Text of Draft Proposal for Bailout Plan

[CHIMO]

Source: The New York Times

Authority to Purchase.--The Secretary is authorized to purchase, and to make and fund commitments to purchase, on such terms and conditions as determined by the Secretary, mortgage-related assets from any financial institution having its headquarters in the United States.


Read more: http://www.nytimes.com/2008/09/21/business/21draftcnd.html

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Sounds to me that it is against the rules of NAFTA? Not an expert on these things, but if it doesn't break the hard rules then it seems to break the intent of government support for it's own industry. Maybe the Chicago school has really painted themselves into a corner?


Thanks to daleo for bringing up this issue in the Canadian forum.

[Pete2069]

1. Bush might be hated by Americans

But ,, he has hit a grand slam for the elite and corporations.

We no longer have a government of the people , for the people
and especially by the people.....

ALl these people in the Independents party (this includes
their candidate Ron Paul) which love  private corporate
control with no regulations should take note of what happens
when it is given to them...

Of course they will give a some BS reason other then greedy ,
corruption and power which one never gets enough of.

[whistle]

2. This proposal proves just how criminal the Bush administration is

...looking for legislation to legitimize their actions of theft!

The congress must assign adult supervision to all activities now going on in the executive branch. We need real leadership now at the head of government and not wait even until election day and certainly no longer delay until inauguration in January 2009.

[kirby]

3. I guess they will be buying credit swaps and strips and such too...

(1) Mortgage-Related Assets.--The term “mortgage-related assets” means residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before September 17, 2008.

[ticapnews]

4. This is sad

ec. 3. Considerations.

In exercising the authorities granted in this Act, the Secretary shall take into consideration means for--

(1) providing stability or preventing disruption to the financial markets or banking system; and

(2) protecting the taxpayer.

Nice to know we're at least mentioned :eyes:

Government of the people, by the corporations, for the corporations, shall not perish from this earth.

[mrJJ]

5. We Are Getting Hosed!!!

Pulson's BLANK CHECK

The man overseeing the bailout is the ex-CEO of Goldman Sachs, a Wall Street Company. He helped cause the crisis.
Paulson helped obtain the SEC exemption which allowed brokerages to increase leverage to 60:1 from 12:1.
The money is Paulson's to use for buying commercial and residential mortgages and mortgaged backed securities as he chooses. No one has any oversight over him, and he can pay any price he wants to, including face amount of the debt.
Courts cannot review his decisions, not can any regulators. He has to report to Congress once every six months.
He gets 700 Billion dollars to use as he sees fit, looking after the taxpayer is a "consideration" not a requirement.
Bet on that 700 Billion dollars being gone before January 20, 2009. Bet on Treasury asking for more.
That is $2,324 dollars per man, woman and child in America
There is no bailout for mortgage holders. Banks get bailed out, but not ordinary people.
Banks and brokerages made record profits these last eight years. Ordinary Americans barely broke even.
In 2007 Wall Street paid itself bonuses equal to the raises of 80 million Americans.
Banks bailed out by this plan need make no changes in how they do business.
Banks bailed out need not replace the management which drove them into insolvency.
Shareholders and bondholders of such banks do not lose a cent.
The securities which caused this crisis are still allowed.
Expect the 700 billion dollars to increase inflation, especially in oil.
Bush is asking you to trust his administration with 700 billion after spending 580 billion on the Iraq war. Do you trust him?

http://firedoglake.com/2008/09/20/paulsons-blank-check/#more-31853

[lelgt60]

6. Great reply mrJJ - we most certainly are getting hosed

There should be no bailouts.

The thing we need is for normal businesses and consumers to be able to get loans on fair terms. I don't give shi*t what they do with their worthless paper.

We need a federal loan bank run by the government. BTW, Even though Paulson's hands are bloody, I don't mind him running such a thing. I think he could do it well, and he wouldn't be pocketing a big bonus or salary. In fact, make it a requirement of his probation. Give something back to the people.

[Zenlitened]

7. Holyfuckinshit. I mean... holeeeefuckinshit

Sections 7 and 8, alone, are terrifying:

Sec. 7. Funding.

For the purpose of the authorities granted in this Act, and for the costs of administering those authorities, the Secretary may use the proceeds of the sale of any securities issued under chapter 31 of title 31, United States Code, and the purposes for which securities may be issued under chapter 31 of title 31, United States Code, are extended to include actions authorized by this Act, including the payment of administrative expenses. Any funds expended for actions authorized by this Act, including the payment of administrative expenses, shall be deemed appropriated at the time of such expenditure.

Sec. 8. Review.

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

[FlaDem83]

8. This is about the worst thing I have ever seen...

worse, even, than the text of Bush v. Gore. I can't believe it. It is the wholesale and unapologetic plunder of the American people. I hope to goodness Congress does not pass this. I'd think a bill handing of $700 billion dollars would be a little harder to understand, but it isn't. No oversight. No accountability. No provision for review (frightening). No regulation for the future. Absolutely frightening. It's so simple, and straightforward, and outrageous.

[Deny and Shred]

9. To paraphrase Mel Brooks, It's good to be the Secretary.

"Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency."

$700 billion to funnel however he sees fit with immunity from the law and no strings attached. No re-regulation, no changes to the manner in which business is done of any kind.

All this comes on the heels of Bear Stearns and Lehman. You'd think Paulson would have let JPMorgan go bankrupt too. Now Goldman still has a competitor left standing.

[Solly Mack]

10. K&R

[mcollier]

11. Pouring salt on the wound now...

This is Plan Fuking B... For the bush administration