Barack Obama and the Strategy of Manufactured Crisis
Whether by Fabianist incrementalism, or by catastrophe and revolution, the Socialists win, in their strategy.
Posted on 09/28/2008 12:38:39 PM PDT by TLI
http://money.cnn.com/2008/09/28/news/pdf/index.htm
(Excerpt) Read more at money.cnn.com ...
106 pages... Ouch!
Ouch is right!
Congress has left 700-billion dollars worth of dung on our doorstep and expects us to say thank you.
Ok- it’s dated with today’s date. that’s promising- we’ve had soooo many tidbits and partials and 4 day-old ones..this seems current.
Alas, poor capitalism. I knew him well, Horatio.
TARP... troubled asset relief program. More like CARP...
Yea, this is it.
Page 76, #12: ‘‘$11,315,000,000,000’’.
Our new national debt is to be $11.3 trillion dollars. We’re broke.
or CRAP
“Troubled Asset Relief Program”, TARP, is the name given to this program in general. TRAP would be better.
Thanks- reading now...
Can a Tax Person get down to Pg. 38-41 and try to make sense of what they are talking about where they are changing to tax code for Golden Parachutes, please.
ACORN is still in there.
18 ø(d) TRANSFER OF A PERCENTAGE OF PROFITS.—
19 ¿
20 ø(1) DEPOSITS.—Not less than 20 percent of
21 any profit realized on the sale of each troubled asset
22 purchased under this Act shall be deposited as pro
23 vided in paragraph (2).
24 (2) USE OF DEPOSITS.—Of the amount re
25 ferred to in paragraph (1)
1 ø(A) 65 percent shall be deposited into the
2 Housing Trust Fund established under section
3 1338 of the Federal Housing Enterprises Regu
4 latory Reform Act of 1992 (12 U.S.C. 4568);
5 and
6 ø(B) 35 percent shall be deposited into the
7 Capital Magnet Fund established under section
8 1339 of that Act (12 U.S.C. 4569).
Go to page 22. 20% of the profit of sale is being diverted as follows:
65% to the Housing Trust Fund
35% to the Federal Magnet Fund
Both of these are low-income housing grant entities. Gee, wonder what group will be getting its hands on this?????
The guy there told me his understanding was that there was NO MONEY for ACORN in the bill.
I told him about FREEPers concern (he claims to know about Free Republic) about the top of page 22, where 65% of monies are given to a "Housing Trust Fund", and he said he would check on it...
Erroneously stated in my last post. It’s the Capital Magnet Fund.
Here’s some info on it:
http://cdfi.org/uploads/other/Capital%20Magnet%20Fund%20Overview.pdf
Goodies for more low income housing from our money
See http://www.cbsnews.com/stories/2008/09/27/politics/politico/thecrypt/main4483168.shtml
Per Barney Frank’s office the money’s would not go directly to ACORN, but state and local governments could send a portion of the money they recieved to ACORN.
Slight of hand.
“ACORN is still in there.”
Yep
More info in the Capital Magnet Fund:
Capital Magnet Fund
Establishes a Capital Magnet Fund (CMF), which will be an account within the Community Development Financial Institutions (CDFI) Fund at the Department of Treasury, which is also allowed to receive additional funding from other sources.
Eligible recipients are Treasury-certified Community Development Financial Institution or non-profits that have at least one of their purposes the development or management of affordable housing.
Eligible recipients can apply for a competitive grant through the Treasury to help develop, preserve, purchase, and rehabilitate affordable housing for mostly extremely low, very low, and low income families. Grant funds may also be used for economic development or community service facilities in conjunction with affordable housing to help stabilize a low-income or rural area.
The CMF may also be used to provide loan loss reserves, to capitalize a revolving loan fund or an affordable housing fund, or for risk-sharing loans.
Applications for the competitive grants are required to include a detailed description of the types of affordable housing, economic, and community revitalization projects the institution would use the grant for, and the anticipated time frame they intend to use it.
No institution can be awarded more than 15% of all Capital Magnet funds available for grants in that year.
The Secretary is encouraged to fund activities in rural or underserved metropolitan areas.
Among the criteria in determining which areas should be served are:
o the percentage of low income families or the extent of poverty
o the rate of unemployment or underemployment
o the extent of blight and disinvestment
o projects targeting extremely low, very low , and low income families in an area of economic distress
o or any other criteria chosen by the Secretary
Institutions receiving grants must spend the funds within two years from the date of receiving them.
Prohibited uses are political activities, advocacy, lobbying, counseling services, travel expenses, and endorsements of a particular candidate or party.
Each grantee must track its funds by issuing periodic financial and project reporting, and audit requirements. If the Secretary is not satisfied with the compliance, the grantee may receive fewer funds, have to pay the Treasury back, or have their grant terminated.
The Secretary must submit a periodic report to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services describing the activities these funds are being used for.
http://www.nlihc.org/template/page.cfm?id=40
Note that grants can go to non-profits who work in low-income housing.
So, roughly 7% of any profit made on our $700 billion will go to non-profit housing groups. Nice chunk of change.
Any profit made should be returned to the taxpayer in the form of rebates for having to risk our future on this.
Re: Golden Parachutes
14 (C) a prohibition on the financial institu
15 tion making any golden parachute payment to
16 its senior executive officers during the period
17 that the Secretary holds an equity position in
18 the financial institution.
19 (b) AUCTION PURCHASES.—Where the Secretary de
20 termines that the purposes of this Act are best met
21 through auction purchases of troubled assets, and only
22 where such purchases in the aggregate exceed
23 $300,000,000, the Secretary shall prohibit any golden
24 parachute for any employee hired after the successful par
25 ticipation in such an auction who also qualifies as a cov
1 ered executive under section 162(m)(5)(D) of the Internal
2 Revenue Code of 1986.
16 (2) GOLDEN PARACHUTE RULE.—Section 280G
17 of the Internal Revenue Code of 1986 is amended—
18 (A) by redesignating subsection (e) as sub19
section (f), and
20 (B) by inserting after subsection (d) the
21 following new subsection:
22 ‘‘(e) SPECIAL RULE FOR APPLICATION TO EMPLOY23
ERS PARTICIPATING IN THE TROUBLED ASSETS RELIEF
24 PROGRAM.—
1 GENERAL.—In the case of the sever
2 ance from employment of a covered executive of an
3 applicable employer during any applicable taxable
4 year, this section shall be applied to payments to
5 such executive with the following modifications:
6 ‘‘(A) Any reference to a disqualified indi
7 vidual (other than in subsection (c)) shall be
8 treated as a reference to a covered executive.
9 ‘‘(B) Any reference to a change described
10 in subsection (b)(2)(A)(i) shall be treated as a
11 reference to an applicable severance from em
12 ployment of a covered executive, and any ref
13 erence to a payment contingent on such a
14 change shall be treated as a reference to any
15 payment made during an applicable taxable
16 year of the employer on account of such appli
17 cable severance from employment.
18 ‘‘(C) Any reference to a corporation shall
19 be treated as a reference to an applicable em
20 ployer.
21 ‘‘(D) The provisions of subsections
22 (b)(2)(C), (b)(4), (b)(5), and (d)(5) shall not
23 apply.
24 ‘‘(2) DEFINITIONS AND SPECIAL RULES.—For
25 purposes of this subsection—
1 A) DEFINITIONS.—Any term used in
2 this subsection which is also used in section
3 162(m)(5) shall have the meaning given such
4 term by such section.
5 ‘‘(B) APPLICABLE SEVERANCE FROM EM
6 PLOYMENT.—The term ‘applicable severance
7 from employment’ means any severance from
8 employment of a covered executive by reason
9 of—
10 ‘‘(i) an involuntary termination of the
11 executive by the employer,
12 ‘‘(ii) any bankruptcy or liquidation of
13 the employer, or
14 ‘‘(iii) the placement of the employer in
15 receivership.
16 ‘‘(C) COORDINATION AND OTHER
17 RULES.—
18 ‘‘(i) IN GENERAL.—If a payment
19 which is treated as a parachute payment
20 by reason of this subsection is also a para
21 chute payment determined without regard
22 to this subsection, this subsection shall not
23 apply to such payment.
1 REGULATORY AUTHORITY.—The
2 Secretary may prescribe such guidance,
3 rules, or regulations as are necessary—
4 ‘‘(I) to carry out the purposes of
5 this subsection and the Economic Re
6 covery and Corporate Accountability
7 Act of 2008, including the extent to
8 which this subsection applies in the
9 case of any acquisition, merger, or re
10 organization of an applicable em
11 ployer, and
12 ‘‘(II) to apply this section and
13 section 4999 in cases where one or
14 more payments with respect to any in
15 dividual are treated as parachute pay
16 ments by reason of this subsection,
17 and other payments with respect to
18 such individual are treated as para
19 chute payments under this section
20 without regard to this subsection.’’.
21 (3) EFFECTIVE DATES.—
22 (A) IN GENERAL.—The amendment made
23 by paragraph (1) shall apply to taxable years
24 ending on or after the date of the enactment of
25 this Act.
1 PARACHUTE RULE.—The
2 amendments made by paragraph (2) shall apply
3 to payments with respect to severances occur
4 ring during the period during which the au
5 thorities under section 101(a) are in effect (de
6 termined under section 120).
Something from back in my Texas Minuteman / original Minuteman Project days tells me La Raza gets money from this source.
Freeking LA RAZA
Ditto Thelma Drake's office (R-VA). If nothing else, we'll be making some noise up on the Hill today.
It’s a slush fund for liberal community organizing groups.
Barack Obama and the Strategy of Manufactured Crisis
Whether by Fabianist incrementalism, or by catastrophe and revolution, the Socialists win, in their strategy.
"Read my lips, NO NEW BAILOUTS"!--Bush41
"JUST SAY NO"!!--Nancy
"THIS MUST NOT STAND"!--Bush41
"The government is not the solution to our problems,,,,the government IS THE PROBLEM"!--the Gipper
TAXPAYERS BAILING OUT FOREIGN BANKS
NO VOTE NEEDED TO GO TO 700 BILLION
HOUSE CAN ONLY VOTE ON SENATE VERSION-NO AMENDMENTS
RENEGOTIATING MORTGAGE RATES WILL SCREW THE GOOD GUYS WHO PAY THEIR BILLS
How do they explain, that it does? Please document.
It was all a setup from the beginning. Remember Paulson called and said McCain was "needed" in Washington to help. So McCain believes them, leaves the campaign trail, goes to DC and is mocked by his "friends" of life up there.
At this point I think McCain is shocked they would do this to him and doesn't know what to do next.
When this election is over, the anger will be even worse.
Won’t use cnn. Any other sources?
I posted it on my webspace: http://projectkhalid.org/firstdraft.pdf
Another aspect that disturbs me is that the only regular “oversight” will come from the people most at fault:
(b) MEMBERSHIP.—The Financial Stability Over5
sight Board shall be comprised of—
6 (1) the Chairman of the Board of Governors of
7 the Federal Reserve System;
8 (2) the Secretary;
9 (3) the Director of the Federal Home Finance
10 Agency;
11 (4) the chairman of the Securities and Exchange Commission; amd
13 (5) the Secretary of Housing and Urban Development.
Repeat after me...The Fix Is In.
The bailout is so scary, like something out of a nightmare.
I guess the democrats DO BELIEVE IN ‘TRICKLE DOWN ECONOMICS’...as long as it trickles down from the people who pay their taxes to the government./sarcasm
THE LOOTERS ARE GETTING WAY TOO MUCH MONEY!! THEY ALREADY GOT 300 BILLION IN JULY!! THIS IS RIDICULOUS!
Great; thanks for that link. I’ll be going over this with a fine-toothed comb. Cursory glance indicates that it’s not as bad as Paulson/Dodd; it has the insurance program which “shall” be established if a Troubled Assets Program is established. As I read it, the insurance is optional for banks, but if it is true that the assets are currently undervalued, and a push is all that is needed in the credit markets, then this may work. A few places will get bailed out, the markets will move, and the other investment institutions will feel that rather than sell the assets to the Feds, they can just get them insured and pay a premium. It may seem like few banks will do this, but in fact, I think there is a high likelihood that quite a few will take advantage of this option, depending on what happens in the early stages.
Looking at other provisions now...
Another good thing: only $50Bn is committed initially; any additional sums are predicated on the Secretary/Board providing appropriate reports on the actual estimated sums needed within 7 days of each $50bn allocation. So they’ve really reined in Treasury from the “King of the Universe” powers Paulson originally sought. There’s a de facto no-bid provision, but frankly, no bid service contracts are actually a much better deal for taxpayers (don’t get me started on how stupid most government procurement laws are).
Still reading...
No it’s not. That provision is in Brackets. In legislative drafting, matter in brackets is deleted language from a previous draft.
PLEASE NOTE: This is a legislative draft; all language in brackets [] is deleted, assuming they are using standard legislative drafting markup. I’ve done enough of these at the state and local level to recognize it; it would not be clear to those who don’t read draft legislation.
ACORN is gone, people.
No it isn’t. Please read above and stop bothering your congressmen about this issue—they’re other things they have to look at.
The ACORN/La Raza provision is dead. We can thank Boehner, Cantor, and most of all, McCain for killing it. Without McCain parachuting in on Thursday, it would have been a done deal.
The referenced link no longer works. The CNN story now has a disclaimer at the end stating:
An earlier version of this article incorrectly reported that Congress had publicly released the draft bill CNN obtained.
65% to the Housing Trust Fund
35% to the Federal Magnet Fund
Both of these are low-income housing grant entities.
“La Raza supporting politicians have slipped the exact text of H.R. 1999, which would give La Raza $5 million of taxpayer funds this year and $10 million each year thereafter, into Senate bill S.1923, which is charmingly named the Housing Assistance Authorization Act of 2007”
http://www.diggersrealm.com/mt/archives/002471.html
of course the money goes into a general pool first and then various “Low-Income Housing” government projects get money dolled out so no it is not going from TARP to La Raza, but the La Raza funding will get TARP dollars. Count on it.
Also look here...
“The housing package signed into law by President Bush extends an unlimited line of credit to troubled mortgage giants Freddie Mac and Fannie Mae and rescues homeowners near or in foreclosure. The measure also increases the federal debt limit by another $800 billion — and sends millions of dollars in aid to [the National Council of La Raza] and the Association of Community Organizations for Reform Now, or ACORN.”
more
http://online.wsj.com/article/SB121745181676698197.html
more
http://www.govtrack.us/congress/billtext.xpd?bill=s110-1923
This is out of the bill (I’m starting to sound like a broken record). The deposit of 20% of the proceeds/profits to Affordable Housing Trust Fund and Federal Magnet Fund is DELETED.
Rush Limbaugh noted on Friday, that a bill needs to be on the THOMAS system for 24 hours before it can be voted on. I've been unable to find a citation for that claim.
Thank you. Perhaps you can check again, to see if the actual, newly drafted bill contains this. Boehner says ACORN is not in it.
Sigh....All language within brackets is deleted, as a rule. Occasionally drafters use brackets to signify points still under consideration, so that might apply to some other sections in brackets, though I think the House does not do that. At any rate, the ACORN part is clearly out of the bill.
That’s not required by any law I am aware of. Boehner said that he wanted it posted for 24 hours, but that ain’t likely to happen.
Newt Gingrich was on one of the morning shows and the way I understood him to say the Thomas Act was put in under Clinton and is a law. If it is not on there yet maybe it is because it is still in its draft form.
It has to be posted via Thomas, but I don’t think there’s any 24 requirement, that’s all. I’ll check and report back.
Bump for later reference
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