"Hundreds of billions of dollars are going to bail out FOREIGN INVESTORS." Brad Sherman , D - CA

"Hundreds of billions of dollars are going to bail out FOREIGN INVESTORS. They know it, they demanded it, and the bill has been carefully written to make sure that can happen." - Brad Sherman , D-California"

That's right folks. You are going to have $700 billion - about 25% of the total federal budget - put on your personal credit card (via taxes forever) in order to bail out foreign investors.

Oh, and the best part of it is that the underlying assets involved do not even have to be in the United States!

Here is the definition of a "troubled asset", right from the bill:

"(9) TROUBLED ASSETS.—The term ‘‘troubled assets’’ means— (A) residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before March 14, 2008, the purchase of which the Secretary determines promotes financial market stability;

and (B) any other financial instrument that the Secretary, after consultation with the Chairman of the Board of Governors of the Federal Reserve System, determines the purchase of which is necessary to promote financial market stability, but only upon transmittal of such determination, in writing, to the appropriate committees of Congress."

Notice that conspicuously missing from the definition is the requirement that the asset's underlying thing (that is, the property that was mortgaged, etc) lies within the United States. Also note that Treasury must tell Congress if they add "new types" of debt, but that Congress has no right of review or censure.

snip...

IF THIS BILL PASSES YOU WILL WIND UP EATING $700 BILLION OR MORE - REMEMBER, THIS IS A REVOLVING CREDIT LINE, NOT A MAXIMUM AMOUNT - OF FOREIGN BAD DEBT FROM THE CHINESE AND ELSEWHERE.

more....

http://market-ticker.denninger.net/archives/596-The-TRUTH-About-The-Bailout.html

And the bad debt is OURS, the money was THEIRS.

They called every one up and said, look....backstop our dollar by trading with our reserve bank. We'll take Yen, Euros etc and use them to prop up our weak dollar as everyone dumps U.S. assets. In exchange we PROMISE that any bill that passes will buy up YOUR toxic crapola. Beautiful. I can see clearly now.

planning on doing once their cash is freed up.

I don't think they'll be flooding our economy with cheap credit. That ship has sailed.

SEC. 112. COORDINATION WITH FOREIGN AUTHORITIES AND CENTRAL BANKS.

"The Secretary shall coordinate, as appropriate, with foreign financial authorities and central banks to work toward the establishment of similar programs by such authorities and central banks. To the extent that such foreign financial authorities or banks hold troubled assets as a result of extending financing to financial institutions that have failed or defaulted on such financing, such troubled assets qualify for purchase under section 101."

Paulson and Bush threatened to veto the legislation if there was an explicit prohibition of transfers from foreign banks to an American subsidiary.

http://www.cnbc.com/id/15840232?video=873682522&play=1

is for foreigners to stop investing in the US as it would not be safe. I don't exactly know what the result of that would be, but I suspect it would not be good for the economy. As I understand it, it is currently foreign investment that is propping up the whole house of cards.