The Bailout Is NOT Limited to $700 Billion, Paulson Could Spend UNLIMITED Taxpayer Money

Most people think that the proposed bailout will cost $700 billion. In fact, it is not limited to $700 big ones, and will probably go much higher.Specifically, Paulson’s draft bailout plans says:“The Secretary’s authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time.”That means that Paulson could [...] continue reading world news

Goldman Sachs, Morgan Stanley Become Banks, Ending an Era for Wall Street

U.S. flags fly outside the headquarters of Goldman Sachs Group Inc., in New York, Sept. 16, 2008. Photographer: Gino Domenico/Bloomberg NewsSept. 22 (Bloomberg) — The Wall Street that shaped the financial world for two decades ended last night, when Goldman Sachs Group Inc. and Morgan Stanley concluded there is no future in remaining investment banks [...] continue reading world news

Dollar May Get `Crushed’ as Traders Weigh Up Bailout

U.S. one dollar bills are displayed for a photograph in New York, April 15, 2008. Photographer: Daniel Acker/Bloomberg NewsSept. 22 (Bloomberg) — Treasury Secretary Henry Paulson’s plan to end the rout in U.S. financial markets may derail the dollar’s three-month rally as investors weigh the costs of the rescue.The combination of spending $700 billion on [...] continue reading world news

China toxic milk sickens 53,000 as scare spreads

BEIJING (AFP) - China’s tainted milk scandal spiralled into uncharted territory Monday with the government announcing that up to 53,000 children had been sickened and its top product-quality inspector sacked.In a dramatic update of previous figures, the health ministry said a total of 52,857 children were taken to hospital after drinking milk thought to have [...] continue reading world news

Crude Oil Has Biggest Gain Ever as Dollar Drops Against Euro

Traders work in the crude oil options pit on the floor of the New York Mercantile Exchange in New York, on Sept. 22, 2008. Photographer: Jin Lee/Bloomberg NewsSept. 22 (Bloomberg) — Crude oil climbed more than $25 a barrel, the biggest gain ever, as the dollar weakened the most against the euro since January 2001, [...] continue reading world news

China Shuns Paulson’s Free Market Push as Meltdown Burns U.S.

“An open, competitive, and liberalized financial market can effectively allocate scarce resources in a manner that promotes stability and prosperity far better than governmental intervention,” Paulson said.Contemplate that for a moment.Now add this to your contemplation:Section 8 of the proposed legislation says it all:“Decisions by the Secretary pursuant to the authority of this Act are [...] continue reading world news

FBI investigating companies at heart of meltdown

WASHINGTON: The FBI is investigating four major U.S. financial institutions whose collapse helped trigger a $700 billion bailout plan by the Bush administration, The Associated Press has learned.Two law enforcement officials said Tuesday the FBI is looking at potential fraud by mortgage finance giants Fannie Mae and Freddie Mac, and insurer American International Group Inc. [...] continue reading world news