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
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Hey I know and you know...there's funny $$$ going on here...but let's not let these Bass Tards off with "just taking bribes"...: )
Personally I want Hari-Cari rules...but I will run thru a liberal infested forest naked.....if any Lib would actually do the "right" thing and......hell just admit guilt.
I'm easy...............
FRegards,
I agree.
I have been searching for a link to the Senate Bill could you provide?
Watching Glenn Beck tonight...he made an excellent point about the Congress acting “right away” to fix this thing. I think someone needs to come up with a smarter plan.
He also had Amity Shales (sp.?) on...she wrote the book “The Forgotten Man” (which I just purchased, but I haven’t read yet). She said the problems we’re having now are similar in that the government overreacted to the crash in 1929. She said we should learn from our mistakes then, and not do the same haphazard thing this time.
Support Pence, Hensarling, and others (RSC)..and like minded thinkers in SUPPORTING this pro-growth, pro-market, and taxpayer protecting Bill-against the other socialist bill!
Something even Dr. Frankenstein would be proud of. Fortunately enough of us like minded-people sent "electricity" to our comatose elected officials.
These freaking socialists want to bury the fact the alternative to a bail out plan is called the free market.
But just to see the AMT addressed is a great thing to see.
Gives me a spark of hope that real AMT reform may surface in the not-too-distant future.
But first things first. Get these markets stabilized.
What is the section on FDIC?
McCain is likely to back the senate plan. It’s more bipartisan, more friendly.
This House GOP alternative is for political purposes only. It is unlikely that Pelosi will allow it to obtain a floor vote at all.
No. It's not. This is a radically different set of ideas compared with the Paulson/Gregg/Dodd/Frank bill. The Congress is going authorize the government to buy up to 700 thousand million dollars worth of toxic paper, to get it off lending banks books, so the banks can resume lending so the public can go that (700 billion) farther into debt (and be happy).
however the SENATE IS WORKING ON THE SUPER DOOPER DOUBLE SECRET PLAN to look like wimp and a wuss.
The senate has its own plan.
There is stuff I like in there.
I am talking with someone about the Senate bill, not the House bill. I never said it was the house Bill.
Damned right! Cut or remove every tax and or government expenditure that can possibly be cut! Dump the corp tax! Dump the gas tax! Dump the drilling ban! Dump the environmental roadblocks and make our country productive again! This is a national emergency after all. Government and special interests should do their fair share of sacrificing if America is to be saved!
See, they didn’t have the heart to expose our RINO President as a RINO.
How about,
“Everyone get your crap on the table so everyone can see?”
Transparency is the only ballgame that can be won at this point.
The insurance gimmick won’t work. Throwing money at the banks won’t work (they’ll just hoard it, they won’t lend it).
The banking system is dying of cancer, and instead of the necessary chemotherapy, the gov’t wants to hand out $700B worth of medical marijuana and call it a day.
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