Posted on 09/28/2008 10:22:50 AM PDT by 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
Sounds like fair and balanced. 200 billion on account and 200 billion out the door equals zero.
How about the 51 trillion in debt we already have? and that equals a really big uh oh....
There is absolutely nothing wrong with being debt free or close to it. A lot of people would come out of this thing pretty well being on that side of the column.
We should include the man that let Bid Laden go. Mr Big Risk Taker, himself, Booba Clinton. He is pretty responsible.
“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.”
Darn, they only get a black check of $250 billion and the President can pencil whip another $100 billion at a time. It is still money without accountability.
Although when Clinton speaks lately, he only mentions his attempts to fix it. If he even attempted to do that at all, I don't know. A political move (which he knew would have no efffect) if he did
that’s what McCain said originally. and he’s not fighting :(
Nice. I hope Democrats across the country start asking themselves why they vote for Democrats when the Democrats are clearly NOT “for the little guy”.
No, it doesn’t. However, is it ten noble to take these people’s homes back AND get bailed out by that very same person ?
It takes 2 to tango, and the banks are not the innocents here. Those of us who are not banks and bought what we could afford are the clear innocents; everyone else is dirty. Neither one shouldn’t get my tax dollars.
Projection, much ? Never used that term abut you, but if you insist...
You are setting up a false choice. I reject the false choice. There’s a person holding a gun to your head - they tell you that you can die by gun or by knife, but die you will. Is that the only choice ? No, how about the choice to fight back and maybe take that gun away ?
You are a coward. You are unwilling to stand up and fight for principles, throwing the innocent under the bus to bail out the perpetrators.
Go look up Roubini, Shedlock, Denninger and many others who have better solutions than what the pigmen of Wall Street want.
If you think that 700 billion, or even 2 trillion is enough to stop what’s coming than you haven’t seen the problem.
Why doesn’t 700 billion solve the problem ? There are so many reasons I could write pages. I’ll try to summarize.
1. federal regulator and central bank intervention in the markets has caused a deep distrust that is causing problems. They no sooner provide liquidity or a bailout and they trigger an unintended consequence
2. bank balance sheets with their tier 1 capital consisting of things like “good will” and the borrowed reserves shows that banks are insolvent. Increasing Level 3 assets every quarter makes bank balance sheets untrustworthy - no one knows the fair value of bank assets
3. RE markets have a ways to fall yet
4. commercial RE markets are toppling over - they usually trail residential by 12-18 months
5. government debt is so large that additional debt will push up interest rates
6. all the game playing with the markets and asset values are causing foreign capital to leave the US
7. and the 900 lb gorilla - the 500-600 trillion dollar derivatives market that is opaque, not marked to market, and does not go thru a central clearinghouse, so that no one knows if their counterparty is good for the paper
8. consumers are tapped out, in debt to their eyeballs, and making banks solvent is not going to make the consumer solvent
This bill just throws borrowed money down the rathole of those who led us down this path. It will not fix the problems, and it will just allow those favored ones to loot the Treasury while the rest of America gets saddled with more debt.
I still don’t approve of it. Let the market work it out like with ENRON.
Ladies and Gentleman:
The following aply describes the ‘bailout plan’.
The Plan
In the beginning there was the plan, and then came the assumptions.
The plan was completely without substance, and darkness was upon the faces of the workers.
They spoke among themselves saying, “It is a crock of shit, and it stinketh!”
Then the workers went unto their supervisors and sayeth, “It is a pail of dung and none may abide the odor thereof.”
The supervisors then went unto their managers and sayeth unto them, “It is a container of excrement and it is very strong; such that none may abide it.”
And the managers went unto their directors and sayeth, “It is a vessel of fertilizer and none may abide its strength.
The directors went unto the Vice Presidents and sayeth unto them, “It
promotes growth and is very powerful.”
And the Vice Presidents went unto the President and sayeth unto him, “This new plan will actively promote the growth and efficiency of this company and these areas in particular.
And the President looked upon the plan and saw that it was good and the plan became policy. And that is how Shit happens.
First you say I’m not a conservative, then you say I’m a coward. You must be a very, very unhappy and miserable person to resort to name-calling like that.
What would you suggest we do?
Stock market down, but the dollar is up. Who would have guessed.
I was a bit bothered this morning to find that one of the “facts” that made this palatable to me, that a majority vote was needed to release more than $250 bln, was not in the final bill itself.
I was working under the assumption that the Dems had enough votes to pass it themselves, but needed GOP “cover.” I thought we were trading “cover” for getting rid of ACORN and cutting it from $700 bln to $250 bln. I thought if we didn’t go with it, they would put in ACORN and raise the total. Turns out that was not the reality, so it is probably better that it went down.
Let’s hope the House GOP bill gets some traction. I wouldn’t be surprised to see Paulson resign if nothing else passes by the end of the week.
By doing nothing one allows the unintended consequences to be minimalized Credit hasn't stopped. It is just that now one has to prove that they are a good risk with adequate track records and collateral.
Now the real solution to the problem is to go to the root of the problem, which is the CRA. Also, to purge the thieves in Congress that allowed this to happen.
This fact sheet is not in synch with the actual legislation that failed.
The fact sheet is not about persuasion it is about deception.
"Spin sheet" - a cue to read the legislation.
But the coin of the realm is usually dueling fact sheets and sound bites. The public deserves to be mislead. It's too lazy to read the legislation, too attached to (and defensive of) a political party identity, and in a nutshell, "dependent."
notice NOBODY is mentioning oil is UNDER $100!
now the MSM is saying mccain’s coming back was not helpful (adopting the Barney Frank BS)
The MSM does not get it any more than the tone deaf pelosi.
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