There have been a lot of calls since the bailout failure yesterday for this-or-that public figure to resign, etc. Instead of engaging in useless displays of rhetoric, conservatives need to get behind a practical, hard-nosed, pro-investor agenda to improve this plan.
It’s going to pass this week. I’m told there are about 70 votes in the Senate. Pelosi would like to pass this with more GOP votes for cover, but if she has to she will put in bankruptcy “reforms” or ACORN money to get a couple of dozen more left wing votes. The President will then probably sign the legislation.
We have a brief moment in time here to improve this legislation. Here are some practical steps how:
Urge the President to suspend mark-to-market accounting rules for any distressed assets. While he’s at it, he should initiate a full repeal of the Clinton-era “Community Reinvestment Act” regulations.
House conservatives need to coalesce behind an “ask.” It should be tax-based. I posted a list of them on ATR’s blog yesterday. Pick a couple and stick with it. My personal suggestion would be to end the repatriation tax if the foreign deferred earnings are used to purchase distressed assets, and then give these assets Roth IRA-style tax free treatment. This should raise hundreds of billions of dollars, and might make taxpayer dollars unneeded at all
Start naming names. It’s pretty obvious that this problem was caused by government. Specifically, government-sponsored enterprises, government central bankers, government accounting dictators, and government mortgage bullies. We need to win the history on this if we’re going to win the future. Obama and Pelosi are decrying a lack of regulation. It was, in fact, a lack of freedom. If conservatives did all three of these things–win the interim, deliver the votes for a compromise while bringing private assets to the table, and get the blame game right–this could be a big win. But we need to get on board with making this work–now.
Well said Sir! Well said indeed.