Paulson’s Blank Check

[cal04]

By: Ian Welsh
http://firedoglake.com/2008/09/20/paulsons-blank-check/
I've pasted the text of the bill below the jump. Everyone should read it. But here are the key points:

No one who foresaw the crisis, such as Krugman or Stiglitz, is involved in making the plan to fix it.

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?

more
LEGISLATIVE PROPOSAL FOR TREASURY AUTHORITY TO PURCHASE MORTGAGE-RELATED ASSETS

[mediaman007]

1. No deal until February 2009!

[mzmolly]

2. Hell

no.

[FreeStateDemocrat]

3. Congress should not rubber stamp the plan of a Wall Street insider who helped create the crisis.

[AzDar]

4. Why the sudden rush, I wonder? Smells like the con job perpetrated during the run-up to the Iraq

War. Hurry! Hurry! Hurry! Before people have time to THINK!

Just like a goddamned car dealership......

[Junkdrawer]

5. Worst Financial "Legislation" Ever. This is blackmail at it's worst...

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=4045882&mesg_id=4045882

[annabanana]

6. This information has got to GET OUT THERE!!

Every thinking person had damn well better be made aware of these facts before we are further hamstrung by terrified legislators.

It is time to get calls, faxes, letters and emails to our congress critters ASAP. Make sure they know that the CURE WILL BE WORSE THAN THE ILLNESS and that they shouldn't be rushed into precipitous action on a plan that is, even at first reading.. wrong for the American People...

K&R!!

[annabanana]

7. kicking for one more rec. . . . .n/t

[craz3z]

8. K & R

I love Ian Welsh and read everything he writes. He should be on everyone's reading list as well as the folks at The Agonist.

[cal04]

9. Hank Paulson’s Raid on the Treasury

http://firedoglake.com/2008/09/20/hank-paulsons-raid-on-the-treasury/

The more I look at the Paulson "plan" the more I come to the conclusion it's just an old fashioned stickup. A scam. The Republicans know they have only a few more months, and this is their last raid on the treasury. Republicans created this crisis, and in the way of scam artists everywhere now that there's a crisis they're demanding money and power to fix their own mistakes.

What I'm hearing is that the gun being held to Congress's head is the fear of a money market meltdown. These funds are integral to the economy, yes, but 700 billion is far more than is needed to bail them out. They aren't all going to fail tomorrow, which that number assumes - that they'll zero out on Monday, and then a few banks will fail simultaneously. A few money market funds may break the buck, but you can deal with that with, oh, 25 billion, and with change to spare. Frankly the Fed's Bernanke can deal with it with the authority he already has.

So the gun that Paulson is holding to Congress's head, while not filled with blanks, is a BB gun. He's trying to stampede Congress into giving him more money and more power than he actually needs to fix the ostensible problem by acting as if there's no time to think through, or disaster will occur almost immediately.

Why?


Well, that 700 billion bails out Paulson's friends and colleagues at the highest levels (most of the little people will still lose their jobs). It preserves the world that Paulson worked in all his life. It means that Wall Street and the Banking industry doesn't have to change how they do business. The people in charge of it will stay in charge and they will stay rich.

[McCamy Taylor]

10. Hell no! Feds can declared a halt to foreclosure and take over debts of these mortgage houses.

They do not have to pay the dumb ass mortgage companies that did not know how to do business anything.

[DemReadingDU]

11. morning kick