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
I’ll put you down for supporting it then. How about the next bailout? Airlines? Autos? Are you gonna say no then?
Exacly. This plan is a scam.
I will not vote for anyone who votes for this plan. I will vote for their challengers and donate money willingly.
-Our economy will not be crushed. I work in finance, have graduate degrees, and certifications. We will enter a normal recession. This plans props up income and property values for more taxation. In a recession the government and private companies cuts away inefficent programs for future growth. Not doing so prolongs things = depression.
Our party must be the party of the individual. It must not sell out the individual to cater to the group. No greater challenge faces our society today than ensuring that each one of us can maintain his dignity and his identity in an increasingly complex, centralized society.
Extreme taxation, excessive controls, oppressive government competition with business, galloping inflation, frustrated minorities and forgotten Americans are not the products of free enterprise. They are the residue of centralized bureaucracy, of government by a self-anointed elite.
Our party must be based on the kind of leadership that grows and takes its strength from the people. Any organization is in actuality only the lengthened shadow of its members. A political party is a mechanical structure created to further a cause. The cause, not the mechanism, brings and holds the members together. And our cause must be to rediscover, reassert and reapply America’s spiritual heritage to our national affairs.
If that happens then we have big reason to worry.
We have to desperately pound the message into the American people every day how the Rats caused this mess in the first place.
The MSM and the Rats and the entertainment industry and the education establishment will pin all the blame on "greedy capitalists."
They will be assisted in this by idiot know-nothing class warfare freepers who are cutting their own throats (although I am beginning to wonder if some of these "burn, baby, burn" freepers are not posting from .ru or .ci.)
Reminds me of the Weimar Republic where both far left and far right blamed the economic crisis on "greedy international capitalists."
That says it all! Sad day for this Country......
We were never going to get what we really wanted, but this was as good as we could have hoped for. Without John McCain coming back and emboldening the House GOP, the Frank-Dodd-Paulson-Obama-ACORN version was set to become law.
So who’s doing the oversight ? Same type of oversight we had while the bubble was being blown ?
How about them now consulting with Uncle Warren, Mr. Buffet to you, AFTER he put 5 billion into Goldman Sachs. Can you scream “conflict of interest” ? Do you think they invited the 190 economists who said the plan was a disaster ? No.
Or, how abut that nice 0% reserve requirement added in ? Anybody know anything about math - ratios ? You can blow up a lot faster with a 0% ratio than the more recent 6% ratio.
You people need to wrap your minds around the fact that they are rigging the game out in the open now, and they aren’t rigging it in your favor.
Every single person who wants the US to remain a Constitutional democracy needs to get off their butt and call/fax/email every Rep and Senator that we can and will vote out of office anybody who votes for this pig.
www.fedupusa.org
You need to get hard-minded and stand by your principles.
Eventually, this will bite us all in the butt if we don’t get some REAL fiscal responsibility and a GOOD energy plan going quickly. I am not intensely optimistic in that regard at the moment.
Does anyone care about the Constitutionality?
If there's any Colorado Reps involved, I'll work my heart out to defeat all of them!
I would suggest that everybody else do the same in regard to their own Reps.
bailout fact/myth ping (Sunday)
no for those. they are not essential to our economy like our banking system.
Yeah, but I live in the real world where I can’t expect to get 100% of what I want.
Oversight - by whom ?
You are falling for the trick.
NOT getting the government involved is a good position, too.
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.
Beam me up Scotty.
Don’t believe it for a minute. You should see what happens to bills on Capitol Hill before they are passed—all the crap that gets “slipped” in—the House Republicans will have to be on their toes until this bill is on Bush’s desk...
people who worry end up voting for obama. he’s a demagogue.
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