The public comment period for this legislation has ended.

Treasury's Legislative Proposal From Treasury Department for Authority to Buy Mortgage-Related Assets

53 bill comments, 108 section comments

Congress is moving rapidly to enact a gigantic taxpayer bailout of the financial sector, with a potential cost of $700 billion or more than $2000 per American citizen. We believe, as Justice Brandeis said, that "Sunlight is the best of disinfectants," and that all legislation ought to be open to public comment and consideration in real-time, not just after the fact. So, as a public service, we're posting the eight-page text of the "Legislative Proposal from Treasury Department for Authority to Buy Mortgage-Related Assets" for public comment.

Read and comment on the Senate's most recent bill, posted October 1, 2008.

  1. TITLE I - Authorizing the Treasury Department to Buy Mortgage-Related Assets
    1. Sec. 1. Short Title. (14 comments)
    2. Sec. 2. Purchases of Mortgage-Related Assets. (13 comments)
    3. Sec. 3. Considerations. (10 comments)
    4. Sec. 4. Reports to Congress. (3 comments)
    5. Sec. 5. Rights; Management; Sale of Mortgage-Related Assets. (2 comments)
    6. Sec. 6. Maximum Amount of Authorized Purchases. (6 comments)
    7. Sec. 7. Funding. (9 comments)
    8. Sec. 8. Review. (41 comments)
    9. Sec. 9. Termination of Authority. (2 comments)
    10. Sec. 10. Increase in Statutory Limit on the Public Debt. (5 comments)
    11. Sec. 11. Credit Reform. (1 comment)
    12. Sec. 12. Definitions. (1 comment)

General Comments on Treasury's Legislative Proposal From Treasury Department for Authority to Buy Mortgage-Related Assets

sausan garelik, taxpayer on September 22, 2008

I could only support a "bail-out" that had complete transparency and complete impariality. For example, capital could be infused by creating new shares, owned by the taxpayers, in companies which have over-leveraged themselves into trouble. The Paulson plan merely feeds more money the worst malefactors in the least transparent, cosliest way-while presenting unlimited opportunity for further gaming by the same folks that got us here.

Karl, FedUpUSA on September 23, 2008

This legislation is fatally flawed. It effectively creates a position of financial dictator or "King" in the Treasury Secretary, enables that individual to force by dictate to follow his commands, including those that would force immediate bankruptcy, allows an unlimited amount of debt to be foisted off on the American Taxpayer, and places the actions of this new "King" beyond review of the courts.

For this reason it cannot be passed. For real alternatives and a real solution to these real problems, see http://FedupUSA.Org

Shaun on September 23, 2008

Poor decisions were made and those corporations should suffer the consequences, reguardless of the effect it may have on the economy.

DASmoot on September 23, 2008

We're told that if these organizations fail, it would cause catastrophic damage to the nation. Here's an analogy. The US Govt uses three levels of security classification for secret documents. These are, as you can imagine, tightly regulated. "Top Secret" is described as anything that, if disclosed, would cause grievous harm to national interests. Isn't that what we're being told will happen if this bailout is not approved? Then why wasn't this activity regulated like our national secrets? Why would something be allowed to grow so large and pervasive that a threat to its existence would cause grievous harm to our national interests?

Margaret Knowles on September 23, 2008

We have other choices. Please see Karl Denninger's plan at (three 10-minute videos on what Paulson has been and is currently up to, a peak at the treasury secretary’s hidden agenda, as he tries to convince our reps to let him hook his siphon to our future economy, to suck us and our kids and their kids dry) He says first we have to re-establish trust in the markets by 1. balance sheet transparency 2. give all banks 6 months to reduce their leverage (some are at 80:1!) to 12:1 and 3. credit default swaps - put these on a regulated exchange and null out the bad ones. the letter written by Karl Denninger to the Senate to Karl Denninger’s White Paper on the economic crisis

Ward Goodwin on September 23, 2008

If a financial organization is wanting the government to bail them out of the mess they are in. AND The government does so because 'IT'S TO BIG/IMPORTANT TO FAIL' then that problem should be fixed.

I suggest that the organization that is to big or to important be broken up into smaller separate organizations (similar to the creation of the baby bell's) of such size and area of responsibility that they will be responsible for their own actions including the responsibility for failing.

Steve Merchant on September 23, 2008

Take as long as necessary to report out a piece of legislation that will not compound the problem down the line. First, complete transparency, in what the money will be used/not used for, who decides who gets what and a process completely open to the public scrutiny; no open-ended authority. Limit what qualifies for bailout; public money should not be available for every bad debt out there. The public should own a piece of every entity that seeks relief and be able to exercise oversight over that entity. Companies seeking relief should not then be allowed to compete for the right to administer the relief effort. CEOs and top management of these companies should be restricted from collecting bonuses or exit packages related to their so-called job performance (they drove this car into the ditch, collecting pay for doing so is ridiculous). The Boards of Directors of these companies should also be called to account for dereliction of fiduciary duties. Include authorization restoring previous applicable regulations to preclude future problems.

MicheShi on September 23, 2008

If it's all too big to fail now, what will making it bigger do for us? Let's rip the band-aid off and them sort out their own mess.

Jane Taxpayer on September 23, 2008

If I had the choice of coughing up $2,000 (estimated cost per taxpayer) to pass this legislation or taking my chances on a "catastrophic" result by letting these houses fail, I'd take my chances. These assets are tied to my pension and 401k. Maybe my pension fund was managed better. Either way, this legislation sets a dangerous precedent.

michael o. kent on September 23, 2008

Lower the total amount of the bailout, and make very strict guidelines for getting bailout money. Make the penalties to failing banks real and the rewards to taxpayers real also.

E. Block on September 23, 2008

While I don't support any bailout, it is clear that some form of bailout is going to be approved. As such, any taxpayer funding should be in the form of equity investment. The banks and investment houses should bear the brunt of the pain: shareholder, board member and executive compensation should be limited and all bonuses eliminated until they return to profitability. Finally, put a cap on sub-prime and adjustable rate mortgage interest so it doesn't go up. Maintain the lower rates and far fewer people will face foreclosure, which will reduce the banks' losses.

InsidePerspective on September 23, 2008

Bet on dice, its a vice. Race horses, its a sport. Trade stocks, its investing. But its all gambling. True building of a business requires capital, which has typically come from commercial banks and the corporate bond market. Now, with securitization,credit derivatives, CDSs and the like, we've allowed the debt side of the capital markets to become the casino that equities have been for the last decade or two. The banking system should LEND for productive purposes, not to create the raw material for ABS, which are then used by investors to collateralize loans they get from the originating banks to buy the crap! America needs to focus on true priorities, not political expedience. URGE YOUR ELECTED REPRESENTATIVES TO VOTE AGAINST THE PAULSON POWER GRAB! LET THE CASINO CHIPS FALL WHERE THEY MAY!

Don on September 23, 2008

Why do I feel uncomfortable when Hank Paulson, ex chairman of Goldman Sachs and creator of many of these complex financial instruments that are coming unraveled, assures me that the taxpayer is being considered first in his proposed bailout plan? Rescuing Wall Street with taxpayers money so that, hopefully, some of it trickles back down to them sounds more like being second in line to me. Being considered first should, in the strongest possible language, mean that stock and bond holders of institutions participating in the bailout will be entitled to whatever money is left over AFTER all taxpayer money has been paid back in full with interest. If they are not interested in this definition of first let them make other financial arrangements.

Tracy on September 23, 2008

We're being told that the point of the bailout is for our tax money to buy the "garbage" loans so that the banks, etc. can clear them off the books and start making good loans again. Why can't we cut out the financial institutions and use the tax money to start making GOOD (i.e., conservative, A+, non-bailout) loans? Clearly the failed financial institutions weren't too good at this; but how hard can it be? Instead of hiring brokerage execs who made millions destroying the economy, we could get some smart new business school grads (who may not be having a lot of luck finding jobs right now) and some auditors and honest appraisers. Let the failing financial institutions figure out what to do with the loans they already have on the books, and let the taxpayers have some chance of getting our money back. Then we can use it for, say, health care.

JBinMO on September 24, 2008

All these securities that cannot currently be valued were bought with borrowered money. We hear that the government will buy them at a discount, but you cannot sell an asset that is the colateral for a loan without A. Getting the permission to the poeple that loaned you the money or B. come up with the difference your self or C. Borrow the difference on a loan without colateral. These banks loaned each other the money to buy these securities and cannot afford to take large write downs on those loans (that is part of the problem), these banks cannot come up with the money to make good to the debtor on a short sale (again that is part of the problem), that means one of two things will have to happen. That means these banks will have to borrow the money from the only people foolish enough to give them an unsecured payers...or the more likely sineario, these are going to be bought at nearly 100 cents on the dollar. That may explain why Paulson wants to make sure that there is no oversite and why he wants to make sure the courts have no juristiction to rule on what he does.

gail ford on September 24, 2008

i'm suffering from deja vu. All the talk of "crisis" and "immediate action by Congress needed" and "heretofore unthinkable powers to an individual" reminds me too much of the climate after 9/11. I urge all involved to slow down.

i also hope we'll take to heart that regulation is needed to keep greed in check. It doesn't seem right that taxpayers should be having to bail out bad policy and bad business (again.)

Jonathan (Taxpayer) on September 25, 2008

NO! My tax dollars should not be used for a Wall Street Welfare program. If the economy crashes, we should all go down. Do not make the average working class family burden the mismanagement of billion dollar businesses.

Andrew Brenner (taxpayer) on September 25, 2008

The $10K Solution

$10,000 is given to every taxpayer, with the provision that it must be used to pay down outstanding personal debt; those taxpayers without personal debt may use the money as they wish.

With about 138 million taxpayers, the upfront cost is 1.38 Trillion, all of which will be repaid by the taxpayer, interest-free, over a 20-year span. That's $500 per year per taxpayer, to get us all out of a significant amount of debt.

Liquidity for everyone happens, along with overall debt reduction -- for citizens, for corporations, for everyone.

Re-regulation of the financial sector (think Glass-Steagall on steroids) must follow immediately, including the outlaw of the ultra-risky derivatives and debt swaps that have contributed to this mess.

Pay Us First. The rest will follow.

Jim Thiede, Wilmette, IL on September 25, 2008

I'm not comfortable with the bailout, but I'm less comfortable with no action. My major concern is that the financial institutions that are able to get the "poor assests" off their balance sheets, will not use the relief in the way it is intended. If they take that relief to shore up their own balance sheets, continue to restrict credit and maintain or increase shareholder dividends and take the "bunker mentality" until the economy gets going again, I think the tax payers in that scenario get fleeced. If however, the institution that take the relief, are obligated to increase their loan activity to small and medium businesses and homeowners, by the same amount they got relief, then I think we'll get the desired "bang for our buck" and the goverment intervention will prompt the ecomony to get rolling again.

I'd also like to see those insitution who partake, be required to go back to homeowners with 1-5 year arms and work out a 30year fixed rate with some reasonable escalators to head off another rounds of bailouts

Mary Lickert on September 25, 2008

I do not trust Mr. Paulson of the 700 Million Club. Ask how many millions Goldman Sachs has sent to Congress for their free market and free trade agenda. How would they benefit from his proposal? The henhouse is full of foxes -- Mr. Bush, Paulson, Dodd, and so on. Why not invite back Mr. Clinton, Rubin, Gramm, and Greenspan? I support the plan of Senator Sanders.

ken gustafson (tax payer) on September 25, 2008

The $2000 cost per citizen is not correct. The money is not spent like a useless domestic program, lost forever. It becomes capital at risk, an investment in which the treasury borrows at government rates and invests in these devalued securities. As the government is buying them at deep discounts, the coupon will fund the carry or interest expense on the treasury in excess of cost, a source of profit. As these securities are held and currently priced in distress, they will recover and offer capital gains as well. This is why a clean bill without the useless Democratic attachments is critical. The clean bill is a carry-trade that the US government will win at. Imagine that. The Tax Payers are borrowing to buy these securities, with strong potential for gains over time. If all the securities go to ZERO, then it is a cost.

Margaret Hall (US citizen) on September 26, 2008

Asking the taxpayers to bail out Wall Street is not a solution to the underlying problems in our economy. Poor credit policies in part pushed on the financial markets by our Represeantatives, Senators, and other elected officials, and poor management of the financial institutions are the root of today's economic problems. Taxpayers did not create the problem, elected officials and mis management did, and both should be held accountable and in some cases prosecuted. The Original Proposal and the Dodd Proposal are not supported by the taxpayers of this great country. I suggest you all take a look at the proposal put forth by the House Republicans which is far more in line with what the people of this country would support. There should not be any pork or special interest extras tacked on to whatever proposal is passed. You work for the citizens of this country, and rest assured that we are tired of being taxed to death because you have made poor decisions and failed to do your duty.

MELVIN MYERS on September 26, 2008


michael madry on September 26, 2008

I hear many call for "complete transparency" when the very core of this fiasco is " the federal reserve fiat money printing machine" which WILL NOT ,IN FACT CANNOT be transparent. not FEDERAL BUT PRIVATE, not accountable but secretive. sen.Ron Paul and others have stated that fed. reserve will not allow public scrutiny and this can easily be verified . For those who have ears to hear let it be said...No man can serve two masters: for either he will hate the one, and love the other; or else he will hold to the one, and despise the other. YE CANNOT SERVE GOD AND MAMMON. and so i say this is the culminating dance of idiocy and they would have you to please join the dance. whom do you really serve if you can,t see this reality. PLEASE FORGIVE US FATHER FOR WE KNOW NOT WHAT WE DO.

Margaret Schafer on September 26, 2008

Please read the New York Times Article below. I am against rescuing the banks as Sec. Henry Paulson proposes.

September 23, 2008 Stopping a Financial Crisis, the Swedish Way


Anonymous on September 26, 2008

We need less government interference, fewer goverment offices and fewer government emmployees not sanction more interference, not add another office and no more employees sorting through more paper, writing, defining, and interpreting more bureaucracy. Back to no bailout, no manapulated socio-economic systems, no equal distribution of earned income and savings, no penalty for saving money to take care of yourself and your family, no penalty for investing funds in American business and industry. I don't mind paying taxes to support the things I need, want, desire and those things that make this a better place to live and provide charity for those in need. I don't like paying so others can be given what I can't pay for because I am paying so much in taxes so others can have ... well, you know the issue.

Lee Harville on September 26, 2008

To give absolute authority without review by committee or court to any public servent (let's not forget that is what they are supposed to be) is unconstitutional. To give this power, this ability to affect our entire economy, to an appointed Secretarial position is insane. Are you kidding me? Is this still America? I as a taxpayer will approve this loan, this bailout if there is a plan to collect and deciminate ROI. My kids should have the chance to benefit from this loan once the American economy recovers, as it always does. This loan should serve as the fulcrum necessary to out and oust the at best poor business leaders; and at worst greedy scoundrels who comodify the intangiable to print phoney money at our expense. It is not conceivable that any company that accepts my loan, necessitated by bad business decisions and questionable ethics, should be allowed to pay their CEO's huge bonuses. They killed their own free market long ago.

CB on September 26, 2008

One wonders if we are not already playing " whoes got the bill." My following comments are based on the 101 page " disscussion bill" I received from my congress person.

Read SEC. 128. of the Dodd proposal. DISCLOSURES ON EXERCISE OF LOAN AUTHORITY. It expects amoung other items a report from "the Board" that includes the specifics of the loan that include the size and duration of the lending, the value of any collateral held with respect to such a loan, .... any expected cost to the taxpayer for such exercise.

THEN amble on down to (c)CONFIDENTIALITY.óThe information submitted to the Congress under this section may be kept confidential, upon the written request of the Chairman of the Board, in which case it shall made available only to the Chairpersons and Ranking Members of the Committees described in subsection (a).

Bingo. We just have to play "hide the ball" don't we.

carol scott on September 26, 2008

although the whole thing stinks... the alternative is worse. We don't want to see another depression...which is exactly what wll happen if we let these institutions go under. Let's just try to get as much accountability in there as possible and try and eliminate the fat cat's ability to walk away with any money. We also shouldn't miss the opportunity to get the economy going again by actually investing in building and developing something instead of leveraging money and debt on top of loan and speculation. Send letters and e-mails to your elected officials to get behind alternative energy. It is the stimulus of growth for many European countries and our only salvation. It will aid the economy, create new jobs, end our dependence on foreign and domestic oil and solve the environmental crisis!

Rose Ward on September 27, 2008

Instead of bailing out the companies that screwed up how about stimulating the economy. The CEO's of these companies are million and billionaires. Give the bailout money to the American people about 138 million taxpayers. With the $700 billion diveed between us we could refinance our homes and stimulate the economy without making the CEO's and companies richer and leaving the American people still facing foreclosure and poor finances. My home is not in trouble but if I had money to refinance to make my payments lower I definitely would spend more and do my part in stimulating the economy. But as always the government wants to make the rich richer.

Anonymous on September 27, 2008

This bill is a back door scheme to purchase credit default swaps on sythentic mortagage bonds. These securities are leveraged 100 to 1 and will result in 70 trillion dollars of taxpayer liability for our 700 billion "investment" It is the Reagan era Ayn Rand inspired economists who have been in power and pulling the strings for 8 years parting shot. No new taxes and 80 trillion in debt will finally make it sure that all our taxes will go to pay interest, and that social security, medicare, and all these other social("ist") programs they hate so much will be permanently defunded.

Republicae on September 27, 2008

"...That to secure these rights, governments are instituted among men, deriving their just powers from the consent of the governed. That whenever any form of government becomes destructive to these ends, it is the right of the people to alter or to abolish it, and to institute new government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their safety and happiness. Prudence, indeed, will dictate that governments long established should not be changed for light and transient causes; and accordingly all experience hath shown that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same object evinces a design to reduce them under absolute despotism, it is their right, it is their duty, to throw off such government, and to provide new guards for their future security."

Annette Hardman on September 27, 2008


How about Ron Paul's bill reintroduced to the house that KILLS THE FED? Sounds good to me. We are in a recession headed for a depression already that no "bailout bill' will fix. The FEDS policies assured that a while ago. Let the Banks DIE! If we all will suffer let the bankers become paupers with the rest of us. Let the Markets work and let the markets get rid of the crap!!!

I am sick to death of all the strong arming and doom saying if this bill is not passed. We are all screwed regardless of whether you pass a bill or not. Bush sounds just like 9/11 with the scare tactics, now it's Paulson and Bernanke 9/11 with the markets. They along with Greenspan should be arrested and tried for fraud and treason set upon this country. Let em Fry and all there deranged, banker buddies with them. This will only prolong Americas agony for many years to come. The fed did this during the last depression they are doing now, so they can slink away to their "undisclosed locations" while the rest of us suffer their incompetence.

This Bill is illegal, immoral and unconstitutional in ANY FORM!! Do not vote period on it. This is America, not the USSR!! Let the markets fix the problem. DO NOT PUT THIS ON THE TAXPAYER!

Patriot Films on September 27, 2008

I strongly oppose ANY and ALL bailouts in ANY and ALL forms, and ANY legislator that votes yes to ANY bailout plan shall be removed from office.

It is time for Congress to:

1.) End the Bailouts - Congress must revoke the Federal Reserve's authority to bail out failed businesses at taxpayer expense.

2.) Cut Taxes and Curb Regulation - If we really want to stimulate businesses and revive the market, we need to cut corporate and capital gains taxes, spurring investors to come back to the market and making it easier to attract new workers and clients. It is also time to end failed legislation like Sarbanes-Oxley, which has crippled capital markets, diminished our competitiveness, and greatly harmed small businesses.

3.) Reduce Spending - We must freeze all non-entitlement spending by the federal government at current levels and eliminate wasteful spending both domestically and in our trillion-dollar overseas budget. Our debt has to come down, and it won't until we start living within our means.

4.) Reform the Monetary System - If we are to have long-term economic progress, we must end the system of printing money out of thin air. The current laws limiting the circulation of gold and silver-backed currency must be overturned. We can no longer base our money on the empty promises of bureaucrats that it is sound.

The federal government is trying to scare us into accepting more tyranny. I'm mad as hell and I'm not going to take it anymore!

The Tax Payer Demands you Listen and Act! on September 27, 2008

Add this to the draft!

Whereas, Congress of the United States is acting in contravention of the peoples wishes, that no cash bail-out for Wall Street be given sanction, and

Whereas, the people are currently being over taxed, Congress hereby is resolute that the taxpayers of the United States who's annual earning of $350,000 dollars or less, deserve, require and need debt relief, so be it enacted by congress assembled, that all tax payers shall have all previous years taxes still owed by them to the United States Treasury Shall be forgiven. They no longer will owe federal back taxes for any and all previous years; the people are hereby pardoned, and absolved from any further tax collection activity on previous years taxes, they shall start with a clean slate, all current tax payers serving time in prison or jail shall be set free as a result of this Act of Congress.

(Hint, we do not want a bailout for Wall Street, we just want a bailout that makes sense for the people who have been paying these over exaggerated tax bills for years. But if you forgive all previous years tax debts owed, forever forgiven, you just might be able to leave congress or your homes without hand cuffs and leg irons, placed on you by the angry mobs of tax payers that are telling you NO! No cash bailouts for Wall Street or any other private transactions and institutions. You put people in jail when they can't pay their taxes, but you want the taxpayers to foot the bill for those who should go to jail. Dear Nancy and congress are all of you insane or are you drinking Jim Jones Kool aid? No thanks we don't want a sip!)

Signed, The Taxpayer

P. O'd on September 27, 2008

Stop trying to fool the public by calling the bailout a "rescue plan."

President Bush is only trying to rescue his own ass, in a thinly veiled effort to avoid yet another black eye on his already charred record.

This is madness to ask us, the taxpayers, to cover the liabilities of Wall Street. We are tired of being fleeced.

To anyone in congress that votes to support this bailout, there will be hell to pay. Because I will do everything in my power to remove you from office before you can give away any more of our money to failed businessmen. And guess what? I'm not alone.

You want a bailout so badly? Members of congress voting in favor of it, Bush, Cheney, Bernanke, and Paulson should act like the "patriots" they claim to be and donate all of their salaries and liquid assets to pay it off.

I pay my bills on time. And when I don't, nobody is there to bail me out. I'm on my own. And so are these businesses.

No Bailout on September 27, 2008

As a taxpayer, I DO NOT give you -- or any other member of the house or senate -- permission to spend my hard-earned dollars on this bailout. Hard-earned dollars that are becoming worthless each and every day because of the failed policies and unconstitutional actions of the president, his administration, and the failure of congress to put a stop to them.

TIMOTHY L. FRY ,EX business/ TFE on September 27, 2008

LET us take a hard look at the BALANCE LEDGER, before doing (ANY) BUDGET BALANCING. WHO & HOW MUCH IS OWED to the U.S. GOV'T.???IS this real or a whim to suck blood ..The U.S certainly has assets FIXED & LIQUID that bring in income & liquidity..WE DO NOT want ANY more DEBT or ANY more RISK assumption AT ALL...RISK, too large for the expert investors to handle & you consider giving that kind OF RISK to the PUBLIC..THAT is TREASON ,HIGH TREASON; mam...JUST EXCUSE YOURSELF from entertaining such utter incompetence...THE WORLD will from now on hold us hostage & our very CONSTITUTION is in the balance..DON'T DO IT...SINCERLY TLF

Kyodai on September 27, 2008

I think that all that were involved in this..including congress need to be investigated and possible prosecution.Congress knew about this way beforehand...I include House as well as Senate..It is a sad day in America when a banker can tell congress to sit down and shut up...Sgt of Arms should have been called and off to jail you go.Congress you need to look your kids..grandkids and great grandkids..mother father and all your family in the eyes and tell them exactly how you have destroyed their does that make you feel..? Don't you know you have done it..? Money more important than family...? if so then you are a low life in my opinion.NO BAILOUT..!!!!!

brass monkey on September 27, 2008

Congress if you are just trying to blow some more money that you DO NOT HAVE, why not just send everyone in the country a check for $ 2300.00. It will not fix anything, but neither will your indebted us another trillion $ to bail out the banks.

The truth of the matter is that Wall Street's Vegas style derivatives games are starting to come apart at the we are talking about $ 740 trillion...big big that it is about equal to the annual global $ production.

You just have to hand it to the Federal Reserve, they have been in business since 1913, and when they go down, they really go down.

Since it is so obvious that they are the root cause of the problem, why are they being allowed into the equation to fix this fiasco?

A vote for Obama or McCain will get you more of the same. Vote all of them out and start passing out indictments !!

FreeLiberty on September 27, 2008

Many alternatives to the unconstitutional "proposal" are posted above. Continuing the erroneous policies of the past will not fix the situation but only make the situation worse.


All of you working on this know this. Despite this Congress (and those Congresses during the past six years) being complicit in this administration's trampling of the Constitution of this Republic, you have one last chance to stand up and honor your oaths of office by adhering to the Constitution. The solution to this manufactured (yes! I said manufactured!!!) crisis is in the original Constitution and its first ten amendments. Read it and use it! CONGRESS shall COIN money.

Pass HR 2755 to eliminate the (foreign) private banking cartel that controls this Replublic's money.

No to the proposal as it stands and any permutations you may come up with! Not in our name! Not on our watch!

Thomas Murphy on September 27, 2008

Everyone knows the adage, don't throw good money after bad. This is the time to adhere to it. Congress needs to drop the hot potato Paulson and Bernanke have thrown them. Forget the political ramifications of receiving the blame for what happens next because this bailout won't solve anything and in the end will make the crisis worse. Uphold the Constitution!, Vote no Bailout! I believe all congressmen have already taken an oath to that effect.

K. O. The Bailout on September 27, 2008

Speaker Pelosi:

Sooo .... lemme get this straight. Bush, Paulson, Bernanke and the leadership in congress weren't bright enough to prevent this mess. And collectively, it was the failed monetary policies of the above forementioned that caused the financial mess in the first place. Yet, you want the taxpayers to entrust the mental giants who were duplicitous in causing this fiasco $700+ billion because the light bulb went off, and you all suddenly know how to "fix" it?

Oh, the fix is in all right.

No way. No how. NO BAIL OUT. No exceptions.

Karl Denninger on September 28, 2008

Public opinion is running anywhere from 100:1 to 300:1 against passing this bill, according to sources on Capitol Hill. You must return home after you pass this package to ANGRY constituents with an election less than a month away. Given the massive size of this package, the fact that it rewards the guilty on Wall Street and does nothing to address the cause that anger is fully justified. Non-financial private debt is $32.4 trillion dollars1 as of 2Q 2008. Household debt is $14.0 trillion. Households lost 400 billion dollars last quarter. You wish to add $700 billion more in losses (via government obligations that taxpayers must cover) this quarter; this package is insignificant against the total bad credit outstanding. Federal capacity to “bail the system out” is insufficient. It will not and cannot work because the issue is trust, not money. There is lots of money (and credit) but it is being hoarded throughout the system. Consumer savings have gone from nothing to the highest rate ever in American history – in the space of a few months. Money is flying into Treasuries because of lack of trust, not lack of money. You must fix the cause of the problem, not apply band-aids. Commercial paper is being cited as the “lockup” that threatens an imminent financial train wreck. The truth is that commercial paper rates for “AA” rated non-financial firms is placing at a rate half that of a year ago as the Fed Funds target has been dropped from 5.25 to 2%2. With risk having increased the rate of return offered is lower? This is where the stress is coming from; at last summer’s rates this paper would roll. You are being gamed by Paulson and Bernanke; look at the table in the reference and you will see that even for “threatened sectors” rates are not materially higher than last year. If you pass this bill and the market implodes you will be held directly responsible. There are alternatives that will work; they all involve restoring trust and using existing market mechanisms to resolve insolvent institutions.3 While I am not particularly partial to my view on how we resolve “failed” institutions, addressing the root of the problem – lack of trust – is paramount. Three elements are involved here, they are obvious, and they must be fixed or you will FAIL. * We only get one more shot at this; we have spent over $1.6 trillion thus far (by some estimates; $500 billion by others) attempting the same thing over and over again and it has not worked.


B.W. on September 28, 2008

I was wondering, what impact does this bill have on Mortgage Servicers? Are they still going to be the servicer on the loan or will the government take on that particular task? Furthermore, does this force the servicer to take assistance action that they would not normally take?

One last thing...I don't see any sort of credit protection for the actual homeowner in here. Doesn't the little guy get any breaks for being put in their respective situations?

Linnea White, orchard owner/manager on September 28, 2008

I want to see the following: 1. restore Glass Stegal act so banks and investment institutions are separate; 2. kill Sarebanes-Oxley and remove mark to market requirement regarding value of assets; 3. kill the Community Redevelopment Act and stop requiring mortgages to be given to people who can't pay them back; 4. investigate and prosecute Acorn for illegal voter registration activities and blackmailing banks to force subprime loans; 5. allow people who can't pay their mortgages to become tenents (renters) in the same houses, ownership to remain with the mortgage holders, or allow them to move out; 6. prosecution of managers of Fannie May and Freddie Mac, including Franklin Raines and Jaimie Gorelic, for fraud and embezzlement; 7. allow companies with ownership of toxic unevaluated bundled mortgages to purchase insurance from the federal government, but receive NO FUNDS FOR A BAILOUT; 8. break up and privatize Freddie Mac and Fannie May; 9. investigate the bribes and sweetheart deals between Freddie and Fannie and Chris Dodd, Barack Obama, Barney Frank, and any other members of House and Senate who received "campaign contributions" from these entities, and prosecute to the full extent of the law.

Also, require Congress to publish all proposed legislation on the internet for taxpayer examination before any votes are allowed. Thank you.

Payday Loan Advocate on September 30, 2008

It is easy to get into trouble if you take a chance on something without being informed, or take action based on faulty information or assumptions. Currently, the pros and cons of payday loans are being hotly contested, and just what is in the future for the industry. Some of our leaders, from both sides of the aisle, have even enacted legislation at the state and local levels that makes it difficult to get a payday loan if you need one, and some have banned them outright. Still others, such as Barack Obama, are looking to get rid of the industry altogether; which is based on the idea that payday loan lenders are nothing more than legalized loan sharks, which is just outright faulty logic. This is the time to educate yourself and your friends so all can preserve their right to financial independence.

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Payday Loan Advocate on October 13, 2008

Like most Americans that constitute the ever-growing class of “disillusioned” voters, I watched the recent “town hall-style” debate between Barack Obama and John McCain. As expected, my perspective of politics and its participants remained the same: no matter how many direct questions you ask a politician, regardless of party affiliation, the answers you receive are nothing more than generalized sound bites. The New York Times described the debate as “ninety minutes of forced cordiality,” and I certainly agree. The Boston Globe reported that although the discussion was “mercifully free” of personal attacks, the discussion was also free of much of the tension that generates compelling television. McCain reiterated the value of his experience, his “stay the course” stance on Iraq, and his oil drilling policies. Obama condemned the Republican policies that he believes have led the American economy into its current recession. Based on the debate performances, we really have no concept of how either candidate would work to avoid a pending economic catastrophe. A realistic, well-thought out economic plan is what America needs. Obama’s stance on “predatory lending” – effectively sanctioning payday advance lenders – is not a legitimate solution to the real economic problems we face. Post Courtesy of Personal Money Store Professional Blogging Team Feed Back: 1-866-641-3406 Home: Blog:

Payday Loan Advocate on October 31, 2008

John McCain’s speech in Dayton, Ohio, was repeated on The New York Times. The Arizona senator appears to be in a fighting mode stating, “I’m an American. And I choose to fight. Don’t give up hope. Be strong. Have courage. And fight.” Through his words, he aims to fight for what’s right for America, for justice and opportunity, for the children. McCain makes sure not to ignore the economic concerns that are affecting every individual in the country and others, with items like Issue 5 on the agenda for Ohio voters. He is not hesitant to point out the “Barack the Re-distributor” will spread the wealth and not put policies in place that will create more jobs and opportunities for the nation. While Obama believes taxes are too low, McCain says the spending which seemed normal during the Bush administration is too high. As our country calls out for an economic resolution, McCain does not focus on payday loans as much as Obama. Obama’s promise to bail out Wall Street bankers with $750 billion of taxpayers’ money will not only put a strain on the industry, but many Americans as well. McCain’s ultimate plan for the economy is to “get it out of the ditch and back in the lead.” He feels this will enable Americans to rest easy, knowing they will pass on a better legacy to their children and grandchildren. Post Courtesy of Personal Money Store Professional Blogging Team Feed Back: 1-866-641-3406 Home: Blog:

Lisa P, (Payday Installment Loans) on November 25, 2008

Despite the associated risks and its challenges, we are adventurous to survive in the life struggles amidst financial crisis. If you’re a seasoned baseball fan, or any pro sport for that matter, you’ve probably heard the expression “holding a city for ransom.” In general terms, this means that team ownership is always on the lookout for increased profits, even if they’re shelling out as much in payroll as teams like the Los Angeles Dodgers, Boston Red Sox and New York Yankees. They will threaten to pull their team out of the city and move elsewhere unless the city and its taxpaying base meet the team’s demands. Nearly without fail, this demand is the greatest way to create “buzz” that brings the fans out in droves: building a new stadium. This may seem like an expensive endeavor, but not necessarily for ownership. New stadiums are, in fact, financed by taxpayers like you and me. In a very interesting USA Today story, you can get a sense of how astronomical the numbers can be. According to Gary Thorne, “The Yankees have already received $942 million in tax-exempt bonds for the construction of the new Yankee Stadium. They are seeking another $366 million in such bonds.” It’s all paid for by Joe Taxpayer. Congressional Subcommittee Chair Dennis Kucinich (D-Ohio) nails it by saying this ransoming is a “transfer of wealth from the many taxpayers to a few wealthy owners.” If you value pro sports as much as I do, you may see this as a necessary evil, but Congress wants to change that system. When it comes to financing, it doesn’t seem fair. Honestly, if you take out payday installment loans, do you expect someone else to pay them back for you? No, and neither should baseball owners. Let’s hope this system of highway robbery gets fixed before average fans can no longer afford to follow their favorite sport.