The bad news, though, is that...well, there is still a lot of bad news. For starters, there's no accountability for Secretary Paulson. It really is a $700 billion blank check that creates Paulson's playground, and he's the only who who makes any rules. Then, we see that the clause that's supposed to prevent 'unjust enrichment' doesn't apply to the bailouts that have gone before. So, the corruptocrats who put us into this mess get to keep the millions they made by collapsing Bear Stearns, Lehman Bros., Washington Mutual, and Fannie/Freddie. Nice...that'll teach 'em, and keep 'em from doing it again, won't it?
Sadly, it appears that much of the Right has given up the fight, including Newt Gingrich. As Michelle Malkin says: God save us from bipartisanship! I've already expressed my thoughts on the topic, so feel free to review them and see me proven right yet again.
But, not everyone is laying down on this bill:
GOP Rep. Mike Pence remains a staunch “NO!” Thank you, Rep. Pence…Republicans improved this bill but it remains the largest corporate bailout in American history, forever changes the relationship between government and the financial sector, and passes the cost along to the American people. I cannot support it.
Before you vote, ask yourself why you came here and vote with courage and integrity to those principals.
If you came here because you believe in limited government and the freedom of the American marketplace, vote in accordance with those convictions.
Duty is ours, outcomes belong to God.
We have fought the good fight. Now we need to finish the race and make sure that posterity and the American people know there were conservatives who opposed the leviathan state in this dark hour.
Once again, Michelle Malkin has an excellent roundup of what little opposition remains to this 'crap sandwich':
I listened in on a phone conference this evening with anti-bailout conservatives, congressional staffers, and other Hill insiders. With only one exception, the groups and individuals on the call all opposed the bailout in its current form. They also concurred that this deal is worse than the one Paulson proposed — on constitutional, policy, and fiscal grounds. Phone calls to congressional offices continue to show overwhelming public opposition to the massive, unprecedented government giveaway.Nevertheless, GOP House Minority Leader John Boehner and the House Republican leadership have thrown in the towel. Make room for them on the couch with Gingrich and Pelosi. Boehner called the deal a “crap sandwich,” but told House Republicans he’ll vote for it.
Are you going to swallow this crap? Is your congressional representative?
Here’s a deeper whiff of the “crap sandwich.”
One staffer on the call this evening zeroed in on the concern many of my readers and I had about the fast-tracking of the second wave of the trillion-dollar-plus “rescue.” In practice, he said, the provision amounts to “an automatic trigger with no action by Congress.”
Some accountability.
Another staffer raises alarm bells about the unfettered authority the bill gives to Treasury Secretary Paulson to define “troubled assets” any way he pleases — way beyond mortgages:
TROUBLED ASSETS.—The term ‘‘troubled assets’’ means—
(A) residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before March 14, 2008, the purchase of which the Secretary determines promotes financial market stability; and(B) any other financial instrument that the Secretary, after consultation with the Chairman of the Board of Governors of the Federal Reserve System, determines the purchase of which is necessary to promote financial market stability, but only upon transmittal of such determination, in writing, to the appropriate committees of Congress.
Blank check, anyone?
The Heritage Foundation is still gravely concerned about the constitutional questions raised by the bill — an issue underscored by Sen. Jim DeMint.
I’ve already made my case that Treasury Secretary Paulson is not to be trusted and must be contained.
The bailout bill does the opposite.
The diversity racketeers’ minority contracting shakedown, which I flagged yesterday, is alive and well in the bill:
ADDITIONAL CONTRACTING REQUIREMENTS.—In any solicitation or contract where the Secretary has, pursuant to subsection (a), waived any provision of the Federal Acquisition Regulation pertaining to minority contracting, the Secretary shall develop and implement standards and procedures to ensure, to the maximum extent practicable, the inclusion and utilization of minorities (as such term is defined in section 1204(c) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 note)) and women, and minority and women-owned businesses (as such terms are defined in section 21A(r)(4) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(r)(4)), in that solicitation or contract, including contracts to asset managers, servicers, property managers, and other service providers or expert consultants.
Section 110 is the Democrat-backed “Assistance to homeowners” plan — driven by one of the bill’s key stated goals of “preserving homeownership.”
GENERAL.—To the extent that the Federal property manager holds, owns, or controls mortgages, mortgage backed securities, and other assets ecured by residential real estate, including multifamily housing, the Federal property manager shall implement a plan that seeks to maximize assistance for homeowners and use its authority to encourage the servicers of the underlying mortgages, and considering net present value to the taxpayer, to take advantage of the HOPE for Homeowners Program under section 257 of the National Housing Act or other available programs to minimize foreclosures.
(2) MODIFICATIONS.—In the case of a residential mortgage loan, modifications made under paragraph (1) may include—
(A) reduction in interest rates;
(B) reduction of loan principal; and
(C) other similar modifications.Yes, in the quest to “preserve homeownership” at all costs, it appears the government will be determining the value of homes directly in the marketplace — not only reducing interest rates but also loan principal.
One last howler for now. The enormously conflict-of-interest-plagued Paulson, who gets unfettered authority to hire whomever he wants and contract with whomever he wants, will get to determine regs and guidelines on conflicts of interest:
SEC. 108. CONFLICTS OF INTEREST.
(a) STANDARDS REQUIRED.—The Secretary shall issue regulations or guidelines necessary to address and manage or to prohibit conflicts of interest that may arise in connection with the administration and execution of the authorities provided under this Act, including—(1) conflicts arising in the selection or hiring of
contractors or advisors, including asset managers;
(2) the purchase of troubled assets;
(3) the management of the troubled assets held;
(4) post-employment restrictions on employees;
and
(5) any other potential conflict of interest, as the Secretary deems necessary or appropriate in the public interest.Fox, meet henhouse.
The House vote is reportedly set for sometime tomorrow between noon and 12:30pm Eastern. Latest word from a Hill staffer is that the Senate will try and squeeze in a vote before sundown (when the Jewish High Holy Days begin).
There is still time to make your voice heard: 202-224-3121.
This is not a done deal. Via Roll Call late tonight, have an airsickness bag ready when you read how House GOP leaders are now adopting the b.s. rhetoric of the Democrats (e.g., not calling this pig of a bailout a bailout):
The House is making unsteady progress toward a final deal on a $700 billion bailout package for the financial markets, with both parties warily eyeing each other for signs that they will commit enough votes so a bipartisan victory can be declared.
Both the House Republican Conference and House Democratic Caucus spent hours cloistered in closed-door sessions Sunday night as Congressional leaders tried to gather support for the package within their own ranks by putting outstanding questions about it to rest.
All eyes are on the House Republicans, who threw talks on a deal into disarray Thursday when they abandoned bipartisan, bicameral negotiations with the White House.
Rank-and-file GOPers trickling out of their more than three-hour meeting Sunday night said the final bill is more palatable to Republicans than previous proposals, but it is unlikely that there will be a unified floor vote on Monday.
The bill filed tonight is “a giant improvement” over previous proposals, namely because it considerably reduces taxpayer risk, House Minority Leader John Boehner (R-Ohio) told reporters after the meeting.
“At the end of the day, there really is no taxpayer risk in this bill,” Boehner said, referring to mandated insurance provisions in the package.
Asked how many Members will vote for the bill, Boehner said he didn’t know but that GOP leaders “are working on it. … I made it pretty clear to our Members that we are supporting this.”
House Minority Whip Roy Blunt (R-Mo.) described the plan as a “work-out of the problem” instead of a “bailout of the problem.”
Tell your congressional rep: Don’t swallow this crap. Cut it.
Via FreedomWorks, 10 reasons to oppose the bailout. Click to sign their petition. Memo to House GOP leadership. It’s a bailout, not a “workout,” no matter how much lipstick you put on it:
Ten Reasons to Oppose the Wall Street Bailout
1. NO REFORM: The plan attempts to mask, rather than reform, imbalances in credit markets and in U.S. economic public policy. The plan props up reckless and failed banks by buying “troubled assets” instead of focusing on real reforms that go after government sponsored culprits Fannie Mae and Freddie Mac, and sustainable policies that will increase the availability of private capital and expanded economic growth.
2. TREASURY POWER GRAB: The plan raises Constitutional concerns by dramatically expanding the power of the current and future Treasury Secretaries, giving the government agency power to directly purchase assets from for-profit financial and non-financial firms.
3. STUNNING PRICE TAG: The $700 billion bailout figure is as much money as the combined annual budgets of the Departments of Defense, Education and Health and Human Services. It amounts to $2,300 for every man, woman, and child in America.
4. INCREASES NATIONAL DEBT: Instead of cutting spending elsewhere, Congress will borrow all $700 billion on global capital markets, and the bill raises the national debt ceiling to a staggering $11.3 trillion.
5. GLOBAL BAILOUT: The plan includes taxpayer purchases of distressed assets from foreign banks.
6. HURTS RESPONSIBLE AMERICAN BANKS: The plan punishes responsible U.S. banks by keeping reckless, insolvent investment banks in business. As BB&T CEO John Allison wrote in a letter to Congress on Sept. 23rd, “….this is primarily a bailout of poorly run financial institutions…. Corrections are not all bad. The market correction process eliminates irrational competitors.”
7. FLAWED PROCESS: Members of Congress and the public will have less than 24 hours and no hearings to discuss and understand the impact of this sweeping plan. This rush to pass a wildly unpopular plan without benefit of significant public debate and input will also undermine its legitimacy and effectiveness.
8. BY WALL STREET, FOR WALL STREET: Treasury Secretary Paulson, the architect of the plan, was formerly the head of Goldman Sachs, one of the firms responsible for the mess and a direct beneficiary of the bailout. Further, the advisers managing the bailout auctions and assets will be Wall Street firms and will likely receive billions of tax dollars in fees.
9. OTHER OPTIONS NOT EXHAUSTED: The idea that taxpayers will make money on the bailout is not credible. There are ready buyers for these “troubled assets” — Merrill Lynch sold its entire portfolio of mortgage backed securities in July– provided the price is low enough. If a profit was possible, private speculators would readily buy these troubled assets.
10. MORALLY OFFENSIVE: The plan violates basic principles of American capitalism and honest governance by creating a system of “private profits, socialized losses” that transfers money from taxpayers directly to Wall Street investment banks. Free market capitalism only functions if individuals and firms are held accountable and are allowed to both succeed and profit, and also to sustain losses and even fail.
Sign the petition - at the time I signed it, there were over 20,000 signatures. I'm guessing that by the time you read this, there will be many more.
And call your Rep and Senators...it's not a done deal yet, but the only thing that will prevent it from becoming one is a massive outrage from the American people. If you're as ticked off about this as I am, call and e-mail multiple times each day until the vote actually goes down. Again, the point is not that nothing should be done - the point is that the solution is less government, lower taxation, better transparency, better oversight, and allowing those who took the risks to pay the price for it rather than taxpayers.
This bill does none of those things.
Our leadership -- for the most part, though not completely -- in both parties has failed us, and they need to hear about it. Feel free to inform them that a YES vote on this bailout plan will become a YES vote for whoever challenges their seat at the next election.
There's my two cents.
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