Posted on 09/30/2008 3:05:25 PM PDT by Jay777
Dear Mr. President:
Now that the financial services package is back to the negotiation stage, I wanted to suggest several unilateral steps that could be taken by you to address the root causes of the financial panic. In order to make this bailout the last one, there are several necessary steps that should be taken by the Executive Branch:
1. Repeal the Clinton-era regulations encouraging reckless lending practices under the Community Reinvestment Act (CRA). In the 1990s, the Clinton Administration used the CRA as a club to pressure lenders into giving loans to marginally-qualified borrowers. The government should not be in the business of pushing lenders into making loans they would not make in a free market
2. Direct the SEC to make mark-to-market accounting voluntary for distressed assets. The mark-to-market accounting regime forces companies to value assets at less than their intrinsic value, merely to reflect current market uncertainty. In order to contain the bailout and protect taxpayer dollars, companies should be able to use book accounting for assets deemed by the Treasury as “distressed”
3. Direct the Treasury Secretary to determine that capital basis can be adjusted for inflation by taxpayers. There is a body of legal thought which holds that the Treasury Department can do this by executive action. In order to free up needed capital and unlock frozen assets more easily, the Treasury should make this common sense change to tax rules. If there is a legal brief which details Treasury’s objections to capital basis indexation, it should be released for public dissemination.
It’s important to note that all these actions can be done unilaterally by the Executive Branch. There are other reforms which require legislative action (note especially the House Republican Study Committee package), but the above executive steps would do much to...
(Excerpt) Read more at stoptheaclu.com ...
Who is Grover Norquist?
Question is, did he actually send this to Bush? And will Bush even read it?
I can’t tell if you’re being sarcastic.
what you need to know about Grover Norquist
http://frontpagemag.com/Articles/Read.aspx?GUID=C7CD908B-6D7E-49EB-A0A9-DA0A18745A29
Yes, I’m being sarcastic.
I know very well who he is.
I’m not impressed.
“2. Direct the SEC to make mark-to-market accounting voluntary for distressed assets. The mark-to-market accounting regime forces companies to value assets at less than their intrinsic value, merely to reflect current market uncertainty. In order to contain the bailout and protect taxpayer dollars, companies should be able to use book accounting for assets deemed by the Treasury as “distressed”
And while we’re at it, if your home has lost 30% of its value, you should be able to reduce your payment to your mortgageholder by 30%, right? Or is this just something we’re going to do because we love the banksters who purveyed this mess and we want their stocks to go up? Yaaaay!!!
Yep. That’s it.
GN is not who many think he is - or used to be.
Given that his list is a damn good start, I’m not inclined to shoot the messenger.
this makes more sense than most of congress does, and for sure more than Pres. Bush.
Which says all I need to know about you so I will return the favor - "I am not impressed!" Yes, I even checked your about page and still have that opinion.
You said, about Grover, “I know very well who he is.
I’m not impressed.”
1. Your opinion of GN is unimportant.
2. Your opinion of his plan is what this forum is about.
3. Duh.
It’s important to note that all these actions can be done unilaterally by the Executive Branch. There are other reforms which require legislative action (note especially the House Republican Study Committee package), but the above executive steps would do much to......not bad for a Muppet.
Well that makes us even because I'm sure as hell NOT impressed with W or his idiot in-the-tank-for-Obama and DemoRats (DEMOCRAT) appointment, Paulson
I’m not a Norquist fan, but he is 100% correct.
I think it would be a good idea NOT to post articles from a fifth-column jihadi-friendly ‘’conservative’’.
He’s Islam’s best friend inside the Beltway.
Whenever one says “repeal Clinton-era policies”, he knows GWB is NOT listening. He never met a Clinton policy he did not want to keep.
Actually, I did not know that Paulson is Democrat. Is he a Mark Warner kind of Democrat? I think he is from VA. People in VA have strange political ideas these days.
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