House Republican Economic Rescue Principles

[newnameman]

Economic Rescue Principles

Common Sense Plan to Have Wall Street Fund the Recovery, Not Taxpayers

* Rather than providing taxpayer funded purchases of frozen mortgage assets, we should adopt a mortgage insurance approach to solve the problem.

* Currently the federal government insures approximately half of all mortgage backed securities. (MBS) We can insure the rest of current outstanding MBS; however, rather than taxpayers funding insurance, the holders of these assets should pay for it. Treasury Department can design a system to charge premiums to the holders of MBS to fully finance this insurance.

Have Private Capital Injection to the Financial Markets, Not Tax Dollars

* Instead of injecting taxpayer capital into the market to produce liquidity, private capital can be drawn into the market by removing regulatory and tax barriers that are currently blocking private capital formation. Too much private capital is sitting on the sidelines during this crisis.

* Temporary tax relief provisions can help companies free up capital to maintain operations, create jobs, and lend to one another. In addition, we should allow for a temporary suspension of dividend payments by financial institutions and other regulatory measures to address the problems surrounding private capital liquidity.

Immediate Transparency, Oversight, and Market Reform

* Increase Transparency. Require participating firms to disclose to Treasury the value of their mortgage assets on their books, the value of any private bids within the last year for such assets, and their last audit report.

* Limit Federal Exposure for High Risk Loans: Mandate that the GSEs no longer securitize any unsound mortgages.

* Call on the SEC to audit reports of failed companies to ensure that the financial standing of these troubled companies was accurately portrayed.

* Wall Street Executives should not benefit from taxpayer funding.

* Call on the SEC to review the performance of the Credit Rating Agencies and their ability to accurately reflect the risks of these failed investment securities.

* Create a blue ribbon panel with representatives of Treasury, SEC, and the Fed to make recommendations to Congress for reforms of the financial sector by January 1, 2009.

Seems to me like these are better ideas than handing over $700 billion of taxpayer dollars for Henry Paulson to play with. The only question is whether the House Republicans have any leverage to work with.

 

[heyheybooboo]

The reason private capital is sitting on the sidelines is because they are not so stupid to put money toward CMOs that nobody knows what they're worth. Book value my ass ...

 

[CADsortaGUY]

Originally posted by: newnameman

Economic Rescue Principles

Common Sense Plan to Have Wall Street Fund the Recovery, Not Taxpayers

* Rather than providing taxpayer funded purchases of frozen mortgage assets, we should adopt a mortgage insurance approach to solve the problem.

* Currently the federal government insures approximately half of all mortgage backed securities. (MBS) We can insure the rest of current outstanding MBS; however, rather than taxpayers funding insurance, the holders of these assets should pay for it. Treasury Department can design a system to charge premiums to the holders of MBS to fully finance this insurance.

Have Private Capital Injection to the Financial Markets, Not Tax Dollars

* Instead of injecting taxpayer capital into the market to produce liquidity, private capital can be drawn into the market by removing regulatory and tax barriers that are currently blocking private capital formation. Too much private capital is sitting on the sidelines during this crisis.

* Temporary tax relief provisions can help companies free up capital to maintain operations, create jobs, and lend to one another. In addition, we should allow for a temporary suspension of dividend payments by financial institutions and other regulatory measures to address the problems surrounding private capital liquidity.

Immediate Transparency, Oversight, and Market Reform

* Increase Transparency. Require participating firms to disclose to Treasury the value of their mortgage assets on their books, the value of any private bids within the last year for such assets, and their last audit report.

* Limit Federal Exposure for High Risk Loans: Mandate that the GSEs no longer securitize any unsound mortgages.

* Call on the SEC to audit reports of failed companies to ensure that the financial standing of these troubled companies was accurately portrayed.

* Wall Street Executives should not benefit from taxpayer funding.

* Call on the SEC to review the performance of the Credit Rating Agencies and their ability to accurately reflect the risks of these failed investment securities.

* Create a blue ribbon panel with representatives of Treasury, SEC, and the Fed to make recommendations to Congress for reforms of the financial sector by January 1, 2009.

Seems to me like these are better ideas than handing over $700 billion of taxpayer dollars for Henry Paulson to play with. The only question is whether the House Republicans have any leverage to work with.

I agree. Now if only we could get the nutroots(who have been gnashing their teeth over this) to pressure Pelosi and the other Democrats to abandon the porkbarrel ladden "bailout" plan she(they) are pushing.

Call your Congress critter and tell them no swine laced "bailout". I called my worthless gasbag - bozowell and they said they were not commenting on his position but supposedly left my message for him.(probably tossed it in the trash if they even wrote down my message) F'n snake bozwell.

 

[Dari]

Or the companies can simply go out of business. There is so much wrong with that proposal it isn't even funny.

There is no need to punish executives or even look at the rating agencies (they're worthless). It is simply better to do a wholesale reform of the banking laws so that there is a focus on having a stable financial system rather than giving Wall Street too much leeway. Next time, don't let the bankers write banking laws.

 

[quest55720]

Sounds like they stole some of newt gingrich's ideas on how to get out of this mess. The problem is the democrats would never go along with lowering capital gains and corperate taxes for a few years to get more investment. Newt wants to go as far as getting rid of capitol gains tax for 2 year period to get private money into the market. Sounds better to me than to have the tax payer bail them out. I would make a few exeptions gold and oil would get a raise in the capitol gains tax to prevent a run up in oil prices.

 

[Dari]

Right:roll: Tax has always been the problem here. I swear, Republicans always find a way to help their buddies out. We need to focus on the source of the problem here but right now we should give the companies some breathing room. It is, after all, the government's fault because they let these financial companies do as they pleased for 9 years. The government needs to help them with the assets, not fucking taxes.

 

[quest55720]

Originally posted by: Dari
Right:roll: Tax has always been the problem here. I swear, Republicans always find a way to help their buddies out. We need to focus on the source of the problem here but right now we should give the companies some breathing room. It is, after all, the government's fault because they let these financial companies do as they pleased for 9 years. The government needs to help them with the assets, not fucking taxes.

I would personally rather see private money fix this than my damn tax dollars. If lowering taxes to get money into the market would fix this then it has my blessing. I would rather see this plan than to see 700 freaking billion of tax payer money to fix a government mistake. That mistake was to encourage bad loans so everyone can own a home.

 

[LegendKiller]

Their "solution" does nothing at all. Insuring the securities isn't the problem, nor are defaults, per se. The capital squeeze and liquidity premiums are killing the companies.

Republicans are fucking idiots to even suggest this.

 

[GroundMeat]

Originally posted by: newnameman

Economic Rescue Principles

Common Sense Plan to Have Wall Street Fund the Recovery, Not Taxpayers

* Rather than providing taxpayer funded purchases of frozen mortgage assets, we should adopt a mortgage insurance approach to solve the problem.

* Currently the federal government insures approximately half of all mortgage backed securities. (MBS) We can insure the rest of current outstanding MBS; however, rather than taxpayers funding insurance, the holders of these assets should pay for it. Treasury Department can design a system to charge premiums to the holders of MBS to fully finance this insurance.

Have Private Capital Injection to the Financial Markets, Not Tax Dollars

* Instead of injecting taxpayer capital into the market to produce liquidity, private capital can be drawn into the market by removing regulatory and tax barriers that are currently blocking private capital formation. Too much private capital is sitting on the sidelines during this crisis.

* Temporary tax relief provisions can help companies free up capital to maintain operations, create jobs, and lend to one another. In addition, we should allow for a temporary suspension of dividend payments by financial institutions and other regulatory measures to address the problems surrounding private capital liquidity.

Immediate Transparency, Oversight, and Market Reform

* Increase Transparency. Require participating firms to disclose to Treasury the value of their mortgage assets on their books, the value of any private bids within the last year for such assets, and their last audit report.

* Limit Federal Exposure for High Risk Loans: Mandate that the GSEs no longer securitize any unsound mortgages.

* Call on the SEC to audit reports of failed companies to ensure that the financial standing of these troubled companies was accurately portrayed.

* Wall Street Executives should not benefit from taxpayer funding.

* Call on the SEC to review the performance of the Credit Rating Agencies and their ability to accurately reflect the risks of these failed investment securities.

* Create a blue ribbon panel with representatives of Treasury, SEC, and the Fed to make recommendations to Congress for reforms of the financial sector by January 1, 2009.

1- It's called AIG, you see what happened to them?
2- Opportunity cost, why would you buy something with a net negative yield? Or something that is supposed to pay a yield but doesn't?
3- It's not regulatory barriers that is stopping private capital from buying a pile of s**tty mortgages, its because they stink.
4- It's not that banks a burdened by taxes that they won't lend to each other, it's that they are scared s**tless to.
5- No one knows what they are worth because the market for them has sized up, they are toxic. Bottom feeders want to buy them for pennies and banks don't want to report a total loss.
6- It all comes down to the integrity of the loan officer, garbage in garbage out.
7- Oh we want regulation now?
8- That's one of the sticking points in Congress right now D's want it R's don't.
9- See 6.
10- Just like that 9/11 commission? "Committees are where bright ideas go and get slowly strangled to death".


If you wanted political fluff you found it.

 

[Jhhnn]

Shee-it, Sherlock. More than a few banks don't have the money to keep the doors open- the lack of liquidity is killing them, some rightfully so. And, uhh, they already paid each other for "insurance" in the form of CDS, which is why the taxpayers had to take over AIG.

They won't be paying for anything up front, because they can't, rendering the House Repub's statement into mumbo-jumbo- pure obfuscation and posturing.

Private money? It ain't happening. That's the way it is. Investors see putting their money up front now as entirely too risky, unless they're paying a nickel on the dollar, which won't help banks at all. Nor can they depend on a debt-deflation scenario as in the 30's, because the Fed has shown a willingness to print as much money as required to prevent that...

Tax breaks? Sounds peachy, except that Banks need money yesterday, not somewhere down the road

The rest of it is the common ground that already exists for a bailout...

WaMu went into receivership today, so we can either just let it all happen or make an attempt to moderate the fall. If House Repubs favor the former, they should just say so. If not, then they should make a deal not based on pandering, whimsy, and fantasy ideology...

Dems are making their own mistakes, too, like trying to hold up housing prices. They may slow the decline, a la Japan, but it's really inevitable. They're pissin' into the wind.

 

[Blackjack200]

LegendKiller has already succinctly explained why this plan is worthless. I'd just like to point out that spending taxpayer money that's already been collected (the "bailout") is no different than eliminating taxes and reducing government revenue by the same amount. Individual taxpayers are paying the same taxes, the Government is out the same amount of money. The difference is that you don't have the targeted effect needed to revive the credit markets.

House Republicans warned Treasury Secretary Henry Paulson today that his $700 billion financial rescue plan wouldn't pass and asked for more time to consider alternative ideas...
"To say that there is a healthy dose of skepticism would be putting it mildly,'' LaTourette said. ``I think the overwhelming sentiment at this moment in time is, what's the rush?''

http://www.bloomberg.com/apps/...tiAm2NTIqEQ&refer=home

WOW. How can you say that on the same day the Government seizes Washington Mutual? A large swath of the financial industry is dying. Between that news and now this uncertainty surrounding the "bailout", tomorrow is going to be a SHIT SHOW in the markets.

 

[sportage]

Just a WHAT IF, what if one major bank or two failed Monday, like bank of America or Wells Fargo. Would everyone run to their banks to take out funds? If that happen, and it could, is that equal to a 1929 depression? And what if the FDIC announced, "sorry, cant protect you". Then Tuesday, you go into work and the doors are locked. On the door is posted "closed". What if?

 

[LegendKiller]

Originally posted by: sportage
Just a WHAT IF, what if one major bank or two failed Monday, like bank of America or Wells Fargo. Would everyone run to their banks to take out funds? If that happen, and it could, is that equal to a 1929 depression? And what if the FDIC announced, "sorry, cant protect you". Then Tuesday, you go into work and the doors are locked. On the door is posted "closed". What if?

It could happen.

But who will allow it to happen?

The big fuckup McCain of course.

He's too busy looking important.


http://www.huffingtonpost.com/...n-mccain_n_129280.html

and fucking it up.

http://www.huffingtonpost.com/...n-mccain_n_129280.html

What's really sad is by the time these fucking tools get off their asses it's going to be too late.

Only when unemployment hits 10% by Christmas will Americans finally wake the fuck up.

 

[Dari]

Democrats are blaming McCain:http://elections.foxnews.com/2...-negotiations-go-sour/

Jesus Christ he looks fucking old in that link.

 

[LegendKiller]

Originally posted by: Dari
Democrats are blaming McCain:http://elections.foxnews.com/2...-negotiations-go-sour/

Jesus Christ he looks fucking old in that link.

Fucking idiot should have stayed home.

 

[Jhhnn]

Originally posted by: Blackjack200
LegendKiller has already succinctly explained why this plan is worthless. I'd just like to point out that spending taxpayer money that's already been collected (the "bailout") is no different than eliminating taxes and reducing government revenue by the same amount. Individual taxpayers are paying the same taxes, the Government is out the same amount of money. The difference is that you don't have the targeted effect needed to revive the credit markets.

House Republicans warned Treasury Secretary Henry Paulson today that his $700 billion financial rescue plan wouldn't pass and asked for more time to consider alternative ideas...
"To say that there is a healthy dose of skepticism would be putting it mildly,'' LaTourette said. ``I think the overwhelming sentiment at this moment in time is, what's the rush?''

http://www.bloomberg.com/apps/...tiAm2NTIqEQ&refer=home

WOW. How can you say that on the same day the Government seizes Washington Mutual? A large swath of the financial industry is dying. Between that news and now this uncertainty surrounding the "bailout", tomorrow is going to be a SHIT SHOW in the markets.

Obviously some truth to this, but, OTOH, WaMu was known to have already been snakebit- they were walking around dead, for all practical purposes. For all we know, many of the other patients may be in the same shape, which means we can't save 'em, anyway.

Maybe it's worth a try- dunno. If the banks can't provide the taxpayers with some quid pro quo down the road, they'll fail no matter what we do. It's a really lousy time to throw good money after bad, that's for sure...

 

[Jhhnn]

Love this line form the McCain campaign-

Adviser Steve Schmidt also accused the Obama campaign of acting in a ?in a political predatory fashion? by ?swooping in? and buying up advertising time that McCain has released in order to focus on the economic crisis.

The notion that McCain had to release advertising time for him to grandstand in DC is laughable. In that respect, for sure, the campaign should be able to run itself w/o his participation. It's not like the ads are live- they're canned, after all...

 

[halik]

Originally posted by: heyheybooboo
The reason private capital is sitting on the sidelines is because they are not so stupid to put money toward CMOs that nobody knows what they're worth. Book value my ass ...

^ what he said

 

[Blackjack200]

Yes, WaMu was known to be snakebit. Lehman was too, but it still rocked the markets when it went under. AIG probably would have tipped the markets beyond return if they had been allowed to fail, and they had been listing for months. I don't know how much more I can say on this. If we don't get the markets functioning again, and fast, we could be in very serious trouble. The markets been propped up by investors' belief that this bill would pass quickly. That support may be gone now.

 

[halik]

Originally posted by: GroundMeat

Originally posted by: newnameman

Economic Rescue Principles

Common Sense Plan to Have Wall Street Fund the Recovery, Not Taxpayers

* Rather than providing taxpayer funded purchases of frozen mortgage assets, we should adopt a mortgage insurance approach to solve the problem.

* Currently the federal government insures approximately half of all mortgage backed securities. (MBS) We can insure the rest of current outstanding MBS; however, rather than taxpayers funding insurance, the holders of these assets should pay for it. Treasury Department can design a system to charge premiums to the holders of MBS to fully finance this insurance.

Have Private Capital Injection to the Financial Markets, Not Tax Dollars

* Instead of injecting taxpayer capital into the market to produce liquidity, private capital can be drawn into the market by removing regulatory and tax barriers that are currently blocking private capital formation. Too much private capital is sitting on the sidelines during this crisis.

* Temporary tax relief provisions can help companies free up capital to maintain operations, create jobs, and lend to one another. In addition, we should allow for a temporary suspension of dividend payments by financial institutions and other regulatory measures to address the problems surrounding private capital liquidity.

Immediate Transparency, Oversight, and Market Reform

* Increase Transparency. Require participating firms to disclose to Treasury the value of their mortgage assets on their books, the value of any private bids within the last year for such assets, and their last audit report.

* Limit Federal Exposure for High Risk Loans: Mandate that the GSEs no longer securitize any unsound mortgages.

* Call on the SEC to audit reports of failed companies to ensure that the financial standing of these troubled companies was accurately portrayed.

* Wall Street Executives should not benefit from taxpayer funding.

* Call on the SEC to review the performance of the Credit Rating Agencies and their ability to accurately reflect the risks of these failed investment securities.

* Create a blue ribbon panel with representatives of Treasury, SEC, and the Fed to make recommendations to Congress for reforms of the financial sector by January 1, 2009.

1- It's called AIG, you see what happened to them?
2- Opportunity cost, why would you buy something with a net negative yield? Or something that is supposed to pay a yield but doesn't?
3- It's not regulatory barriers that is stopping private capital from buying a pile of s**tty mortgages, its because they stink.
4- It's not that banks a burdened by taxes that they won't lend to each other, it's that they are scared s**tless to.
5- No one knows what they are worth because the market for them has sized up, they are toxic. Bottom feeders want to buy them for pennies and banks don't want to report a total loss.
6- It all comes down to the integrity of the loan officer, garbage in garbage out.
7- Oh we want regulation now?
8- That's one of the sticking points in Congress right now D's want it R's don't.
9- See 6.
10- Just like that 9/11 commission? "Committees are where bright ideas go and get slowly strangled to death".


If you wanted political fluff you found it.

Dumb DUMB DUMB DUMBNESS.

Sure you can have PE shops buy it, but they'll want 50%+ IRR. This is a market failure - the pricing mechanism seized. The only way private capital will touch is is enormous discount (ie way below the real price)... so banks will still fold and credit will still seize up

 

[OCGuy]

F*ck the bailout. Republicans are doing something right for the first time in 4 years.

 

[LegendKiller]

Originally posted by: Ocguy31
F*ck the bailout. Republicans are doing something right for the first time in 4 years.

Do you know what you're even talking about?

 

[quest55720]

Originally posted by: LegendKiller

Originally posted by: Dari
Democrats are blaming McCain:http://elections.foxnews.com/2...-negotiations-go-sour/

Jesus Christ he looks fucking old in that link.

Fucking idiot should have stayed home.

There was going to be no deal that is why McCain is there. There is a faction of republicans that have been against this bail out. Maybe Barney Frank and his buddies should of talked to all sides before declaring a deal. McCain being there is the only way something gets done.

 

[OCGuy]

Originally posted by: LegendKiller

Originally posted by: Ocguy31
F*ck the bailout. Republicans are doing something right for the first time in 4 years.

Do you know what you're even talking about?

No, please enlighten me. There were a core group of House Republicans that put a wrench in the already announced bailout this evening, due to concerns of the government getting involved in the private financial sector. I applaud this.

So I ask you, what the hell are you talking about?

 

[LegendKiller]

Originally posted by: Ocguy31

Originally posted by: LegendKiller

Originally posted by: Ocguy31
F*ck the bailout. Republicans are doing something right for the first time in 4 years.

Do you know what you're even talking about?

No, please enlighten me. There were a core group of House Republicans that put a wrench in the already announced bailout this evening, due to concerns of the government getting involved in the private financial sector. I applaud this.

So I ask you, what the hell are you talking about?

If the Fed doesn't keep liquidity in the system, were are companies going to get money? Do you even understand how the Great Depression started?

It was this exact problem.

The Republicans are too late. They fucked over the economy by letting this shit happen. Their mantra of "deregulation" put us into this system. They sucked off the banks, mortgage lenders, and investors, for 7 years. Now they don't want to fix what they broke.

Personally, I think that they're shooting themselves in the dick. Once we hit another great depression the US public will clamor for a democrat candidate, akin to FDR, and the Repugs will wallow in their shit for the next 20 years as they are maligned like Hoover was.

What's funny is that a Republican President lead us into the first Great Depression and another one leads us into this one. Great job, jackasses.

Perhaps you should read up on history.

Coolidge

Many later criticized Coolidge as part of a general criticism of laissez-faire government.[4] His reputation underwent a renaissance during the Reagan administration,[5] but the ultimate assessment of his presidency is still divided between those who approve of his reduction of the size of government and those who believe the federal government should be more involved in regulating the economy.[6]

Hoover

That position was challenged by the Great Depression, which began in 1929, the first year of his presidency. Hoover tried to combat the Depression with volunteer efforts and government action, none of which produced economic recovery during his term. The consensus among historians is that Hoover's defeat in the 1932 election was caused primarily by failure to end the downward spiral into deep Depression, compounded by popular opposition to prohibition. Other electoral liabilities were Hoover's lack of charisma in relating to voters, and his poor skills in working with politicians.

Guess what? It was the retard Republicans in Congress who lead us to the last Depression too!