“‘There is a growing feeling that banks … might instead decide to tough it out,’ said Thomas Caldwell, chairman and CEO of Caldwell Financial, a $1bn-plus fund manager.”
“For the past two weeks all eyes in the market have been focused on US Congress and its attempts to pass Treasury Secretary Henry Paulson’s bail-out package - a bill to allow the US government to buy up to $700bn of toxic mortgage-related assets from American banks, which would in theory free the credit markets and set the gears of global commerce spinning once more.”
“Last Monday, after the bill was thrown out by the House of Representatives, more than $1 trillion was wiped off the value of US stocks as the market was gripped by panic. The bill was passed on Friday afternoon, however, after the inclusion of $149bn of tax breaks and strict rules for participating banks.”
“But Wall Street analysts, believe the addition of so many terms to the bill might deter potential participants.”
Full article @ http://www.guardian.co.uk/business/2008/oct/05/wall.street.bailout
“There’s only one reason that Congress passed the financial bailout measure this past week: Wall Street and politicians kept warning of an impending credit collapse that could be solved only by rescuing some irresponsible investment banks and by purchasing securities that have become “bad paper.” ”
“Don’t believe the lies!”
“Pouring money into the investment banks at all - and especially by buying up their bad paper - is not a good way to maintain liquidity and credit.”
Full column by Ari J. Officer & Lawrence H. Officer @ http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/10/05/IN8N13AC2G.DTL
On Monday, September 29, the House of Representatives voted down the first attempt to pass a Wall Street Bail-out bill. After the House defeated the original bill, a revised version of the Bail-out was introduced into the U.S. Senate, and on Wednesday, October 1, passed by a margin of 74 to 25. On Friday, Ocotber 3, the House of Representatives voted to pass the Senate Bail-out bill.
Article 1, Section 7, Clause 1 of The Constitution of the United States says: “All Bills for raising Revenue shall originate in the House of Representatives…”
Therefore the Senate bill is a clear violation of The Constitution of the United States.
A variety of commentaries on this section of the Constitution, and why it was adopted, are available @
Michael Nystrom has posted a commentary about the sharp decline in stock prices that occurred on Friday, after the House of Reprsentatives passed the Bail-Out. Worth reading here http://www.dailypaul.com/node/66669
As the Los Angeles Times reports today, on Friday, after the House vote, the stock market declined to its lowest point since October 2005.
In 1981, when Ronald Reagan and Jack Kemp proposed across the board cuts in federal income tax rates, they suggested that if people could keep more of their own money, they would work harder and the economy would grow. Democrats attacked the supply side approach as just more “Trickle-down” economics. Even now, as the Bush League Republicans support tax cuts while spending money like drunken Democrats, Sen. Obama and others still accuse them of believing in the “Trickle-down” theory.
The bail-out of big financial institutions proposed by President Bush has been supported by Sen. Obama and other Democrat leaders, who say that saving Wall Street will save Main Street. This seems to indicate that when it comes to taxpayer funded bail-outs of well-connected but otherwise incompetent financial managers, the Democrats are now OK with Trickle-down bail-outs.
On Monday, September 29, the House of Representatives defeated the proposed $700 billion bail-out for banks and financial institutions. On Friday, October 3, the House passed the Bail-Out after 33 Democrats and 25 Republicans changed their vote. Many of the Democrats came out in support after personal appeals from Sen. Obama, and many of the Republicans voted Yes because Sen. McCain urged them to.
The only Republican Congressman from Arizona to vote Yes on Friday was Rep. John Shadegg. For many years, Rep. Shadegg has introduced bills to require that when a member of Congress proposes a new law, he must state the section of the Constitution that authorizes the federal government to act. Yet, when he voted Yes, Rep. Shadegg did not explain where in the Constitution the Federal Government is authorized to bail out banks.
I have gone to Rep. Shadegg’s website, and used the email form to ask the Congressman this:
Congressman, you have repeatedly introduced a bill that would require members of Congress to state the Constitutional provision which authorizes the government to act, when they introduce any new legislation.
What is the Constitutional Provision that authorizes the federal government to spend $700,000,000,000 to bail out well-connected but otherwise incompetent financial managers at some of our largest banks and financial institutions?
“Senator Lautenberg believes that if you throw enough money at a problem you will fix it. That is why he supported rewarding the Big Three automakers in Detroit for their bad business judgment with a taxpayer funded bailout. These companies are in their present state because they failed to develop fuel-efficient cars and because they successfully convinced Congress not to raise fuel efficiency standards for decades.
“For too long Senator Lautenberg has failed to effectively address the interests of New Jersey families. New Jersey families are facing an energy crisis, an affordability crisis and a financial crisis. Yet Senator Lautenberg is sending billions to bail out the Big Three automakers in Detroit rather than take care of New Jersey’s needs.
Full release from Dick Zimmer, Republican for Senate @ http://www.zimmerforsenate.com/releases/98
“Yesterday taxpayers across the country were asked to hold their noses, reach into their pockets and pony up $700 billion or more to bailout Wall Street. This on top of $200 to $300 billion to bailout Fannie Mae and Freddie Mac.
“We are at this point because our elected officials in Washington — including Senator Frank Lautenberg — did not provide effective oversight of the marketplace.
“These elected officials created a system of private profit and socialized risk and allowed Wall Street to run wild. Now, thanks to politicians in Washington, Main Street is bailing out Wall Street.
Full release from Dick Zimmer, Republican for Senate @ http://www.zimmerforsenate.com/releases/99
“With no fanfare and little notice, the national debt has grown by more than $4 trillion during George W. Bush’s presidency. ”
“It’s the biggest increase under any president in U.S history.”
“On the day President Bush took office, the national debt stood at $5.727 trillion. The latest number from the Treasury Department shows the national debt now stands at more than $9.849 trillion. That’s a 71.9 percent increase on Mr. Bush’s watch.”
Full expose @ http://www.cbsnews.com/blogs/2008/09/29/couricandco/entry4486228.shtml
As John McCain and Barack Obama jockeyed for position in the race to appear “leader-like” over the economy and in upcoming debates, the latest update of the National Taxpayers Union Foundation’s (NTUF) candidate cost analysis project shows that despite their different styles, the major party Presidential hopefuls have one thing in common: both their agendas would add billions more to the taxpayer’s tab every year.
NTUF’s fourth and final round of assigning price tags to the candidates’ platforms since January 29 found that Sen. McCain (R-AZ) would increase yearly federal spending by $92.4 billion, compared to Sen. Obama’s (D-IL) $293.0 billion. NTUF also released a first-time analysis of Libertarian Party candidate Bob Barr, who would instead cut annual federal spending by $200.9 billion. The studies include proposals through September 19.
“Both the McCain and Obama campaigns have tried to keep pace with the political issues of the day — largely by responding with proposals for new programs and regulations that could reach deeper and deeper into taxpayers’ pockets,” NTUF Senior Policy Analyst Demian Brady said. “On the other side of the spectrum, Bob Barr’s Libertarian philosophy is strongly reflected in a platform that is built upon cutting programs and slashing spending.”
Full Statement @ http://www.ntu.org/main/press.php?PressID=1048&org_name=NTUF