIA… Even more local is our small county just paid $ 9 million to have our property taxes reassessed. We have a very high population of people over 65 on Social Security who are looking at having to pay an 110% increase in property taxes, along with the rest of the population in the US which rely on the yearly COLA increase (ex. disabled veterans, postal workers etc). Add to that the cap comes off the electric company rate hikes in 2009 (after the COLA rate is determined) and a small home without electric heat will rise $ 71.50 a month. Don’t forget the normal increases and tax and surcharges for phone services , cable or satellite TV, food and medical and gasoline will also increase. The middle class must not be charged in the bail out of the corrupt and greedy who never had to worry how they would heat their home or decide if they should buy medication or food. And while they are solving this big economic crisis for Wall Street how about solving the ones the middle class has been living, instead of making us pay for their mistakes because we have no more money to pay out! A good start would be a 2009 8.5% COLA rate increase, and deportation of the 20 million illegal’s driving up our school taxes, unemployment and early retirement rates.

  5. Reply
    Nunnya
    January 20, 2011 at 4:54 am

    What is the APR on these cards? If they’re pretty high, you can go through a debt consolidator and they can help lower the APR’s. Credit card companies tend to like to deal with consolidators more than the public. They feel confident in lowering them because they feel that there is a better chance in you paying them off. I am almost finished off my last card. I have about seven months to go before I am out of credit card debt.

  6. Reply
    Ask M
    January 20, 2011 at 4:55 am

    If those debts are marital “assets” then you hsould have rec’d money to pay half of them off. If you can sell your home for
    enough to pay off all the debt and move into a condo, that
    would be a wise decision.

    creditinfocenter com

  7. Reply
    Cadillacman
    January 20, 2011 at 5:41 am

    You don’t need longer periods to pay back your loans. Every loan you now have will take 4 years or more just to pay the principal. With interest, you’ll be paying on your credit cards for at least 10 years each, if you never charge another thing on any credit card. I don’t know your income and expenses, but it seems that you need to go on a very strict budget, dispose of your credit cards, and work on paying them off as soon as possible. As for re-financing your home, I would recommend that only if you can pull out enough cash to pay all your other bills in full without increasing your mortgage payments. If you do this, you MUST destroy all your credit cards so you don’t get back in this same situation, save the approximately $ 425 monthly you are now paying on consumer debt, and only pay cash for your future needs. If you can save that $ 425 monthly, you’ll be saving approximately $ 5000 per year. That will provide you with a nice emergency fund, and soon , you’ll be able to pay cash for anything you want to buy. The added advantage of going on a cash basis is that you’ll be amazed at how many things you won’t buy. It’s too easy to use credit. But, it’s difficult to justify a purchase if you have to take the money out of your pocket. This is a short attempt to give a complex answer to your question. Hope it helps.
    I wish I could sit down with you in person and work with you on this situation, but I live in VA, a little too far away.

  8. Reply
    heybulldog
    January 20, 2011 at 6:09 am

    I would start with a written budget. See where the money is going.
    What do you make a yr?
    Stay away from these so called debt consolidation, debt managment companies. What they do is not pay your creditors for months and then try and settle for less. No special skills.They just dont pay.

    If thats the route you have to go then do it yourself. Save the fees they charge.
    Remember that if you use one of these companies and they dont pay your debt. You, and you alone are still responsible for the debt. Your creditors will sue you and not the company.

    check out daveramsey.com and listen to his radio show. He has lots of good advice on money and getting out of debt.

    Dont roll the debt into a home mortgage. You’ll owe more on your house. If something happened and you couldnt make the payments. They will come and take your house. If you have to sell the house and take the equity and pay off the bills and rent or buy a cheaper house.

  9. Reply
    Daisy
    January 20, 2011 at 6:55 am

    I have mentioned them before because they are great–check out a debt management program. They have helped me so much –as well as a couple of my friends–they reduce payments, interest rates and consolidate your debts into one payment. they can’t help with the mortgage but can with the credit cards. Check them out–my credit is better then before–i get my statements every month from my cards and see the progress.

    this is their website:
    http://www.DebtCounselingCorp.org

  10. Reply
    caleb b
    January 20, 2011 at 7:51 am

    If a person has accumulated a large amount of credit card debt due to multiple credit cards, the need for a proper counseling for credit card debt consolidation can’t be understated. Credit card debt consolidation counseling helps a person get vital insights into the facts that can help him get control over the credit card debt.

    Credit card debt consolidation counselors are experts with a good knowledge of debt management, budgeting and behavioral patterns of credit card holders. These services are vital for those struggling to manage their credit card debts. Also called credit counseling or debt counseling the credit card debt consolidation counseling brings immediate relief to a credit card holder.

    A person seeking credit counseling can get it from two types of organizations. The professional or commercial organizations, and the non-profit organizations. As depicted by its name or categorization, the commercial organizations charge money for their credit counseling sessions and consolidation help on the other hand the non-profit organizations offer free of charge services. Just because the non-profit organizations are free, it doesn’t undermine their quality of service. The persons associated with such organizations are thorough experts and have lived the trauma of being under credit card debt themselves and hence bring their vital experience to the credit card holder. Read more from: http://www.credit-card-gallery.com/article/353,Credit_card_debt_consolidation_and_credit_counseling_great_tools_to_get_rid_of_credit_card_debt

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