I'd Choke Down A Bailout With These Provisions (vanity from a bailout hater)

Free Republic | 25 Sept 2008 | Notary Sojac

[Notary Sojac]

Start with McCain's five point modification of the Paulson plan:

(1) oversight,

(2) taxpayer equity,

(3) full disclosure of all transactions, (post them all in detail, online)

(4) executive pay caps, (controversial here on FR, but anyone who wants to keep his golden parachute needs to sink or swim on his own.)

(5) no pork.

Add to those:

(6) no purchases at greater than 50% of face value, ever.

(7) no bailout funds for foreign institutions (let their own taxpayers handle that tab), and

(8) no bailout of funds backed by "no collateral" loans (credit cards, student loans, etc)

And with that in mind, I can adopt the phrase of that financial Jedi Master, Hank Paulson, and say "I hate to do this, but nonetheless I am willing to go ahead"

[raybbr]

This past Sunday on one of the morning shows Paulson said, ""If we design it so it's punitive and institutions aren't going to participate, this won't work the way we need it to work," Paulson said. "Let's talk executive salaries: There have been excesses there. I agree with the American people. Pay should be for performance, not for failure. We've got work to do in that regard. We need to do that work. But we need this system to work. And so reforms need to come afterwards."

If these guys are considering NOT taking the bailout because they might lose their bonuses and usurious pay then is there really a crisis?

[KittenClaws]

Change “no pork” in to NO PRORK as in, all current pork spending be recalled and used for this bailout. All of them. Every cent.

Also, since this is a “world wide” problem, suspend all foreign aid packages.

[KittenClaws]

If these guys are considering NOT taking the bailout because they might lose their bonuses and usurious pay then is there really a crisis?

No. It is not really a crisis.

[tcrlaf]

Do Executive “Pay Caps” include caps on Actors and Athletes salaries?

[Ann Archy]

First JAIL....THEN BAIL!

Prison time for Franklin Raines, Jim Jognson, Jamie Gorelick, etal......Resignation from Chriss Dodd, Barney Frank....just to name a few!

[Mr. K]

how about a cut in spending from current programs to pay for this 100%

(actual cuts! not just a smaller increase)

[expat_panama]

OK, so we’re not going to see these points included in the legislation in the exact form you’ve got posted here. Does this mean you’re willing to fudge or have you already decided to vote for Obama?

[L,TOWM]

(7) no bailout funds for foreign institutions (let their own taxpayers handle that tab)

So I guess "no soup for you" to UBS, then?

[workerbee]

LOL... yeeeahhh.... somehow I’m thinking they don’t think it’s THAT big a crisis.

[meyer]

They shouldn't even think of a bailout until those in Washington responsible for this entire debacle are brought up on charges. And I don't care what party they're in - if they are on the take with Fannie/Freddie, they need to be in front of a judge and jury.

Right now, the very people that contributed to this mess are deciding how to spend the taxpayer's money to fix it. You KNOW that they'll protect their own.

[Notary Sojac]

correctamundo

Another Freeper suggested on another thread that Ben'n'Hank gave the impression of small time grifters who had just had their IOU's called in by the Godfather.

I can see a long phone call from Beijing last Friday as part of the script here.....

[expat_panama]

"...Executive “Pay Caps” include caps on Actors and Athletes salaries?"

LOL!!!

The politically correct rules for these threads limit stereotypes to CEO's.  We can call CEO's any name we want, we can demand prison and torture, but don't try saying that about say, auto mechanics or farmers because you'll just be getting yourself banned.

[SirJohnBarleycorn]

He’s saying that if it’s not effective to lift asset prices and jump-start normal market functioning, the bailout won’t work, and it won’t work if a wide range of institutions aren’t participating so that Treasury gets the best price for the taxpayer.

If you want to punish outlandish executive compensation in Wall Street firms that failed, that’s fine, but it should be decoupled from the reverse auction process in order that the auctions can be effective.

You could pass a law eliminating the tax deductibility of executive compensation at all financial institutions in the United States with losses exceeding “x” in mortgage-backed securities, you could pass a special corporate income tax surchage in an amount equal to that amount on those companies that paid that compensation, you could pass a special excise tax on the individuals who received the compensation in an amount equal to what you thought was excessive, you could just prohibit such compensation outright, etc. If you want to go after the “Wall Street fat cats” for excessive compensation, all of these solutions would more directly accomplish what you want to do without impairing the prospects of success of the reverse auctions.

[Notary Sojac]

If the potential for corruption is too high (1, 3, 7, and 8 of my points are key here), and if McCain votes for it, I will vote for Baldwin or Barr.

No need to use any expensive pixels on why that’s “a vote for Obama”. Been there, heard that, got the shirt.

[Argus]

If the same wolves are guarding the henhouse after the election - Frank, Schumer, Dodd, etc. - and Wiley Coyote Obama is President, then this trillion bucks will be just the beginning.

Carteresque stagflation will be back, and on steroids.

[L,TOWM]

Ben'n'Hank gave the impression of small time grifters

Would have been an accurate description with just that statement.

[PapaBear3625]

If these guys are considering NOT taking the bailout because they might lose their bonuses and usurious pay then is there really a crisis?

Simple solution: have the regulators drag every one of them into involuntary bankruptcy proceedings. Immediately, all "golden parachute" clauses get frozen until after an examination of the liabilities of the company, with executives at the tail of the line for bonuses, commissions, and options.

[raybbr]

If you want to punish outlandish executive compensation in Wall Street firms that failed, that’s fine, but it should be decoupled from the reverse auction process in order that the auctions can be effective.

I didn't call it punitive Paulson did. I don't think they deserve anything more than their salary. They are not taking any risk. If it fails again the gub will bail 'em out again.

These are my tax dollars they get to play with not their own money. They, being the bankers that got us into this mess (I know that HUD pushed for it but they never objected or simply said "No thanks" to HUD) so why should I reward them with billions simply to get themselves out of their own mess?!

[Freedom_Is_Not_Free]

I agree with everything you said but point #7. I don’t want to bailout foreign entities but Japan and China have us over a barrel and I’m just not sure we can afford to put a finger in the Pandas eye. Maybe. I’m just not sure. We already lost the game when we let Japan and China float us for so long.

http://www.ustreas.gov/tic/mfh.txt

MAJOR FOREIGN HOLDERS OF TREASURY SECURITIES

Japan, $590 billion
China, $520 billion
Britain, $290 billion
OPEC, $175 billion
Brazil, $150 billion