The new plan for "fixing" the financial mess

Haven't read the entire thing, Petunia - which is no problem, because I seriously doubt any of the Senators who'll vote on this thing later today have either. Nevertheless, I'll give it my best shot here and hope I can answer your question.

Among other things, this bill:

1. Is pretty much the same underlying bill that bombed in the House two days ago, although there is less power transfered to the U.S Secretary of the Treasury and modifications on provisions that would have put Congress in charge of the American banking industry.

2. Increases the FDIC coverage on personal accounts from $100,000 to $250,000, which is something both McCain and Obama have called for in recent days. That's primarily to prevent a pre-Christmas run on the banks of the type that almost doomed Jimmy Stewart in "It's a Wonderful Life." (Rember that one? One of my favorites of all time.) I personally think this is a good idea, although I'll acknowledge they will be increasing taxpayer exposure in the event of a banking collapse by 250% in one fell swoop (Think "savings & loan scandal" circa 1987.)

3. Postpones the devastating impact of the Alternative Minimum Tax for a year to give Congress time to fix that ticking timebomb. (That's a long, complicated issue, Petunia, and if I get into too much explanation of that here I'm going to draw SSHM's "Wall of Text" macro.

4. Provides billions of dollars in tax credits for the development of alternative energy sources (Democrats love that one, Republicans are indifferent) while extending tax breaks and tax incentives to the big oil companies for expanding domestic sources of petroleum (Republicans love that one, Democrats don't.)

Of particular interest as this thing moves along is the structure of Item 4. It's my understanding that those items will cost somewhere north of $110 billion - that's OVER AND ABOVE THE UNDERLYING $700 billion bill - and that it is only partially offset by other tax increases (as the Democrats always demand) and spending cuts (as Repbulicans always demand.)

The idea is to push this one through with a veto-proof majority of the Senate (i.e., 60 more votes in favor) and shove it to the House of Representatives for a vote tomorrow. There are goodies for everybody in there.

The irony of it is that these jokers - four weeks before an election in which one-third of the members of the U.S. Senate and all members of the House of Representiatives are up for re-election - have taken a $700 billion boondoggle that failed by 11 votes in the House two days ago and turned it into an $800+ billion boondoggle that should pass in the Senate later today and may pass by a handful of votes in the House tomorrow.

In effect, they're larding up a very, very bad bill with a few very good ideas (increasing FDIC maximum and deadling with the AMT problem) to get it passed. Business as usual in Washingon.

Only they don't call it "business as usual." They call that PROGRESS and FISCAL RESPONSIBILITY.

You might say they've put lipstick on a pig, and they're now trying to tell us it's not really a pig no matter how much weight it's gained on the way to market.

The body of this letter was faxed to every SC Congressman and 2 Senators this morning.


2 October 2008

Congressman Bob Inglis 202.226.1177
Congressman Gresham Barrett 202-225-3216
Congressman Jim Clyburn 202.225.2313
Congressman John Spratt 202-225-0464
Congressman Henry Brown 202.225.3407
Congressman Joe Wilson 202.225.2455
Senator Jim DeMint 202-228-5143
Senator Lindsey Graham 202.224.3808

Via facsimile
Subject: The Bailout Bill

Congressman of South Carolina,

PLEASE VOTE NO!

We are extremely disappointed in the Senate leadership rushing to push though a bill that guarantees nothing, does not address the underlying issues that created the financial crisis this country faces and which took less time to craft (spending $800 Bn in tax dollars) than the time it took to consider legislating steroids in baseball. We recognize a short term fix needs to occur however haste makes waste. All credibility is lost with the Federal Reserve and the Treasury leadership. We do not believe the same people who told us the bail out of Bear Sterns, Freddie, Fannie, AIG, et al would ‘solve the problem’ know what they are talking about in term of this next bailout plan being the panacea. Paulson and Bernake need to go ! Our elected representatives need clear heads, to consult with economic specialists who can actually see both the tress and the forest , and most importantly to listen to the voice of the people. Your 'party' did not elect you, and it cannot save you if those who did become disenchanted. The voice of the people should determine how you cast your vote, NOT THE PARTY, on what will likely be the single most important piece of legislation by our leaders in the history of these United States.

Through the passage of this singular piece of legislation we will have witnessed the beginning of the end of our country as our forefathers intended it to be. Should this bill pass we shall have brought forth not a great nation but rather the final stages of the socialization of America. We hope the HOUSE can save us from taking the wrong fork in this all too important road. Rest assured, your vote will be remembered not only at election time but for generations to come. Senator Graham has lost the balance of our remaining support, and Senator Jim DeMint our appreciation for standing firm in the face of this crisis.

Please let cooler heads prevail. Surely this great country can afford the extra days it may take to craft a legitimate problem-solving approach to this financial crisis rather than responding to the yell of "FIRE' in a crowded theatre? The foreclosure cycle is 18 months to 2 years, hence the issue at hand is 2-4 years old which would indicate these banks have been hiding' their true solvency for quite some time, and yet now it's a crisis? It took us years to get here; the problem cannot be solved in less than 72 hours with this egregious stroke of a pen.

HOUSE MEMBERS PLEASE VOTE NO!

Too late roomies, the economy ALREADY has collapsed. Your 401(k) is worth about as much as a bag of aluminum cans at Carolina recycle. Your home values are right there with a mexican mud-hut. Car sales are at a 15 year low and d ropping faster than paris hilton's panties at Snoop dog's party. Our mega-corporations are now owned by "third world" nations who's individual net worth is more than our entire nation. We've spent money which doesn't even exist and spending a trillion more with no regard on how it's gonna be repaid or recovered.  CEO's are reaping profits at the expense of workers making wages comparable to a 30's-era family. I wanna know how I sign up for this boondoggle frakking-over of taxpayers, and get MY debts paid off and receive a couple-million-dollar payoff at the same time.

Inquiring minds wanna know...........

Sorry, I'd vote for Yo'MAMA  before I'd ever consider voting another Republican back into the front office!  Every time one of these dumb*sses runs this show, we go bankrupt, we are at war, inflation rises and wages fall, gas and utilities skyrocket, unemployment numbers and the national debt increases exponentially.

I'd rather support arrow makers, voodoo priestesses and belly-rubbing rum runners than already rich buttholes who think it's fine to skru over the working class till they squeel like a tennessee farmboy.  And why should bama share his plans now, McPailin will just steal them and call them origional thoughts ( because he read it off cue-cards...)

Wyatt - what you don't realize is that the person in the front office is powerless to do anything unless the Senate and House pass these laws first.

Let's see, how long have the Democrats controlled things in that arena during years when a Republican was in the Front office? Most of GWBush's run, and during the Regan year's most of that I think.

Your precious democrats are the ones who continually ruin economies.
Tax, Spend and hand out to all the people who "need help". Yea, the lazy one's who sit on their butts, having babies by the dozens, smokin crack, stealing, and collecting unemployment.

You go look at any democratic haven and you'll see that even when they control an area, taxes and spending are out of control.
I recall yo being from Utica, NY. How are things up in the Democratic eden of the Northeast? I am sure taxes are low, the middleclass has plenty of money to spend and everyone has a job. Am I right?
Wrong.....I looked up you former local paper there.....the local county administrator said to expect a double digit increase in property taxes. I did some more research and just to inform you and others on this blog that a home of 150000.00 has a property tax bill of about 4000 + depending on the locality there. OUCH!!!!!!!!!!!!!

You want to turn this country around? Throw out every Senator, House Rep and install term limits. 2 terms and you are done. You can't run again ever for that same job level. The OLD Fart entrenched washington regulars are really running the show. Their numbers are so far down the toilet drain that even GWBush's numbers are far better. But everyone keeps putting the same Jokers back there to F#$# up the system.
Do I sound Pissed...........Freakin Right.......Sick of the same S***.

-voice-of-reason

Welp, used to live in that gawd-forsaken hellhole of upstate New Yuck, but found out reeeeeeally quick that unless i had three jobs, my wife had two, lived with rich relatives and hid my assets from pataki, I couldn't afford my monthly oil heating bills. 

The figurehead in the Oval Office DOES have the power to do alll kinds of garbage, like veto tax relief, initiate wars, enact legislation to protect big oil and mega-corps, and wage secret alliances.  I'm NOT protecting these Dumbocraps either, I think the whole system is corrupt, morally flawed, mentally stagnant and a failure of the roots of this nation. There's so much smoke & mirrors with Congress and the Senate that I constantly feel like I'm at a David Copperfield show!  But I must say this, with EVERY Dem who's run this country, there was little or no war, good to excellent employment numbers, a reasonable level of inflation and a chance that us po' folks would see a tax return in our favor.  I know when Wild Bill Clinton ran this shindig, I made MORE money, had a 401-K worth retiring with, my savings account was in the black,my home was valued within reason and not inflated like Ted kennedy's brain aneurysm, my hopes for peace were better than my mindset to create an underground bunker, and there were no planes diving into buildings or soldiers dying for an oil-rich nation. 

 My reasoning for Udumba is at least his eyes move when he lies, while McPalin is always reading cue cards and I find myself looking for Jim Henson to pop out from under his sagging skin like snufalufagus.  

While you also are CORRECT the entitlement mentality is far beyond ridiculous, neither side will enact the proper legislation to correct this fiasco:  A required national service program, where each human in this country, rich or poor, white/black/brown/yellowgreen or illegal, HAS to serve this nation with 2 years mandatory military or civil service work. Not one penny paid for wellyfair, SSI/SDI or any other program until you do. Grab a gun, shovel or textbook and serve the country thats served you. And if your @ss is in prison, chain-gang work crew every single day of your sentence, working in roads/ditches/fields picking migrant fruit or picking up scrap metal for recycling.  No free t.v., no gyms and basketball, work for your repayment to society or take the chair or needle.  THATS one of the biggest wastes of tax money in this country!!!!

Seems you already have a stranglehold on Chief imbecile. So whats left,  cook at Perry Correctional?  Nah, Yo MAMA works there.

Hey whinenot,
you had more money when clinton was in office because when he took over he made it so every a hole no matter how broke could get loans. he built a falty economy that now it tipping over.
quit crying about how everyone but you has runed your life and run for an office. you seem to know it all.

-mr-hackey-the-d

And all this time I had it wrong!  Thank you Hackey, Thank you!  without your superior intellect, insight and exceptional capacity for speech and spelling I would have never figured out how much of a dork you really are!  Guess if I ran for office I could appoint you to a position( bent over in a gay bar wearing your rainbow coalition shirt comes to mind).