McCain, Republicans purge Paulson-Pelosi bailout of most onerous
Obamanations
By Mike DeVine, Legal Editor for The Minority and HinzSight
Reports
We are going to have a hard time no matter what plan wins this
weekend. The issue re times, is will the plan ensure long hard
times (see many years).
[Monday, September 29, 2008 UPDATE - Bailout bill less likely to
usher in long, deep recession thanks to McCain and House
republicans. See my post-bailout bill posting Column:
Republicans purge Paulson-Pelosi bailout of most onerous
Obamanations
EXCERPT:
Thanks to the House GOP and McCain, we learn, the
following:
Democrats backed down from a controversial proposal to let
bankruptcy judges alter the terms of mortgages, and from another
that would have steered any ultimate government profits from the
package to affordable-housing programs. Not one thin dime for a
bridge to ACORN for any squirrelly leftist, and as to help for
homeowners:
Treasury will buy mortgage-backed securities, mortgages and
other assets secured by residential real estate. The legislation
requires Treasury to use its position as the investor in those
loans and securities to "encourage the servicers of the underlying
mortgages" to help minimize foreclosures.
All investors should, of course, “minimize” foreclosures. This
language simply states the obvious in prudence. The Obama Democrats
wanted the government to have non-gambling insured mortgagors to
pay for gamblers’ homes and in essence buy them loyal democrat
voters for life, and forever socialize the housing market.
[Rush Limbaugh is reporting today - FRIDAY UPDATE - This is now
occuring in the context of Democrat politicization of the process
as Reid blames the arrival of McCain to DC as causing a bi-partisan
deal to blow up. That is a lie. All but a few Republicans were on
board for anything like the Paulson Plan, and the intent of the
Dems is to force the GOP to alientae its conservative base. There
is hope that this action is backfiring and bringing McCain closer
to the base. Moreover, the Dems let Obama speak first in Thursday's
White House meeting and the first words out of his mouth attacked a
Republican Study Committee originated plan that he was ignorant of
until a short time before the meeting when he got an e-mail from
Treasury Dept. employees.]
[September 26, 2008 UPDATE - It appears to Gamecock that
suspension of the mark-to-market rules would accomplish the main
goal of the bailout (removing bad loans from the books), by raising
the value of capital on the books of financial institutions, thue
freeing up capital for new loans.
I also favor two-year moratorium on cap gains taxes and corp
taxes and repeal of Sarbanes-Oxley and would reject any plan that
requires taxpayers to bail out mortgagors holding mortgages they
can't afford based on their income (people that gambled their homes
would appreciate hoping to then re-fi down to an affordable mtg
payment) as this would do semi-permanent damage to the free market
and be a giant step towards wealth destroying socialism we see in
Europe.
But it seems to me that the accounting change ought to provide
the confidence the markey needs to unclog its new loan producing
arteries.]
Many Americans are now in the midst of a year-long hard time
born of skyrocketing energy prices and/or the housing/credit
crunch. It has been nearly impossible to get small business loans
for many months and home loans for all but the top ten percent of
credit risks for many more months.
This column has long chronicled the Democratic Party’s explicit
policy of energy self suicide since 1978 in restricting access to
expanded oil drilling and their regulations (especially including
the Endangered Species Act and environmental lawsuits) making the
building of oil refineries and nuclear power plants nearly
impossible.
Below, I discuss the artery-hardening diet the Democrats have
force-fed the credit markets since 1998 that is the cause of the
present crisis. But before we look at what got us to this
precipice, let us look at where we are.
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