Final Push To Kill The Bailout Monstrosity

By: Mike Shedlock | Mon, Sep 29, 2008
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House Speaker Nancy Pelosi and Financial Services Committee Chairman Barney Frank are the biggest cheerleaders for a Republican administration sponsored $700 billion giveaway. Both have caved in to administration whims so disgusting that most Republicans will not vote for this bill.

Please consider the New York Times article, Bailout Plan in Hand, House Braces for Tough Vote

The House braced for a difficult vote set for Monday on a $700 billion rescue of the financial industry after a weekend of tense negotiations produced a plan that Congressional leaders portrayed as greatly strengthened by new taxpayer safeguards.

My Comment: The reality is there are virtually no safeguards.

The measure still faced stiff resistance from Republican and Democratic lawmakers who portrayed it as a rush to economic judgment and an undeserved aid package for high-flying financiers who chased big profits through reckless investments.

My Comment: This was a rush to judgment and it does give aid to high-flying financiers who chased big profits through reckless investments. It is a complete waste of $700 billion dollars.

All sides had to surrender something. The administration had to accept limits on executive pay and tougher oversight; Democrats had to sacrifice a push to allow bankruptcy judges to rewrite mortgages; and Republicans fell short in their effort to require that the federal government insure, rather than buy, the bad debt.

My Comment: The closer one looks the more one can see that Nancy Pelosi and Barney Frank gave in to every wish of the Treasury.

"This is a major, major change," Speaker Nancy Pelosi said on Sunday evening as she declared that negotiations were over and that a House vote was planned for Monday, with Senate action to follow.

My Comment: Nancy Pelosi is a shill for President Bush.

It is virtually impossible to know the ultimate cost of the rescue plan to taxpayers, but Congressional leaders stressed that it would likely be far less than $700 billion. Because the Treasury will buy assets with the potential to resell them at a higher price, the government might even turn a profit.

My Comment: CARL HULSE and DAVID M. HERSZENHORN, writers of the NY Times article are as clueless as beached whales to even begin to think there can be a profit. The treasury will keep reloading debt at absurd enough prices to make sure it cannot possibly happen.

Congressional Budget Office Review

The congressional budget office provided its Review of the Emergency Economic Stabilization Act of 2008. Inquiring minds will want to take a look.

New Fax Phone Campaign

This is a two pronged attack. Phone/Fax everyone twice in one last push.

Here is the first message.

Start with your own state, then pick other states at random. Flood them with faxes. Every Fax needs to say this:

Dear senator/congressional rep

If you vote for this Bailout Bill I will vote against you.

I will do more than that, I will work actively for your opponent, no matter who that person is, doing everything in my power to contribute to your defeat.

If you vote for this bill I will contribute my time, energy and money to your opponent, whoever that may be.

I will talk to my friends, my family and my co-workers and urge them to do the same. I have already contacted many friends and have asked them to do the same.

Second Fax

If you only have time to do one, this is it.

Fax Title: Bailout Bill Is A Disgrace

Dear senator/congressional rep

Nancy Pelosi and Barney Frank have agreed to the most preposterous taxpaper bailout in history. It is loaded with toothless provisions that are not worth a plug nickel when it comes to protecting the taxpayer.

Fox Oversees Henhouse

The bill sets up an oversight board, which is directed to "ensure that the policies implemented" by Mr. Paulson are proper. Mr. Paulson is to be one of the five members of the board watching over his own actions. He is joined by the chairman of the Federal Reserve, the chairman of the Securities and Exchange Commission, the Housing Secretary and the director of the Federal Home Finance Agency.

This is supposed to be an oversight committee?

New Proposal Cedes Congressional Authority To The Administration

Paulson, or whoever the next Treasury Secretary is, can buy whatever he wants, at whatever price he wants. Why should Congress give such authority to anyone at any time?

Note that the next Treasury Secretary is not even a known quantity!

The limit on any bailout should be no more than $250 billion flat out with no automatic escalations. If Congress thinks more money is needed it can vote to provide more money later. Ceding blank check power to the president and requiring super majorities to override would set a dangerous precedent.

I am appalled that the administration would ask for such power and I am even more appalled that Congress would be willing to structure a bill this way.

No Insurance

Ceding power to the treasury on how to best implement the insurance provision is also a terrible idea. Congress, not the Treasury should stipulate how insurance should work. Leaving insurance to the discretion of the Treasury is tantamount to agreeing there should not be insurance.

Broad New Powers For The SEC

A provision of the bill gives the S.E.C. permission to suspend the rule for any individual company if it thinks that is in the public’s interest. It is absurd that the SEC should be allowed to wave whatever rules it wants.

We got into trouble in the first place because of poor accounting principles!

No Help For Homeowners

This bill offers no help for homeowners. All it offers is a provision to "encourage" servicers of the underlying mortgages to take advantage of the Hope for Homeowners Program. Exactly what use is that?

Administrative Costs

Where are administrative costs hidden?

Recoupment mechanism

The recoupment mechanism does nothing except to require the President submit a proposal to offset such costs after five years. How could this be so poorly worded? Why should Congress require the president to submit a bill, any bill?

Bill Is A Disgrace

This bill is so full of holes and toothless provisions it is a disgrace to suggest it is close to being ready for a vote. Most importantly, the bill will not create a single job, nor will it solve the underlying economic problems. Over 190 major economists agree.

If you vote for this Bailout Bill I will vote against you.

I will do more than that, I will work actively for your opponent, no matter who that person is, doing everything in my power to contribute to your defeat.

If you vote for this bill I will contribute my time, energy and money to your opponent, whoever that may be.

I will talk to my friends, my family and my co-workers and urge them to do the same. I have already contacted many friends and have asked them to do the same.

Keep phoning and faxing until you Fill Every Congressional Voice Mail Box In The Country.

Fax List For All Congress

You can get a list of fax numbers for all the senators and congressman in MetroFax Compatible Fax List For All Congress.

Fax Now!
Call Now!

If you do not have internet faxing get it.

I went with MetroFax. 1000 pages at a very cheap price.
If you are reading this most likely you can afford $12.
Sign up today and fax to your heart's content.

Contact The House

Please fax AND phone your congressional representative and Nancy Pelosi, Barney Frank, and Senator Dianne Feinstein.

Phone Numbers

Rep. Nancy Pelosi (D)(202) 225-4965
Rep. Barney Frank (D)(202) 225-5931
Sen. Dianne Feinstein (D) (202) 224-3841
Sen. Richard Shelby (R) (202) 224-5744
Sen. Harry Reid (D) 202-224-3542
Sen. Jim DeMint (R) 202-224-6121
Sen. John Ensign (R) (202) 224-6244
Sen. Jim Bunning (R) 202.224.4343
Sen. Chuck Grassley (R) (202) 224-3744
Sen. John McCain (R) 202-224-2235
Sen. Barack Obama (D) (202) 224-2854

Call them with this simple message "I have seen the revised bill, you will lose my vote if it passes".

Congressional Phone And Fax Numbers

Click Here For Congressional Phone And Fax Numbers

Senate Fax List

Please fax everyone on this list.

Sen. Richard Shelby (R) 202-224-3416 or 202-224-5137 (try both not sure which is correct)
Sen. Harry Reid (D) 202-224-7327
Sen. Jim DeMint (R) 202-228-5143
Sen. John Ensign (R) 202-228-2193
Sen. Jim Bunning (R) 202-228-1373
Sen. Chuck Grassley (R) 202-224-6020
Sen John McCain (R) 202-228-2862
Sen. Barack Obama 202-228-4260
Sen. John D. Rockefeller 202-224-7665
Sen. Dianne Feinstein 202-228-3954
Sen. Ron Wyden 202-228-2717
Sen. Evan Bayh 202-228-1377
Sen. Barbara Mikulski 202-224-8858
Sen. Bill Nelson 202-228-2183
Sen. John Kerry 202-224-8525
Sen. Daniel Inouye 202-224-6747
Sen. Hillary Clinton 202-228-0282
Rep. Barney Frank 202-225-0182
Rep. Nancy Pelosi 202-225-4188

Thanks

Your help is appreciated.

 


 

Mike Shedlock

Author: Mike Shedlock

Mike Shedlock / Mish
Mish Talk

Mike Shedlock

Michael "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Visit http://www.sitkapacific.com/ to learn more about wealth management for investors seeking strong performance with low volatility.

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