Japan Official Urges U.S. Subprime Bailout

Likens Credit Crisis To A Broken Bathtub, Says U.S. Should Use Public Funds To Fix

(AP)  Likening the U.S. credit crisis to a broken bathtub draining water, Japan's financial services minister urged Washington on Wednesday to inject public money to fix the problem before it gets worse.

Sounding almost alarmist in an interview with The Associated Press, Yoshimi Watanabe used unusually blunt language to warn that drastic action was needed to address the crisis that has battered global markets.

"If there is a big hole in the bottom of the tub, no matter how much hot water you keep adding, you will never have enough hot water," said Watanabe.

Fixing the leak requires "an overall package, including monetary policy and public money," he said.

As the subprime fallout grows, the idea of a public bailout isn't sounding as far-fetched as it once did.

In an interview with The Wall Street Journal last month, Senator Hillary Clinton, a candidate for the U.S. Democratic presidential nomination, said the U.S. government should be ready to buy troubled mortgages from investors and avoid a prolonged slowdown.

"We might be drifting into a Japanese-like situation," she was quoted as saying.

Last month, the U.S. resorted to a public bailout of sorts for Bear Stearns. The Federal Reserve allowed JPMorgan Chase & Co. to borrow from the Fed, and provide that funding to Bear Stearns. Fed officials said the procedure dates back to the Great Depression of the 1930s but has rarely been used since then.

But Watanabe said the looming global credit crisis, which started with the subprime mortgage woes that surfaced last year, was the biggest financial dilemma for the world, and Japan, since the 1930s.

Watanabe, head of the Financial Services Agency, said Japan has a lesson to share with the rest of the world in how it dealt with the bad debt problems of the 1990s - and that the U.S. can learn from Japan's mistakes.

Japan acted too late, procrastinating for six years in tackling the piles of bad debts major banks had racked up during the excessive "bubble economy" years.

After wasting stimulus packages and other halfhearted efforts, Japan was forced to resort to billions of dollars of taxpayer money to rescue the banks, said Watanabe.

[brianbwb-2009]

"After wasting stimulus packages and other halfhearted efforts, Japan was forced to resort to billions of dollars of taxpayer money to rescue the banks, said Watanabe."

If our tax dollars are used to cover a bank''s liabilities, that then becomes a public bank, the value of the company''s public bailout would then become equity, according to percentage of total value, at the stock''s price at the time it applies for such a scheme.

To nationalize banks, starting with the Fed, is actually a great idea, all banks that failed due to their own mismanagement should be "eminent domain-ed"
ASAP.

[bgwinnett]

I''ve just read two articles saying that the collapse of the real economy is coming in September. I concur.

[mcvet]

Anyone for MORE "Trickle Down" economics??? ROFLMAO

[oscarez]

Thanks to George W "Ronald Reagan" Bush we have the 1980''s all over again.

[bgwinnett]

Thanks to George W "Ronald Reagan" Bush we have the 1980''''s all over again.

Posted by Oscarez at 10:00 AM : Apr 23, 2008

More like the 1880''s and the era of the "Long Depression" that lasted 23 years.

[forthepeopl1]

NO MATTER WHAT THE CREDIT IS, THEY WILL RE-FI EVERYONE AT JUST OVER PRIME, AND AT A RATE OF 40% OF WHAT IS OWED ON THE PROPERTY( PERSONAL HOMES ONLY)!!
WHY, BECAUSE MOST HOST ARE SELLING AT FORCLOSER FOR 20 TO 30 CENTS ON THE DOLLAR, SO AS TO WHAT PAULSON SAID TO BEARSTEARN 2 DOLLARS IS BETTER THAN NO DOLLARS SO TAKE THE DEAL..NOW REMEMBER ALL OF YOU, IF THIS COMPANY IN 6 MONTHS LOST 98% OF THEIR VALUE FROM 700 BILLION TO WHAT IS IT NOW. AND FOR SOMEONE TO COME IN AND BUY IT FOR NOTHING, WHAT IS THE REAL VALUE OF ALL THESE HOMES???NOBODY KNOWS, SO WHY NOT JUST START OVER??? AND STOP THE BLEEDING FOR ALL AMERICANS.

[e-mail]
DAVID A BELANGER
FOR COMMON SENSE THIS IS SO EASY TO FIX DONT MAKE IT HARDER THAN IT IS PEOPLE.

AND LOOK AT THIS MORNINGS NEWS, THE GREAT POTATOHEAD PAULSON,AND BEN ARE IN TALKS WITH ANOTHER WALLSTREET FIRM GOING DOWN. MERRILL LYNCH!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

WHAT MORE BAILOUTS FOR WALLSTREET COMING.

[forthepeopl1]

TO MR KENNEDY

FROM : ALL AMERICANS

SIR, PLEASE DO ME A FAVOR, HOW ABOUT TELL ALL IN THE MEDIA AND NEWS, THAT LOOK AT WHAT ONE AMERICANS SAY, THAT WOULD STOP ALL BLEEDING IN THIS MORTGAGE MESS..

IT IS SIMPLE AS IT GETS...



HELP!!!













Members of Congress Have Been FORBIDDEN to reveal what was discussed
Several are so furious and concerned about the future of the country,
they have begun leaking info.
US Treasury Secretary Henry Paulson
Has Already Received His PERSONAL BAIL-OUT

Under Treasury Secretary Henry Paulson%u2019s .. Former leadership at
Goldman Sachs, the company has been instrumental to its penetration of Western
capital and other markets. - - Henry Paulson was vastly effective in Communist
China%u2019s .. Interests and enabling their access to Western economic assistance
and high technology

In late January 2006, Goldman Sachs purchased a stake in the Industrial and
Commercial Bank of China (ICBC), China%u2019s biggest bank, for $2.58 billion
Treasury Secretary Henry Paulson''''''''s .. Personal stake .. In this transaction
was $25 million

A PERSONAL BAIL OUT for : Treasury Secretary Henry Paulson and His
Criminal Friends

[forthepeopl1]

but this time you would be saveing america, and not wallstreet.
you must come out and stop the forcloseing of all these millions of homes, now,
ALL YOU HAVE TO DO IS MANDATE THAT ALL MORTGAGES THAT HAVE BEEN TAKEN OUT FROM 2000 TO 2007 BY ALL AMERICANS TO BE RE-FI A.S.A.P. NO EXCEPTIONS,


NO MATTER WHAT THE CREDIT IS, THEY WILL RE-FI EVERYONE AT JUST OVER PRIME, AND AT A RATE OF 40% OF WHAT IS OWED ON THE PROPERTY( PERSONAL HOMES ONLY)!!
WHY, BECAUSE MOST HOST ARE SELLING AT FORCLOSER FOR 20 TO 30 CENTS ON THE DOLLAR, SO AS TO WHAT PAULSON SAID TO BEARSTEARN 2 DOLLARS IS BETTER THAN NO DOLLARS SO TAKE THE DEAL..NOW REMEMBER ALL OF YOU, IF THIS COMPANY IN 6 MONTHS LOST 98% OF THEIR VALUE FROM 700 BILLION TO WHAT IS IT NOW. AND FOR SOMEONE TO COME IN AND BUY IT FOR NOTHING, WHAT IS THE REAL VALUE OF ALL THESE HOMES???NOBODY KNOWS, SO WHY NOT JUST START OVER??? AND STOP THE BLEEDING FOR ALL AMERICANS.

[e-mail]
DAVID A BELANGER
FOR COMMON SENSE THIS IS SO EASY TO FIX DONT MAKE IT HARDER THAN IT IS PEOPLE.

AND LOOK AT THIS MORNINGS NEWS, THE GREAT POTATOHEAD PAULSON,AND BEN ARE IN TALKS WITH ANOTHER WALLSTREET FIRM GOING DOWN. MERRILL LYNCH!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

WHAT MORE BAILOUTS FOR WALLSTREET COMING.

[johnpatrick9]

OH! We are so screwed by the greed and avarice and inefficiency of our culture. We all knew that no one could really afford these three and four hundred thousand home prices but noooooo so many wanted to believe in gold in them thar hills. Bunch of greedy dopes and now we will reap the Whirlwind.

[mcv57]

If you read between the lines, this is Japan''s way of saying, " we are not going to be your Indonesia. NO MORE FOREIGN COLLATERAL, *** WHITE HOUSE!

Japan PM: I am getting out of the financial whilpool tub before the plumbing sucks-out my guts.

[enriquecaliente]

What a sad state we''re in. The Captains of the financial industries, run their ship aground and the very people that they fleece, now have to foot the bill to get them out of trouble. If the Captain of the Exxon Valdez was held accountable for the grounding of his ship and what happened after. Then why, can''t the Captains of these financial institutions be treated the same. What a racket they have. They sit oh each others boards, give each other big bonus''s and salaries. And when the $$$Hit, hit''s the fan, all they have to do is reach out to the Government who the have in their back pockets and get them to use our money to bail them out. Here''s what I would do. Take the salary of every CEO and CFO in the Banking and Finance industries, reduce it to $30,000.00 and use the rest of their money to bail the companies out. That or go to jail for a long time.

[ramos937]

Everytime we need money for Iraq, disaster relief, etc. we borrow money by selling USA backed securities to certain entitites. The Bank of Japan is our chief customer followed by China, Saudi Arabia, etc. This Japanese government official is trying to tell us in unusually blunt lanaguage to get our financial house in order or else. The first time Japan turns us down will start a chain reaction. Eventually, no one will buy our debt. At that point, we start dishonoring our obligations which starts a downhill slide we will not recover from for decades.

Greedy financial "geniuses" created this mess, let them take the bath. Hole and all. People who sign contracts without reading them, without understanding them or without the intention of honoring them deserve no bailouts. It may be tough love, but it strengthens character. Want to really make a statement? Award a foreclosed house to every family of every one of the 4034 slain American soldiers in Iraq/Afghanistan, followed by every veteran who has served more than two tours in Iraq/Afghanistan, followed by every veteran who has served two tours in Iraq/Afghanistan, followed by every veteran who has served in Iraq/Afghanistan.

[forthepeopl1]

HOW ABOUT CONFLICT OF INTEREST..........

In late January 2006, Goldman Sachs purchased a stake in the Industrial and
Commercial Bank of China (ICBC), China%u2019s biggest bank, for $2.58 billion
Treasury Secretary Henry Paulson''''''''s .. Personal stake .. In this transaction
was $25 million

A PERSONAL BAIL OUT for : Treasury Secretary Henry Paulson and His
Criminal Friends

(Mar 27, 2008 (ruters.com) BBC) ... White House Resists Pleas for .. Mortgage Bailout
WASHINGTON (Reuters) - As clamor rises for federal help for homeowners
who face losing their homes .. U.S. Treasury Secretary Henry Paulson .. Seems
to be digging in heels against the effort.

U.S. Treasury Secretary Paulson sounded a tougher note than ever against any
possibility of bailout for individual mortgage holders, singling out the growing number
going "under water" as their loans exceed the diminishing value of their properties.



AND LOOK AT THIS MORNINGS NEWS, THE GREAT POTATOHEAD PAULSON,AND BEN ARE IN TALKS WITH ANOTHER WALLSTREET FIRM GOING DOWN. MERRILL LYNCH!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

WHAT MORE BAILOUTS FOR WALLSTREET COMING.