{"id":490,"date":"2008-09-25T22:56:58","date_gmt":"2008-09-26T02:56:58","guid":{"rendered":"http:\/\/www.jasetaro.com\/blog\/?p=490"},"modified":"2008-09-25T22:56:58","modified_gmt":"2008-09-26T02:56:58","slug":"bailing-on-the-bailout","status":"publish","type":"post","link":"https:\/\/www.jasetaro.com\/blog\/2008\/09\/25\/bailing-on-the-bailout\/","title":{"rendered":"Bailing on the Bailout?"},"content":{"rendered":"<p>It looks like the bailout deal, if there ever was one, <a href=\"http:\/\/www.breitbart.com\/article.php?id=D93E28NG0&amp;show_article=1\" target=\"_blank\">is collapsing<\/a>&#8230; Democrats and Paulson are <a href=\"http:\/\/blogs.abcnews.com\/politicalradar\/2008\/09\/stephanopoulo-6.html\" target=\"_blank\">whining<\/a>.<\/p>\n<blockquote><p>ABC News&#8217; George Stephanopoulos Reports: Treasury Secretary Henry Paulson fears the Wall Street bailout deal is falling apart after a chaotic White House meeting, sources say.<\/p>\n<p>Paulson walked into the room where Democrats were caucusing after today&#8217;s meeting at the White House and pleaded with them, &#8220;Please don&#8217;t blow this up.&#8221;<\/p>\n<p>Rep. Barney Frank, D-Mass., chair of the House Financial Services Committee was livid saying, &#8220;Don&#8217;t say that to us after all we&#8217;ve been through!&#8221;<\/p>\n<p>House Speaker Nancy Pelosi said, &#8220;We&#8217;re not the ones trying to blow this up; it&#8217;s the House Republicans.&#8221;<\/p>\n<p>&#8220;I know, I know,&#8221; Paulson replied.<\/p><\/blockquote>\n<p>Chris Dodd&#8217;s trying to pin the <a href=\"http:\/\/www.dailymail.co.uk\/news\/worldnews\/article-1060850\/400bn-Wall-St-bail-deal-ditched-McCain-backs-alternative-plan.html?ITO=1490\" target=\"_blank\">blame<\/a> on McCain:<\/p>\n<blockquote><p>At a press conference earlier yesterday on Capitol Hill, Senator Dodd and his fellow negotiators claimed they had reached a bipartisan consensus on the plan.<\/p>\n<p>But he claimed that Mr McCain&#8217;s involvement threw a spanner in the works.<\/p>\n<p>After the hour-long White House meeting, he said: &#8216;What has happened here is that we have spent seven straight days to find a rescue plan for the economy.<\/p>\n<p>\u2018What this looked like was a rescue plan for John McCain. To be distracted for two to three hours by political theatre doesn&#8217;t help.&#8217;<\/p>\n<p>Democrats said the Republicans were on board with the deal until Mr McCain intervened.<\/p><\/blockquote>\n<p>There&#8217;s just one problem&#8230; McCain didn&#8217;t <a href=\"http:\/\/marcambinder.theatlantic.com\/archives\/2008\/09\/mccain_kept_head_down_in_meeti.php\" target=\"_blank\">bring up those proposals<\/a>.<\/p>\n<p>Personally, the Paulson plan is a non-starter with me&#8230; I much prefer the alternatives offered by House Republicans:<\/p>\n<ul>\n<li><em>Rather than providing taxpayer funded purchases of frozen mortgage assets, we should adopt a mortgage insurance approach to solve the problem.<br \/>\n<\/em><\/li>\n<li><em>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.<br \/>\n<\/em><\/li>\n<li><em>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. <\/em><\/li>\n<li><em>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. <\/em><\/li>\n<li><em>Immediate Transparency, Oversight, and Market Reform. 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.<\/em><\/li>\n<li><em>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. <\/em><\/li>\n<li><em>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. <\/em><\/li>\n<\/ul>\n<p>Unfortunately, I think we&#8217;ve reached the point where a bailout is necessary evil, I&#8217;m not convinced that tax payers should be the ones footing the bill though.Regardless unless they remove the foolish <a href=\"http:\/\/www.nypost.com\/seven\/09242008\/postopinion\/opedcolumnists\/house_of_cards_130479.htm?page=0\" target=\"_blank\">government regulations<\/a> that effectively force banks to make risky loans we&#8217;re going to be right back here somewhere down the road.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It looks like the bailout deal, if there ever was one, is collapsing&#8230; Democrats and Paulson are whining. ABC News&#8217; George Stephanopoulos Reports: Treasury Secretary Henry Paulson fears the Wall Street bailout deal is falling apart after a chaotic White House meeting, sources say. Paulson walked into the room where Democrats were caucusing after today&#8217;s [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[26,7],"tags":[165,164,129,158,40],"class_list":{"0":"post-490","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-economy","7":"category-politics","8":"tag-barney-frank","9":"tag-chris-dodd","10":"tag-credit-crisis","11":"tag-henry-paulson","12":"tag-john-mccain","13":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pfpI7-7U","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":521,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/09\/28\/bailout-deal-reached\/","url_meta":{"origin":490,"position":0},"title":"Bailout Deal Reached?","author":"Jeff","date":"September 28, 2008","format":false,"excerpt":"The Wall Street Journal is reporting that lawmakers reached a tentative bailout deal overnight: Top U.S. policy makers emerged from hours of tense negotiations with a clear message just after midnight Sunday morning: A deal to bailout U.S. financial markets has been agreed on and all that remains to be\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":580,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/10\/02\/ouch-someones-not-happy\/","url_meta":{"origin":490,"position":1},"title":"Ouch&#8230; Someone&#8217;s Not Happy","author":"Jeff","date":"October 2, 2008","format":false,"excerpt":"Someone's not happy about the Bush\/Paulson\/Bernanky bailout plan. H\/T: Kathryn Jean Lopez.","rel":"","context":"In &quot;Politics&quot;","block_context":{"text":"Politics","link":"https:\/\/www.jasetaro.com\/blog\/category\/politics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.jasetaro.com\/blog\/wp-content\/uploads\/2008\/10\/strategerycapital-300x205.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":477,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/09\/25\/newsflash-wall-street-journal-reporting-agreement-in-principle-is-reached-on-700-billion-bailout\/","url_meta":{"origin":490,"position":2},"title":"Newsflash: Wall Street Journal Reporting Agreement in Principle Is Reached on $700 Billion Bailout","author":"Jeff","date":"September 25, 2008","format":false,"excerpt":"From the Wall Street Journal: Congress reached an agreement in principle on a $700 billion package to bail out the financial industry, leaders from both parties said Thursday. They plan to present the deal to the White House later Thursday, hoping for a vote within days. Lawmakers said there were\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1051,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/11\/24\/creeping-socialism-bush-defends-citigroup-bailout\/","url_meta":{"origin":490,"position":3},"title":"Creeping Socialism: Bush Defends Citigroup Bailout","author":"Jeff","date":"November 24, 2008","format":false,"excerpt":"I'm at a loss for words here... From the AP via Michelle Malkin: President Bush argued Monday that the government\u2019s dramatic rescue of Citigroup was necessary to \u201csafeguard the financial system\u201d and help the economy recover, and he said there could be more such moves if other institutions need help.\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":472,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/09\/25\/a-failure-of-leadership\/","url_meta":{"origin":490,"position":4},"title":"A Failure of Leadership","author":"Jeff","date":"September 25, 2008","format":false,"excerpt":"What I said yesterday about McCain and leadership... Scratch that. My first reaction to John McCain's announcement that he was suspending his campaign and returning Washington to help craft a financial bailout plan was positive. I though it was bold move that could pay huge dividends down the road. This\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":573,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/10\/01\/senate-passes-crap-sandwich-20-74-25\/","url_meta":{"origin":490,"position":5},"title":"Senate Passes Crap Sandwich 2.0 74-25","author":"Jeff","date":"October 1, 2008","format":false,"excerpt":"From the Wall Street Journal: Senate Passes Bailout Package House Passage Remains Less Certain WASHINGTON -- The Senate's revamped bailout package drew support from 74 lawmakers in a roll call vote Wednesday evening, and the measure will now return to the balky House of Representatives for another vote following its\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/posts\/490","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/comments?post=490"}],"version-history":[{"count":0,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/posts\/490\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/media?parent=490"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/categories?post=490"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/tags?post=490"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}