Act now to stop Paulson Bailout

By
Real Estate Broker/Owner with Lockwood Real Estate

I don't know how much you're following the news of the bailout of wall street banks who repackaged bad loans, but if you're not, now is a great time to get involved and please, please call your elected representative and tell everyone you can about this incredible fiasco.

Hank Paulson, Secretary of the Treasury, and George Bush are asking Congress for the authority to spend up to $700 billion at a time (that's a balance sheet maximum, not a maximum on the total the government can spend).  That's more than the total cost of the War in Iraq so far.  The Treasury will spend it buying bad loans, and get no equity stake in the firms they're buying them from -- leading some to call it "cash for trash".

Section eight of the proposed legislation gives Paulson an oversight-free blank check as to how to spend that much of your money.

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

You can read the full text here.

Although as you might expect, public opposition to the plan is strongest among Democrats, several prominent conservatives have also gone on record as being opposed to the plan.  This legislation is so bad that even CNN gets it.

Please look up and either write to or phone your Senator and House Representative right away.  You can learn more about the proposal by clicking through on the articles current on Digg for Business and Finance.

Congress is in a HUGE RUSH to get this done, so those of us who think it's expensive, ill conceived and leaves us stuck holding the bill need to MOVE NOW to express our concerns to Congress.

Comments (3)

Marchel Peterson
Results Realty - Spring, TX
Spring TX Real Estate E-Pro

John, the last couple of weeks I have not done much but deal with Ike and I'm now in NYC visiting my daughter.  I go home tomorrow and still won't have power but I can see this is important enoughthat I need to make time to contact my representatives.

Sep 22, 2008 12:12 PM
Peter Thompson
Downers Grove, IL
Chicago Mortgage Insight

Hi, John. This is a damned if you do, damned if you don't situation. I can't see any reason to give a blank check to the same team that handled Katrina and got us into the Iraq war. But I think the global financial system is so fragile, and if we don't do something we could be in even bigger trouble. The key is to slow everything down and not rush through a disaster because we had to do something quickly.

Sep 22, 2008 01:13 PM
John Lockwood
Lockwood Real Estate - Sacramento, CA

Thanks guys for the comments.

Peter, I definitely defer to you as to your finance knowledge -- but I'm also with you that we need to spend time on this.  I don't see what the hurry is, unless the hurry is to put pressure on a reluctant Congress to authorize another Bush fisasco.  Bush went on television tonight and talked about all the money having dried up as though we're already in this dire position, yet I notice on Freddie Mac that the 30 year fixed averaged 5.78% with .6 points as of last week.

I might be more open to believing the boy crying wolf if it weren't the case that the same guys telling us the economy is in immediate crisis and needs $10,000 per household to fix are the ones who held up vials of white powder at the UN and telling us stories about aluminum tubes in Iraq that they damned well knew were lies.

So maybe there's a real wolf this time.  But as you'll recall, the point of that story was that if you lie all the time, go figure, nobody believes you even if for once you're telling the truth. The whole thing just makes me so mad I'll even post on ActiveRain.  :)

 

Sep 24, 2008 03:10 PM