Woah woah woah woah woah!
Sep. 28th, 2008 09:55 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
solarbirdThe House is taking comments/debating this bailout right now starting at Midnight Monday 28 September 2008. Rep. Marcy Kaptur (D-OH) is calling the bailout "printing money for Wall Street" right now on C-SPAN 1.
Nobody entirely knows what the rules are but this is some commentary on the most recent draft available at the time. Initial reports are poor. I'm alarmed at reducing bank reserve requirements to zero. (Now Rep. Shelia Jackson Lee (D-TX) is saying no, that there is no reform in this bill.) Calculated Risk says they'll be voting Monday, which is no doubt why they're getting to debate from Midnight to 3AM. Jesus.
Bloomberg has noted that the $700B is a limit on bailout funds at any given time, not total, and that it could easily balloon to $5T.
Mr. Bush is supposedly making a statement at 7:35AM EDT.
Rep. David Dreier (R-CA) defends "supervision and oversight" and says the bailout will not place the burdon onto the taxpayers, which is just orthogonal to reality.
Rep. Dennis Kucinich (D-OH) uses the "cash for trash" rhetoric, says US treasury turned into a "toxic landfill" for bad paper. "We'll be right back here in a few months with the same kinds of problems because we're not solving the underlying matter here..."
McCain is reportedly onboard. House Republican leadership reportedly onboard. Sorry, no links right now.
Brad Sherman (D-CA) "This bill does not really limited executive compensation... it doesn't have any limits on regular salaries; million dollar a month salaries will continue, and they can be raised... if they feel that can be that generous to their executives. Foreign banks are going to get hundreds of billions of dollars from this bill..." Notes the U. Chicago protesting economist bloc is up to 400, including three nobel laureates.
David Dreier (R-CA) "guarantee in this legislation that the taxpayers will not be shouldering the responsibility" which is bullshit.
Brad Sherman (D-CA) fights the idea of adding any additional taxation of banking?
David Dreier (R-CA) says benefiting institutions must pay for bailouts later(?). A previous Representative noted that most of these will be temporary shell corporations which will go away before any bills come due. "There is a crisis of confidence, and I want to make sure that thoughout the upcoming weeks, months, and years, that when people who have deposits in financial institutions go to their automatic teller machines and seek to withdraw that those dollars are there." We have that now, clown. Now talking about lending availability, which is back on topic. Talks about constituent outrage. Talks about a whole bunch of diversionary stuff unrelated to actual outrage. Says judges will no longer be able to change existing mortgage agreements? Talks about limits on "golden parachutes" but see previous comments above about salaries being unlimited. (Also am told that the limits that are present will be only for top five executives.) Dreier talks about amendment to be offered tomorrow for some form of regulatory package later today. (Seven hours from now, where now is 22:01 PDT Sunday/1:01 EDT Monday, so, 8AM Eastern.
Reportedly, the bill is now called "Emergency Economic Stabilization Act of 2008."
eta: Bess at DealBreaker liveblogged a Treasury call to banks and other financial institutions. Stock futures are currently down about 1% overnight. The Fed continued not to be able to defend its overnight rate, look for a quick rate-cut to follow the market shortly after this goes through, assuming it does. Mish is not impressed, to put it mildly. Dr. Roubini is livid, saying that "the claim by the Fed and Treasury that spending $700 billion of public money is the best way to recapitalize banks has absolutely no factual basis or justification" and calling the bailout "a total rip-off that will mostly benefit – at a huge expense for the US taxpayer - the common and preferred shareholders and even unsecured creditors of the banks." He also calls it - again- a "disgrace:"
Nobody entirely knows what the rules are but this is some commentary on the most recent draft available at the time. Initial reports are poor. I'm alarmed at reducing bank reserve requirements to zero. (Now Rep. Shelia Jackson Lee (D-TX) is saying no, that there is no reform in this bill.) Calculated Risk says they'll be voting Monday, which is no doubt why they're getting to debate from Midnight to 3AM. Jesus.
Bloomberg has noted that the $700B is a limit on bailout funds at any given time, not total, and that it could easily balloon to $5T.
Mr. Bush is supposedly making a statement at 7:35AM EDT.
Rep. David Dreier (R-CA) defends "supervision and oversight" and says the bailout will not place the burdon onto the taxpayers, which is just orthogonal to reality.
Rep. Dennis Kucinich (D-OH) uses the "cash for trash" rhetoric, says US treasury turned into a "toxic landfill" for bad paper. "We'll be right back here in a few months with the same kinds of problems because we're not solving the underlying matter here..."
McCain is reportedly onboard. House Republican leadership reportedly onboard. Sorry, no links right now.
Brad Sherman (D-CA) "This bill does not really limited executive compensation... it doesn't have any limits on regular salaries; million dollar a month salaries will continue, and they can be raised... if they feel that can be that generous to their executives. Foreign banks are going to get hundreds of billions of dollars from this bill..." Notes the U. Chicago protesting economist bloc is up to 400, including three nobel laureates.
David Dreier (R-CA) "guarantee in this legislation that the taxpayers will not be shouldering the responsibility" which is bullshit.
Brad Sherman (D-CA) fights the idea of adding any additional taxation of banking?
David Dreier (R-CA) says benefiting institutions must pay for bailouts later(?). A previous Representative noted that most of these will be temporary shell corporations which will go away before any bills come due. "There is a crisis of confidence, and I want to make sure that thoughout the upcoming weeks, months, and years, that when people who have deposits in financial institutions go to their automatic teller machines and seek to withdraw that those dollars are there." We have that now, clown. Now talking about lending availability, which is back on topic. Talks about constituent outrage. Talks about a whole bunch of diversionary stuff unrelated to actual outrage. Says judges will no longer be able to change existing mortgage agreements? Talks about limits on "golden parachutes" but see previous comments above about salaries being unlimited. (Also am told that the limits that are present will be only for top five executives.) Dreier talks about amendment to be offered tomorrow for some form of regulatory package later today. (Seven hours from now, where now is 22:01 PDT Sunday/1:01 EDT Monday, so, 8AM Eastern.
Reportedly, the bill is now called "Emergency Economic Stabilization Act of 2008."
eta: Bess at DealBreaker liveblogged a Treasury call to banks and other financial institutions. Stock futures are currently down about 1% overnight. The Fed continued not to be able to defend its overnight rate, look for a quick rate-cut to follow the market shortly after this goes through, assuming it does. Mish is not impressed, to put it mildly. Dr. Roubini is livid, saying that "the claim by the Fed and Treasury that spending $700 billion of public money is the best way to recapitalize banks has absolutely no factual basis or justification" and calling the bailout "a total rip-off that will mostly benefit – at a huge expense for the US taxpayer - the common and preferred shareholders and even unsecured creditors of the banks." He also calls it - again- a "disgrace:"
Thus, the Treasury plan is a disgrace: a bailout of reckless bankers, lenders and investors that provides little direct debt relief to borrowers and financially stressed households and that will come at a very high cost to the US taxpayer. And the plan does nothing to resolve the severe stress in money markets and interbank markets that are now close to a systemic meltdown. It is pathetic that Congress did not consult any of the many professional economists that have presented - many on the RGE Monitor Finance blog forum - alternative plans that were more fair and efficient and less costly ways to resolve this crisis. This is again a case of privatizing the gains and socializing the losses; a bailout and socialism for the rich, the well-connected and Wall Street. And it is a scandal that even Congressional Democrats have fallen for this Treasury scam that does little to resolve the debt burden of millions of distressed home owners.Tasty.
![[identity profile]](https://www.dreamwidth.org/img/silk/identity/openid.png){kind=small}
no subject
Date: 2008-09-29 12:43 pm (UTC)by the bye, price of solar panels at retail is rising. caught them double-stickering them upwards at Canadian Tire the other day.