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
That might help in the future, but I think the problem is now that we are facing the accumulated failures of years and years of bad policies, not only with the initial loans, but with the way these things were traded around and became part of the system, so to speak. Bush and McCain both did try on several occasions to get the situation under control before it reached this point, but they were shot down by the Dems. I think Bush should have tried harder - he has never been good at getting things through Congress, unfortunately - but the fact is that we are now looking at a disaster that was years in the making. The initial depth charges were planted during the Clinton years, so we’re looking at more than 10 years of mismanagement.
So half a shit sandwich tastes good to you ?
This still shouldn’t be done. It is the PRINCIPLE of the thing.
Should the casino give the gamblers back their money? Gamblers who win big certainly aren’t going to give it back to the casino.
This screws the taxpayer, our government and our liberty.
Still sounds like big government intervention to me. AKA. socialism.
Bureaucratic boondoggle that bails out the robber barons on WallSt. No blank check -— just an open line of credit. LOL
Democrats in Congress are at the center of this debacle. They caused this crisis in the first place and now they’ll get off scot-free.
Isn’t 21ST century America great. Screw the taxpayer and then come back and screw the taxpayer again, and again, and again, and again.....
Er, what was your suggestion, again? How do you propose to deal with the problem, right here and right now?
This is great... I can’t wait for my quarterly dividend checks to start arriving. tick — tick — tick
Of course it shouldn't be done, but it was going to be done whether we liked it or not. With McCain coming back and emboldening the House GOP, we cut the size of it in half and included the much superior insurance ideas a requirement.
Improvements to a building built on sand will still fail when the foundation collapses.
The bill in any form will fail because it DOES NOT ADDRESS the root causes.
So when the credit markets really lock up and the foreign investors decline to give us any more money, we will be a further 700 billion in debt.
Yeah, that’s a really good idea.
www.fedupusa.org
This is kind of sad and funny. First Paulson came and wanted 100% of his demands. Then the democrats came and added 50% more pork to it. Now we the taxpayers are giving the pirates a 125%, yet somehow we’re all supposed to feel better about this?
In the meantime call/fax/email every single Congresscritter RIGHT NOW and tell them you plan on voting for their opponent if they vote for this.
And we got a taxcut for community banks!
Please do not include me in the we. I'd rather the Repubs not get on this crap! If there has to be a recession/depression so be it. Let the Democraps who gave this to us pay the consequences.
Oh well that makes it all better then.
so when Obama starts proping up his pork filled programs we should’nt oppose those and just get over it as well...
125%?! Did you even read the original article? They cut the outlay in half, for goodness sake, and got a tax cut for community banks as well.
So with all the corruption on “EVERYBODY’S’ part, what keeps Paulson from using the $250B to make a little quick cash for himself? Is he regulated? Didn’t think so!
And in 3 months time when Wall street comes knonking for more money what are you going to say then?
This thing was going to get rammed down our throats whether we wanted it or not. By McCain coming back, we got the outlay cut in half, got a tax cut for community banks, and got the superior insurance idea mandated.
If we had an actual free press, and not just the propaganda arm of the Democrat Party, there would be demands for the resignation of Frank, Dodd and Schumer as the chairmen of their respective committees. It is glaringly obvious that they knew their obstructionism would lead to a crash, and they did it anyway. Instead, the criminals get away with it and get to preen as the guys who fixed the mess. This is the biggest dog and pony show of all time.
We’re in a high unemployment, negative growth bear market scenario for at least the next two years. If the Dems win the White House as well as Congress, make that the next ten years.
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