Uncommon Sense: Federal Debt PAID by Wall Street? - Part Two

History Lesson on September 17, 2008 - Black Friday -- So instead of repealing a poorly timed FAS 157 mark to market accounting system giving time for the federal government to ferret out the facts behind the mortgage backed securities collapse (not even the CEO's are sure what their traders acquired in the troubled companies) and the real estate market to stabilize, the FED is all but forced to step in and purchases AIG for nearly ten cents on a dollar with its trillion plus asset base just after acquiring Freddie Mac, and Fannie Mae. In twenty-four hours, with this one acquisition (if the cash flowing assets are managed properly) the national debt is reduced 600-700 billion dollars and Congress, which has done little to correct the root rot of the mortgage crisis, will most likely provide funds to the treasury insuring socialism replaces capitalism on Wall Street as more financial institutions begin to fail.

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[Kierkegaard73]

Thus Madison blocking Assumption had many reasons, but to claim it was because of her fiscal responsibility is not one of them. Since the Capital deal(behind closed doors) had already been made ere the famous dinner compromise, I would suggest that the deal brokered was Assumption in return for guaranteeing Virginia's war-claims. Subsequent actions by the board bear this out as virtually any claim Virginia had was allowed.

[Kierkegaard73]

...she would be denied many of her wartime claims by the board that was to decide her claims because she had very circumstantial evidence of those claims. Finally, Madison - along w/ three others were bears in State securities. He was hoping to buy land near where he hoped the Capital wld end up. Lacking his own capital he hoped to buy State Certificates at market value and pay for the land with their face value. The plan fell through, but certainly had an impact on Madison's block...

[Kierkegaard73]

I realize this is several years after you posted but I too have longed for a sinking fund program based along principles similar to Hamilton's brilliant ideas. However - and I know its just a footnote here, but I find it hard to call Virginia a fiscally responsible state back then. She expropriated her citizens by allowing them to pay taxes w/ their war-time interest bearing certificates; thus assumption of State debts would not benefit her citizens. Also, she feared along w/N.Car. that..