The Solution to the Bailout
Partial transcript from The O'Reilly Factor with Newt Monday night.
O'REILLY: Now, I have supported the bailout because I believe if the government doesn't stabilize the economy now, foreign investment will pull out of America. Now you know how important foreign investment is to this country's health. So I don't like this bailout. I agree with you that the government is incompetent and corrupt in some areas. But I don't see any other choice at all but to do it.
GINGRICH: Well, let me give you two choices immediately. First, there's an accounting rule called mark to market. We were warned against doing it by the European Central Bank in 2004. Two economists — Chicago Bank Today came out and said if we would simply repeal it — this is an overreaction to Enron — if we would simply repeal it, they think 70 percent of the problem would go away. That's $500 billion of the bailout would disappear.
Second, I have no problem with the workout. We'll let you work out your bad debt. But I am deeply opposed and I will actively oppose any bill which has the Treasury buying bad paper because that's a bailout. That's not a workout.
70% of the problem solved and it doesn't cost you a cent!
Read this...
Maybe the Banks Are Just Counting Wrong
and
Bailout fails — Move on to Mark-to-Market Reform
posted by Pat Campbell @ 4:08 PM
6 comments
6 Comments:
The solution is to do nothing! I watched Orielly last night, and he's in a panic because HIS stocks are falling. On the upside, gas prices are falling, but in his opinion we/he won't be able to afford to travel anywhere. So... Sit at home and eat onion sandwiches, watching tv with your rabbit ears, and toast some marshmellows over the campfire.... It will all work itself out, over time.
This guy called the BH show today and said his neigbors had paid $450,000.00 for his home, and the market went bust. A home down the street went up for sale for $325,000.00, so he bought the home down the street, defaulted on the $450K loan, laughing all the way...
Interesting article below from a CNN commentary with a Harvard lecturer, on "Why the Bailout is Wrong" I trust an economist more than a President that is a Harvard educated MBA, that delegates authority, but can't make a decision on his own intelligence. That goes for the clowns in Congress also, all of them, Hawwy Weed, and Pancy Wallozi, who have no clue... IDIOTS, and Liberals!
http://www.cnn.com/2008/POLITICS/09/29/miron.bailout/index.html?iref=mpstoryview
American Thinker article "Barack Obama and the Stratedy of the Manufactured Crisis"
http://www.americanthinker.com/2008/09/barack_obama_and_the_strategy.html
Well it's time for the self proclaimed "Maverik", my friends..., to start naming names. Otherwise, I'll continue to relate the term Maverik to As----e
Change... give some Change and get the truth out, and clean up Congress, and put the criminals behind bars, like was done with Enron.
http://www.americanthinker.com/2008/10/time_for_mccain_to_name_names.html
Next think is reparations...
Michelle Malkin article "Homeless Ohioans for Obama Registering in droves."
http://michellemalkin.com/2008/10/01/homeless-ohioans-for-obama-registering-in-droves/
New York Times article from 1999 explains how we got in this financial crisis mess...
http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF933A0575AC0A96F958260&sec=&spon=&partner=permalink&exprod=permalink
Summary of how we got into this mess. The cause, in a nutshell because history doesn’t lie, unlike our Congress:
1. Congress (under Jimmy Carter) passes a bill making it illegal for banks to “redline” (that is, they can’t ignore poor neighborhoods because that would be discrimination).
2. In 1992, Clinton can’t get elected by saying “Vote for me and I’ll give $250,000 in tax dollars to all poor people so they can buy a house” so he instead says “I feel your pain” to get into office.
3. Clinton changes the rules so that banks are faced with $10,000 fines (or 1% of assets, whichever is less) per-loan-application if they discriminate against the poor. In other words, the government FORCES banks to make bad loans.
4. To soften the load, Clinton reduces the Fannie Mae “reserve requirement” to an astoundingly low 2.5%! (They need to keep only $2.50 in cash for every $100 loaned!) Banks, faced with $10,000 fines, respond by making bad loans and immediately dumping them on Fannie Mae.
5. Clinton rule changes also require banks to count WELFARE CHECKS AND FOOD STAMPS as “income” for loan applications!
6. Senate Democrats demand that Fannie Mae buy more bad loans to “help the poor become homeowners.”
7. Radicals Islamists attack the U.S. on 9/11. To keep the economy from tanking because of the terrorist attack, the Federal Reserve keeps interest rates artifically low - to stimulate the economy. These low interest rates make it even easier for people to get mortgages.
8. Because Fannie Mae is buying up bad loans like candy, banks keep making them.
9. Conservatives see the handwriting on the wall and start complaining.
10. Fannie Mae CEOs James Johnson and Franklin Raines “cook the books” to give themselves, and other former Clinton buddies at Fannie Mae, bigger bonuses.
11. Raines (like, Johnson, later an Obama advisor) is forced to resign and pay back millions.
12. Because many poor people entered the housing market, there are MORE buyers chasing the same number of houses available. That makes prices go up - much faster than the inflation rate. (Duh! If more people want the same house, the seller can charge more!)
13. More conservatives warn Congress of trouble ahead. Barney Frank (D-MA) and other Dems say “Don’t worry, be happy.” Maxine Waters (D-CA) says Republicans are racists for wanting to rein in Fannie Mae to prevent poor blacks from buying houses. Waters praises the crook Franklin Raines.
14. John McCain submits a Fannie Mae reform bill in 2005. Senator Chris Dodd (D-CN) gets his fellow Dems to promptly vote against it; it never leaves his banking committee and thus never gets voted on by the full Senate. Dodd gets a boatload of cash from Fannie Mae for his campaigns, more than any other Senator (Obama is in second place).
15. Everything explodes in 2008.
16. Secretary Paulson (a Democrat) persuades a non-functioning President Bush to go along with a bailout.
17. At a White House meeting, Dems feed their talking points to Obama so he can look good. He screws up, and lambasts the Republicans - angering them enough so that they have no desire to help.
18. Frank, Dodd, Reid, Pelosi blame the Republicans. The media piles on, ignoring the real cause of the crisis, in an effort to elect their socialist pal Obama. They all know the Dems caused the problems, but why burden Americans with the truth?
19. Conservatives in Congress say NO to socialism.
20. Americans say NO to socialism.
21. Democrats say THIS IS CRITICAL, WE MUST ACT! and then take a day off for a Jewish holiday. (Better to risk destroying the economy than lose Jewish votes in November 4.)
22. McCain - foolishly - supports the bailout, reprising his role as the “Democrat-lite” candidate.
23. Americans are screwed, no matter what happens.
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