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

4 Responses

  1. STOP the Bailout now before it is too late. Something smells bad.

  2. The most striking flaw in the media debates about the bailout is the virtually total absence of the voice of the experts. However, we do know that a few hundreds of the USA economists have been overwhelmingly opposed to the bailout, favoring private investment instead, which in turn could be stimulated by tax cuts. This could restore the liquidity that would allow the free market to correct the aberration caused by the worthless assets floated by the Wall Street fat cats at the government’s behest (the federal government’s 1977 Community Reinvestment Act under which the Fed and other financial regulators have pressured banks into making more loans to less-than-creditworthy borrowers than they would normally be willing to risk).
    Unfortunately, the powerful of New York and Washington, helped by a servile press, have been silencing the voice of reason and economic expertise and were about to succeed in shielding the frauds, in creating new bureaucratic layers in the government, and in expanding the monetary base with new money made out of thin air by the Fed. This could only worsen the situation, by creating a new cycle of inflation and correction, likely to be even more severe than the current one, aside from increasing the federal government control of the economy.
    In this process, the establishment ideology has been promoting the myth that deregulation has contributed to the debacle because the free market malfunctions without government oversight. The truth is that markets are not free if fraud and corruption become widespread. What has been missing is not regulation, but mere enforcement of the criminal law already on the books.

  3. Thank you Sir – very well said.

  4. Even the Financial Accounting Standards Board’s couldn’t figure out how to deal with the mark-to-market accounting shortly after the Enron debacle. Even the Arthur Andersen accounting firm had problems with it which led to its failure too. Enron filed for bankruptcy 2001. The Financial Accounting Standards Board’s has had 7 years and they did nothing. nomedals.blogspot.com

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