TITLE I - Authorizing the Treasury Department to Buy Mortgage-Related Assets
Sec. 7. Funding. (7 Comments)
For the purpose of the authorities granted under this Act, and for the costs of administering such 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.
7 comments on Sec. 7. Funding.
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There doesn't seem to be any provision for paying for this beyond praying it'll eventually pay for itself. I don't see any good reason not to add in Bernie Sanders suggestion of a 10% surcharge tax on the Americans who earn over a million a year. They're the ones who benefited from the last 8 years, who benefited from the policies which caused this disaster, they're the ones who should pay to clean up the mess.
posted by Ian Welsh, Firedoglake (www.firedoglake.com) at September 22, 2008 -
Recognizing that the executives previously controlling the businesses being made solvent again, were highly rewarded for practices and policies that led to the current situation, initial funding will be provided by them. All assets and holdings of executive of the corporations within the past 10 years will be liquidated, and applied to the cost of rebuilding a viable business. Any officer of the corporation whose compensation exceeded fifty times the average US wage earner income will be considered liable proportionate to their compensation.
posted by CarlB at September 22, 2008 -
Dear Secretary Paulson,
posted by Kosta J. Moustakas at September 23, 2008
My Proposed Plan would be to issue MTN ( Medium Term Notes) they would be AAA/aaa rated Cash Backed Bank Debentures. They would be issued by the Federal Reserve Bank of the United States. They would be sold Globally in US Dollars. The issuance would be by Top Financial Institutions in the World. Terms : 10 years and (1) Day Interest: 7.5% Seasoned Securities Transaction Codes would be Depository Trust Corporation and Euroclear The Ratings would be S&P AAA / Moodys aaa issue 250,000,000,000 Min to 1,000,000,000,000 Max the Projects would be for Fannie Mae, Freddie Mac, AIG, Financial Institutions, General Motors, Chrysler, Ford, Alternative Energy and infrastructure investments domestically. I would call it the AIG GLOBAL BOND backed by the full faith and credit of the United States of America. Project Funding would be what is needed to fund the growth of our new global economy. AIG component would pay for itself, just as the Big 3 and investing in alternative energies. There is a tremendous market globally for MTN's and we are the country that the world tries match but can't duplicate. We need to turn this around by investing in our country and giving the world an opportunity to participate.
Kosta J. Moustakas
President and CEO
KJM Securities, inc.
Bronxville, New York -
If this bailout is really needed, impose a Capital Security Tax to pay for it.
posted by William H. White (www.nota.org) at September 25, 2008
As a test of how real this capital market crisis is to those market parties, as well as a check on abuses arising from conducting such a bailout, Congress impose a Capital Security tax to cover the bailout costs in full. Just as Social Security and unemployment taxes cover the costs of labor security, the Capital Security Tax should cover the costs of capital security. This tax could consist of taxes on capital gains and financial transactions, the rates determined by the funds needed for a Capital Security Tax Trust for current and likely future bailouts. In addition, firms using funds from Capital Security Tax Trust should be required to pay them back over time in the form a restitution surcharge on net corporate income, not unlike unemployment insurance paid by employers and workers.
A Capital Security Tax would keep inflation down by not increasing the national debt and encourage market regulation needed for more orderly financial markets, since orderly markets would mean a lower Capital Security Tax. It is obvious that, unless the financial crisis is paid for by the capital sector, the current crisis and bailout will be far more expensive, and yet another crisis and bailout is sure to follow. On the other hand, if the financial industry is made to bear the burden of this bailout, it will far more likely to be tightly managed and limited to essential institutional bailouts. The Capital Security Tax creates a built-in self-interest for adequate regulation and prudent management to keep the Capital Security Tax low and limit the need for future Capital Security Tax Trust funds. -
Open up the warehouse full of them and disperse them pronto. Debt, what debt .. presto, a clean slate again ... lets get to porking the budget up again like its 1984.
posted by Issue The New Amero Coins Now .. at September 25, 2008
Muchos gracias. -
Who is accountable for "administration" expenses? Is this the same as the Haliburton and KBR, no bid contracts?
posted by Craig Bryant, Citizen at September 28, 2008 -
Any chance that we would require homeowners who bail out of their obligations to pay their mortgages, to pay back their debts over time with a long term (like a student loan) low interest loan. That would go a long way toward paying for this. Too many average Americans are bailing out with non-recourse loans. It's about integrity. Let Americans stand tall, be accountable, and maybe Congress will get in line.
posted by Mortgage Lender at September 28, 2008