Myths and Facts on the Final Bill

NRO-The Corner ^ | 9/28/08 | K-Lo

[Thane_Banquo]

Republican leadership is also sending this around:

Following is myth/fact document regarding the current draft of the economic rescue legislation.

Myth: Windfall for ACORN.

Fact: The Frank-Dodd proposal created an affordable housing slush fund and directed 20 percent of net benefits from the program to be directed to ACORN-type organizations. The proposed compromise does not include any affordable housing slush fund and directs all net benefits back to the Treasury to pay down the national debt.

Myth: Tax increase on financial industry.

Fact: The proposed compromise imposes NO tax on the financial services industry. The proposed compromise simply requires a proposal from the Administration to recoup any losses after five years.

Fact: The proposed compromise includes tax cuts for struggling community banks.

Myth: Blank check for $700 billion with little accountability.

Fact: In general, the Treasury Secretary is limited to purchasing up to $250 billion outstanding at any one time. If the Treasury needs to use another $100 billion, the President must certify this action and report to Congress. Further spending requires Congressional action.

Myth: Treasury plan is the only option available.

Fact: Treasury is given multiple options to deal with the current economic crisis, including insurance, public/private auctions, loan guarantees, and direct support to financial institutions.

Fact: Further, Treasury is MANDATED to create an insurance program (Section 102) that protects the taxpayers and requires companies that wish to participate in this program to have some skin in the game by paying risk-based premiums.

Myth: The taxpayer is not adequately protected.

Fact: The proposed compromise includes strong taxpayer protections. Treasury’s proposal had minimal oversight to protect taxpayer dollars. The proposed compromise enhanced the oversight structure by creating a Financial Stability Oversight Board, a Special Inspector General, and a Congressional Oversight Panel.

All AIG-type deals require mandatory equity interest in order to provide taxpayers with potential future benefits. All auctions require a percentage of equity interest based on participation in the program.

Requires the Secretary to develop regulations/guidelines necessary to prohibit or, in specific cases, manage any conflicts of interest with respect to contractors, advisors, and asset managers.

Myth: The taxpayer does not benefit from Treasury bailouts.

Fact: The proposed compromise (Section 113) requires mandatory equity interest in scenarios like AIG. The proposed compromise also allows Treasury to take an equity interest in the program generally.

Myth: Treasury will never use the insurance option.

Fact: Treasury is mandated (Section 102) to establish an insurance program and set risk-based premiums. This will protect taxpayers by requiring the beneficiaries of the insurance program to pay risk-based premiums. Treasury further shall collect premiums

mandatory equity interest in scenarios like AIG. The proposed compromise also allows Treasury to take an equity interest in the program generally.

Myth: Windfall for ACORN.

Fact: The Frank-Dodd proposal created an affordable housing slush fund and directed 20 percent of net benefits from the program to be directed to ACORN-type organizations. The proposed compromise does not include any affordable housing slush fund and directs all net benefits back to the Treasury for debt reduction.

Myth: Tax increase on financial industry.

Fact: The proposed compromise imposes no tax on the financial services industry. Republicans forced Democrats agreed to requiring a proposal from the Administration to recoup any losses after five years.

Myth: Blank check for $700 billion with little accountability.

Fact: In general, the Treasury Secretary is limited to purchasing up to $250 billion outstanding at any one time. If the Treasury needs to use another $100 billion, the President must certify this action and report to Congress. Further action requires Congressional approval.

Myth: Treasury plan to purchase troubled assets is the only option.

Fact: Treasury is mandated to create an insurance program (Section 102) that protects the taxpayers and requires companies that wish to participate in this program to have some skin in the game by paying risk-based premiums.

Myth: The taxpayer is not adequately protected.

Fact: The proposed compromise includes strong taxpayer protections. Treasury’s proposal had minimal oversight to protect taxpayer dollars. The proposed compromise enhanced the oversight structure by creating a Financial Stability Oversight Board, a Special Inspector General, and a Congressional Oversight Panel. [CONFLICTS OF INTEREST]

Myth: The taxpayer does not benefit from Treasury bailouts.

Fact: The proposed compromise (Section 113) requires mandatory equity interest in scenarios like AIG. The proposed compromise also allows Treasury to take an equity interest in the program generally.

09/28 12:49 PM

[Swing_Thought]

All socialists share the belief that capitalism unfairly concentrates power and wealth into a small section of society who control capital, and creates an unequal society. All socialists advocate the creation of an egalitarian society, in which wealth and power are distributed more evenly, although there is considerable disagreement among socialists over how, and to what extent this could be achieved.

Fascist governments nationalized key industries and made massive state investments. They thought private property was to be regulated to ensure that "benefit to the community precedes benefit to the individual." They also introduced price controls and other types of economic planning measures.

Clarification: Some of the original causal actions (i.e. Community Reinvestment Act) were socialist. The bailout response is more fascist.

[penowa]

"Are they gonna publish the Bill and allow US to read it before they vote on it?"

No. Pelosi said it would be up on the web no later than noon today. The plan is now to vote in the middle of the nite tonite (according to Fox) and all of them be out of town by morning. You know they will do exactly what they always do - vote on this while claiming to be putting the finishing touches on the Bill so that they can SAY what it says, and then release the Bill tomorrow after it's passed so we and any Republicans dumb enough to vote for it will be (October) SURPRISED!

[Thane_Banquo]

Wow. Brilliant argument. Apparently, since the facts are not on your side, all you could do was call me a liberal.

The choice was between a $700 bln check or a $250-350 bln check. This was the best we could do. This is the real world. We can’t just wave a wand and eliminate the federal income tax or get rid of Medicare or anything like that. We have to play the hand we’re dealt, and the House Republicans played it pretty well.

[Thane_Banquo]

Problem is, it was gonna get done whether we liked it or not, and the House GOP managed to cut it in half.

[Terry Mross]

Tfine, the dems will be controlling the treasury when the next payment becomes due.

Ari-freedom, we already tried to bail out the airlines after 9/11. It think the figure was $15,000,000,000.

mouse1, we already do that. It’s called an FHA loan.

[divine_moment_of_facts]

Millions of INNOCENT people will be hurt if nothing is done to stop the hemorrhaging on Wall Street. Other people can start over from scratch.. but most retired seniors living on dividend checks can’t exactly re-enter the work force to recoup their loses.. They have already been hit hard this past year.. I don’t want to see them completely ruined. Especially the ones with no family.

[PaxMacian]

BAIL OUT
BEFORE
PROSECUTION OF CRIMES
IS A PARDON!

[Terry Mross]

Not just senior citizens. My wife and I are in our fifties and we sell houses for a living. It’s a little late to be learning new skills. I’d do it in a heart beat but I also know people my age don’t get hired.

This bail out should help those who’ve lost their jobs due to this mess with job training and hiring incentives.

[PhiKapMom]

Thanks for your voice of reason against the naysayers. To get this much as the minority speaks volumes. Maybe if some of the naysayers had worked to keep the Congress in Republican control instead of teach a lesson to Republicans, we would have a better plan.

Personally don’t think most that attack Republicans so hard are even registered Republicans and if they worked for a Republican campaign, I would be surprised.

Sound like the Ron Paul types at our Convention.

[divine_moment_of_facts]

Not just senior citizens. My wife and I are in our fifties and we sell houses for a living. It’s a little late to be learning new skills. I’d do it in a heart beat but I also know people my age don’t get hired. This bail out should help those who’ve lost their jobs due to this mess with job training and hiring incentives.

Exactly! My Family is in real estate also.. builders, appraisals and title insurance. Over the summer, all of them realized they would have to sell theirs homes and buy whatever they could afford without a mortgage. My brother said he'll work at Burger King if he has to. People who have worked hard all their lives, who don't want anything for nothing, are getting hurt.

[TWhiteBear]

Peace, Luigi.
Those remarks were not directed at you or using a format legitimately. You and I are seeing this legislation the same way.
Back to the fray.

[ari-freedom]

well after 9/11 people were just too scared to fly because of terrorism. But if people choose not to fly then the airlines will just have to adjust.
autos. it’s all about politics. We know what the problem is: the heavy handed unions. Michigan needs to be a right to work state and lower taxes like tennessee. imagine if the Big 3 just took the loans and used them to move out of michigan? That’s what I would do!

[Thane_Banquo]

Maybe if some of the naysayers had worked to keep the Congress in Republican control instead of teach a lesson to Republicans, we would have a better plan.

Sad to say, I was one of those conservatives. I now regret it, and that's why I'm not going to withhold my vote for McCain in order to teach someone a lesson. Of course, on the other hand, I withheld my vote because Bush wasn't pouring it on in Iraq, and McCain got him to agree to the surge.

With Obama in control, the Dems will find some scheme to funnel that money to ACORN. I don't want to see billions go to an organization that may end up working as a paramilitary brownshirt outfit.

[ari-freedom]

yeah it’s funny to see everyone talk like they are tough survivalists holding on to their guns and gold coins.

[Syncro]

Yes you are right. The “myth” scenario is quite misleading.

Thanks for mentioning that

[DouglasKC]

The blank check is cut in half, from $700 bln to $350 bln

Garbage. A democrat led congress is GOING to pass the rest of the 350 billion right after the election. They want credibility from the Republicans to pass it in the first place. It's a complete farce

[ComputerGuy]

Aren’t you the one who said “Fight with me” ?

[Syncro]

So the two jerks that are responsible for this mess (Dodd & Frank)propose a slush fund that benefits ACORN who will use these funds lobbying for continued lax lending practices.

And lets keep out in the open ACORN's main objective: Voter Fraud.

[BufordP]

this was as good as we could have hoped for

Why? Because whatever 100% pure crap leglislation the Dems would have crafted sans input from the Repubics, Bush would have signed. Instead we'll settle for 80% crap.

[webschooner]

Oversight Smoversight ...

Fannie Mae and Freddie Mac had “oversight” and look how much good that did us.

The goobermint overseeing the goobermint is comprised of thieves and incompetent bureaucrats jealously glancing over to see if those other thieves and incompetent bureaucrats are getting more spoils than they are getting.

We are so screwed ... and the pooch too.