400 World Famous Economists Speakout Against Bailout

THEY SUGGEST THAT CONGRESS HOLD HEARINGS

Economists Protest the Bailout Plan:

Numerous prominent economists on both the right and the left have signed this petition against the bailout plan proposed by the Administration (list of signatories available at the link above):

As economists, we want to express to Congress our great concern for the plan proposed by Treasury Secretary Paulson to deal with the financial crisis. We are well aware of the difficulty of the current financial situation and we agree with the need for bold action to ensure that the financial system continues to function. We see three fatal pitfalls in the currently proposed plan:

1) Its fairness. The plan is a subsidy to investors at taxpayers’ expense. Investors who took risks to earn profits must also bear the losses. Not every business failure carries systemic risk. The government can ensure a well-functioning financial industry, able to make new loans to creditworthy borrowers, without bailing out particular investors and institutions whose choices proved unwise.

2) Its ambiguity. Neither the mission of the new agency nor its oversight are clear. If taxpayers are to buy illiquid and opaque assets from troubled sellers, the terms, occasions, and methods of such purchases must be crystal clear ahead of time and carefully monitored afterwards.

3) Its long-term effects. If the plan is enacted, its effects will be with us for a generation. For all their recent troubles, Americas dynamic and innovative private capital markets have brought the nation unparalleled prosperity. Fundamentally weakening those markets in order to calm short-run disruptions is desperately short-sighted.

For these reasons we ask Congress not to rush, to hold appropriate hearings, and to carefully consider the right course of action, and to wisely determine the future of the financial industry and the U.S. economy for years to come.

Additional Link to the list of Economists:  http://faculty.chicagogsb.edu/john.cochrane/research/Papers/mortgage_protest.htm

Simply breathtaking.

Mcauleysworldweblog: The following Articles describe the role of “political ideology” in the Financial Crisis – How Politics fueled the crisis:

Professor Stan Liebowitz: The Real Scandal – http://www.nypost.com/seven/02052008/postopinion/opedcolumnists/the_real_scandal_243911.htm?page=0

Professor Thomas J DiLorenzo: The CRA Scam and its Defenders: http://www.mises.org/story/2963

John R Lott, Jr : Analysis – Reckless Mortgages Brought Financial Market To Its Knees http://www.foxnews.com/story/0,2933,424945,00.html

Infamous Video of Committee Meeting on Fannie Reform:  http://www.youtube.com/watch?v=_MGT_cSi7Rs&eurl=http://gatewaypundit.blogspot.com/2008/09/devastating-dems-refuse-to-reform.html

VIDEO: The Famous Barney Frank Statement – “Fannie & Freddie” are just fine.

REPRESENTATIVE BARNEY FRANK STATES: FANNIE IS FINE:

REPRESENTATIVE FRANK WENT ON TO SAY PUSHING SUB-PRIME NINJA AND LIAR LOANS WOULD BE HIS PRIORITY – WHILE FRANK CRITICZED “GOLDEN PARACHUTES” – HE NEGLECTED TO MENTION IT WAS DEMOCRATS WHO WERE RECEIVING THEM AND HE DID NOTHING TO PREVENT IT …

McCauleysweblog: The following Articles describe the role of “political ideology” in the Financial Crisis – How Politics fueled the crisis:

Professor Stan Liebowitz: The Real Scandal – http://www.nypost.com/seven/02052008/postopinion/opedcolumnists/the_real_scandal_243911.htm?page=0

Professor Thomas J DiLorenzo: The CRA Scam and its Defenders: http://www.mises.org/story/2963

John R Lott, Jr : Analysis – Reckless Mortgages Brought Financial Market To Its Knees http://www.foxnews.com/story/0,2933,424945,00.html

Bailout Bill Analysis – Link to Bailout Bill – Why Congress Needs to Vote NO

“Bailout” Specifics – Why You Should Be Mad As Hell – Lies About What The Bailout Does And Doesn’t Do

You can read the Proposed Bailout Law Here: http://financialservices.house.gov/

FACTS & FICTIONS ABOUT THE BAILOUT PROPOSAL:

AMOUNT: Congratulate the House Republicans. The preliminary request was for $700 Billion, that amount grew to $1 Trillion in the first 3 days Congress considered the request. 4 days ago the amount was estimated at $1.4 Trillion. The initial payout has now been reduced to $350 Billion. (Page 40-41).

Oversight – Yes oversight provisions have been added to the Bill in several areas, however, the individuals who will perform the “oversight” have other “full time” Government Jobs. In pratical effect the oversight will be limited to monthly or bi-monthly committee meetings. 

Insurance Provision – An excellent addition to the original bill added by House Republicans. This provision may reduce the cost to taxpayors by 1/2. See the video on Insurance Here: http://www.foxnews.com/video-search/m/21025520/not_buying_it.htm?  q=Not+Buying+It  

http://www.foxbusiness.com/search-results.html?SearchString=Contact+Info+Dave+Ramsey&searchType=news&x=43&y=13  Select Video 3 – Bailout Not The Answer.

NO ACORN MONEY: Page 22 Line 7 All proceeds from the sale of assets will go to the Treasury. Thank you House Republicans.

FORCLOSURE MITIGATION EFFORTS: The Bailout states shall seek to maximize assistance to homeowners (page 25, line 2) and will “Consent To Reasonable” loan modifications (page 26, line 9) – including term extensions, rate reductions, prinicple write downs.

*****This provision maybe unconstitutional –

It is certainly unfair

The Bailout only affects Homeowners, whose mortgages have been purchased by a failed bank or failed financial institution. If a you are a homeowner and need help, but your bank has not failied YOUR OUT OF LUCK – the Bailout doesn’t provide you with anything. Approximately 1/2 of the homeowners in the COUNTRY WILL HAVE ACCESS TO THIS PROVISION AND 1/2 WILL NOT. HOW IS THIS FAIR?  Page 28, line 13, restates that the help, to those who have access to it, will include “reduction in interest rates, loan principle and “other similiar modifications“.  THE GOVERNMENT MAKES YOU A WINNER IF YOUR BANK HAS FAILED – AND A LOSER IF IT HAS NOT. The Bailout does not define “how much” in terms of money, or who gets to decide – or how fairness will be determined. 

EXECUTIVE COMPENSATION – THE BIG BAILOUT LIE: If you’ve heard claims that the bailout ends the Wall Street Executive Bonanza – you’ve been lied to. Pelosi is unbelievable, yes- she lied, again. (See page 30, line 10). First, only the firms that participate in the bailout fall under this provision – meaning the Companies that have failed – all the other Companies (3/4 of all the Wall Street Firms) are not touched by this provision. It is “bonuses” and “parachutes” as usual for those firms. This provision has limited application. Golden Parachute Payments are only limited to the “last” executive in office at the time of a “collapse”. Take Fannie Mae as an example – the last CEO could not receive a “Golder Parachute” but the earlier CEO’s (Raines & Johnson, for example) would not be affected by this provision. THIS PROVISION HAS A LIMITED APPLICATION TO A LIMITED NUMBER OF INDIVIDUALS AND COMPANIES.

CHANGING MARK TO MARKET – The Bailout allows the Security and Exchange Commission to “study” “Mark to Market” changes but does not mandate that the SEC make a change in the “Mark to Market” rule. (Page 88 – 89). See Mark to Market Video: http://www.foxnews.com/video-search/m/21008311/role_of_regulation.htm?q=regulation

http://www.foxbusiness.com/search-results.html?searchString=Contact+Info+Dave+Ramsey&searchType=news&x=43&y=13  Select Video 3 – Bailout Not The Answer.

Changing Mark to Market could reduce the cost to taxpayors by 1/2.

The main reason “YOU SHOULD BE MAD AS HELL ABOUT THE BAILOUT“. The Proposal does not even mention NINJA or LIAR LOANS, the mortgage underwritng standards that led to this mess, the Boston Federal Reserve Manual that forces those underwriting standards on the Financial Community, the role of ACORN and similar organizations who extort our banks and waste our tax dollars. The elements that led to the collapse being addressed today are untouched and unchanged. If they are not changed – we will be starting down the road to the next mortgage crisis today ……..

CONTACT YOUR CONGRESSPERSON AND SENATOR AND TELL THEM YOU ARE MAD AS HELL AND TO VOTE NO!

Contact Your Senators Here:  http://www.emailyoursenator.com/senators.html  Click on your Senators, Select the Contact Folder and then  click on the email address.

Contact Congresspeople: http://www.house.gov/zip/ZIP2Rep.html You’ll need your zip  code

McCauleysweblog: The following Articles describe the role of “political ideology” in the Financial Crisis – How Politics fueled the crisis:

Professor Stan Liebowitz: The Real Scandal – http://www.nypost.com/seven/02052008/postopinion/opedcolumnists/the_real_scandal_243911.htm?page=0

Professor Thomas J DiLorenzo: The CRA Scam and its Defenders: http://www.mises.org/story/2963

John R Lott, Jr : Analysis – Reckless Mortgages Brought Financial Market To Its Knees http://www.foxnews.com/story/0,2933,424945,00.html

WHY THE BAILOUT BILL FAILED – Link to the Actual Bill – Analysis

You can read the Proposed Bailout Law Here: http://financialservices.house.gov/

FACTS & FICTIONS ABOUT THE BAILOUT PROPOSAL:

AMOUNT: Congratulate the House Republicans. The preliminary request was for $700 Billion, that amount grew to $1 Trillion in the first 3 days Congress considered the request. 4 days ago the amount was estimated at $1.4 Trillion. The initial payout has now been reduced to $350 Billion. (Page 40-41).

Oversight – Yes oversight provisions have been added to the Bill in several areas, however, the individuals who will perform the “oversight” have other “full time” Government Jobs. In pratical effect the oversight will be limited to monthly or bi-monthly committee meetings. 

Insurance Provision – An excellent addition to the original bill added by House Republicans. This provision may reduce the cost to taxpayors by 1/2. See the video on Insurance Here: http://www.foxnews.com/video-search/m/21025520/not_buying_it.htm?  q=Not+Buying+It  

http://www.foxbusiness.com/search-results.html?SearchString=Contact+Info+Dave+Ramsey&searchType=news&x=43&y=13  Select Video 3 – Bailout Not The Answer.

NO ACORN MONEY: Page 22 Line 7 All proceeds from the sale of assets will go to the Treasury. Thank you House Republicans.

FORCLOSURE MITIGATION EFFORTS: The Bailout states shall seek to maximize assistance to homeowners (page 25, line 2) and will “Consent To Reasonable” loan modifications (page 26, line 9) – including term extensions, rate reductions, prinicple write downs.

*****This provision maybe unconstitutional –

It is certainly unfair

The Bailout only affects Homeowners, whose mortgages have been purchased by a failed bank or failed financial institution. If a you are a homeowner and need help, but your bank has not failied YOUR OUT OF LUCK – the Bailout doesn’t provide you with anything. Approximately 1/2 of the homeowners in the COUNTRY WILL HAVE ACCESS TO THIS PROVISION AND 1/2 WILL NOT. HOW IS THIS FAIR?  Page 28, line 13, restates that the help, to those who have access to it, will include “reduction in interest rates, loan principle and “other similiar modifications“.  THE GOVERNMENT MAKES YOU A WINNER IF YOUR BANK HAS FAILED – AND A LOSER IF IT HAS NOT. The Bailout does not define “how much” in terms of money, or who gets to decide – or how fairness will be determined. 

EXECUTIVE COMPENSATION – THE BIG BAILOUT LIE: If you’ve heard claims that the bailout ends the Wall Street Executive Bonanza – you’ve been lied to. Pelosi is unbelievable, yes- she lied, again. (See page 30, line 10). First, only the firms that participate in the bailout fall under this provision – meaning the Companies that have failed – all the other Companies (3/4 of all the Wall Street Firms) are not touched by this provision. It is “bonuses” and “parachutes” as usual for those firms. This provision has limited application. Golden Parachute Payments are only limited to the “last” executive in office at the time of a “collapse”. Take Fannie Mae as an example – the last CEO could not receive a “Golder Parachute” but the earlier CEO’s (Raines & Johnson, for example) would not be affected by this provision. THIS PROVISION HAS A LIMITED APPLICATION TO A LIMITED NUMBER OF INDIVIDUALS AND COMPANIES.

CHANGING MARK TO MARKET – The Bailout allows the Security and Exchange Commission to “study” “Mark to Market” changes but does not mandate that the SEC make a change in the “Mark to Market” rule. (Page 88 – 89). See Mark to Market Video: http://www.foxnews.com/video-search/m/21008311/role_of_regulation.htm?q=regulation

http://www.foxbusiness.com/search-results.html?searchString=Contact+Info+Dave+Ramsey&searchType=news&x=43&y=13  Select Video 3 – Bailout Not The Answer.

Changing Mark to Market could reduce the cost to taxpayors by 1/2.

The main reason “YOU SHOULD BE MAD AS HELL ABOUT THE BAILOUT“. The Proposal does not even mention NINJA or LIAR LOANS, the mortgage underwritng standards that led to this mess, the Boston Federal Reserve Manual that forces those underwriting standards on the Financial Community, the role of ACORN and similar organizations who extort our banks and waste our tax dollars. The elements that led to the collapse being addressed today are untouched and unchanged. If they are not changed – we will be starting down the road to the next mortgage crisis today ……..

CONTACT YOUR CONGRESSPERSON AND SENATOR AND TELL THEM YOU ARE MAD AS HELL AND TO VOTE NO!

Contact Your Senators Here:  http://www.emailyoursenator.com/senators.html  Click on your Senators, Select the Contact Folder and then  click on the email address.

Contact Congresspeople: http://www.house.gov/zip/ZIP2Rep.html You’ll need your zip  code

McCauleysweblog: The following Articles describe the role of “political ideology” in the Financial Crisis – How Politics fueled the crisis:

Professor Stan Liebowitz: The Real Scandal – http://www.nypost.com/seven/02052008/postopinion/opedcolumnists/the_real_scandal_243911.htm?page=0

Professor Thomas J DiLorenzo: The CRA Scam and its Defenders: http://www.mises.org/story/2963

John R Lott, Jr : Analysis – Reckless Mortgages Brought Financial Market To Its Knees http://www.foxnews.com/story/0,2933,424945,00.html

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