Later On

A blog written for those whose interests more or less match mine.

The ghastly bail-out plan

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I’ve been reading articles on the bail-out plan that Paulson has announced: it’s beyond awful, is the considered judgment of people who know what they’re talking about. I’m not going to attempt to summarize the discussion, but the following posts are definitely worth reading. Let me begin, though, with the email from a Democratic lawmaker that Matt Stoller received:

Paulsen and Congressional Republicans, or the few that will actually vote for this (most will be unwilling to take responsibility for the consequences of their policies), have said that there can’t be any “add ons,” or addition provisions. Fuck that. I don’t really want to trigger a world wide depression (that’s not hyperbole, that’s a distinct possibility), but I’m not voting for a blank check for $700 billion for those mother fuckers.

Nancy said she wanted to include the second “stimulus” package that the Bush Administration and congressional Republicans have blocked. I don’t want to trade a $700 billion dollar giveaway to the most unsympathetic human beings on the planet for a few fucking bridges. I want reforms of the industry, and I want it to be as punitive as possible.

Henry Waxman has suggested corporate government reforms, including CEO compensation, as the price for this.  Some members have publicly suggested allowing modification of mortgages in bankruptcy, and the House Judiciary Committee staff is also very interested in that.  That’s a real possibility.

We may strip out all the gives to industry in the predatory mortgage lending bill that the House passed last November, which hasn’t budged in the Senate, and include that in the bill.  There are other ideas on the table but they are going to be tough to work out before next week.

I also find myself drawn to provisions that would serve no useful purpose except to insult the industry, like requiring the CEOs, CFOs and the chair of the board of any entity that sells mortgage related securities to the Treasury Department to certify that they have completed an approved course in credit counseling. That is now required of consumers filing bankruptcy to make sure they feel properly humiliated for being head over heels in debt, although most lost control of their finances because of a serious illness in the family. That would just be petty and childish, and completely in character for me.

I’m open to other ideas, and I am looking for volunteers who want to hold the sons of bitches so I can beat the crap out of them.

Boehner: Treasury’s Bailout Package Should Only Help Wall Street, Not Main Street

Reformers – hilzoy (includes McCain’s role in creating the crisis)
Reformers, take 2 – hilzoy

A pig without lipstick – Steve Benen

Finance lobbyists get to work – Steve Benen (money without reforms is what they want)

Lipstick on a pig in a poke – David Kurtz

Before we jump in – Josh Marshall

Put on the brakes – Josh Marshall

Paulson: nothing for homeowners – David Sirota

What Wall Street should do to get its blank check – Robert Reich

After the bailout – Kevin Drum

The complete … elite consensus over the financial collapse – Greenwald

Hank Paulson’s raid on the treasury – Firedoglake

Better bailout ideas – Paul Glastris

Bailout reactions – Kevin Drum

Paulson bailout plan a historic swindle – William Greider

Petty and childish – Kevin Drum (what reforms are needed)

The European banks – Kevin Drum (they’re too big to save)

Hedge funds next? – Kevin Drum

Written by Leisureguy

21 September 2008 at 10:52 am

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