The $700 Billion Bailout Plan's Fine Print
Commentary: A reformed Wall Streeter sifts through the details of the Troubled Asset Relief Program.
September 24, 2008
|
|
Treasury Sec. Hank Paulson's $700 billion bailout plan now has a name: the Troubled Asset Relief Program, or TARP. But even as Capitol Hill debates TARP, few seem to have noticed the proposal item that puts taxpayers on the hook for future bailouts. It's in Section 6, and the key phrase is this: "The Secretary's authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time."
What does "at any one time" actually mean to economists? It means that if everything we American taxpayers buy re-evaluates down to zero, we get to buy more. That's hardly taxpayer "protection." With several hundred billion dollars of write-downs already announced this year by the part of the industry compelled to post their losses, it's a safe bet that $700 billion worth of the junkiest assets in existence will be heading to zero the second they are purchased.
But that's not all the bad news. With Sunday's announcement that Goldman Sachs and Morgan Stanley have decided to become bank holding companies, the last pretense of respect for the Glass-Steagall was dropped.
The Bank Holding Company Act of 1956 prevented bank holding companies from engaging in non-consumer oriented banking activities, like investment banking. It also prohibited such entities headquartered in one state from acquiring banks in another state. The interstate restrictions were gutted in 1994, and the 1999 Gramm-Leach-Bliley Act took care of the rest.
At first this meant that commercial banks could buy investment banks and insurance companies, hence Citigroup (which is a combination of Citibank, Travelers Insurance and Salomon Brothers investment bank), and the latest incarnation waiting to post lots of losses, Bank of America-Merrill Lynch. But even with a new name, Goldman Sachs is still an investment bank, in the same way that a horse by another color is still a horse. Changing its status to bank holding company will mean access to the bailout fund, and give it the ability to buy any commercial bank out there. Which it likely will.
Nonetheless, that looming problem wasn't addressed by Congress Tuesday. Instead, Sen. Chuck Schumer (D-NY) responded to TARP with THOR (Taxpayer Protection, Housing, Oversight and Regulation) and warned, "the financial system is clogged, and if we don't react the patient will suffer a heart attack. So we must act and must act soon…"
Somewhere, Former Treasury Secretary Carter Glass, the co-author of the Glass-Steagall Act of 1933 that separated speculative investment banks from consumer-oriented commercial ones, is turning in his grave.
As much press as the TARP vs. THOR discussion is getting, one voice of reason deserves more attention: Sen. Byron Dorgan's. As he has said, "this proposal looks to me like a stampede in the wrong direction…to reward the very people on Wall Street who created this mess, and who pocketed more than $100 billion over the last several years making it."
In 1999, Dorgan had the foresight to vote against the Gramm-Leach-Bliley Act that repealed the financial protections put in place following the Great Depression. He warned then that a 'financial swamp' would result from "the casino-like prospect of merging banking with the speculative activity of real estate and securities, and that the bill will raise the likelihood of future massive taxpayer bailouts."
Dorgan was spot on. Not only are we trapped in the complex deregulated financial system that resulted, but the bailouts are just beginning.
In advocating new protections similar to the Glass-Steagall Act and the need to address this crisis not just quickly, but correctly, he's likely spot on again. If only the rest of Congress felt the same way.
Nomi Prins is an economist and Mother Jones writer.
Basically we're being reduced to serfs and at worst slaves.
If there are any kicks left to get, get them. The [deleted] house is burning.
"neocons " are up to check out the
web site (www.rense.com). In fact,
someone has tried to silence the site.
If we assume that more than half of all billionaires are proud members of the Israel Lobby, it will also solve the Middle Eastern problem. To be on the safe side, confiscate all the assets of the Pyramid-builders: of Paulson and Bernanke, of Merrill Lynch and Goldman Sachs executives, and of President Bush who allowed it all to happen. Peace will come to Palestine , Afghanistan and Iraq ; Americans will again become proud of their country. Such mass confiscation will restore democracy in the US : the next candidates for the Presidency will not go hat in hand to AIPAC to declare their fealty. The defeat of Greed will turn people back to God; the eliminated ballast will allow for national medical care, social security and free education for all. Instead of being a disaster, the financial collapse offers a unique opportunity to fix all America ’s ills. Do not miss it!
Speaking for the wide world outside America , I’ll tell you this: do not throw good money after bad. Reject the seductive purring from Washington . Consider your funds in the US already lost. If you can still get something, good; but do not waste money and efforts to regain what is gone. There is a most valuable asset you may get for the lost ones; that is your freedom and independence. An undermined dollar means your economy will be safe. The Pyramid collapse will set you free!
From an article by
Isaac Shamir
----------------------------------- ---------------------------------------------
while being held down and your mouth pried open by Henry Paulson, George W. Bush and Ben Bernanke. Well it's leaving a really nasty taste in my mouth. George W. Bush and his criminal clowns crammed the Iraq war down out throats in 2002. We cannot let these political bandits cram this crap down our throats too. The
American people must stand up and make their voices heard. We need to track down each and every criminal involved in this catastrophe, prosecute them to the fullest extent of the law, and lock these clowns away for life.
I blogged about this on http://www.posterspost.com
Check it out.
1. Why would the government even CONSIDER giving tax dollars to these scumbags? They have been nothing but irresponsible, greedy, selfish, and careless.
2. Why doesn't the government buy out their contracts for the most reasonable price, let them close their doors, and then renegotiate the terms themselves on the mortgages for the people who are having problems paying? If someone is late on paying a mortgage for a $250,000.00 home, doesn't it make sense to renegotiate their terms to a reasonable rate so that they can afford the payment? The government can takeover this problem and in months, sell the assets for our money back.
3. If the government doesn't want to do this, why don't they let these companies bundle up their mortgages, etc. and sell them to the highest bidder? They can take the loss as a company and close their doors like any other company would have to do if they pulled the crap these companies did. Then I would be OK with the government using some of the $700 billion to give as a short-term loan to these other banks that bought out the mortgages.
4. It's stunning to me that the government should think that WE should have to fund this project of theirs when so many people in this country don't have health care, our education system is a mess and we keep cutting the budget more and more, and they cry poor mouth when it comes to Social Security and Medicare. They gut balls!!!
5. Why, if they say that other countries are directly affected by this problem on Wall Street, aren't these other countries pitching in to help pay for this bailout?
And the fact that they even presented this original plan with no cap for the CEO's and people running these banks and no help for even renegotiating homeowner's loans to a reasonable interest rate is unbelievable to me. Add to it, this bailout will cost every tax paying citizen approximately $3728.00 each. They must really take us for fools. But I guess this is what we get for allowing this government to get away with the B.S. they've been getting away with for years. We have clearly sent the message that they can do whatever they want, when they want, and to who they want. I, for one, am sick and tired of it!!!
I say...no way, no how, no bailout!!!
www.Democrats.com has a list of over 100+ Economics who say NO this is not Right. Quite frankly, I probably would take a couple of economists from MIT and Harvard to listen to, rather than Bernecke or Paulson
I'm against the $85,000,000,000.00 bailout of AIG. I'm also against the $700,000,000,000++ bailout being proposed in Congress right now!
Instead, I'm in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.
To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+.
Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up..
So divide 200 million adults 18+ into $85 billon -- that equals $425,000.00.
My plan is to give $425,000 to every person 18+ as a We Deserve It Dividend.
Of course, it would NOT be tax free. So let's assume a tax rate of 30%. Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam.
But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife has $595,000.00.
What would you do with $297,500.00 to $595,000.00 in your family?
Pay off your mortgage – housing crisis solved.
Pay off credit card debt.
Repay college loans – what a great boost to new grads
Put away money for college – It'll be there for Junior.
Save in a bank – create money to loan to entrepreneurs.
Buy a new car – create jobs
Invest in the market – capital drives growth
Pay for your parent's medical insurance – health care improves
Enable Deadbeat Dads to come clean – or else
Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.
If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ( "vote buy" ) economic incentive that is being proposed by one of our candidates for President.
If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!
As for AIG – liquidate it.
Sell off its parts.
Let American General go back to being American General.
Sell off the real estate.
Let the private sector bargain hunters cut it up and clean it up.
Here's my rationale. We deserve it and AIG doesn't.
Sure it's a crazy idea that can "never work."
But can you imagine the Coast-To-Coast Block Party!
How do you spell Economic Boom?
I trust my fellow adult Americans to know how to use the $85 Billion We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC .
And remember, The Birk plan only really costs $59.5 Billion because $25.5 Billion is returned
instantly in taxes to Uncle Sam.
Ahhh...I feel so much better getting that off my chest.
companies will be receiving this financial boost to take 20% reduction in salary and accrue no bonuses until the debt is paid off. Gutting the American economy can not be rewarded any longer.
Reply: I'm with you on that idea of keeping the money in our states. Don't send a dime to the Feds. Our States each need to stand up and demand a return of their sovereignty. Right now, they're slaves to Washington's hand-outs and will do The Feds bidding because of the potential perks they supposedly get back if they submit our tax money to Washington. In Michigan, we aren't getting anything back like we pay in. Our economy in Michigan is going straight downs the tubes. If our governor would grow a set and demand that we be treated as a sovereign as stated we should be in the Constitution, and deny any payments to Washington, we could rebuild our State ourselves. We need to run this State like it's an independent, self-reliant country; not a addict relying on Washington for its' hits.
Of course, if we tried to reclaim our sovereignty, we all know that we'd be looking into the muzzle of big guns, most likely wielded by Blackwater or some other mercenary group.
The parable says: That a certain king, while balancing his books, found a steward had been mis-managing his stores. He threatened to fire him. The steward, to provide for his future welfare, had the kings debtors write down their debts by significant amounts. The King found this to be a prudent action. And this is deemed a wise thing to do in this world.
I now understand. This parable is about business and what to do in troubling times. Forgive the debtors that the kingdom survives. No need to borrow or be bailed out. I believe that if we were to follow this advice we could solve our current dilemma.
This is what I would advise based on this parable: Cut all the home prices in half and rewrite the papers at a fixed rate of 5%. This will save all home owners and put the burden where it belongs, on those who created the problem. It will stabilizes the market. It also solves the bundled mortgage problem if the papers are simply declared as the property of whoever the home owner is currently sending payments to. All the re-writing should be done without subsidiary costs. There is no need for escrow, title search, or inspection. It has to be assumed that the original searching and inspection were done with due diligence and are still valid for the original applicants.
All loans stop at the mortgage holder until the market becomes stable and oversight procedures are strengthened. All those ‘investment vehicles’ vanish, as they should, into the thin air they were conjured out of. The big houses holding them collapse. But the economy roars on because the foundation is now solid. No need for tax rebates or reductions. No need to slap the high money dudes, their reward will be their depleted investments. The mortgage companies are saved and the wild speculators who bet borrowed money based on false premises and invalid assumptions, are screwed.
Clint Campbell
Las Vegas, Nevada
Where are the Bailouts for people who have lost their homes and are now homeless, the Bailouts for many in America who go to bed hungry, where are the Bailouts for 45 millions Americans who have no healthcare, the Bailouts for students struggling just to pay the interest on their student loan. Where is the help for the Victims of Katrina 3 years later, who still sleep in tents under highway bridges? Guess who stole the money that should have gone to them? Where are the weapons of Mass Destruction?
Did anyone see “The Late, Late Show with Craig Ferguson (9/24/08)…I’m glad I stayed up to watch? Great Show Craig…Democracy has nothing to do with the Bailouts of greedy fools that could care less about America or Americans….as they sail away in their boats. The world is watching and laughing.
One of the biggest demonstrations in Alaskan history was an Anti-Sara Palin rally. Her own state is rejecting her. CNN covered it. CBS said nothing. Had there been an Anti-Obama rally...the media would have run it all day as a "Special News Event." Anyone who gets on a plane and travels to another country should now call themselves... an expert in foreign policy.
http://www.youtube.com/watch?v=CyfIoxTDD6Q
FREE AMERICA
REVOLUTIONARY (DIRECT) DEMOCRACY
It is disheartening. This mess, this government, the average citizen feeling neglected and left out to dry, but don't give up. Although this blogging helps us to vent and feel a sense of camaraderie, there is real hope. For every one of you who write to your state representatives, your governors, your senators, you represent 1000 people. That is a fact. Please send your thoughts, insights, and comments to your reps. These new petition sites that send out form letters; letters about this bailout, health insurance for all, our failing school system, the environment, they work. One example is that 56,000 of us signed a petition for the Credit Cardholder's Bill of Rights, HR5244. Well, after several months and many petitions, it just passed through the Senate just two days ago. I promise you, if you get with like-minded citizens and write letters and sign petitions, our representatives will listen. They have no choice. For anyone who is interested in getting on these petition sites, please let me know. I will forward several different ones that I received to you and once you are on one, you will receive different ones that are in line with your personal political ideology. We have let this government get away with murder and we are now feeling the effects but WE own this government, they work for us. And as citizens we have more power than we give ourselves credit for. You don't have to send these long, intricate emails to your representatives, just a quick email expressing your concern for whatever it is. And keep notes on whether or not they respond. Print out or save the email you sent and their response. If they do not address the content of your email, be persistent and send them another one telling them they did not address the content of your email and make your point again. I promise you, they respond. I just received a phone call from one of my U.S. Senators who was responding to an email I had to send her twice. It is work, and it takes diligence and persistence, but you will see that their jobs depend on you voting for them and if enough of you tell them how sick and tired of the bull[deleted] you are, they respond. Please, please, please, don't give up. Get involved, write your reps, and work together. I even write political notes on my car of the things I'm fed up with so that it can spark a thought in others minds. Take your government back!!! After all, it does belong to you!!!
Let them all go down the tubes.
The middle and lower class american people need to empower themselves by depowering banks, investment banks, etc.
But the problem is, the investment banks don't make money off of the middle and lower class. They make their money off of the rich. The fees they get from rich people investing. And rich people will never support a revolution because, well, they don't need to, simply put.
There are others way to start a revolution, but this is just 1 idea.
Consider this: before you become someone else's slave you are enslaved by fear and hate. Rationalism has no creed or race. Use it more often in your analysis!
Better not!
Americans do have the power. They have just been lied to and made afraid by Bush/Cheney war tactics …so the same 1% can get richer.
Tell Iraq to sell or keep everything Dick Cheney owns … due to Haliburton subcontracted throughout the Iraq Quagmire… and start to rebuild their country that was invades for the greed of these same ignorant people.
We …the people…are not powerless. Not only should you vote, but take your money out of the market. Buy gas, food and toilet paper ...only...or put your funds in a local credit union.
Everyone involved in this mess on Wall Street must pay for it.
Sell their assets… cars, houses, boats and underwear …on Ebay.
Liquidate their companies. 80% of all new jobs in America are created by the small business. Where are the grants, loans, and bailouts for the backbone of this country…the small business?
I also support the idea of public execution.
Where do you come up with this? If you remember when this whole mess started the Republicans were "in control".
Doesn't anybody remember all the Friday night, 11:00 pm meetings that only Republicans were privy to? Doesn't anybody remember all the bills that were signed and passed and the Democrats didn't even find out until Monday Morn?It has just taken this long for it all to come to a head! Not to mention that since the Democrats have taken office,"our" president has used Executive power and his veto rights more than ANY president in history!(In fact, more than all the past presidents put together)! Maybe YOU should do some research!
P.Davison
Tipton,IN.
Americans do have the power. They have just been lied to and made afraid by Bush/ Cheney war tactics …so the same 1% can get richer.
Tell Iraq to sell or keep everything Dick Cheney owns … due to Haliburton subcontracts throughout the Iraq Quagmire… and start to rebuild their own country that was invade for the greed of these same ignorant people.
We …the people…are not powerless. Not only should you vote, but take your money out of the market, buy gas, food and toilet paper ...only. Or put your funds in a local credit union.
Everyone involved in this mess on Wall Street must pay for it.
Sell their assets… cars, houses, boats and underwear …on Ebay.
Liquidate their companies. 80% of all new jobs in America are created by the small business. Where are the grants, loans, and bailouts for the backbone of this country…the small business?
I also support the idea of public execution.
And why will that help when it seems like they are going along with Bush's Bailout... now who were those third parties again? I guess it's not too late for Obama at least to come out on the side of the people - we'll see...
Go to: Youtube
Type in:
1) Protest Against the Bush Bailout on Wall Street
2) NO BAILOUT" "YOU BROKE IT YOU BUY IT" Wall Street Protest
3) Anti Wall Street Bailout Protest / Demonstration Chicago
All you people calling for violence, please stop.
The Democrats are for this bailout. The only group stalling it is the House Republicams. I'm sure it is because they lost seats in the last election and want to seem like they are now the only ones who support the common man.
For the Past 50 years the American People have been deceived into thinking that Dem's and Repub's are 2 different entities. If you really sit down and think about it, there isn't much diffence. Kennedy sent troops to Vietnam and so did Nixon and LBJ. Kennedy also authorized a pseudo-invasion of Cuba. Clinton attacked Iraq and so did the Bushes. Greneda, Haiti, Lebanon Panama....did I leave anything out from the 80's. We have to have a standing military, we have to have gas for "our" standing military. The government spends billions on the military; not just for the manufactured arms, but on private contractors for the wars:Haliburton, Blackwater.....
A piece of the F-111 stealth bomber is built in ALL 50 STATES. You can't be against government spending, the war or big business if you are an elected official because the constituents who vote you in are in one way or another associted with friend or family who work for the firms that make bombs, guns and other weapons.
I wish the Nazis would've won the war. Atleast I would know what to expect from them.
In America we have done the Nazis one better.
We have a sheepish society populated by uninformed,lackluster morons. Our government lies to us while using force to subjegate other societies for their natural resources. There are still idiots who say we are fighting for freedom. In France, when their country was subjegated by Nazis, they fought and died to get rid of them. (French Resistence)
This bailout will help the administrations of those corporations. It will help out the employees. It will help out the stock holder. It will help out anyone with money in a mutual fund, so your middle class mom and dad won't have to sell their third car to go on that dream vacation they've talked about for years.
This country and the 51% of the people in it, Officially SUCK!
WE HAVE NO POWER!
http://pol.moveon.org/wallstreet/
Although the bailout is going to happen, each rep NEEDS to know that the public is against it. And they will have to answer to you eventually. Let them know how you feel. It's easy to be pissed off, disenchanted, and even want nothing to do with this government. But WE are this government. We can't just pay our taxes and then think that everything else just gets done. It is our responsibility to force this government to head in a direction that WE want. And it takes work; collective, unified, diligent work. We are middle America. We are the average citizen.
Think about how much each of you has actually participated in writing your Congress members, signing petitions, picketing City Hall, or attending your local town hall meetings. These are the responsibilities we all have to endure to make sure this government is working for US. Corporate America has people doing all of those things for them, they're called lobbyists!!! Become your own lobbyist. Get involved in organizations that reflect your personal ideology. Republicans have a huge organization working for them, the church!!! Maybe you’re one of them. But that’s another blog!!!
If you want change you have to make it. Clearly you are informed. You are all blogging on this page because you all are concerned about this bailout. My guess is, most of you watched the debate tonight, most of you are familiar with the differences between each candidate’s policies and political agenda, and most of you will vote. Take it a step further. Research some community organizations that reflect your ideology. They are great at unifying groups, organizing events, and keeping you abreast of the government and their different agendas. Work towards the change you want to see in this government.
You're wrong. We have lots of power; in the purchases we make, in the people we vote for, in the things we do to change the status quo.
Who do you think brought about Civil Rights? The government? No, we the people, in a grass roots movement throughout this country that eventually FORCED this government to enact laws to change things.
Who do you think brought about the Women's movement? The Government? No, we the people. Women and men, together, who walked in parades, picketed, and screamed and yelled from the rooftops.
The problem is that we as individuals, communities, and a country no longer stand up to the government anymore. We somehow have lost our desire to work towards the change we want. We leave it for someone else to do while we sit on the sidelines complaining and waiting for it to happen. Stop sitting and start doing...join a grass roots movement in your own area. Things are changing and we are becoming more and more active and involved. Decide what it is that you want to see change, find a group that works towards that change, be it writing your reps as a group, picketing, informing the public so to get more people involved, etc. There is strength in numbers. Alone we might feel useless, but together we are strong, forceful, determined, inspired, and effective.
I went to the web site. It was a front for the Obama Campaign.
I did sign the petition. I left a message saying I would vote for anyone against the incumbants who passed this bill, DEMOCRAT or REPUBLICAN! I typed about a Blog on here previously where a woman suggested we give the money to the people to pay off debts and invest in homes and education individually to stimulate the economy. That was a good idea. I asked if we live in America, because this bailout will reward dishonesty and incompetance; and in America I was always taught hardwork and merit are virtues.
So, Now 4 people have signed this petition, that's what the website said!
Don't blog about one side or the other, they are the same. If you listen to the news, both sides support this bailout. Both sides are the same thing: Rich people manipulating the uniformed, scared and disenfranchised. Common Sense, don't blog your political support in the form of help again. You are part of the problem.
Didn't the Bush administration give everyone a rebate check recently? Didn't that stimulate the economy?
Mortgage-backed bonds do having performing qualities (ie. underlying mortgage payments) and therefore have value, as demonstrated by the sale of ML bonds by Thane at $.22 on the dollar. Ergo, price discovery is sufficiently established for an insurance premium. The bonds have a floor value, thereby removing the only doubt offered by the Time correspondent (which in my opinion was a weak argument to begin with.)
The issue now is how to acquire the bonds without full exposure to the taxpayer.
I suggest that the proposed $700b expenditure be in the form of loans to the holders of the debt instruments. The Treasury should take the underperforming, "temporarily impaired bonds" as collateral. These collateralized assets should be held on the shelf of the Treasury (without the burden of mark-to-market), where the bonds can be re-financed, consolidated or (declared worthless) over the full period of maturity rather than a worthless assessment declared as of today when the market is bogusly impaired.
As the bond market regains confidence, I surmise a large portion of these assets will be able to return to the marketplace as full-valued performing assets, to be re-sold to repay the original taxpayer loans.
As taxpayers, we may not see a real gain, but we will certainly avoid a MASSIVE loss.
In exchange, participating banks will cancel all dividend payments to equity holders until at least half the debt is repaid, all other debts are temporarily subordinated to the taxpayer, no commissions shall be paid on the bond sales, and no portion of the proceeds received by the participating bank may be part of any compensation plan.
After all -- this IS a bail out.
A leveraged fiat money market is not free. It is a
debt market. It is a slave market. Proof
is the statement "One who borrows what isn't
his'n must pay it back or go to prisn."
I believe the first three sentences are the
Occam's Razor of the cause of the
current crisis.
I don't see anything in world history or
long term economic history to disprove this.
Of course one may argue that an economic
slave market is a good and/or necessary
state. In my opinion this argument has
always necessitated a state of war untill
settled. And then the cycle starts again,
because resentment inhabits the laws of
desire more intimately than the worm does
the apple.
Welcome to the new world disorder. I think
I'll watch "Judge Dredd" dvd tonight to get
prepared.
Everything is in place for THAT great event- No thanks to BUSH.
And it wasn't a front for the Obama campaign. It clearly says his name on the page where the petition is. A front would indicate deception. It was from the organization MoveOn and MoveOn is an organization with a liberal/Democrat ideology. Mother Jones is also a magazine with a liberal/Democrat ideology as well. If you're blogging on here, you most likely relate to that ideology. If you don't, it's refreshing to see people reading things from a different ideology other than their own. After all, I watch Fox news, listen to Rush Limbaugh, and even watch O'Reilly to get the view from a conservative/Republican ideology.
It is understandable that you are fed up with the government, but at this point it is clear that you are one of those people who want change but are unwilling to put the work into it to achieve the change you want. You would rather complain about it on this blog instead of being an active participant in the change you want in the political system. To each his own. I refuse to [deleted] about something only to [deleted] without putting in the necessary work to altar what it is that I am [deleted]ing about. That's just me. Good luck. Hopefully someone with influence in the political system is reading this blog and they will just go ahead and make the changes in the system you would like to see. But then again, that's as sure to happen as the public actually believing Sarah Palin having foreign policy experience because she lives between Russia and Canada!!!
You need to go look at this link. The Democratic party has a bigger roll in this then you think.
It's time to start looking at the bigger picture of who was involved and it hasn't been just 8 years.
NY times 1999
http://query.nytimes.com/gst/f ullpage.html?res=9C0DE7DB153EF 933A0575AC0A96F958260&sec=&spon=&pagewanted=1
It's obvious you didn't read my post, within it I clearly stated I signed the petition and asked more questions.
At this point it is clear to me that you don't understand that mearly voting for the other side is not change. It is supplanting the same leadership we have recieved for the past 50 years with another clone.
I admit I do not have a solution to being bilked out of $700 billion dollars. Once again, what can we do?
I'm sorry you assumed I was liberal/Democrat. I just thought Mother Jones presented the truth. I want the truth and I'm frustrated.
What exactly is a liberal/democrat point of view? Shouldn't you have a well-informed, thoughtful, honest point of view?
I will vote for the best person for the job. I will accept solutions that actually accomplish something, minus the agenda.
You have a valid point with Palin. It really doesn't matter what she knows, because the VP position offers little in the way of actually affecting policy. What are the qualities that make a good vice-president. Is it killing and field-dressing a moose in the wild?
What's your real name?
Who cares what my name is? My name on this blog is what matters. And I refer to it not just with our elected officials but with the people who vote. Common sense should tell you that you need to do more than just pay your taxes and vote to think this huge, well-funded, powerful government will do everything you want it to. My point is, you need to be an active participant in it in order for it to be effective for what you desire. It's very simple, and well, common sense.
And you seem to think that the Dems or Repubs support this bailout. I have yet to see or hear one person from either side to say they support it. They all have expressed their dissatisfaction with this bailout but somehow they feel it is necessary. I am not an economics specialist so it seems pretty easy for me to say, screw em' and let em' fail. Which, if you read my first post, is what I said and it is still what I believe.
And there is a very strong and distinct difference in the ideologies of the Democrats and the Republicans. On occasion you might get someone who votes for one over the other even though they disagree with a particular "piece" of that ideology, but for the most part, those who vote one over the other feel very strongly either way.
I am a Democrat because I am pro-choice, support equality; like equal pay for equal work, I am an advocate for social justice, I absolutely believe in separation of church and state, I believe that our federal minimum wage of $6.58 in ridiculous and needs to be raised, unlike John McCain who voted against a raise in the minimum wage 19 times, I believe healthcare should not be a privilege but a right, and I believe that the public educational system is favored in more affluent areas and needs to be more balanced and equitable for those in lower socio-economic areas. I think the rich get too many breaks, don't pay their fair share of taxes, and buy their way into OUR political system. That is what makes me a Democrat. And for all the problems, and there are many, I believe in working towards making this government more fair, more responsible, more accountable, and more transparent.
The great thing about this country is you have the right to vote however you like, even if it is based on voting for "anyone against the incumbants who passed this bill, DEMOCRAT or REPUBLICAN!" It looks like you will not be voting because they WILL be passing it. And both sides will have had to do so in order for it to pass. Whether we like it or not, this bailout is going through. I have signed several petitions against it, have written to my local rep, as well as, both my Senators, and even have a sign on the back of my car expressing my non-support of it.
Are you “uniformed, scared and disenfranchised”? Can you be manipulated? That’s what you say, “Both sides are the same thing: Rich people manipulating the uniformed, scared and disenfranchised.” Well, don’t be. Be informed, assertive, diligent, and effective. Stop telling us on this blog how upset you are and start telling your government. This blog is a means of venting, yes, but those who vent and complain don’t get anything done. I gave you my ideas for what you can do to try to change your government, their priorities, and to hold them accountable.
And I am not part of the problem. I am working as a citizen to change things, to make things fair for all, for equality, for social justice. It's insulting to me that you tell me that I am part of the problem. The people who complain and do nothing are part of the problem. Which are you?
I am going to vote, I already stated that.
Moveon.org was founded by 2 wealthy computer techs from California. It says so in their web page. They ask for donations on the web page and say it to espouse idealogies from like minded people. Giving donations to group of people that share the same doctrines. Isn't that what Churches do?
Is suppporting either side of politicians supporting Bi-partisan politics?
In supporting bi-partisan politics, are we supporting this bailout, because they are both for it?
If we support this bailout, are we supporting corporate fraud?
Please tell us in bulleted, straightforward and specific language: "What will likely happen if U.S. taxpayers don't bail out these multinationals with $700B?"
We're reasonable people. I'll withhold judgment AND support until I get a straight answer.
Joe Whalen I like your question. I bet rtrco1 has good answer. Although, Leslie Fox put a much better alternative here.
The people of America do have the power. The working class can't have one home, but John McCain (McNamee) has about eleven homes, voting for no rules for these thieves. Now they want to rape and rob honest working class people. All of us should be protesting.
The common man does not need this bailout. We can go back to a way of life where economies are local. Small businesses account for 90% of the business growth in this country. This natural part of the economic eb and flow would open up a vast market for small businessmen Wall street is not the only place to get capital. Let's stop giving it to them.
Senators support the bailout because they are trying to attract votes from the entire state. To do this they need to use a shotgun effect complete with television and radio ads. This costs money and they receieve contributions from big business. Most politicians are already in the upper income brackets to begin with. Representatives in the house are more dependent on their constituents and more closely tied to them. They have less area to cover and therefore need less money to do so.
Moreover because many politicians are part of the super-wealthy class which sits around earning money only because they have money to invest, they personally have something at stake if they don't get their $700 billion welfare check, they'll be like you a me. That scares the wealthy more than anything else. The playing field will be leveled.
I live in southern Illinios. My rep is Jerry Costello. He opposed the bailout and I will vote for Him. My senators are Barack Obama and Dick Durbin and they supported this bailout. I will not be voting for them until they understand that special interest groups do not have the best interests of the people on their agenda.
The world is laughing.
The world is laughing!
Growing 'tent cities' blamed on foreclosure crisis.
Go to CNN.com
http://www.cnn.com/2008/LIVING/wayoflife/09/19/tent.cities.ap/
Working Americans living in tents.
Here are some facts:
1) The Carter administration created the plan which allowed for subprime lending. The idea was to allow for lower income families to afford homes. The housing market increased and the economy grew.
2) The Clinton administration reduced the requirements for people to qualify for loans. The idea again was to allow for lower income families to afford homes. The housing industry boomed again and the economy grew.
3) Loan companies were now allowed to give loans to people who could not afford their loans because the reduced restrictions. They began taking advantage of the people in order to make money. People believed that the mortgage companies would not give them a loan if they could not afford it.
4) The "American Dream" is 2.5 kids, a dog and house with a white picket fence. The loan companies provided the opportunity and the American people took it. We deserve it...after all...It's the American Dream.
5) Retrospectively the housing market began showing signs of problems in 2000.
6) 9/11
7) The economic stimulous plan put in place after 9/11 improved the economy and the housing market boomed again.
8) Loan companies continued to profit from decreased regulation. Neither the Republicans or the Democrats in congress provide more regulations.
9) 2004: After audit and review of Freddie and Fannie, the republicans began bringing up concerns regarding the abuse of the mortgage lending system. The Democrats denied any problems stating there was not proof of problem with Fannie or Freddie.
Now we are in this current crisis and everyone wants to point fingers. First we should start with pointing fingers at ourselves. Before we buy a house, a car or anything, we should take a hard look at our income. We should take a hard look at our monthly expenses. Can we afford our mortgage payments? Not just initially but even after 5 years when your interest will become variable? Why didn't we think about this when we signed for our mortgage? Why aren't we responsible for making a poor decision regarding how much we can pay for our monthly mortgage payment? Didn't we know that if I take home $3000 a month I wouldn't be able to afford a $1500 mortgage payment? Why is it all the governments fault or the loan companies fault?
That being said, I think the loan companies need to be regulated and it's important that something is done to ensure that they are lending money responsibly. They did not think about the above questions either and what would happen when people started to foreclose. They did not loan money responsibly.
Look at the facts, look at ourselves, and learn from the past.
One final note for those people who think the bailout plan is bad and want to blame Republicans. When the plan failed, ~60% of the Democrats vote yes and ~30% of the Republicans voted yes.
Look it up!
Could someone please point out to me who, exactly, the American Taxpayers are, who are gonna be left to pay for this thing when it's all over.
A good example of FUBAR would be 3 drunk guys without supervision building a spiral staircase. SNAFU, would be the boss, once again, showing up in his truck drunk while his workers are sober and readily able to handle most situations.
That is not the American Dream, that is the TV version of the American Dream. Two completely different things.
I am reminded of Network 1976. They didn't bailout the real economy, the real economy being the citizens of this country. They bailed out the illusion that the vast majority of people believe in. "to free up the credit markets so banks can begin lending again", isn't that mentality kinda what got us to the point we are now?
It makes me sick that they re-spun it until it passed. What if we where to have another Vote when George W. Bush got into office?
There as never any chance of this not passing as Washington would have kept voting until it passed no matter that the majority of the people did not agree with this. Freedom of choice? I think not.
It makes me sick that they re-spun it until it passed. What if we where to have another Vote when George W. Bush got into office?
There as never any chance of this not passing as Washington would have kept voting until it passed no matter that the majority of the people did not agree with this. Freedom of choice? I think not.
Don
Don