Anyway. I wrote both of them earlier in the week (as well as my reprehensible, Nathan “Raw” Deal), urging them to vote NO and come up with a better idea. I was 1-for-3; Deal voted the way I wanted him to… I think for the first time ever. So here’s the excuses the other two had to offer.
The cause of the decline was the funding of marginal credit mortgages (subprime) through the creation of mortgage-backed securities… The market for these securities declined and ultimately evaporated, thus causing a liquidity problem for the financial institutions and a credit crisis for American consumers and small businesses.
… The Treasury has proposed using up to $700 billion dollars to purchase, at a discount, these mortgage-backed securities. … If the Treasury properly discounts the securities to, say, 50 or 60 cents on the dollar, and holds the securities to maturity there should be little or no cost to the Treasury. …
While I am not a big government regulator, if the investment bankers on Wall Street were held to the same standards of transparency and accountability as our national banking system, this would not have happened. …
… Not a dollar of the $700 billion will go to the brokers who created the securities. Instead, they will go to the investors who bought them, and then only after they take a significant discount or loss. Properly executed, the Secretary of the Treasury and the Chairman of the Federal Reserve believe this proposal will restore liquidity to the credit markets and return confidence in the financial system.
Mrf. I’d like to believe our tax dollars would be buying discounted paper. The bill, though, says only that the purchase price is not to exceed 100% of the stated value. FAIL. There’s nothing in the bill about accountability… indeed, the bill removed “mark to market” requirements that forced companies to value their paper at what it’s worth. FAIL #2. Finally, the “investors who bought them” are (in many cases) foreign banks that demanded their cut at the trough. FAIL #3, hit the showers dude.
On to Sen. Saxby Chambliss, running for re-election this year. Amazingly, Jim Martin is giving him a real contest at the moment, and even the pod people think this bailout idea is a stinker. So you’d think he’d be a little more circumspect with his ayes and nays? Well… you know, I’m going to have to take this one down point-by-point, and I didn’t want to do that.
I strongly believe that doing nothing will destroy the financial security of millions of Americans and possibly lead us into a depression. I just as strongly believe the bill as now negotiated will arrest the crisis and begin to turn our economy around.
Ah yes, lead off with the false dichotomy. Voting this bill down = do nothing. How about: flush this steaming load and come up with something that actually addresses the problem? FAIL.
I know that my vote in favor of this package was not the politically popular thing to do, but this is not a popularity contest. This is about the future of our country and the future that my children and grandchildren will inherit. I have absolutely no doubt in my mind or my heart that my vote in support of this measure was the right thing for our economy, for Georgians, and for our country.
Translation: I was paid well for my vote. But where have I heard that “this is not a popularity contest” cant? Oh yeah: McSame during the debate.
I did not support the original proposal submitted by the Administration because it did not address the critical needs of the American taxpayer, community banks, retirees, and small businesses and it concentrated too much power in a small group to administer the plan. …
Moreover, when the House rejected the plan, the economy suffered a $1.2 trillion dollar blow in the stock market, which only made more apparent the impact this credit crunch is having on Main Street. Specifically, in some cases, Georgia community banks are unable to make auto loans.
And the new plan does? As I understand it, it’s the plan the House rejected with a few tax credit extensions and a bump in FDIC coverage. FAIL #2
Oh dear, a $1.2 trillion dollar blow, and no mention that 2/3 of that came right back the next day. And banks are unable to make loans? Making loans is what banks do; either they make loans with necessary and prudent conditions attached or they close. End of story. If they can’t make loans, they might as well shut down.
TAXPAYERS ARE PROTECTED. In its current form, the legislation before the Senate protects taxpayers in many ways. Accountability, safeguards, and oversight measures are numerous. …
NOT A BLANK CHECK. I opposed the President's initial request to simply give a blank check to Secretary Paulson. I also opposed the second version submitted by the President and Congressional Democrats that would have given taxpayer money to liberal groups such as ACORN. …
NO GOLDEN PARACHUTES. CEOs and other executive officers who drove their companies into the ground will not be able to walk away with millions leaving taxpayers holding the bill. Those companies that choose to participate in the program will be subject to strict compensation limits.
NO NEW GOVERNMENT SPENDING. The language is clear - all revenue generated through the repayment of any assets purchased and any sold must be used to pay down the national debt. No money will go to pork projects, new government spending, or liberal groups such as ACORN.
Oh gasp! Liberal groups! Dude: would you please point me to a conservative advocacy group for low-income housing? Fouled it off, still 0-and-2.
HELP FOR MAIN STREET. As this crisis continues, community banks are being affected more and more. Car loans and home loans, even to those with good credit, are drying up. … If we allow this to continue, jobs will be lost, more retirement accounts will be impacted, and credit will get even tighter.
So handing Wall Street a huge wad of money is going to fix Main Street? FAIL #3, hit the showers. If we’re lucky, you’ll hit them permanently come Nov. 4.
But wait, there’s more!
PUNISH CRIMINALS. The Federal Government is actively investigating cases of fraud and abuse. Where wrongdoing is found, the perpetrators, including, if implicated, members of Congress will be brought to justice. …
ADDRESS THE UNDERLYING CAUSE WHILE WE TREAT THE SYMPTOMS. We are seeing the symptoms now - lack of trust in the banking industry, daily tightening of the credit markets, losses in personal retirement accounts - and while this legislation addresses those issues, it also goes further to treat the cancer that got us here. This legislation authorizes the Securities and Exchange Commission (SEC) to modify the 'mark to market' accounting procedures that magnified this crisis by forcing banks to mark down the value of assets they had no intention of selling in the near future. This mark down of value caused a corresponding loss of value to the institutions. The SEC has already begun the process to modify this procedure.
whiff Sax-dude, you already struck out. You can stop swinging. Any time now. So banks can hold a big steaming load of crap, and call it solid gold as long as they don’t try to sell it? Um… exactly how is this going to do anything to help with the lack of trust in the banking industry?
RETURN TRUST IN THE BANKS. By increasing the Federal Deposit Insurance Corporation (FDIC) protection on bank accounts from the current $100,000 to $250,000, taxpayers and bank customers can once again trust that their money is safe in the bank of their choice.
DEBT REPAYMENT. Toxic loans will be purchased at a discount and 100% of the monies repaid to the government will go to reduce the debt we incur in this process. While we shouldn't expect full repayment, it is possible that all of the money expended will be repaid.
Yeah, and it’s possible that I’m the Queen of England. What’s the discount rate? 99 cents on the dollar? Whiff again.
PROTECT OUR NATIONAL SECURITY. If we do not act and this crisis spreads like a cancer to every segment of our economy, it will destroy not only taxpayer savings but it will erode our ability to fund our military, supply our troops with the resources they need, and protect our homeland.
Oooo, and I thought the terrorism card couldn’t be played on this one! You might have fouled that one off if there had been a pitch and the umpire wasn’t busy trying to push you out of the batter’s box.
NO TIME FOR POLITICAL FINGER POINTING. There is plenty of blame to go around but now is not the time to throw stones, now is the time to address this crisis and get our economy moving again.
Too bad you didn’t think of that before you started whining about ACORN. Whiff and the umpire dodges while the pitcher scratches his head and goes, “WTF?”
blah blah blah However, history warns us against inaction by hard lessons learned. Delaying to act would be a repeat of the mistakes of the 1920s, when thousands of banks failed before significant confidence was restored to our financial markets.
Dude, you just made it harder to actually FIX the problem. Like Mrs. Fetched, your rush to DO SOMETHING NOW is wasting time and energy while doing little to solve it.
And the ump gets some help from the 1st- and 3rd-base umpires, the catcher, and a few fans… they escort Saxby “Ignorance is” Chambliss off the field, still swinging at a ball that has long gone by.
Judas Priest. The pod people tossed a guy who left pieces of himself in Vietnam for this?