Or just more bullshit?
We’re gonna find out. Hope you enjoy the ride.
Dear Democratic Colleague:
The House of Representatives rejected the $700 bailout yesterday. Distinguished economists across the world have stated it would not have solved the problem at hand. However, we can potentially solve this liquidity problem at little cost to the taxpayer. I am proposing that Congress drop the Paulson Plan, and instead pass the No BAILOUTS Act. The No BAILOUTS Act provides an alternative to the Paulson Proposal to address the current credit crunch. Once Congress addresses the liquidity shortfalls in our financial markets, a Democratic Congress can turn to Democratic solutions to address the broader economic crises we face today. Specifically, Congress can work to resolve the housing crisis across the country and pass effective job stimulus, which is the response Main Street America expects and deserves.
While Democrats and Republicans may disagree on the underlying solutions to solve the economic crises we face, the No BAILOUTS Act – a regulatory based proposal – has the potential for significant bipartisan support.
The Paulson Premise Flawed
Simon Johnson, a former chief economist as the International Monetary Fund, stated today in the New York Times of Paulson’s plan, “It’s our view that this package, in a fundamental sense, will not solve the problem.” Other economic analysts noted yesterday that the credit markets around the world were almost entirely dysfunctional even when political leaders and investors assumed that Congress had reached a deal and would easily approve the bailout. There is no reason to believe Paulson’s plan will work.
We have credible alternatives to the Paulson/Bush $700 billion gamble. William Isaac, the chairman of the FDIC during the previous worst financial crisis in the United States during the 1980s, believes Congress can address the current crisis with simple changes to Securities and Exchange Commission (SEC) rules. Mr. Isaac points out that while we face serious financial challenges today, many banks are still in good shape. This allows Congress to take swift, uncomplicated steps to ensure the financial markets return to working order. After that, we can work to resolve the housing crisis and pass effective job stimulus.
Today I am offering an alternative to the Wall Street bailout that will correct the capital shortfalls experienced by many financial institutions and help protect the integrity and quality of the securities market. My plan could be implemented promptly meeting the demands of the Bush Administration to act immediately without putting the American taxpayer on the hook for billions of dollars.
No BAILOUTS Act
Bringing Accounting, Increased Liquidity, Oversight and Upholding Taxpayer Security
1) Require the Securities and Exchange Commission (SEC) to require an economic value standard to measure the capital of financial institutions.
This bill will require SEC to implement a rule to suspend the application of fair value accounting standards to financial institutions, which marks assets to the market value, no matter the conditions of the market. When no meaningful market exists, as is the current market for mortgage backed securities, this standard requires institutions to value assets at fire-sale prices. This creates a capital shortfall on paper. Using the economic value standard as bank examines have traditionally done will immediately correct the capital shortfalls experienced by many institutions.
2) Require the Securities and Exchange Commission to restricting naked short sells permanently
This bill will require SEC to implement a rule that blocks naked selling, selling a stock short without first borrowing the shares or ensuring the shares can be borrowed. Such practices many times harm the companies represented in the sales and hurt their efforts to raise capital. There is no economic value produced by naked short sales, but significant negative effects.
3) Require the Securities and Exchange Commission to restore the up-tick rule permanently.
This bill will require SEC to implement a rule that blocks short sales without an up-tick in the market. On September 19, 2008, the SEC approved a temporary pause of short selling in financial companies “to protect the integrity and quality of the securities market and strengthen investor confidence.” This rule prevents market crashes brought on by irrational short term market behavior.
4) “Net Worth Certificate Program”
This bill will require FDIC to implement a net worth certificate program. The FDIC would determine banks with short-term capital needs and the ability to financially recover in the foreseeable future. For those entities that qualify, the FDIC should purchase net worth certificates in these institutions. In exchange, these institutions issue promissory notes to repay the FDIC, counting the amount “borrowed” as capital on their balance sheets. This exchange provides short term capital, with not cash outlay. Interest rates on the certificates and the FDIC notes should be identical so no subsidy is necessary.
Participating banks must be subject to strict oversight by the FDIC including oversight of top executive compensation and if necessary the removal of poor management. Financial records and business plans should be subject to scrutiny while participating in the program.
In 1982, Congress approved a program, known as the Net Worth Certificate Program, that allowed banks and thrifts to apply for immediate capital assistance. From 1982 to 1993, banks with total assets of $40 billion participated in the program. The majority of these banks, 75%, required no further assistance beyond the certificate program.
5) Increase the FDIC Insurance limit from $100,000 to $250,000.
The bill will require the FDIC raise its limit to provide depositors confidence that their money is safe and help eliminate runs on banks which are destabilizing to the industry.
Member of Congress
Call your congress person and demand they support this instead of George The Robber and Nancy the Fluffer’s giveaway to the rich. It’s your’s and your grandchildren’s money they want.
Tell them NO!
I was at the RNC in New York in 2004 and do your know the NYC police, at the behest of the Secret Service and the laughably titled Dept. of Homeland Security, had the exact same set up down on the docks. Chain link w/barbed wire. Yet one more thing the Obamanation has copied from their patrons the Republican Party.
I may need more popcorn.
Could this be what Howie and Donna were working towards:
(270 Electoral Votes Needed To Win)
Under the bus they go,
Their transgression they may not know!
It’s under the bus they go.
The wheels go round an round,
His hectoring voice never ceases to pound!
Fail him and you know…
It’s under the bus you’ll go!
Worst of all is to be one who really can do,
To Barry that’s an insult, an insult to be too blue!
It’s under the bus you will go.
Red is the color he likes the best!
Pay attention to his behest….
Never show what you know,
Or, it’s under the bus you will Go!
I could go on like this all night. Barry is such rich mine of material for satire it’s just ridiculous. But….
You guessed it.
Still think Barkey is a Democrat?
If you don’t like Senator Obama you really, really need to STFU!
Hmmmm…. I don’t see fair, just, proper…. Above all, the one word I don’t see because what was done, in secret, is not…is not unless you are in the grip of a dangerous delusion….
….no matter what Howie or Donna or Kos or Bowers or Kid Oakland or anybody else says or does what was done in that meeting was as un-American as antithetical to my value system, to the values this nation was built on as anything the Communists, the Nazis or any of the other heinous scum we had smash to survive ever asserted.
600,000 voters not just disenfranchised!
Fuck no, their votes, votes they cast for Clinton, were stolen.
As I’ve said many a time Sinclair Lewis made no assertion about which side that figure, ‘….wrapped in a flag and carrying a cross…’ was coming from. At this moment it would be hard to argue that it’s coming from anywhere but the left.
Fortunately, no matter what Obama, Howie, Miss Nancy, Donna and the rest of the corrupt knot of toads which squats in our Party can treat the GE like they have the primary. Such utter contempt would not go down with the ‘bitter, clinging masses…’
Frankly, I’ve never been so ashamed of my fellow citizens in my life. Not even during the Vietnam occupation did I feel like this. One million Iraqi dead….
And Democrats cannot find a better candidate than ‘The One’ Miss Nancy and the Knot of Toads on the Hill have in ‘selecting not electing’ Senator Obama, who, to remark on just one of the truly stupid things he’s done lately, feels it more important to play golf than address the nation about Russia’s rending of Georgia.
A faithful ally being dismembered and the man has to make his tee time.
And to anyone I’ve called out by name here or who disagrees with my assertion here I’ve only got one question for ya?
What if that was your vote Howie and Donna stole?
What then fellow ‘progressives’?
…..yeah, the revolution will not be televised. Indeed, there looks to be no revolution. With Barky calling for a non-vote Democratic Convention, he won’t get that predicts I, and McSame being…well, more of the same I suppose you could vote for Nader or Barr but neither are viable let’s face it. Sister Beezlebub still has a shot moreso every time Barky sticks his foot in his mouth and hops around going Uh…Uh…Muh! Currently the Bark-O-Meter has him at 1.5 hops per week. But enough of the cheap shots.
The real problem sits on ‘The HIll’ like a horrific knot of toads in human form. 535 elected representatives of the people.
Yep, in situation, after issue, compounded by crisis we see that the legislative branch of our government is stuffed to the gills with folks who are one of three things:
Corrupt…the biggest faction. Politicians are trained early that it’s all about the Benjamins as our ‘system’ rewards those who get elected and under the current system you need lots of B’s to get elected…
Stupid…plenty of those after all if you’re buying a Congressperson you don’t need one that’s smart. Just one that loves to follow orders.
Nuts….Yeah, barking mad. These are the ones found in a hotel room with hookers and coke or an underage boy. Significant fraction….
So what to do. First up is very simple.
Understand that the level of corruption is now at unprecedented levels. Levels no mere change in ‘party’ will fix. The job is a wholescale clean up similar to Hercules and the Augean Stables. Ever read that one? You should it’s not really about what it seems. Yeah, get real. No one candidate is going to ‘save’ us folks. Most adults realize reality don’t work that way but….
People want to believe.
If you and I don’t get off our asses and take back our government the future will be very bleak. The tipping point on many problems affecting our very survival as a society is near. I assert that the tools to fix those problems which threaten us most are also hand. Requiring only affordable amounts of money and some intelligent leadership. But with a government composed of the corrupt, the stupid and the barking mad we are not going to be able to use those tools.
What to do?
Look around join up with like minded folks. Stop talking and start doing. You will be noticing some changes around here as I ‘renovate’ my new primary residence. And no I don’t care what the Congressional mortgage lending ‘bail out’ bill says, it’s amazingly stupid go look it up, about how to treat ‘primary’ vs. ‘secondary’ residences.
One signpost to a new way is the widget in the upper right sidebar called: ‘Accountability Money Bomb’.
This takes you to a spot where you can contribute to a fascinating group headed by Jane Hamscher and a bunch of right wing folks. Yep, wingers and progressives…together. Seems there is common cause to be made by all Americans in the face of the Congress’s gutting the 4th Amendment. Here is the link to the statement of purpose from StrangeBedFellows the ad hoc group just beginning to get some traction. I will be blogging about this more as the idea of ‘Accountability for the Asylum (Congress)’ resonates with me.
Hope you will hang around as I am planning some extensive remodeling here and I hope you will find it interesting.
What do you care about? Your health? Your family? Your children? How about something that is affecting all those and in a decidedly negative way? Let’s watch the third ranking Democrat in the Senate the Senator from North Dakota Byron Dorgan talk about how your government is doing.
Let’s listen to him talk about the American worker:
The Employee Free Choice Act:
Notice how he points out that the fat corrupt toads who have historically, and continue to do so it would seem, sat in the chamber of ‘The Greatest Deliberative Body in the World….’ had zip to do with helping workers?
Here’s ‘The Money Pit Part I:’
Anyone really think some of that 18 Billion never left the States…or just made a quick round trip to to some selected Solons…18 Billion in cash….no accounting. No wonder Bush can wear $7,000.00 boots, eh? Maybe the continuous, unrestrained voting for more unaudited, off the books spending is starting to seem a little…er, understandable?
Anyone really think some of that 18 Billion never left the States…or just made a quick round trip to to some selected Solons…18 Billion in cash….no accounting. No wonder Bush can wear $7,000.00 boots, eh?
Let’s wrap this up with the Senator speaking at length on slave labor Immigration.
If any of this got ya going here are some phone numbers:
Madame Speaker of the House the Honorable Nancy Pelosi: (202) 225-0100
Senate Majority Leader Harry Reid: 202-224-3542
And most importantly call Senator Dorgan here: (202) 224-2551 and thank him for his work. He surely deserves some praise.
Oh..yeah…I almost forgot…..This………………………..
I liked this in particular:
‘…administration and military officials say it’s not that easy to distribute the money. They contend that Iraq’s lack of spending isn’t due to laziness or corruption, but rather Baghdad’s inability to determine where its money is needed most and how to allocate it efficiently.’
In other words they’ve got so much money they can’t figure out what to spend it on first. Thanks Madame Speaker, thanks Harry, thanks especially to ‘The One’ who has voted for every ‘emergency appropriation…’ for Iraq. And they are all, every one ‘….emergency appropriations..’ and not included in the nation’s budget. Budget…hah, what a concept.