Some House Members Remain Unmoved

Two House members who voted against the $700 billion Wall Street rescue bill on Monday plan to vote against it again on Friday, unconvinced this offering is any better.

Rep. Darrell Issa (R-Calif.) resents administration pressure to pass the bill and says there are other ways to unfreeze the credit markets.

"When the administration comes to us and says, 'It's our way or the highway,' no, it's the people's way," Issa said moments ago on CNBC.

Like many fiscal conservatives, Issa wants the SEC to fully eliminate mark-to-market accounting rules, which he says unfairly require the banks holding the so-called "toxic assets" to value them too low. The SEC eased the mark-to-market rules slightly on Tuesday.

Also on CNBC, Rep. Bobby Scott (D-Va.), said he would vote against the bill again, even though he predicted it will pass.

Told by CNBC anchors that some traders believe the market will crash if the House does not pass the bill, Scott replied: "The market might crash anyway."

Scott said nobody knows how many of the toxic assets are out there and what their value should be.

-- Frank Ahrens

October 2, 2008; 1:30 PM ET  | Category:  business
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This whole thing has been mismanaged for the past year and a half by Bernanke and Paulson. Bernanke is an academic in over his head just like the academic Rice is in over her head in foreign affairs. Bernanke reacts to events rather than trying to get ahead of them. He cut rates in response to stock market movements instead of economic data. He has had at least six months since the Bear Stearns collapse to get a handle of the amount of toxic mortgage held by banks. Now Barney Frank was on TV saying nobody knows if the 700 billions would be enough or too much. In short they pull that number out of a hat. Can you blame the congress guys who voted against it?

As for Paulson he repeatedly claimed the subprime crisis was contained. He chose to save some banks and let the other die for no clear reasons. He bailed out bondholders of some and let bondholders of others hanging. There seems to be no method to his madness. He could have kept a lid on this thing until the end of the Bush term with a 10 billion bailout of Leheman but chose to bluff the market instead. The market called his bluff and then he came in with this 700 billion request with all kinds of unreasonable conditions. Apparently Wall Street beggars can be choosy. Last but not least he has had two weeks now to come out to say how he will spend the money so the people who want to give him the benefit of the doubt can do so. But still there is no clear plan. At the very least tell people how he plans to buy these debts. At market value. With a fair premium over market to cut the banks the slack they need. At full price, etc.

Just like in Iraq we may need a whole sale change in personnel at the top if we want to reverse this widening crisis. The election can't come soon enough.

Posted by: Anonymous | October 2, 2008 1:52 PM

LET IT BE SAID HERE FIRST.

1) CEAN OUT YOUR BANK ACCOUNTS NOW.

2) DONT YOU KNOW WHY THEY INCREASE IT?? IT BECAUSE THE SMART ONES ARE TAKEING THIER MONEY AND RUNNING TO LOCAL BANKS AND CREDIT UNIONS.

3) WHY BECAUSE THE GOVERNEMNT AND WALL STREET WANT ALL MONEY THATS WHY..WHAT THEY PAY YOU 1 TO 3 PERCENT ON IT /> /> BUT GIVE IT OUT AT 8 9 12 15 20 PERCENT..WHATS FAR WITH THAT PICTURE AMERICANS??

THE GOVERNEMNT WANTS TO HAVE ONLY WALL STREET AS BANKS..NOW STOP THEM NOW. TAKE ALL MONEY OUT OF MARKETS AND WALLSTREET.LET THEM GO DOWN. THEN AND ONLY THEN CAN WE THE PEOPLE GET BACK TO GOING DOWN TO OUR LOCAL BANK AND SHAKING HANDS AND SITTING DOWN WITH FREINDS AND GETTING A LOAN..WITH NO HASSELS, NO WORRIE, WHY BECAUSE THEY THE LITTLE BANKS WILL HAVE CONTROL OF ALL MONEY AGAIN.. NOT WALL STREET..

AND THAT S WHY THESE SCUM BAG SENATER PUT IN THAT 250,000 GARRENTY..YA RIGHT!!

THE FDIC DOESNT HAVE THE MONEY ....THEY HAVE COME OUT AND SAID THEY WILL HAVE TO GO TO CONGRESS FOR HELP..VERY SOON..WHAT A JOKE...THE WORLD WILL END THE WORLD WILL END..BULL CRAP..

TAKE YOUR MONEY PEOPLE....

YOU HAVE BEEN WARN.

OVER 200 OF THE TOP ECCOMMIST SAY THE BAIL OUT WILL ONLT HURT MORE AVERAGE AMERICANS THAT THE RICH.

THEY SAY NO BAIL OUT.. LET THEM CLEAN THEMSELVE OUT LIKE ALL AMERICANS HAVE TO.. THET SAY LET THEM GO THROUGH BANKRUPY PERIOD........LIKE SO MANY AMERICANS HAVE TO EACH DAY AND SO FAR OVER 10 MILLION THIS YEARS ALONE HAS TO AND IS GOINFG THROUGH IT..BECAUSE OF THESE SCUM BAGS.

DAVID A BELANGER
VETERAN
FOR-AMERICA@HOTMAIL.COM
9786183105

P.S. I FOR GOT ONE IMPORTANT THING!!NOT THAT THEY( MEANING WALLSTREET FAT CATS YOU KNOW THE ONES THAT HAVE DONE ALL THIS CRAP) THEY HAVE OVER 3 TRILLION DOLLARS SITTING OVER IN THE CAMIN ISLAND, JUST SITTING THEIR!!!!!!!!!!!!!!

MAKE THEM USE THIER MONEY..TELL THEM TO USE ALL THE TRILLIONS YOU STOLE FROM AMERICANS.

AGAIN LET ME STRESS THAT THE GOVERMENT AND WALL STREET IS TRYING TO GET ALL MONEY.

TAKE ALL MONEY OUT NOTHING IS SAFE RIGHT NOW.. NOTHING.. AND I DONT CARE WHAT THEY SAY IT WOULD BE MONTHS EVEN YEARS BEFORE YOU GET YOUR SO CALLED FDIC INSURED MONEY...

RUN AMERICANS RUN AND TAKE ALL MONEY OUT..WE THE PEOPLE DO HAVE A VOICE WE HOLD THE MONEY THEY NEED IN THIER BANKS...WE THE PEOPLE DO..SO GET IT OUT OF WALLSTREET AND ALL BANKS..GO TO YOUR LOCAL SMALL BANK AND GIVE IT TO THEM AND PUT SOME UNDER THE PILLOW..YOU WERE WARN

Posted by: david,veteran | October 2, 2008 2:20 PM

Hey "David Veteran", I just called the prison guard and told him that Kaczynski is using the prison library to post his manifesto online again.

Posted by: Andy | October 2, 2008 2:58 PM

Hey David, nice analysis. Too bad you can't either (a) make a point, or (b) spell, or (c) conjugate verbs...

Posted by: whoa | October 2, 2008 2:59 PM


Before I start, just a few things I'd like to mention.

One, WHAT IS UP with people using ALL CAPS? For heaven's sake, it's not only RUDE, it's really, really HARD TO READ.

Second, I'm an adult. A grown-up. I understand it's "bad" for credit to "freeze." So why the big hurry from Bush? I really don't trust that guy.

Has anyone considered the following from Dave Ramsey? His plan doesn't cost $700B.

------------------------------------------

Years of bad decisions and stupid mistakes have created an economic nightmare in this country, but $700 billion in new debt is not the answer. As a tax-paying American citizen, I will not support any congressperson who votes to implement such a policy. Instead, I submit the following three steps:

Common Sense Plan.

I. INSURANCE

A. Insure the subprime bonds/mortgages with an underlying FHA-type insurance. Government-insured and backed loans would have an instant market all over the world, creating immediate and needed liquidity.

B. In order for a company to accept the government-backed insurance, they must do two things:

1. Rewrite any mortgage that is more than three months delinquent to a 6% fixed-rate mortgage.
a. Roll all back payments with no late fees or legal costs into the balance. This brings homeowners current and allows them a chance to keep their homes.
b. Cancel all prepayment penalties to encourage refinancing or the sale of the property to pay off the bad loan. In the event of foreclosure or short sale, the borrower will not be held liable for any deficit balance. FHA does this now, and that encourages mortgage companies to go the extra mile while
working with the borrower—again limiting foreclosures and ruined lives.

2. Cancel ALL golden parachutes of EXISTING and FUTURE CEOs and executive team members as long as the company holds these government-insured bonds/mortgages. This keeps underperforming executives from being paid when they don’t do their jobs.

C. This backstop will cost less than $50 billion—a small fraction of the current proposal.


II. MARK TO MARKET

A. Remove mark to market accounting rules for two years on only subprime Tier III bonds/mortgages. This keeps companies from being forced to artificially mark down bonds/mortgages below the value of the underlying mortgages and real estate.

B. This move creates patience in the market and has an immediate stabilizing effect on failing and ailing banks—and it costs the taxpayer nothing.


III. CAPITAL GAINS TAX

A. Remove the capital gains tax completely. Investors will flood the real estate and stock market in search of tax-free profits, creating tremendous—and immediate—liquidity in the markets. Again, this costs the taxpayer nothing.

B. This move will be seen as a lightning rod politically because many will say it is helping the rich. The truth is the rich will benefit, but it will be their money that stimulates the economy. This will enable all Americans to have more stable jobs and retirement investments that go up instead of down. This is not a time for envy, and it’s not a time for politics. It’s time for all of us, as Americans, to
stand up, speak out, and fix this mess.

Posted by: tony the pitiful copywriter | October 2, 2008 3:07 PM

the point is that these companys have 3.5 trillion,3,0000000000000000000000000000000000000000000000000000000000000. in the camin islands that they put over thier so they dont get taxed.

so let them bail themselve out with all that money. it all came from this mess so let them use their money.

instead of doing the right thing with 10's of millions of americans loseing thier homes as they should of, like this should of been done 4 years ago and we wouldn't be in this mess, they should of at that time cut 40 percent off every mortgage and gave them a good rate, and start over.

now they still need to do it, but now they need to cut 70 to 80 percent off and that is still a great deal for them, because they are getting penny on the dollar for them at autions..so 20 or 30 cent is better then nothing.

and as a veteran that has served,and most of you on here only care about how someone spells go's to show that you dont care about my country. the united states of america.

so bite me.
david a belanger
veteran,u.s.army inf.
for-america@hotmail.com

Posted by: david,veteran | October 2, 2008 3:22 PM

LET IT BE SAID HERE FIRST.

1) ClEAN OUT YOUR BANK ACCOUNTS NOW.

2) DONT YOU KNOW WHY THEY INCREASE IT?? IT BECAUSE THE SMART ONES ARE TAKEING THIER MONEY AND RUNNING TO LOCAL BANKS AND CREDIT UNIONS.

3) WHY BECAUSE THE GOVERNEMNT AND WALL STREET WANT ALL MONEY THATS WHY..WHAT THEY PAY YOU 1 TO 3 PERCENT ON IT /> /> BUT GIVE IT OUT AT 8 9 12 15 20 PERCENT..WHATS FAR WITH THAT PICTURE AMERICANS??

THE GOVERNEMNT WANTS TO HAVE ONLY WALL STREET AS BANKS..NOW STOP THEM NOW. TAKE ALL MONEY OUT OF MARKETS AND WALLSTREET.LET THEM GO DOWN. THEN AND ONLY THEN CAN WE THE PEOPLE GET BACK TO GOING DOWN TO OUR LOCAL BANK AND SHAKING HANDS AND SITTING DOWN WITH FREINDS AND GETTING A LOAN..WITH NO HASSELS, NO WORRIE, WHY BECAUSE THEY THE LITTLE BANKS WILL HAVE CONTROL OF ALL MONEY AGAIN.. NOT WALL STREET..

AND THAT S WHY THESE SCUM BAG SENATER PUT IN THAT 250,000 GARRENTY..YA RIGHT!!

THE FDIC DOESNT HAVE THE MONEY ....THEY HAVE COME OUT AND SAID THEY WILL HAVE TO GO TO CONGRESS FOR HELP..VERY SOON..WHAT A JOKE...THE WORLD WILL END THE WORLD WILL END..BULL CRAP..

TAKE YOUR MONEY PEOPLE....

YOU HAVE BEEN WARN.

OVER 200 OF THE TOP ECCOMMIST SAY THE BAIL OUT WILL ONLT HURT MORE AVERAGE AMERICANS THAT THE RICH.

THEY SAY NO BAIL OUT.. LET THEM CLEAN THEMSELVE OUT LIKE ALL AMERICANS HAVE TO.. THET SAY LET THEM GO THROUGH BANKRUPY PERIOD........LIKE SO MANY AMERICANS HAVE TO EACH DAY AND SO FAR OVER 10 MILLION THIS YEARS ALONE HAS TO AND IS GOINFG THROUGH IT..BECAUSE OF THESE SCUM BAGS.

DAVID A BELANGER
VETERAN
FOR-AMERICA@HOTMAIL.COM
9786183105

P.S. I FOR GOT ONE IMPORTANT THING!!NOT THAT THEY( MEANING WALLSTREET FAT CATS YOU KNOW THE ONES THAT HAVE DONE ALL THIS CRAP) THEY HAVE OVER 3 TRILLION DOLLARS SITTING OVER IN THE CAMIN ISLAND, JUST SITTING THEIR!!!!!!!!!!!!!!

MAKE THEM USE THIER MONEY..TELL THEM TO USE ALL THE TRILLIONS YOU STOLE FROM AMERICANS.

AGAIN LET ME STRESS THAT THE GOVERMENT AND WALL STREET IS TRYING TO GET ALL MONEY.

TAKE ALL MONEY OUT NOTHING IS SAFE RIGHT NOW.. NOTHING.. AND I DONT CARE WHAT THEY SAY IT WOULD BE MONTHS EVEN YEARS BEFORE YOU GET YOUR SO CALLED FDIC INSURED MONEY...

RUN AMERICANS RUN AND TAKE ALL MONEY OUT..WE THE PEOPLE DO HAVE A VOICE WE HOLD THE MONEY THEY NEED IN THIER BANKS...WE THE PEOPLE DO..SO GET IT OUT OF WALLSTREET AND ALL BANKS..GO TO YOUR LOCAL SMALL BANK AND GIVE IT TO THEM AND PUT SOME UNDER THE PILLOW..YOU WERE WARN

Posted by: david,veteran | October 2, 2008 3:25 PM

It isn't too late. Let your voice be heard!

Call your Congress member at (202) 224-3121, and send an email here at www.votenobailout.org.

Contact the media as well. Flood them with emails. The media will hopefully start reporting the sentiment and it could have a change.

email addresses:
Special@foxnews.com,
Cavuto@foxnews.com,
streetsigns@cnbc.com,
fastcall@cnbc.com,
Foxreport@foxnews.com,
wolf@cnn.com,
show.livedesk@foxnews.com,
FNS@foxnews.com,
Hannity@foxnews.com,
Atlarge@foxnews.com,
Foxreport@foxnews.com,
bullsandbears@foxnews.com,
americasnewsroom@foxnews.com,
Nightly@NBC.com,
Today@NBCUNI.com,


http://www.cnn.com/feedback/cnntv

Posted by: Anonymous | October 2, 2008 3:28 PM


I appreciate all that veterans have done for this country.

But that doesn't mean I can't suggest you "play ball" with us folks who want to read what you post. If you try it, you'll see your eye balls appreciate it when folks refrain from ALL CAPS inside a message. It's an internet post, not a telegram.

That's all I meant by that.

Agreed, this bailout or "rescue" is a bunch of horse hockey. Poulson hands us a 3-page ransom note and Congress is all-too-ready to start throwing OUR MONEY at the problem.

If the market needs to fail a little, maybe it should. Someone might learn their lesson?

Posted by: tony the pitiful copywriter | October 2, 2008 4:00 PM

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