Sunday, September 28, 2008

The Bailout May Not Be Enough

Congress is filled with brain damaged little children. They need to leave congress and get the help they need. Not all but most or almost all! They may have watered this down so much that it won't be perceived as acting fast enough to keep more banks from going under. If that is the case the credit markets won't get free up. And that's the game.

Pieces from all over:

"Rep. John A. Boehner, R-Ohio, the House minority leader, said he was urging "every member whose conscience will allow them to support this" to back it, but officials in both parties expected the vote to be a nail-biter." Lawmakers, White House Agree on Historic $700B Bailout - Fox
They still do not get it. They made it worse, so bad it may not work. And it still may not pass. Okay kids go over there and pass THE BILL!
"The plan would let Congress block half the money and force the president to jump through some hoops before using it all. The government could get at $250 billion immediately, $100 billion more if the president certified it was necessary, and the last $350 billion with a separate certification — and subject to a congressional resolution of disapproval." Lawmakers, White House Agree on Historic $700B Bailout - Fox
The certification on the last part includes a resolution of no confidence in the President and something about a 45 day response period. So they get half the money now and the rest 2 months from now. Put it that way and it might not work.
"The House plans to vote on the measure Monday, with the Senate likely to follow later in the week. Both parties have already started the process of pressuring and cajoling members to vote for the bill. Passage is seen as likely, despite the measure's unpopularity." Crisis Hits Europe's Banks As U.S. Seals Bailout Deal- WSJ
"House Speaker Nancy Pelosi, D-Calif., said she hopes the House will take up the bill on Monday. Sen. Majority Leader Harry Reid, D-Nev., said he believes the Senate can move on the legislation by Wednesday." Rescue bill unveiled - CNN
Wednesday, Freak' n WEDNESDAY, yes lets play with the economic nuclear weapon for a few more days.
"If it ends up with a net loss, however, the bill says the president must propose legislation to recoup money from the financial industry if the rescue plan results in net losses to taxpayers five years after the plan is enacted." Rescue bill unveiled - CNN
"The administration would be required to submit a plan to Congress "to recoup those losses from the entities that benefited from this program," according to a summary circulated among House Republicans."Crisis Hits Europe's Banks As U.S. Seals Bailout Deal- WSJ
WOW a great big uncertainty.No One KNOWS WHAT THIS CRAP IS WORTH! SO in the end the companies still pay an unknown loss? WTF This is a giant liability for the companies we are trying to get to lend money again and keep the pay checks coming.
"A congressional oversight panel would be charged with reviewing the state of financial markets, the regulatory system and the Treasury's use of its authority under the rescue plan. Sitting on the panel would be 5 outside experts appointed by House and Senate leaders." Rescue bill unveiled - CNN
Politicians in charge of a fix for something they largely cause or at lest let happen. This won't descend into partisan crap and wasteful stupid spending. Lets hope they can at least get the job done and not stop the whole thing in its tracks.
"Treasury must establish an insurance program - with risk-based premiums paid by the industry - to guarantee companies' troubled assets, including mortgage-backed securities, purchased before March 14, 2008." Rescue bill unveiled - CNN
Exactly what won't work. Are we going to help these companies at all?
"But Democrats surrendered other cherished goals: letting judges rewrite bankrupt homeowners' mortgages and steering any profits gained toward an affordable housing fund." Lawmakers, White House Agree on Historic $700B Bailout - Fox
Small favors i guess.

There are a number of other little stupid crap provisions in here. Golden parachute rules apply to new execs not the ones that run the companies now? But the Nail in The coffin :
"Mr. Paulson doesn't expect the funds to unclog the financial situation immediately. "I'm hoping that, in a very fragile system, this restores some confidence when it's announced. But it will take several weeks" before the asset purchases begin to work, he said." Crisis Hits Europe's Banks As U.S. Seals Bailout Deal- WSJ
See you in the bread line, and thank your congress person for me.!

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