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Fed's New $600 Billion Bailout, Where Was the Vote? How Is This Legal?

By
Real Estate Agent with Atlanta Communities Real Estate Brokerage GREC #208281

The Fed just announced that it will buy up $600 billion of mortgage backed securities.  This is something that is separate from the $700 billion bailout that Congress passed in October.

Either I missed something important in the last three months or Congress and the Fed have been misrepresenting things.  If I recall, back in October Paulson was begging Congress to pass the bailout so that he would be able to buy up the bad mortgages that were clogging up the system.  It was so important that Bush signed it within hours of it passing the Congress.  It was a big deal.  Life as we knew hung in the balance.  At least that's what we were told.

Shortly after all of that drama, Paulson decided that he wasn't going to use the money to buy the troubled mortgages but was going to give it to the banks instead.

So how can the Fed now just go out and do this without any kind of discussion or vote?  Why didn't they do this back in October?  Did some smart guy just figure it out in the last three months? Did some new rule get passed?  Was the October vote a big scam? 

I'm no expert on these things but something just doesn't add up.  Karl Denninger has a great post asking the same kinds of questions. It is well worth the time to read it.

Then go over to Jim Crawford's post to read his long list of unanswered questions.

Something it totally wrong here folks.  I think we are all being ripped off right in front of our eyes.  I am afraid that by the time enough people get angry enough to start doing something about it, it will be way too late. 

I believe Thomas Jefferson was a smart man. He had a lot to say about banking and money. I never really understood this quote but it seems to me that it's being played out right under our noses.

    I believe that banking institutions are more dangerous to our liberties than standing
    armies. If the American people ever allow private banks to control the issue of
    their currency, first by inflation, then by deflation, the banks and corporations
    that will grow up around [the banks] will deprive the people of all property until
    their children wake-up homeless on the continent their fathers conquered. The issuing
    power should be taken from the banks and restored to the people, to whom it properly belongs.

    Is it time for another Revolution?

Posted by

 

 

About the Author:  Tim Maitski has been a full time Realtor since 1999. He has sold several hundreds of homes in areas around metro Atlanta.  Tim started with RE/MAX Greater Atlanta and is now with Atlanta Communities Real Estate Brokerage.

 

Along with blogging on ActiveRain, he provides one of the best real estate websites in Atlanta at www.HomeAtlanta.com .

 

His proprietary  "Maitski Line Reports" chart out the absorption rates over the past 14 years in 37 different market areas.  Know when it's a good time to buy or a good time to sell.    

 

His online Property Tax Calculator allows you to compare property taxes in many counties and cities around the Atlanta area.  He provides the Atlanta MLS Power Search Tool that allows searches of homes using over 35 specific criteria.

 

Over the years, Tim has optimized his business so that he now can offer a huge 50% commission rebate to his buyers.  The more experience one gets, the easier the job becomes.

 

Tim also has a "Five Days to Sold" System that uses an intensive marketing blitz to create a showing frenzy that creates urgency and offers.

 

Tim is always looking to LinkIn with anyone who is interested in building their social network.

 

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Comments (11)

Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

It will be a great day for the United States when Paulson gets thrown out of office and replaced with the new Secretary.  He has done a truly great job at wasting taxpayer money and basically bankrupting this country.

Dec 30, 2008 10:49 PM
Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

Tim...

I wish that those in Washington were forced to take a course in Jeffersonian government. That sure would be helpful for the country.

Dec 30, 2008 10:51 PM
Diane Bell, Hilton Head Real Estate, Bluffton
Charter 1 Real Estate, Hilton Head, Bluffton, SC - Hilton Head Island, SC

I've never seen such mismanagement of anything in my entire life.  A total disgrace!  I sure hope we see some improvement but somehow, I just don't know if it's even possible. 

Dec 30, 2008 10:53 PM
Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator

Great post.  I haven't watched the news in a couple of days and had not heard of another $600b going out. Thanks for the information. I'm going to look into it further.

Dec 30, 2008 11:02 PM
Scott Daniels Florida Real Estate 2.0. Agents Earn 100% Commission.
Florida List For Less Realty, Inc. Broker/Owner. - Cooper City, FL

Tim,

Not sure if this is all together true! What is your source?

Dec 30, 2008 11:15 PM
Mark Watterson
Salt Lake City, UT
Utah Real Estate

Vote? What is that? I'm still confused what's a vote?  Legal again confused?  Oh, I forget I'm just an economic slave.  What happened to the government by the people for the people?  Again confused. 

Dec 30, 2008 11:25 PM
Tony Grego, 317-663-4173 #1 Trade Association for Alternative Inv
REISA - 317-663-4173 - Indianapolis, IN

The same reason that American Express (and others) are forming a bank. The reason why so many healthy banks are getting money. The reason no one is lending.

It is always about the side deals. We all should know that

Dec 30, 2008 11:32 PM
Janice Roosevelt
Keller Williams Brandywine Valley - West Chester, PA
OICP ABR, ePRO,Ecobroker

Fabulous Jefferson quote and post. Happy New Year!

Dec 30, 2008 11:55 PM
Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

Ok Tim I am going to disagree with you a bit.The fed is an independent institution. They do not need congress to vote. In fact the reason the fed is independent is that Congress after Andrew Jackson realised that they could not control themselves so they created the independent thing called the Federal reserve. Now obvoiusly they are tied to congress and policy. So I find this action by the Fed a lot less offensive than the origional Bail out which i think was 100 percent terrible. The Fed buying up their own securities and helping mortgage rats gives me a lot less reason to pause than the terrible Paulsen Bail out. Not to rant but it is hard to believe he is on the cover of Time as co man of the year.

Hey have a happy New year and lets sell up a storm

Dec 31, 2008 12:08 AM
Tim Maitski
Atlanta Communities Real Estate Brokerage - Atlanta, GA
Truth, Excellence and a Good Deal
Tim Maitski
Atlanta Communities Real Estate Brokerage - Atlanta, GA
Truth, Excellence and a Good Deal

Charlie,  I'm no expert on the Fed, but if they can do whatever they want and end up putting the American taxpayer into more and more debt, then I think it's time to end the Fed. 

I'm glad you brought up Andrew Jackson.  This was a huge issue that he took on and it's very interesting to read about what he thought about a national bank. A few weeks after saying this stuff someone tried to assassinate him.

"Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves."

That sure sounds what's happening today, doesn't it?  He got a little more testy and really told them how he felt about them.

"You are a den of vipers, I intend to rout you out, and by the Eternal God I will rout you out! If the people only understood the rank injustice of our money and banking system there would be a revolution before morning."

While I'm at it, here are a few interesting quotes from Woodrow Wilson, the president who brought this crazy system:

I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men. - Woodrow Wilson

"Since I entered politics, I have chiefly had men's views confided to me privately. Some of the biggest men in the United States -in the fields of commerce and manufacturing-are afraid of somebody. They know that there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when they speak in condemnation of it." - Woodrow Wilson

Anyone who talks like this today is quickly labeled a conspiracy nutcase.  But when you read these quotes and see things happening that don't seem to make sense, it seems to make sense that these guys knew what they were talking about.

Dec 31, 2008 01:47 AM