Archive for September, 2008

September 29, 2008 @ 18:04

The BailOut Fiasco: The Motion Is Not Adopted

The House voted on the $700 billion bailout today.

Bills pass the House with a simple majority. Democrats hold that majority.

Nancy Pelosi failed to get the Democrat votes needed to pass the bill.

Maybe now she will sit down with Republicans and work on a bill that actually helps everyday people and not just the corporate types on Wall Street.

Poest at Blip.tv, YouTube, and DailyMotion.

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September 29, 2008 @ 13:21

The BailOut Fiasco: I'm Not Gunna Eat That Cow Patty

Rep. Paul Broun (R-GA) talks about the $700 billion bailout.

Good idea. I'm no expert but I don't think cow patties taste good, with or without marshmallows.

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September 29, 2008 @ 13:07

The BailOut Fiasco: I Am With Them

Rep. Thaddeus McCotter (R-MI) says more in 3 minutes than any other politician has said in 3 days.

I for one, agree with him. The bailout is a stupid idea.

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September 29, 2008 @ 01:06

All The Wrong Reasons

With Congress and the President ready to toss the pending "Bereft Banker BailOut" at our feet, I thought I would see what Republican House members were saying and doing.

In a closed-door session with House Republicans Sunday evening, Minority Leader John A. Boehner called the $700 billion financial rescue deal a “crap sandwich” — then said he plans to vote for it.

Things are not looking good if the Minority Leader of the House refers to the pending legislation as a "crap sandwich" and then says he's still willing to vote for it. Shouldn't our Congressmen be voting for the the right solution rather than the best solution they could come up with before some imaginary deadline?

With support from Cantor and Ryan in hand, party leaders – in conjunction with the White House – were expected to start leaning on other members to back the bill.

When you hear that Republicans need to lean on other Republicans to convince them to back a bill, you know the bill is a bad idea. You lean on people when they want to force them to do something. If it was a good idea, wouldn't they be backing it willingly?

Minority Whip Roy Blunt (Mo.), who negotiated the terms of the tentative agreement for House Republicans, met Sunday afternoon with a bloc of retiring GOP lawmakers in an effort to secure their support for the plan, members familiar with the discussions said.

During that session, Illinois Rep. Ray LaHood, who has battled with party leaders over the years, told his colleagues that they should support the team because none of them would have to face voters in November.

He told his colleagues to support the bill because they are retiring and wouldn't have to face voters in November. If that isn't the clearest signal that this bail out bill is still a bad idea, I don't know what is.

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September 28, 2008 @ 17:51

The Bail Out Breakthrough

The 'bail out' is no longer a $700 billion blank check.

You can download the draft of the "Emergency Economic Stabilization Act of 2008" (PDF). Remember, this is NOT the final version, but simply a first draft.

It's a lot different now than it was last week. In fact, initially, it is $450 billion smaller. That's right, after initial passage, it's only a $250 billion plan, unless Congress votes to allow more in the future. The new plan also requires a mandatory insurance/guarantee program at NO EXPENSE TO TAXPAYERS.

Take a look at this table of changes from The QandO Blog:

Issue Paulson Plan Frank-Dodd Final Bill
$ 700B with no strings. 700B – Delivered in 150B traunches that can be delayed by Congressional disapproval (and a Presidential signature) 250B – Immediately available to the Secretary.

100B – Available upon report to Congress, certified by the President.

350B – Available ONLY upon Congressional action.

Insurance (House Republican Model) NONE NONE Requirement to establish mandatory insurance/guarantee program at no expense to the taxpayer. “Pay to play” for participating companies, based on risk. Outlays reduced by premiums collected.
Executive Compensation Not Specifically Addressed Far reaching executive compensation standards that would affect companies not even involved in this financial crisis. Additionally, the bill lowered the deduction on executive pay to $400,000 for ALL companies. Workable prohibitions on executive compensation to ensure bad actors are not rewarded. In a total takeover (like what happened with AIG), there will be no golden parachutes or severance pay. For equity participation, over $300M total ban for top 5 executives on golden parachutes and tax deduction limit on compensation above $500,000.
Oversight/Transparency Onerous, unworkable and repetitive reporting and oversight requirements, hindering proper implementation of program. Establishment of bipartisan oversight commission, split evenly between minority and majority.
Practical reporting requirements to ensure proper reports to Congress and the public.

Creation of a Special Inspector General

Creates a financial stability oversight board

Implements strict conflict of interest and unjust enrichment rules

If after 5 years the government has a net loss of taxpayer funds as a consequence of the purchase program, the President will be required to submit a legislative proposal to recoup such funds from program beneficiaries.

“Say on Pay”
Union Take Over of Corporate Boards
So-called “say on pay” or “proxy access” which propose to mandate a nonbinding shareholder vote on proxy access and other corporate governance issues for all companies in which the Treasury Department buys a direct stake in certain assets. OUT
Affordable Housing Slush Fund (ACORN Fund) Included a giveaway that would force taxpayers to bankroll a slush fund for ACORN – an organization fraught with controversy for, among other scandals, its fraudulent voter registration activities on behalf of Democratic candidates. OUT
Bankruptcy “Cramdown” (aka, trial bar give-away) Included so-called “cramdown” provisions allowing bankruptcy judges to reduce mortgage principal under the guise of helping those at risk of foreclosure. If enacted into law, the provision would be a bonanza for trial lawyers and undercut the effectiveness of any economic recovery effort by making it even harder to value mortgage-backed securities. OUT
Mark-to-Market Accounting GAO study on the impacts of mark-to-market accounting standards and effects on the banking crisis. Restatement of existing authority to suspend mark-to-market.
Equity/Warrants Mandatory equity interest in all participating firms. Mandatory equity interests in total takeover scenario. Proportional equity interest based on p

It's definitely a step in the right direction. Adding more responsibility to the companies involved and removing more burden from the taxpayers is the correct course of action.

Along with removing so much taxpayer burden, the best part (as far as I am concerned) was the requirement for insurance, which in itself should reduce much of the taxpayer burden from this bill. Of course the removal of the the ACORN slush funds, the added oversight, and the lowering of executive compensation were all pluses as well.

So how did they finally reach this deal? Who came to the table to help negotiate the draft as it stands right now? House Republicans and John McCain. Believe it or not, they are the reason the discussions have come this far and have had such a large change in direction since the original plan was introduced.

From The Next Right:

For all the talk on Thursday that there was a deal, in fact there was no deal because the House Republicans, who are quite conservative as a caucus, were not going to sign on to the bill as it then stood and McCain was able to bring them in, to get them on board, there were some changes made in these meetings over the weekend and as a result it looks like this will pass with a lot of votes from Republicans and Democrats in both houses. In the House, particularly, the Democrats were not going to pass the bill even though they have a majority, unless there was a big Republicans sign-in.

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