Paulson Says Bailout Is Not Urgent

[54anickel]

http://tpmcafe.talkingpointsmemo.com/2008/09/20/paulson_says_bailout_is_not_ur/

That is the only possible meaning that can be attached to his statement that limits on CEO compensation would be a "poison pill" if included in a bailout bill. After all, if the banking system is really on the edge of collapse, what sane person would consider mild (what Frank proposed) restrictions on CEO pay a big deal?

Let's see, on the one hand we have the collapse of the financial system if we do nothing, on the other hand some multi-millionaire CEOs may not get their golden parachutes after driving their companies into bankruptcy. Paulson tells us that he considers the loss of golden parachutes the bigger problem? This means that he must not really believe that we are facing a financial collapse.

This is like WMDs and Iraq. Don't let Congress buy it!!!!!!!!!



Part of a larger interesting discussion with Dean Baker going on at TPM
http://tpmcafe.talkingpointsmemo.com/profile/Dean%20Baker

[Pale Blue Dot]

1. K & R nt

[ticapnews]

2. Following the same play book as 2002

Believe us or else.

"We don't want the proof to be a mushroom cloud over an American city."

"We don't want the proof to be an economic mushroom cloud over Main Street."

Screw them. This bailout is a sham and needs to be stopped.

[chimpymustgo]

3. And how fast will our Democratic leaders eat up the bullshit?

Not will they, but how quickly.

[kentuck]

4. Amazing!

Unbelievable!

[Ghost Dog]

5. Hey, I'm a financial CEO with a golden parachute

and I think it's the biggest issue. And what's more I want it paid in Real Gold, delivered to the Yacht in Monte Carlo. Thanks! :freak:

[54anickel]

6. Bwahahaha! Morning GD!!!!

[Ghost Dog]

9. Yeah. It's the one on the left here:

Schmucks. 'Afternoon, 54! :)

[54anickel]

10. Nice!!! That's about the size of Martin Sullivan's dinghy, isn't it? n/t

[54anickel]

7. Progressive Conditions for a Bailout

From the larger discussion again http://tpmcafe.talkingpointsmemo.com/profile/Dean%20Baker


It was a post earlier by Finnfan that referred to this article that peaked my interest - Thanks again Finnfan!
http://tpmcafe.talkingpointsmemo.com/2008/09/20/progressive_conditions_for_a_b/

snip>

While there is not time to prepare all the details of the financial restructuring that will follow after the bailout, there can be an agreement on the outlines that this restructuring should take. This list of suggestions is presented in that context:


Principles to Guide the Bailout

1) Financial institutions should be forced to endure the bulk of the losses with taxpayer funds only used where absolutely necessary to sustain the orderly operation of the financial system.

2) The bailout must be designed to minimize the opportunity for gaming.

3) The bailout should be designed to minimize moral hazard.

4) In the case of delinquent mortgages that come into the government's possession, there should be an effort to work out an arrangement that allows the homeowner to remain in her house as owner. If this proves impossible, then former homeowners should be allowed to remain in their homes as renters paying the market rent. This should be done even if it leads to losses to the government.

5) There should be serious efforts to severely restrict executive compensation at any companies that directly benefit from the bailout.


Principles for Restructuring the Financial System


1) Combating asset bubbles must be one of the Fed's key responsibilities.

lots more.....

[Blarch]

8. The people are being conned...again.

If the American people had two braincells to fill their empty heads ...they wouldn't allow this.

[UpInArms]

11. the greatest con game in the world - and this crowd of CONS is wagging the fear

finger in every face.

Have I said how very much I hate them all lately?