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Archive for the ‘$700 million-dollar financial bailout’ Category

>A Bailout Will Be Done Thursday or Friday

>September 24, 2008
Washington–Last night President Bush addressed the nation over the bailout of Wall Street, the banks, and the entire financial sector.

Bush: We’re in the midst of a serious financial crisis. Bush said his administration is working with Congress to address the root cause of the financial problems. Then we hear that McCain has asked to be part of an official meeting Thursday afternoon and asked the president to invite Barak Obama. Now Obama says he will go if it isn’t just a photo op.

He’s the king of “photo ops” so he should know.

On Hanity and Colmes last night, Jack Welch, former president of General Electric, says both candidates are better off in Washington than on the campaign trail.

It was 1999 when the Democrats pushed people into financing the poor into housing. There’s blame enough to pass around, including Democrats and Republicans. The important thing is that we get over this. A bail out is so important!

Welch: Government isn’t handing anyone a check for $700 billion. They are making an investment in America, meaning jobs, 401K and we can’t just sit here and be mad. He says hopefully the bailout will put money back into the government coffers through more jobs, greater tax revenues, and maybe these “investments” will also bring in revenue to the treasury.

In grading the president’s performance by Britt Hume and his cronnies, one political analyst actually criticized the president for not laying out before the public the possibility that taxpayers may make money in this liquidity bailout because the government will buy low and sell higher.

I disagree. There is no way a sitting president should expose himself to Wall Street-like sales argument, because it may not work out that way at all. He didn’t even suggest it and no sane president wouldn’t do it, either.

How is that done? Well, let’s suppose we buy these investments for ten cents to the dollar and later, when the financial climate looks better, the government will sell them back for 30 cents on the dollar. That’s 20 cents to put back into the treasury. Anyone can see this may work out to become a good investment for oh so many reasons. First and foremost is that we “un-freeze” America’s financial climate so the little guy can go out and get a loan to free up salaries, and other money needed to run small and large businesses. That’s the real benefit, but the ancillary bennies are great, too.

Welch believes you can’t sit around and ponder it. You need to sign it by the weekend. The downside risk is too great.

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>Democrats Don’t Know "Clean and Quick"

>WASHINGTON – Just as expected, Democrats want to load a lot of patronizing pork onto the Bush bill to bail out Wall Street and America’s Banks.

Treasury Secretary Henry Paulson can resist the Democrats all he wants, but in the end this won’t be a quick bailout. On Saturday he requested that it be “clean and quick.” That is the approval process. But Democrats don’t know “clean and quick.” Nothing is clean with the Dems. They can see a lot of political hay and pork that needs harvesting with this bailout and they want their pound of flesh, contrary to the Administration that merely wants to solve the credit problem before main street business grinds to a halt and we have more Americans laid off. These businesses need bank loans to survive, and the banks need taxpayer help to survive. The people will also benefit by keeping their jobs. It’s easy to see for all but the Democrats because they live in another world.

I’m an attorney and yesterday I gave the American public a legal opinion. In it I said the three-page proposed bill gives Secretary Paulson authority to set up an apparatus as he sees fit, operate the bailout as he sees fit–devoid of pork for this state and pork for that one, which is good–and to spend $700 billion dollars to get American business and jobs back on track.

Democrats have an uncanny way of twisting things. They want to sell this as also direct bailout of people so they don’t have to pay for the mortgage agreements they made. In other words, Dems would compound the problem that they created in the first place. That would really be something, wouldn’t it?

But if the Democrats will just back off, that’s exactly what Paulson will be empowered to do. He will solve the problem which is systemic. Democrats believe it is not a problem with the system. They don’t have any idea of how the free enterprise system works. All they can see is windfall pork for them to pass around.

Paulson is going around to all the talk shows today talking up the urgency that this proposal has. If it’s not passed quickly, you can kiss goodbye to millions of jobs which are with employers depending on banks for loans. But, hey, isn’t that just what the Democrats want. They want more failure of the economy during the Bush administration so they can play the blame game and make people believe the Republicans caused it and don’t know how to handle the problem.

See, Democrats envision a world much different than the average American. They feel that while we the taxpayers are bailing out the stupid mistakes of agreeing with Charlie Rangle and Barney Frank that America’s better off half owed it to the poor to see to it they could own a house (thus the bills they passed to lower loan standards), that there must be something in it for politicians. I pegged the blame yesterday on the liberal Democrats. The losse credit situation caused the financial crisis and those loose credit rules were the brainchild of those who spout all this racial inequality stuff (Democrats and their ilk). Somehow, they feel it their inalienable right to deny you of your money by higher taxes and to redistribute the wealth of many directly to the poor in this crisis.

The poor will benefit if the banks are bailed out. They will be able to get out from under their loans. Some may even end up owning the houses they bought, but at far better terms–if Democrats stand aside and leave Paulson to his work.

Paulson said Sunday that because financial markets remain under severe stress there is an urgent need for Congress to act quickly without adding other measures that could slow down passage.

Paulson said in an interview on ABC’s “This Week that “We need this to be clean and to be quick,”

Paulson resisted suggestions being made by Democrats that the program be changed to include further relief for homeowners facing mortgage foreclosures and to include an additional $50 billion stimulus effort. Some Democrats have also suggested capping compensation of executives at firms who get the bailout help.

Paulson said he was concerned that debate over adding all of those proposals would slow the economy down, delaying the rescue effort that is so urgently needed to get financial markets moving again.

“The biggest help we can give the American people right now is to stabilize the financial system,” Paulson said.

Then Sen. Charles Schumer, D-N.Y., weighed in, saying that he believed there would be changes to the three-page Paulson plan and that agreement could be reached quickly. The more changes, the longer the bill, the better for Democrats. They like it long and complicated, so no one understands it except the politicos. Then the Dems can work their magic and squeeze out of it patronage for them. That’s what this Democrat delay game is all about, and nothing more. They’re always thinking, what’s in it for me?

Schumer said that he was pushing to get a provision where the government would receive stock warrants in return for the bailout relief and for creation of a government oversight board to supervise the huge operation, which under Paulson’s plan would be run out of the Treasury Department. He said Paulson seemed receptive to changes when he had discussed his ideas with him. Maybe Schumer should read Title 5, section 3109. There are already provision for Congressional oversight. But it happens every three months. Americans would hate it if Democrats tied this thing up in controversy and hearings at every turn of events. Plain and simple, this is a bill to allow a highly qualified man to add money to the credit markets and to do it in an expeditious manner. Too many hands in the pie spoil the pie.

“I have told him … we need changes related to housing, we need to put the taxpayer first ahead of bondholders, shareholders,” Schumer said on “Fox News Sunday.” This is typical Democrat talk. THE TAXPAYER IS FIRST INSTEAD OF THE SHAREHOLDERS, DUMMY. Shareholders have lost their shirts, or hasn’t Sen Schumer noticed? Taxpayers, all of us, are going to benefit if Bush’s bill passes intact. We will not benefit if this thing is laboriously delayed and more and more companies go belly up due to Democrat haggling and delay. If that happens, a lot of Democrats may lose their jobs quickly–and I’m talking about November 6th.

Paulson said in the interviews that he had been talking to other governments about the need for them to offer similar relief because the current financial crisis is global.

“The credit markets are still very fragile right now and frozen,” Paulson said in an interview on NBC’s Meet the Press. “We need to deal with this and deal with it quickly.”

Paulson said that the nation’s outdated regulatory system for financial markets must be overhauled but the first job is to get the most sweeping rescue package since the Great Depression passed by Congress in coming days.

Paulson made the rounds of the television talk shows on Sunday to stress the need for speed in getting the bailout package approved. The administration was negotiating the details of the proposal with members of Congress with the expectation that it can be passed in the next week.

Paulson said that “it pains me tremendously to have the American taxpayer put in this position but it is better than the alternative.”

Both Paulson and President Bush have argued that the alternative would be credit markets that remain frozen, meaning that businesses will fail because they can’t get the loans they need to operate and the economy will grind to a halt because consumers won’t be able to get loans to make the purchases that keep the economy moving forward.

On Saturday, Bush said the White House is ready to work with Congress to quickly enact legislation to allow the government to purchase hundreds of billions of dollars worth of bad debt linked to the collapse of the housing market.

Congressional aides and administration officials were working through the weekend to fill in the details of the proposal.