Chuck Schumer has essentially allowed the Federal Reserve Bank, a private bank, to take in very crappy loans and toxic assets from the banks and allow them to have treasury bonds in return. The taxpayer, not the Federal Reserve, is on the hook for these assets. Ron Paul has wanted an audit of the Federal Reserve in order to establish whether the taxpayer was ripped off to the tune of trillions of dollars in this Geithner scheme. The support for the audit has been gaining momentum but Schumer has not supported it. That means Schumer sucks, still.

Chuck Schumer has called for a ban on program trading, carried out primarily by Goldman Sachs and friends. This trading establishes a way for these guys to see the value of a stock before the general public. This fraud allows for a big advantage in fees and profits and can affect volume in the stock market. Churn can actually help volume be better than a fair market would show. But of course, the stock market could go down on less volume.

Still, the retail investor is ripped off with this system and cannot get a fair price buying or selling stocks when the system is rigged. This is one good thing that Schumer is doing, as this issue will not go away. But knowing how Schumer sucks one wonders if this is just a job saving manuever, as he is not too popular regarding the bad deal that the Fed made for the taxpayer in the Geithner bad bank plan. You and me are the bad bank! Thanks Chuck!

Schumer also blames the Chinese for our credit meltdown. Why, because they are thrifty and won't run up Wall Street credit cards?

Update: With the establishment of the public/private partnership, Tim Geithner, secretary of the treasury has managed to get the bad bank by sneaking around. He has a plan to take the toxic assets off of the banks with a plan for government to both finance and take the risk for these toxic loans. This makes the government and the taxpayer the owner of the bad bank. This is so wrong and so risky for the taxpayer. If they temporarily nationalized the banks, they could cause the bondholders of the banks to take a haircut, meaning the taxpayer would be less responsible. But that would be too hard on the greedy international banking community. What a continuing scam!

Chuck Schumer sucks. He wants to take the bad loans that are on the books of the big banks, have a third party estimate their value two years down the road, and give a guarantee to the banks based upon a crystal ball that has been flawed since this stupid credit crisis started. This modification of the bad bank nightmare is still a potential disaster for the government. Japan had 16 straight years of house price decline! Why couldn't that happen in the USA?

Think about it. How does Schumer think that things will be any better in two years? He has no clue. He thinks this plan is better than the bad bank idea of the government taking the loans and overpaying now. But the banks will only have to guarantee about 10-20 percent of the losses on this crap paper. If the value were to go to zero with a depression, then the government would be on the hook for 80-90 percent of trillions of dollars of losses. I will keep you posted on this dumbass senator and his close relationship with the banks. This guy is an idiot and he sucks. He cannot screw the taxpayers this way. If we have 10 more years of financial pain, which could happen, the taxpayer will suffer and the government will go into debt even further, making the middle class even poorer. This bad bank idea in any form could destroy the credit rating of the United States, permanently raising interest rates for everyone who lives in the US! This is a Bad idea!

I support some stimulus plan and nationalizing the banks. Bondholders should feel some pain too.