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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