Stock Market Crash Expected In 2008 To Be Worse Than 1929

[Soldier4Christ]

Just 3 'superbanks'
dominate industry
'New oligopoly': Sudden consolidation raises
questions about regulation, consumer impact

The financial crisis that has been sweeping the globe has reshaped nearly every corner of the economy, but no industry has been altered more radically than banking.

Several of the nation's biggest banks have failed or been absorbed by healthier institutions, leaving three giant "superbanks" with an unprecedented concentration of market power: Bank of America, JPMorgan Chase and Wells Fargo.

While that may be good news for emerging giants and the failing companies they helped rescue, the new oligopoly raises troubling questions about regulation and competition, analysts and consumer advocates say.
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"Bank fees are going up, up, up, and that’s the danger to consumers as more of these banks consolidate,” says Sally Greenberg, executive director of the National Consumer League. “It’s difficult for the average person to get a bank account that doesn’t involve fees, and if you get into financial distress you’re cooked, and you’ll be ‘fee-ed’ to death.”

According to a recently released banking fee study from Bankrate.com, ATM surcharges rose 11 percent this year to an average of $1.97, and the fee for a bounced checks rose 2.5 percent to an average $28.95.

"Consumers are going to be victims of higher and more punitive fees,” Greenberg predicts.

Moreover, many analysts worry about how federal and state authorities, who were unable to prevent the current financial industry meltdown, will be able to monitor the new giant banks that combine a wide range of operations from investment banking to consumer lending.

“Large institutions are impossible to manage prudently, let alone regulate,” says Amar Bhide, a professor at the Columbia Business School.

In fact, existing federal banking laws say that no bank can have more than 10 percent of the domestic deposit market — a threshold recently surpassed by all three superbanks.

When asked whether the government would take any action, a Justice Department official was noncommittal.

“It’s always something we’ve looked at and will continue to look at," said spokeswoman Gina Talamona. "It’s something we’ve looked at as part of our general antitrust review.”

The reason limits on market share were put in place were so banks didn’t get so big they’d become monopolies that could risk the whole economy, explains Atul Gupta, finance department chair for Bentley University in Boston.

But now the government appears to be pushing banks in the direction of more consolidation. The Treasury is pouring some $250 billion of taxpayer money into healthy financial institutions, and some of that is being used by stronger banks to snap up weaker rivals.

“The government is convinced that allowing any of these firms to fail would have catastrophic implications,” says Gupta. “So the government is saying, ‘This bank is in trouble, so I want this bank to buy that one.’ And everyone holds their noses and hopes things work out.”

In the current environment, such rapid consolidation is a “no brainer," says Gregory F. Udell, Chase Chair of Banking and Finance at the Indiana University Kelley School of Business.

The risk of creating monopolies, he says, “is a lot less than the risk of having a lot of zombie institutions out there.”

He also points out that consolidation in the banking sector, though recently at a fever pitch, is nothing new.

Indeed, the number of commercial banks and savings & loans in the United States has fallen in the past 20 years to 8,451 as of June, compared to 16,574 in 1988, according to FDIC data.

Espen Eckbo, finance professor at Dartmouth’s Tuck School of Business, believes economies of scale will only help the troubled financial sector.

He maintains the banking sector got into trouble because of out-of-control risk taking — not because banks got too big.

His answer: “We need to educate the boards of these banks that ultimately are supposed to be a stopgap for these things. They need to have a bird’s-eye view of the organization and understand if the left arm is taking on debt while the right arm is taking on debt. They have to oversee that.”

But some analysts are arguing that the current wave of consolidation could be followed by a move to break up the biggest banks.

In a recent congressional hearing, Nobel Prize-winning economist Joseph Stiglitz said the consolidation of the banking industry is "a very serious problem."
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"I think it’s part of a general failure to enforce antitrust laws in the last few years. So one of the things I think is part of your exit strategy is that we have to think about breaking up some of the big banks.”

Even American Banker, which covers the industry, predicts in a story titled “Pressure Builds to Corral the Giant Firms” that “the financial services companies considered ‘too big to fail’ may face a political backlash next year.”

Another major issue will be how successfully these merged banks will be able to integrate their operations, from staffing to technology.

Even in the best of circumstances where companies have months to plan for a merger things can go awry, says Carol M. Beaumier, executive vice president of global industry programs at Protiviti, a business consulting and internal audit firm.

“The level of due diligence and planning doesn’t exist,” says Beaumier of the rapid consolidations that have resulted from the financial meltdown. “We are creating a daunting task for companies that have to carry out these mergers. It creates uncertainty among employees (and) customers, and the government will be looking over its shoulder.”

Good employees at some of these institutions may be lost in the shuffle because, she says, “You don’t have time to prepare and identify those key performers.”

As they grow, the megabanks could end up shooting themselves in the foot when it comes to service, says Standard & Poor’s analyst Stuart Plesser.

“When they get really big they may lose some relationships in the end because there’s certainly some impersonal banking going on when they get that big,” he says.

The National Consumer League’s Greenberg believes government should move quickly to keep banking fees down for consumers, just as Congress capped executive compensation as part of the bailout bill.

“The system isn’t working now, and all this consolidation means less competition,” she says. “It is incumbent on regulators and Congress to step in and say, ‘Wait a second. You don’t get to impose exorbitant fees.'”

“These banks have to get away from a business plan that’s based on fines and penalties, she adds, “and get back to providing consumers, farmers and small businesses credit at a reasonable rate that serves both the lender and the borrower.”

Until a new administration takes action, consumers and small businesses can always vote with their feet and use a smaller, community bank.

“Many consumers (are) turning to local banks, saying, 'I’m much more comfortable having my money with you,’” says Nancy Atkinson, senior analyst with Aite Group, a research firm that covers the financial services industry. “And small businesses say, 'I know my local banker, and I trust that person.’”

[Soldier4Christ]

Dow to hit 6,000
Obama predicted to be worst president on economy since Herbert Hoover

The Dow Jones Industrial Average is heading for a new low of 6,000 as Barack Obama prepares to assume the presidency in January, according to a new report from Jerome Corsi's Red Alert.

Red Alert accurately predicted the Dow Jones Industrial Average would hit a pre-election bottom of 8,000, a forecast fulfilled in mid-morning trading Oct. 10.

Now Red Alert's author, whose books including "The Obama Nation" and "Unfit for Command" have appeared atop the New York Times best-sellers list, is predicting a President Barack Obama will set new lows across the board, earning for himself a reputation as the worst U.S. president in modern history when dealing with economics.

The Dow will hit a new low of 6,000 in the fourth quarter 2008, most likely reaching that mark sometime in the next two months, probably in late November or early December, Corsi predicts.

"We are confident the mainstream media, which did every possible bit of cheerleading to get Obama into office, can be relied upon to proclaim him a genius following every decision he makes," he said.

"Unfortunately, economics tends to be a function of reality, not hype."

Corsi predicts Obama over the next four years will lead the U.S. into the worst global depression it ever has experienced.

"Red Alert is confident that within one year, even an economic failure like President Herbert Hoover will look like a genius when compared to the failures we are likely to see from a President Obama," he wrote.

[nChrist]

Dow to hit 6,000
Obama predicted to be worst president on economy since Herbert Hoover

The Dow Jones Industrial Average is heading for a new low of 6,000 as Barack Obama prepares to assume the presidency in January, according to a new report from Jerome Corsi's Red Alert.

Red Alert accurately predicted the Dow Jones Industrial Average would hit a pre-election bottom of 8,000, a forecast fulfilled in mid-morning trading Oct. 10.

Now Red Alert's author, whose books including "The Obama Nation" and "Unfit for Command" have appeared atop the New York Times best-sellers list, is predicting a President Barack Obama will set new lows across the board, earning for himself a reputation as the worst U.S. president in modern history when dealing with economics.

The Dow will hit a new low of 6,000 in the fourth quarter 2008, most likely reaching that mark sometime in the next two months, probably in late November or early December, Corsi predicts.

"We are confident the mainstream media, which did every possible bit of cheerleading to get Obama into office, can be relied upon to proclaim him a genius following every decision he makes," he said.

"Unfortunately, economics tends to be a function of reality, not hype."

Corsi predicts Obama over the next four years will lead the U.S. into the worst global depression it ever has experienced.

"Red Alert is confident that within one year, even an economic failure like President Herbert Hoover will look like a genius when compared to the failures we are likely to see from a President Obama," he wrote.

Sadly, it appears these predictions are accurate. More and more, it appears that the End Days of this Age of Grace are close to being ushered in. As Christians, we need to keep our eyes on JESUS, pray, and pray some more.

Love In Christ,
Tom

1 Timothy 6:12 NASB  Fight the good fight of faith; take hold of the eternal life to which you were called, and you made the good confession in the presence of many witnesses.

[Soldier4Christ]

Sadly, it appears these predictions are accurate. More and more, it appears that the End Days of this Age of Grace are close to being ushered in. As Christians, we need to keep our eyes on JESUS, pray, and pray some more.

Love In Christ,
Tom

1 Timothy 6:12 NASB  Fight the good fight of faith; take hold of the eternal life to which you were called, and you made the good confession in the presence of many witnesses.

Amen.

[Soldier4Christ]

Post Office to slash 40,000 employees
'We lost $2 billion and like any other business we have to stay afloat'

"We lost 2 billion dollars and like any other business we have to stay afloat." And to keep from sinking, the United States Postal Service is considering cutting thousands of jobs nationwide.  Lavelle Pepper with the post office in Shreveport says they too are feeling the affects of the same disease hitting the country... a struggling economy. "We employ about 685,000 people. If we do layoffs it would include clerks, carriers, mail handlers across all crafts."

Pepper says the postal service is looking to eliminate 40,000 jobs nationwide. There's not an exact number on how many of those could be from the Ark-La-Tex. Pepper says workers who are not part of union with six or less years of service would likely be the first on the chopping block. "We've identified 16 thousand people that are not covered under contract. We'll see what those numbers add up to."

The postal service is also offering early retirement packages to workers over the age of 50 who have more than 20 years on the job. But according to pepper it may not be enough. "The preliminary numbers look like it's not going to be enough and we may have to do something else." But despite what may happen, Pepper says customers will not feel the pain they're going through.  "The general public when it takes place won't se any decrease in service.. They largely won't know about it."

[Soldier4Christ]

Bailout lacks oversight despite billions pledged
No action taken to fill watchdog posts, deadline passes for monitoring report

In the six weeks since lawmakers approved the Treasury's massive bailout of financial firms, the government has poured money into the country's largest banks, recruited smaller banks into the program and repeatedly widened its scope to cover yet other types of businesses, from insurers to consumer lenders.

Along the way, the Bush administration has committed $290 billion of the $700 billion rescue package.

Yet for all this activity, no formal action has been taken to fill the independent oversight posts established by Congress when it approved the bailout to prevent corruption and government waste. Nor has the first monitoring report required by lawmakers been completed, though the initial deadline has passed.

"It's a mess," said Eric M. Thorson, the Treasury Department's inspector general, who has been working to oversee the bailout program until the newly created position of special inspector general is filled. "I don't think anyone understands right now how we're going to do proper oversight of this thing."

In approving the rescue package, lawmakers trumpeted provisions in the legislation that established layers of independent scrutiny, including a special inspector general to be nominated by the White House and a congressional oversight panel to be named by lawmakers themselves.

Some lawmakers and their aides fear that political squabbling on Capitol Hill and bureaucratic logjams could delay their work for months. Meanwhile, the Congressional Budget Office, which also has some oversight responsibilities, is worried about the difficulty of hiring people who can understand the intensely complicated financial work involved.

The legislation grants the special inspector, who is expected to be the primary overseer of the program, a budget of $50 million. The measure calls for him to conduct audits and investigations of how the government spends money under the bailout program, including on equity investments in firms. In particular, he is to report about any assets acquired and their value, plus an explanation of why they were acquired and details on individuals or companies involved in the transactions.

The leading candidate for the post is Neil M. Barofsky, a federal prosecutor in New York, and his nomination could come as soon as this week, according to people familiar with the matter.

Barofsky, an assistant U.S. attorney in the Southern District of New York, is the chief of the office's mortgage fraud group and the lead prosecutor in the $2.4 billion accounting-fraud case against former executives of the collapsed financial firm Refco. He was formerly a white-collar criminal defense attorney in New York.

It is unclear that Barofsky would be confirmed by the Senate, as required, anytime soon. One complicating factor is a battle between the Finance and Banking committees over which has jurisdiction over the confirmation process. Spokeswomen for both panels said the issue has not been resolved and may not be until after President Bush names his choice.

Nonetheless, the finance committee has scheduled a hearing for Monday afternoon in the event that a nominee is named.

Several congressional aides, however, said they did not understand how the Senate could possibly do all the proper vetting for such a critical appointment in just a few days. Thorson's confirmation process, for example, took nearly a year. But Treasury officials and Senate aides worry that if the nominee is not confirmed next week, when Congress is back in town for a lame-duck session, then the process might be delayed well into next year.

Some Republican lawmakers have said they are also concerned that Democrats may avoid acting on the nomination so that Barack Obama can choose his own special inspector general after he becomes president. But people familiar with the matter said Barofsky, the leading candidate for the position, would be palatable to the incoming administration because he supported Obama.

In the meantime, Thorson is trying to oversee the program in addition to his other responsibilities. Treasury Secretary Henry M. Paulson Jr. asked him to take on those duties. Thorson has a few dozen people working on the program, but none are doing so full time. He said there should be at least 100 people in the new special inspector general's office.

Lawmakers from both parties have criticized the White House for not moving more quickly to name an appointee.

"Considering how taxpayers' money around Washington isn't respected, a day shouldn't go by without having an inspector general checking on it," said Sen. Charles E. Grassley (R-Iowa), the ranking member on the Finance Committee.

Tony Fratto, deputy White House press secretary, declined to comment on the nominee or when he or she would be named but said there is adequate scrutiny of the bailout.

"No program in the history of the federal government has had more layers of oversight and reporting and transparency," he said.

For their part, lawmakers have yet to nominate the five-member Congressional Oversight Panel, though leaders of both parties said they hoped they would be named by the end of the month and start work by December. People familiar with the matter said possible nominees included current and former government and industry officials, though some had to recuse themselves because of conflicts of interest.

The panel's mandate is to look at the use of Paulson's authority and the impact of the program on the financial markets and mortgage crisis.

Rep. Barney Frank (D-Mass.), who chairs the House Financial Services Committee, said his concerns about oversight diminished after the Treasury program's focus shifted from purchases of financial firms' troubled assets to capital injections into companies. "The concern was they'd be buying assets and we wouldn't know the price," Frank said. The revised bailout program "doesn't have the conflicts of interest and the other things people were concerned about."

The delays in selecting both the special inspector general and the congressional oversight panel have prevented the release of a detailed oversight report required in the legislation. Under the law, the congressional panel was required to release a report 30 days after the bailout program began, a deadline that has passed. It is supposed to issue a more elaborate report on the financial regulatory process by Jan. 20, a deadline congressional aides said will be nearly impossible to make.

The special inspector general is supposed to release a report within 60 days of his confirmation. Though Thorson, the Treasury inspector general, is not required to prepare a report, he said he might feel obligated to issue one if the Senate does not confirm a special inspector by Monday.

The Government Accountability Office, the investigative arm of Congress, is also required by the legislation to conduct oversight of the program. The agency's mission is to look at the overall performance of the initiative and its effect on the financial system.

The GAO has dedicated about 20 people to look at the bailout and has office space at the Treasury Department. Agency officials said they expect to issue a brief report on the program, as mandated by the legislation, within the next month.

The legislation also created a body called the Financial Stability Oversight Board, whose five members include Paulson and Federal Reserve Chairman Ben S. Bernanke. But it has no staff of its own, and few expect that policymakers can conduct oversight of themselves. "It's sort of a joke in terms of oversight," a congressional aide said.

[nChrist]

Oversight on this massive bailout IS A JOKE, BUT IT ISN'T FUNNY! I've read numerous reports about this, and I no longer HAVE ANY FAITH in our government! It simply looks like more MASSIVE CORRUPTION and powers trying to financially FINISH US OFF! After all, we must be beaten down sufficiently to accept almost anything! EXCUSE ME - THAT'S ALREADY HAPPENED! THERE IS ONLY ONE WORTHY FAITH - IN GOD!

[Soldier4Christ]

THERE IS ONLY ONE WORTHY FAITH - IN GOD!

Amen to that for sure!

[Shammu]

Developed world is in recession
OECD predicts economies of 30 member countries will shrink next year
Thurs., Nov. 13, 2008

LONDON - A leading international economic organization on Thursday said the world's developed economies are in recession and are likely to contract next year.

The Paris-based Organization for Economic Cooperation and Development said gross domestic product is likely to decline by 0.3 percent in 2009 in its 30 member countries, with the U.S. contracting by 0.9 percent, Japan by 0.1 percent and the euro currency area by 0.5 percent.

The latest forecasts represent a sharp downgrade since the last one in June, when the organization forecast member country growth of 1.7 percent in 2009 and indicated that the worst of the financial crisis may have passed.
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Meanwhile, China's industry output growth waned to its weakest in seven years, reinforcing evidence the financial crisis is plunging the world into a painful downturn.

Seeking to limit the fallout from a crisis that began when the U.S. housing market collapsed more than a year ago, Japan said it would offer up to $100 billion to the International Monetary Fund (IMF) for emerging economies.

'Long-lasting economic crisis'
The impact of the worst financial conditions in 80 years was also felt sharply in Europe's largest economy, Germany, which contracted by 0.5 percent in the third quarter, putting it in recession for the first time in five years.

"We are going to have to face up to a very difficult and long-lasting economic crisis," Germany's Deputy Economy Minister Walther Otremba told Reuters.

Analysts agreed with that grim forecast.

"The headwinds of the financial crisis and the global economic slowdown are blowing right in the face of the German economy," said Carsten Brzeski of ING Financial Markets.

"Even more worrying, the full impact of the financial crisis still has to unfold," he said. "If you think today's numbers are already bad, just wait for the next quarter."

In China, which has unveiled a 4 trillion yuan ($586 billion) stimulus package, annual industrial output growth slowed to 8.2 percent in October, its weakest showing since Oct. 2001, as the global downturn took its toll.

Job cuts, tumbling markets
Among corporates, British telecoms company BT Group said it was cutting 10,000 jobs at home and overseas.

Stock markets tumbled again in Asia. Tokyo shares slid 5.3 percent and the price of oil hit a 22-month low at $55 a barrel on worries that a recession will curb demand.

China was a rare bright spot, shares ending up 3.7 percent on hopes that the stimulus package would include big spending on housing and railway construction.

Shares in Europe edged higher, breaking a two-day losing  run.

Governments around the world have pledged around $4.6 trillion for bank bailouts, credit guarantees and fiscal spending to contain the damage from the financial turmoil.

Leaders of the G20 industrialized and emerging nations will gather in Washington on Friday to decide on the next steps in tackling the crisis.

Japan is prepared to offer foreign reserves worth up to $100 billion to the IMF if the Washington-based lender needs extra funds to help emerging economies, a government source said on Thursday.

Prime Minister Taro Aso will make the proposal at the G20 summit, the source told Reuters.

"Investors are now looking to the G20 Summit this weekend, with hopes of some further policy action," Patrick Bennett, Asia FX and rates strategist at Societe Generale, wrote in a note.

Awkward time for summit
However, the summit falls at an awkward time politically as President Bush prepares to leave office.

Bush will travel to Wall Street on Thursday to outline his views on the financial markets.

"We should fix the problems we have rather than dismantle a system that has improved the lives of hundreds of millions of people around the world," White House spokesman Carlton Carroll said in previewing Bush's remarks.

Some leaders have called for big reforms to the financial system, but the Bush administration has been more cautious.

The president will "emphasize that free market capitalism — especially free trade — is still the best system to create economic growth and lift people out of poverty," Carroll said.

Washington has backed away from using a $700 billion bailout fund to cleanse bank balance sheets of bad mortgage debt.

U.S. Treasury Secretary Henry Paulson on Wednesday said he preferred instead to focus on buying stakes in banks to encourage them to increase lending.

Developed world is in recession

[Soldier4Christ]

Citigroup to cut another 53,000 employees
Banking giant struggling to steady itself after suffering big losses

Citigroup Inc. is shedding approximately 53,000 more employees in the coming quarters as the banking giant struggles to steady itself after suffering massive losses from deteriorating debt.

The New York-based bank, which has already reduced its assets by about 20 percent since the first quarter of the year, also plans to trim expenses by 19 percent in 2009 from third-quarter levels, to $50 billion.

The plans, posted on the company’s Web site, were discussed by CEO Vikram Pandit at the company’s town hall meeting in New York Monday with employees.
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The company said it is shrinking its work force by 20 percent from its 2007 peak of 375,000. The company had already announced in October that it was eliminating about 22,000 jobs from that level.

About half of the expected work force reductions will come from business sales; Citigroup already announced that it was selling Citi Global Services and its German retail banking business, accounting for about 18,000 jobs. Citi is planning to sell other businesses, too, but has not announced them yet, a spokesman said.

The other half of the work force reductions will come from layoffs and attrition, the spokesman said.

The New York-based bank has posted four straight quarterly losses, including a loss of $2.8 billion during the third quarter.

In an effort to instill confidence in the company, Citigroup emphasized in its presentation Monday that its Tier 1 capital ratio, a measure of financial strength, is 10.4 percent after a $25 billion investment from the government — part of the $700 billion financial rescue package passed by Congress last month. That ratio is higher than peers Bank of America Corp. and Wells Fargo & Co., after their purchases of Merrill Lynch and Wachovia Corp., respectively.

Citigroup also stressed that it has doubled reserves in a year to $24 billion; that its revenues are stable; and that Citigroup has lower exposure to U.S. consumer mortgages than JPMorgan Chase & Co., Bank of America and Wells Fargo.

But the announcements were not met with enthusiasm from investors. Citi shares fell 46 cents, or 4.8 percent, to $9.06 in morning trading. The company’s shares have been trading at 13-year lows.

Shortly before the town hall meeting in New York, Citigroup Chairman Win Bischoff said at a business forum in Dubai, United Arab Emirates, that it would be irresponsible for Citi and other companies not to look at staffing in the event of a prolonged economic downturn.

“What all of us have done — and perhaps injudiciously — we’ve added a lot of people over ... this very benign period,” Bischoff said.

“If there is a reversion to the mean ... those job losses will obviously fall particularly heavily on the financial sector,” he added. “Certainly they will fall particularly heavily on London and New York.”

A Citigroup spokesman said that while certain regions and businesses might have higher concentrations of job cuts, they would generally be across the entire company and around the world.

In his comments to The Associated Press, Bischoff did not rule out the likelihood that Citi’s leaders would go without bonuses this year — a move that would effectively amount to a substantial pay cut for the company’s executives.

“Watch this space,” he said when asked about lost bonuses.

On Sunday, Goldman Sachs Group Inc. said seven top executives, including Chief Executive Lloyd Blankfein, opted out of receiving cash or stock bonuses for 2008 amid the ongoing credit crisis.

[Shammu]

AIG Offers Millions To Top Employees
Reported by: RNS

Monday, Nov 17, 2008 @12:00pm CST

The spendthrifts at American International Group are at it again. This time, the ailing insurer plans to shell out more than 500-million dollars to top employees in the form of deferred compensation.

The "Washington Post" reports the pay perk lets highly paid execs put off taking some of their salary for years. They don't have to pay taxes on that money until they retire, when they'll be in a lower tax bracket.

AIG says deferred compensation is a way of keeping talented managers around long enough to fix the company.

A spokesman swears none of the money is coming from their newly revamped $150-billion federal bailout.

AIG has reported losses of 37.63 billion in the first nine months of the year. It owes its financial woes to bad bets on mortgage-backed securities. Critics say AIG is simply offering another pay perk to the same people who ran them into the ground.

An attorney for one of AIG's shareholders said, "Half a billion dollars could clearly be better spent paying back the American taxpayer." Congress and New York's attorney general are investigating AIG's bonus and compensation plans.

Stories have also surfaced of lavish junkets to resorts.

AIG Offers Millions To Top Employees
~~~~~~~~~~~~

After reading this, AIG shouldn't get a cent of the bail out money.

[HisDaughter]

Bailout's 'blank check' enraging Republicans
Irate lawmakers demand Paulson show how $700 billion is spentBy Drew Zahn
© 2008 WorldNetDaily

Sen. James Inhofe, R-Okla.

In a letter written to fellow legislators over the weekend, Sen. James Inhofe, R-Okla., added his voice to a dedicated resistance still fighting against the federal government's $700 billion bailout of the financial industry and demanding accountability for how the money is spent.

"Congress abdicated its Constitutional responsibility by signing a truly blank check over to the Treasury Secretary," Inhofe writes. "However, the lame duck session of Congress offers us a tremendous opportunity to change course. We should take it."

Inhofe joins other Republicans, such as S.C. Governor Mark Sanford, who have called into question how Treasury Secretary Henry Paulson has allocated the first $350 billion of the $700 billion bailout package, officially called the Troubled Asset Relief Program.

"I firmly believe action is required by Congress," Inhofe writes. "I plan to push for legislation that will require Secretary Paulson's plan for the remaining $350 billion in authorized TARP funds to be ratified by an affirmative vote in the U.S. Congress."

Gov. Sanford sent a letter of his own last week directly to Paulson, citing examples just in South Carolina of financial institutions retiring executives with multimillion-dollar "golden parachutes" in order to qualify for bailout funds and banks that don't need the money applying for it anyway, just to remain competitive.

"The federal government, and by extension taxpayers, are being gamed," Sanford wrote. "I think it's dangerous over the long run the way that taxpayers are being sapped."

"The Wall Street Journal reported last week that some $40 billion is being paid to executives of banking giants that are getting bailout payments," wrote Sanford. "On top of that, Bloomberg reported today that the Federal Reserve is refusing to identify who is even getting $2 trillion in emergency loans."

Now Sanford is asking his constituents – and Inhofe is asking his colleagues – to demand accountability for how the bailout funds are spent.

"In the rush to 'do something' about the turmoil in the credit markets, Congress has failed miserably in keeping an eye out for the taxpayers and watching for unintended consequences of this bailout," Gov. Sanford says in a statement on his website. "To put it simply, taxpayers are getting gamed. While we continue to believe that the bailout was an incredibly bad idea in the first place, it's being made worse by loose rules and oversight that are putting taxpayers on the hook for billions more."

"It is just outrageous that the American people don't know that Congress doesn't know how much money he (Paulson) has given away to anyone,'' Inhofe told the Tulsa World.

"I just think we have to draw the line someplace, and the time is here," Inhofe said.

Secretary Paulson has come under even increased criticism following last week's announcement that he was scrapping the centerpiece of the $700 billion bailout – buying troubled mortgage-backed securities – in favor of other stimulus plans.

"My mouth is open," Rep. Jane Harman, D-Calif. told a television interviewer about the announcement. "It was a very hard vote for many of us who voted for that package, and now all of a sudden we have an audible and we're spending it on something else."

Sen. Charles E. Grassley, R-Iowa, told the Los Angeles Times, "When you see so many changes, you wonder if they really know what they're doing."

Inhofe was also quick to condemn the switch in his letter to fellow senators:

"Why did Paulson reverse course?," Inhofe asks. "Thursday's Los Angeles Times provides the answer. 'Treasury Secretary Henry M. Paulson's decision to abandon plans to buy troubled bank assets shows that he has come to two conclusions about what was once the chief focus of the government's $700-billion bailout: The first is that it wouldn't work.'"

In his announcement of the change of direction last week, the Times reported, Paulson suggested that the government's financial bailout had entered a "time out" period as Obama prepared to take office. Paulson said Congress must work with Obama to decide during the next couple of months what role federal officials should play in the housing market.

If Inhofe is successful in persuading his colleagues, Congress will use the downtime to increase oversight on how the latter half of the bailout is spent.

"During the lame duck session, I will be taking the following actions," Inhofe pledges to his fellow senators. "First and foremost, if Secretary Paulson submits his plan to Congress in order to access the remaining $350 billion while we are in session, a doubtful prospect, I plan to immediately introduce the disapproval resolution pursuant to Section 115 of the EESA and push for its enactment.

"I will also introduce and actively pursue enactment of legislation to do two things," Inhofe writes. "First, it will … require an affirmative vote on the part of Congress to approve Treasury's plan for the remaining $350 billion, instead of the current statutory process which gives Secretary Paulson far too much latitude. Second, it will require a freeze on any remaining funds of the first $350 billion.

"It is imperative that we not allow that amount of money to be added to a deficit approaching $1 trillion this year without any input from the legislative branch," Inhofe writes.

[Soldier4Christ]

I started this thread in Dec 2007. It was not a new subject even at the time and was predicted by some financial experts. There were many then that said it was complete foolishness and most of these are the ones with seats in Congress and their advisers. Now we see that those that said it was coming did know what they were talking about.

__________

Stock Market Crash: Dow Below 8000

U.S. stocks thudded sharply lower on Wednesday to finish at more than five-years lows, with financial powerhouse Citigroup Inc. pummeled by its greatest ever one-day percentage drop as fears intensified about its fate as well as the U.S. auto industry.

 After climbing in and out of positive and negative turf in the early going, the major stock indexes were down decisively in afternoon trades, with the losses intensifying in the final hour.

Dow Jones Industrial Average  7,997.28-427.47-5.07%

All of the Dow's 30 of its components finishing lower.

This is the good news of it at least for now:

Oil dropped as U.S. inventory supplies increased, with crude for December delivery falling 77 cents to end at $53.62 a barrel.

[nChrist]

Hello Pastor Roger,

I have reflected often about how much has happened in a short period of time. Reading our "Prophecy - Current Events" area has been very educational. Much of the Bible also appears in these pages and must because that is our purpose in studying these things. Everything put together should indicate that we are close to the Times of GOD where Bible Prophecy will be fulfilled. It's been a beautiful study, mainly because one must use almost the entire Bible to study Bible Prophecy. YES, I think that we are near to the end days of this Age of Grace, and it's a fascinating time to watch. We can read about it first in the HOLY BIBLE.

Love In Christ,
Tom

2 Timothy 1:8  Be not thou therefore ashamed of the testimony of our Lord, nor of me his prisoner: but be thou partaker of the afflictions of the gospel according to the power of God;

[Soldier4Christ]

Yes, exciting times indeed. The hope that we have in and through Jesus Christ is getting nearer each day.