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
...
I like the Republican House version of this Bill.
The Original Bill is scary. It is so flawed in so many ways that I can’t even begin to speak about it. The one thing that is most frightening is the provision to allow foreign banks to use their subsidiaries, here in the states, to launder their overseas toxic waste through to the Treasury.
I think it was irresponsible of Pres. Bush and Paulson to go around talking about market meltdowns and the end of the financial world scenarios in order to scare everyone into accepting such horrible legislation.
We are in deep debt and a lot of foreigners “own” that debt. And, they could start unloading our treasury notes. I certainly hope our President and Sec. treasury aren’t being unduly pressured by foreigners to stab their own people in the back.
For those of you so inclined...I think we need to say a prayer for our leaders and our country.
obviously you have not gone back far enough.
nice try, please accept some rice a roni as a parting gift and a home version of the FR game.
Thanks...finance is not my forte.
Dave Ramsey just told the Friends that if Mac votes for the Senate bill, he’s lost the election.
It is about time! It is ridiculous to even think about a plan that does not address the cause of the problem in the first place.
Shouldn't this be the cornerstone of ANY plan that is put forward....??
Yet Barney Frank doesn't like this particular idea, even now.
>>>It looks like europe isn’t appreciative of the delay.
europe? what’s that? some new kind of foreign car?
>>>Limit backing of high-risk loans by Fannie Mae and Freddie Mac
>>>It is about time! It is ridiculous to even think about a plan that does not address the cause of the problem in the first place.
>>>Shouldn’t this be the cornerstone of ANY plan that is put forward....??
>>>Yet Barney Frank doesn’t like this particular idea, even now.
Yeah! And we shouldn’t be surprised, given this: Watch...
>>Limit backing of high-risk loans by Fannie Mae and Freddie Mac
It is about time! It is ridiculous to even think about a plan that does not address the cause of the problem in the first place.
Shouldn’t this be the cornerstone of ANY plan that is put forward....??
Yet Barney Frank doesn’t like this particular idea, even now.
>>Limit backing of high-risk loans by Fannie Mae and Freddie Mac
It is about time! It is ridiculous to even think about a plan that does not address the cause of the problem in the first place.
Shouldn’t this be the cornerstone of ANY plan that is put forward....??
Yet Barney Frank doesn’t like this particular idea, even now.
http://www.youtube.com/watch?v=Yga7TlsA-1A
The RNC needs to make commercials out of that footage, ASAP.
"It is terrible to contemplate how few politicians are hanged." - GK Chesterton
WE NEED A UNITED FRONT OR OBAMA WINS THE WHITE HOUSE”
CALL McCain, Email McCain, If he can get front and center on this plan now, after going back to Washington to get the House GOP heard, he will win the election by a landslide.
Make the Democrats (who have proposed nothing) be Bipartisan with their votes.
Unfortunately, this plan will be vetoed by Bush. Why? Because it doesn’t bailout foreign banks, which is the REAL reason for the bailout:
http://www.freerepublic.com/focus/f-news/2094684/posts
I don’t understand why we keep failing to factually understand what is going on. The hyperbole and outright lies on some of these threads is ridiculous.
The only bill that will be considered in both chambers today is the enhanced compromise plus the tax incentives demanded by the GOP to guarantee their support.
The GOP has won on this issue. The RATS are terrified of the original Paulson bill, want GOP political cover, and want to get out of town. Regardless of how the MSM spins this, the GOP has won.
The so-called House GOP alternative is an even better bill but will NEVER be considered on the House floor. Pelosi would never allow her members to be exposed to such a vote. Therefore, this alternative is for political purposes only - to explain to constituents why they are still voting NO.
Therefore, it is the enhanced compromise that is on the table or nothing. It will pass overwhelmingly in the Senate but might still have rough sailing in the House. Pelosi will have to deliver more RAT votes, and they are furious with her because her Monday ploy failed.
Can we at least get on the same page with the facts of what is going on and stop the hyperbole and dreaming?
This is 8th grade civics, folks. Please stop the distortions of the facts. We are only wasting each other’s time and hurting our cause.
And nevermind the bailout loophole for foreign bankers?
Good grief.
like..that’s important now?
Go
************************
No, it’s not. But the man asked a question.
Stay
Added to Posting:
ECONOMIC RESCUE ALTERNATIVE PLAN built a complete solution from Dave’s Common Sense Fix.
Please read it and come out swinging for it:
http://mikepence.house.gov/UploadedFiles/RSC_Economic_Rescue_092908.pdf
Note to Berdie, read the text of the bill and pay attention to it's name (or how it is being named in the media) or keep thy mouth shut. :)
Given the events of the day, this is pretty old news. I just hate to make a misstatement.
Berdie, thanks for clearning that up...it is I who needs to pay more attention to Congress. ;)
Thank you for your generosity.
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