Today, November 25, 2008, The Fed has announced two new programs to bolster consumer credit markets in the amount of 800 billion dollars.
The first is the TALF, a scheme to lend money to ABS (asset-backed securities) holders, so they can lend more money to consumers:
The Federal Reserve Board on Tuesday announced the creation of the Term Asset-Backed Securities Loan Facility (TALF) Here it goes additional so called “structured products”.
The other program step into MBS (Mortgage Backed Security) to somewhat ‘guarantee’ troubled MBS.
Can you believe, another $800 billion (bigger than the TARP!) to be added to the bailout tally, bringing it to $8.5 trillion (According to the tally from Yahoo Finance, also from Bloomberg News)?
Do you know where the money goes? Let’s see, no crooks ended up in jails yet, instead, the rich and power are getting more money? The inequality between rich and poor is getting wider? Here is other news:
On November 20, 2008, Wall Street Journal examined 120 public companies in such sectors as banking, mortgage finance, student lending, stock brokerage and home building, showed that top executives and directors of the firms cashed out a total of more than $21 billion during the period.

Four of those executives, including the heads of Lehman Brothers Holdings Inc. and Bear Stearns Cos., ran companies that have filed for bankruptcy protection or seen their share prices fall more than 90% from their peak. Dick Fuld of Lehman Brothers made $490 million, etc…..

Dwight Schar, chairman of NVR Inc., a Reston, Va., home builder best known as the parent of Ryan Homes. He made more than $625 million in the five years, nearly all of it from selling stock.

Charles Schwab, chairman and founder of the brokerage company that bears his name, realized $817 million over the five years, almost all through stock sales.

Robert Toll, CEO of Toll Brothers Inc., a Horsham, Pa., firm known for building deluxe suburban homes. Mr. Toll and brother Bruce Toll, a company director, together garnered $773 million in compensation and stock proceeds over the five-year period.

Angelo Mozilo, who realized $471 million during the five-year period as he piloted Countrywide Financial Corp. into a leading subprime lender.

Marion Sandler reaped more than $2 billion selling their mortgage lender, Golden West Financial Corp., to Wachovia Corp.

R. Chad Dreier, 61, chairman and chief executive of Ryland Group Inc., a Calabasas, Calif., home builder, made $181 million over the five-year period.

Ten insiders at First Marblehead Corp. seized the opening, receiving a total of about $660 million, mostly through stock sales over five years.

Daniel Meyers, a 46-year-old former arbitrage and derivatives trader, received almost $96 million in cash compensation and proceeds from stock sales over five years.

The list goes on and on…..
Mr. Paulson, you are on the wrong track, keep on printing money to support the economy, you help the rich and powerful? May be the ‘paper and ink’ industry? The working stiffs will have more confidence in the economy, if you send some of the crooks to jail……

Mr. Paulson, please do not act like George Bush, keep on using more powerful tools/weapons to fight the ‘economic war on terror’, look at the hearts and mind of the working stiffs. You are prolonging the economic crisis and making the matter even worse….. Here are some suggestions for you to consider:

1. Investigate vigorously the wrong doer, put them in jail.
2. Close off-shore virtual companies, the whole sub-prime crisis are related to these companies.
3. Reduce the leverage of capital from 30-40 times to more manageable level such as 10-20 times.
4. Give money to efficient, successful entrepreneurs, not the old dinosaurs.
5. Why don’t you talk to ordinary folks on the street? What is the public perception? Who is going to pay 11 trillion dollar of accumulated federal deficit? Here it goes additional 8.2 trillion dollars? If this goes on for several more years, the whole federal government budget could not pay the interest payment of the deficit?