Reply #8: Notes on the call. Also, someone is working on a nobailoutforbillionaires website [View All]

[eridani]

Dean Baker

We are in the middle of a horrible and preventable situation. A freeze-up means that normal transactions will be halted. Treasury and Fed have so far cooled things off. They are using fear to get exactly what they want.

They have asked for a 700 billion dollar blank check for the Paulson to use however, with no congressional oversight. We are giving the people who caused the problem money to solve it. We must put conditions on it.

Limit executive compensation
People other than Paulson should be involved in the bailout—labor and consumer representative
The public must have a stake in the process—force companies to sell themselves to the company
Longer term—insist on other measures like transaction taxes.
Legislation dictating that Fed must act to stop asset bubbles


Stan Soerscher

It really is a very serious situation.
Scandinavian banking crisis in early 90s. Use this as a model—investigate how they did it.
We have had bubbles, busts and bailouts ever since the 80s
Re-regulate the financial system
We have a lot of foreign loans backing up our profligate habits
Tax rich people to pay debts
Polarization of income and wealth needs to be corrected. People have borrowed to maintain middle class standard of living. 1-3 trillion dollars of home equity extracted

“Someday” has now arrived. Dems are being too mild talking about this. Hedge funds have backed Obama. He won’t move unless forced to.

We could have a better conversation about the nature of the economy.
Require Fannie and Freddie should put limits on appreciation of mortgages that they buy

Possibilities for getting it right are better with Obama nevertheless.

Tobin tax
Reserve requirements to reign in speculation.
Government should have a say of what happens to homeowners—favor workouts and allow people to stay as renters.

Politically we have to do something in a week or two. Some things are more saleable than others. Politicians tell us about this by what they advocate.

A harder sell to bail out people—many who pay their mortgages resent others getting help.

Paulson does not want to limit executive pay. It is a red meat issue that we should push.


Bill Moyers—need sound bite and freeway overpass sign slogans.

No blank checks for bankers
Paulson made hundreds of millions as an investment banker

What happens with 700 billion should be front and center
Tax on stock trades—generates 150 billion a year
You are taxed on gambling

Agenda shouldn’t be too large. We have to do something before the end of the week.
If they want to participate, set conditions

Talking Points Memo has a list

"Progressive Conditions for a Bailout" by Dean Baker at http://tpmcafe.talkingpointsmemo.com/2008/09/20/progressive_conditions_for_a_b/index.php

http://act.credoaction.com/campaign/no_blank_check/?r_by=912-223246-VYF84vx&rc=paste

http://www.faireconomy.org/


Citizens for Executive Oversight—Linda Boyd
Democrats.com