Bailout Quagmire Courtesy of John McCain

John McCain suspended his campaign to do what most legislators in Washington D.C. do, nothing! He could have done that from the campaign trail. Instead, he declares this banking industry and Wall Street crisis his top priority so he can go the White House and offer nothing to the equation. Did he or did he not say that he was going back to the capitol to end the bipartisan debate and fix the problem? Instead we get more of McSame only this time he’s not even taking sides with his President or the bipartisan group that has put together this bailout package.

Shaking my head in disbelief but this is what Reuters has to say on it…

Angry W. House meeting roils Wall St bailout talks
By Kevin Drawbaugh and Thomas Ferraro

WASHINGTON (Reuters) - Negotiations in the U.S. Congress toward a massive bailout for Wall Street fell into disarray on Thursday night after a contentious White House meeting, with lawmakers later offering conflicting reports about the position of presidential candidate Sen. John McCain.

The White House meeting -- attended by McCain, Democratic rival Sen. Barack Obama, President George W. Bush and lawmakers from both parties -- "devolved into a contentious shouting match," according to a statement from the McCain campaign.
"At today's cabinet meeting, John McCain did not attack any proposal or endorse any plan," the statement said.

Senior Democrats said they came away from the afternoon White House session with the impression that McCain was backing an entirely new Wall Street rescue plan, one differing markedly from a Bush administration proposal under discussion for days.

Massachusetts Democratic Rep. Barney Frank, chairman of the House of Representatives Financial Services Committee and a participant in the White House gathering, said negotiations could be set back by the confusion.

"House Republicans, in some kind of arrangement with McCain, went off to wherever. I don't know whether they're ready to negotiate this. Their thing was some totally different mortgage insurance plan ... that would clearly delay this for a week or more," Frank told reporters. - Reuters

Hold the freaking presses. Let me get this straight… President Bush, Senator Chris Dodd, Represenatative Barney Frank, Secretary Paulson, Fed Reserve Chairman Bernake had a working proposal pretty much agreeable to all parties and McCain stepped into the equation and squashed it? To back an insurance plan?

Anyone that knows insurance knows that it is always in favor of the house, just like the odds favor the house in Las Vegas! So we have the Maverick Senator from Arizona coming into the discussion, the Conservative right wing general of his party, the less government, less regulation is best candidate, and he backs a never ending mortgage insurance plan on the backs of the American people? How sweet of a big business, big banks deal is that? Let’s not only put the taxpayers in for $700 Billion Dollars but lets make this pig fest into a never ending feed trough!

John McCain has just shown where his loyalty is and it is not in the interest of homeowners or soon to be homeowners. Now on top of PMI (Private Mortgage Insurance) you will get a double dipper with MMI (McCain Mortgage Insurance) because Wall Street has not raped the American people enough.

Mind you, this insurance that McCain is backing isn’t because you as a homeowner made bad decisions, it’s because the people making bad loans on Wall Street might continue making bad decisions and it’s only fair that all of us be punished for it. Pass out them golden parachutes and screw you Joe Q. Voter.

Vote Obama and vote often!

Papamoka

The Last Bush Rape of America

Make no doubt about it, George Bush and the policies he has followed have set the American economy up to be raped. He put a tube top on Wall Street, added some stiletto heals to the regulations and set America up to be raped! President Bush was not alone in this set up, he had help from the king of deregulation in the Senate from John McCain. McCain fought hard to deregulate the banking industry and he won. And because he won, $700 Billion dollars is about to head to Wall Street to save all the CEO’s and top executives with golden parachutes as they pack up and leave the mess on your doorstep. The rape is over, the baby is here now and orphaned by the people that created it and left for you to raise. The rape still happened!

Over at Brave New Films they have this speech from Obama on the blank check bailout…

Video Link



American’s need to wake up and face a wrong for what it is. If your child is abused by a stranger do you look the other way because the stranger was from your political party? Start looking at America as your child and you would be surprised how fast people start caring about the blatant abuse in our government. John McCain helped to create this beast and now that beast has plopped a huge bill on your door for more money out of your pockets.

America used to have a huge Conservative movement but they are silent during this crisis! Why? The truth is that the people that were supposed to be their champions just sold them all out. While the President and McCain were playing with our nations banking industry, the executives of those freed institutions ran wild and free till the money ran out. Now it is going to cost every man, woman and child in America $2300 bucks for the poor judgment that Senator McCain and President Bush showed over the past eight years. Having five children in my family, the wife and I own $16,100 dollars of the Bush/McCain error in judgment.

What Wall Street firm should I make the check out too. According to the terms of the Paulson bailout I should just sign the check and mail it to the U.S. Treasury. They’ll fill in the amount and the rest of the details later. By the way, the plan Paulson has proposed has a little feature that makes him, his entire department omnipotent and free from any oversight or court of law on how they spend the $700 Billion dollars. Are you okay with that?

Papamoka

$700 Billion Bailout Questions!

I don’t find myself agreeing with Michelle Malkin that often so pardon me while I try to swallow a little bile while writing this post. After you read what she has to say you just might find yourself agreeing with her too!

Both parties in Washington are about to screw us over on an unprecedented scale. They are threatening us with fiscal apocalypse if we don’t fork over $700 billion to Treasury Secretary Henry Paulson and allow him to dole it out to whomever he chooses in whatever amount he chooses — without public input or recourse. They are rushing like mad to cram this Mother of All Bailouts down our throats in the next 72-96 hours. And right there in the text of the proposal is this naked power grab: “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.” - Michelle Malkin

There is no way the Congress or the President should agree to this plan presented by Secretary Paulson for many reasons. The number one reason is that IT IS A BLANK CHECK! “Can not be reviewed by any court of law” is not the way we want to go on this crisis. Below is a copy of the entire plan with highlighted sections in red that are very questionable. I found the document over at the New York Times…

LEGISLATIVE PROPOSAL FOR TREASURY AUTHORITY
TO PURCHASE MORTGAGE-RELATED ASSETS
Section 1. Short Title.
This Act may be cited as ____________________.
Sec. 2. Purchases of Mortgage-Related Assets.
(a) Authority to Purchase.--The Secretary is authorized to purchase, and to make and fund commitments to purchase, on such terms and conditions as determined by the Secretary, mortgage-related assets from any financial institution having its headquarters in the United States.
(b) Necessary Actions.--The Secretary is authorized to take such actions as the Secretary deems necessary to carry out the authorities in this Act, including, without limitation:
(1) appointing such employees as may be required to carry out the authorities in this Act and defining their duties;
(2) entering into contracts, including contracts for services authorized by section 3109 of title 5, United States Code, without regard to any other provision of law regarding public contracts;
(3) designating financial institutions as financial agents of the Government, and they shall perform all such reasonable duties related to this Act as financial agents of the Government as may be required of them;
(4) establishing vehicles that are authorized, subject to supervision by the Secretary, to purchase mortgage-related assets and issue obligations; and
(5) issuing such regulations and other guidance as may be necessary or appropriate to define terms or carry out the authorities of this Act.
Sec. 3. Considerations.
In exercising the authorities granted in this Act, the Secretary shall take into consideration means for--
(1) providing stability or preventing disruption to the financial markets or banking system; and
(2) protecting the taxpayer.
Sec. 4. Reports to Congress.
Within three months of the first exercise of the authority granted in section 2(a), and semiannually thereafter, the Secretary shall report to the Committees on the Budget, Financial Services, and Ways and Means of the House of Representatives and the Committees on the Budget, Finance, and Banking, Housing, and Urban Affairs of the Senate with respect to the authorities exercised under this Act and the considerations required by section 3.
Sec. 5. Rights; Management; Sale of Mortgage-Related Assets.
(a) Exercise of Rights.--The Secretary may, at any time, exercise any rights received in connection with mortgage-related assets purchased under this Act.
(b) Management of Mortgage-Related Assets.--The Secretary shall have authority to manage mortgage-related assets purchased under this Act, including revenues and portfolio risks therefrom.
(c) Sale of Mortgage-Related Assets.--The Secretary may, at any time, upon terms and conditions and at prices determined by the Secretary, sell, or enter into securities loans, repurchase transactions or other financial transactions in regard to, any mortgage-related asset purchased under this Act.
(d) Application of Sunset to Mortgage-Related Assets.--The authority of the Secretary to hold any mortgage-related asset purchased under this Act before the termination date in section 9, or to purchase or fund the purchase of a mortgage-related asset under a commitment entered into before the termination date in section 9, is not subject to the provisions of section 9.
Sec. 6. Maximum Amount of Authorized Purchases.
The Secretary’s authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time
Sec. 7. Funding.
For the purpose of the authorities granted in this Act, and for the costs of administering those authorities, the Secretary may use the proceeds of the sale of any securities issued under chapter 31 of title 31, United States Code, and the purposes for which securities may be issued under chapter 31 of title 31, United States Code, are extended to include actions authorized by this Act, including the payment of administrative expenses. Any funds expended for actions authorized by this Act, including the payment of administrative expenses, shall be deemed appropriated at the time of such expenditure.
Sec. 8. Review.
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.
Sec. 9. Termination of Authority.
The authorities under this Act, with the exception of authorities granted in sections 2(b)(5), 5 and 7, shall terminate two years from the date of enactment of this Act.
Sec. 10. Increase in Statutory Limit on the Public Debt.
Subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting in lieu thereof $11,315,000,000,000.
Sec. 11. Credit Reform.
The costs of purchases of mortgage-related assets made under section 2(a) of this Act shall be determined as provided under the Federal Credit Reform Act of 1990, as applicable.
Sec. 12. Definitions.
For purposes of this section, the following definitions shall apply:
(1) Mortgage-Related Assets.--The term “mortgage-related assets” means residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before September 17, 2008.
(2) Secretary.--The term “Secretary” means the Secretary of the Treasury.
(3) United States.--The term “United States” means the States, territories, and possessions of the United States and the District of Columbia.

What do you think?

Papamoka