Posted on 09/30/2008 6:53:14 PM PDT by maccaca
A group of House Republicans is cobbling together a proposal to stabilize financial markets that can serve as an alternative to the plan proposed by Treasury Secretary Henry Paulson, legislative sources have told CNBC.
The failure of Monday's vote on the $700 billion bailout package—which these Republicans doubt is likely to cause an economic "doomsday" scenario—emboldened the group to press forward with its own plan, sources said.
The group pressing the alternative plan is doing so for largely ideological reasons: They're opposed to the federal government taking a large role in financial markets, sources say.
Components of the alternative plan including the following, according to sources:
Require the Treasury Department to guarantee, at up to 100 percent, bank losses resulting from failed mortgage-backed securities originated prior to the plan's enactment. Such insurance, supporters say, would provide immediate value to the securities and a foundation for which they could then be sold. The Treasury Department would finance that insurance by assessing a premium on outstanding mortgage-backed securities.
Allow companies to carry back losses arising in tax years ending in 2007, 2008, or 2009 back five years, generating a tax refund and immediate capital
Allow a "repatriation window" for profits earned by U.S. firms overseas. Such repatriation amounts would not be taxed if invested in distressed debt (as defined by Treasury) for at least one year.
Allow banks to treat losses on shares of preferred stock in Fannie Mae and Freddie Mac as ordinary losses, not as capital losses
Suspend the capital gains tax rate for two years
Limit backing of high-risk loans by Fannie Mae and Freddie Mac
Schedule Fannie and Freddie for privatization
Suspend "mark-to-market" accounting until the SEC can issue new guidelines that will allow firms to mark these assets to their true economic value
Stabilize the dollar by repealing the Humphrey-Hawkins Full Employment Act, which alternative bailout supporters say diverts the Federal Reserve's attention from long-term price stability to short-term economic growth
...
Me too!!
Great Solution:
Work-out not Bail-out
Eliminates the Credit Crisis: Suspends Capital Gains Tax to immediately free up huge volumes of capital
Eliminates the Mortgage-Backed Securities (MBS) drivers behind the Credit Crisis:
· Requires Industry-funded Insurance for MBS that guarantees losses to attract Private MBS Buyers
Eliminates the MBS drivers behind the Credit Crisis:
· Requires Industry-funded Insurance for MBS that guarantees losses to attract Private MBS Buyers
· Suspends Mark-to-Market Accounting that effectively froze MBS assets from being sold and multiplied capital requirements for Banks
· Provides Loss Write-offs for MBS Sellers to price them at market and incur the losses needed to pull capital from their MBS assets now
· Requires all future MBS to meet full regulatory requirements and provide complete, transparent documentation for assessment of risk and value
Eliminates the Crisis Perpetrators behind Bad Mortgages and MBS Problems:
· Privatizes Fannie and Freddie GSEs to eliminate the sources of the problem and prevent Congressional kick-back schemes
· Refocuses the Fed from short-term economic growth that drove economic boom-and-busts, to long-term price stability that controls inflation and sustains the dollar
· Prosecutes Corruption and Constrain Compensation for Industry-Executive Perpetrators
That’s not just good, that is *OUTSTANDING*.
This bill makes too much sense. It will never even come up for a vote.
Yes, its the HR 7223 list. No link but yours. I am making the assumption that its the same bill because this bulleted list is what the group (Hensarling, Cantor, others) were talking about late last week and since, and they filed the bill Monday.
I watched Rep Frank dismissively share the GOP House plan on Thursday night. “You want the plan? Here it is, one page.” he mocked. Same points as in CNBC article.
Thanks much! If figured it was too good to be true!
That was such a great way to organize the proposal, I sent it to my Senators.
TELL YOUR SENATOR TO SUPPORT THIS ALTERNATIVE.
“without the sky falling”
It depends on whose sky you’re talking about.
It looks like europe isn’t appreciative of the delay.
“But after two years what then happens to the Capital Gains tax rate?”
We will consult Obama and ask him what he thinks is “fair.”
This is the plan proposed by Congressman Issa/California.
“I am really worried about what Bush is doing. He looks totally paranoid.”
Presidents always know more than us little people.
And when it comes to economics - people like him cannot tell the whole story or they will spark a panic and a bank run.
Vote NOOOOOOOOOoooooooooo.
If this new proposal is HR 7223, that would be fine by me.
We shall see.
Btw, Barney Fag can stuff it. ;^)
If you as an investor sell stocks to another investor, the funds that you took "out of" the stock market were replaced by the funds that another investor put "into" the stock market.
recovery through tax relief
Sounds like they took a few of Dave Ramsey’s ideas, anyway.
Link is here:
http://www.daveramsey.com/etc/fed_bailout/3_steps_to_change_the_nations_future_10928.htmlc?ictid=sml
"Task the SEC with regular, annual audit reports of entities the federal government has brought under conservatorship or now owns"
"Or now owns"? The government should not be owning banks. This is what Soros wants, and this must go.
Could be too late for this to get traction.
it is not bashing,
we want a leader who shows leadership.
when mccain made the SMART move of selecting a conservative for VP we cheered him...
when mccain made the SMART move of going to DC during this crisis we cheered him...
now? what is he doing?
when Obama had his little meltdown at the WH, only Rush was able to mention it.
where is McCain to condemn the partisan games played by pelosi at the House?
At some point we have to ask legit questions.
Just a quick look at your posts I see a lot of negative bashing, not a lot questions. Not tremendously productive and more likely counter-productive. We know McCain has flaws, he was my last choice too. Please take some time to watch the video here.
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