If you tune into C-Span.. "The risk of NOT acting is just to great to bear." They will vote for anything, even this bill which has the potential to be death nail to Our economy, to look like they are doing "Something". They then claim that if this does not work out, in the words of Rep. Pickering of Mississippi (R), we will come back NEXT YEAR, to do major surgery on our financial system.. implying MORE regulation, MORE government direction of the markets instead of free markets..
Passing this act as it stands is nothing more than highway robbery of the worst sort. If your elected official proves to be weak, succumbing to the fear, or the special interest donors who fund their presence in Washington, we should all rise up and remove each and every last one of them.
The current version has been modified to include the results of the usual horsetrading, so we now have a codicil to provide for mental health care of certain demographic segments. Wow. That directly addresses the banking issues. These officials really have no shame.
If you are doubtful of this strongly expressed opinion, please consider the following.
The whole reason we are here, if you had to pick just one thing, is the Community Reinvestment Act. Read a full history here, [http://en.wikipedia.org/wiki/Community_Reinvestment_Act] and particularly note the sections about Carter's, Bush Sr., and Clinton's revisionist changes to the CRA act and how banks CRA Ratings are determined.
Congress forced via the CRA and the method by which a CRA RAting is determined to open the floodgates for extending mortgages to under qualified borrowers.
"The CRA was passed by the 95th United States Congress and signed into law by President Jimmy Carter in 1977 as a result of national pressure for affordable housing, and despite considerable opposition from the mainstream banking community.[2] The CRA mandates that each banking institution be evaluated to determine if it has met the credit needs of its entire community. That record is taken into account when the federal government considers an institution's application for deposit facilities."
The S&L meltdown was solved with $1.2b when congress was clamouring for $100b. The FDIC basically stabilized the system at the time without the need for the $100b blank check, and saved everyone of us $98b, four months of our current war budget.
Bush's Bill asked for $700b for Paulson. The current bill is basically the same, just reduces the amount to $250b.
-Allows a $250 BILLION blank check to Paulson.
-There has been no deliberation of the alternative plans.
- There are no amendments allowed to the bill as it stands.
- There are no other bills under consideration.
- Criminal Investigation. This is merely recommended, not required.
- The bill allows for nearly 50% of the proceed to go to foreign banks, not our own.
- The taxpayer's exit strategy in our investment in these banks is not clear, nor required. It is still up for negotiation, but before that occurs, we are giving the other side of the table the money. That is a certain way to be robbed.
The bill does not do anything directly to preserve pensions NOR access to credit for small and medium sized businesses. Only large businesses will be able to afford the credit that is now and will be available after the act. This means your jobs, such as they are in the context of a global trade imbalance, will will evaporate unless you work for a large company. If you work for a large company, the company will be able to reduce your compensation and benefits since the job market will so constrained, you will have nowhere else to go.
- The bill does nothing at all to address access for homeowners to stay foreclosure and and reset loans to current 30yr fixed mortgage rats.
- The bill does nothing to preserve access to student loans.
- The bill has very very little oversight since the first $250billion is a blank check to the Fed.
[The Fed can buy ANY type of securities at the price of their choosing.. and since we are the investors, we are going to be stuck with securities that will have been bought far above market value, so there is no hope of profiting off these debts we are buying. ]
- Executive Compensation - The warrants and stock options may or may not be extinguished. It is merely a recommendation at is stands. The limit of $500k/yr salary is whitewash since many executives have real salaries not far above that amount, but make their real money on bonuses paid in options and warrants. Even still, $500k/yr is 4 times higher than the highest average household income of North Fulton County in Atlanta GA, a very affluent and top 2% demographic in our Metropolitan Statistical Area. These exec's should be fired, and I mean sacked. They should be investigated for criminal negligence and/or fraud. And if they are able to keep their jobs, the salary and ALL compensation to which they are entitled, including any benefits, perks, and options, should be limited to a pre-tax amount of $125,000/year, the average income for an affluent neighborhood in a major city in the South East.
This bill is an awful mistake driven by fear, impatience, special interest goading our officials to a rash response. There is no current catastrophe that giving banks a free ride will fix. We must directly save homeowners, business loans, and student loans. This bill does NONE of this. It just rewards the ranks of the status quo for their failures.
Thank you.
Respectfully submitted,
Bryan Grant, Atlanta GA
BSM, MSM of Technology
Commercial Broker, President, Convivia Group Real Estate
Passing this act as it stands is nothing more than highway robbery of the worst sort. If your elected official proves to be weak, succumbing to the fear, or the special interest donors who fund their presence in Washington, we should all rise up and remove each and every last one of them.
The current version has been modified to include the results of the usual horsetrading, so we now have a codicil to provide for mental health care of certain demographic segments. Wow. That directly addresses the banking issues. These officials really have no shame.
If you are doubtful of this strongly expressed opinion, please consider the following.
The whole reason we are here, if you had to pick just one thing, is the Community Reinvestment Act. Read a full history here, [http://en.wikipedia.org/wiki/Community_Reinvestment_Act] and particularly note the sections about Carter's, Bush Sr., and Clinton's revisionist changes to the CRA act and how banks CRA Ratings are determined.
Congress forced via the CRA and the method by which a CRA RAting is determined to open the floodgates for extending mortgages to under qualified borrowers.
"The CRA was passed by the 95th United States Congress and signed into law by President Jimmy Carter in 1977 as a result of national pressure for affordable housing, and despite considerable opposition from the mainstream banking community.[2] The CRA mandates that each banking institution be evaluated to determine if it has met the credit needs of its entire community. That record is taken into account when the federal government considers an institution's application for deposit facilities."
The S&L meltdown was solved with $1.2b when congress was clamouring for $100b. The FDIC basically stabilized the system at the time without the need for the $100b blank check, and saved everyone of us $98b, four months of our current war budget.
Bush's Bill asked for $700b for Paulson. The current bill is basically the same, just reduces the amount to $250b.
-Allows a $250 BILLION blank check to Paulson.
-There has been no deliberation of the alternative plans.
- There are no amendments allowed to the bill as it stands.
- There are no other bills under consideration.
- Criminal Investigation. This is merely recommended, not required.
- The bill allows for nearly 50% of the proceed to go to foreign banks, not our own.
- The taxpayer's exit strategy in our investment in these banks is not clear, nor required. It is still up for negotiation, but before that occurs, we are giving the other side of the table the money. That is a certain way to be robbed.
The bill does not do anything directly to preserve pensions NOR access to credit for small and medium sized businesses. Only large businesses will be able to afford the credit that is now and will be available after the act. This means your jobs, such as they are in the context of a global trade imbalance, will will evaporate unless you work for a large company. If you work for a large company, the company will be able to reduce your compensation and benefits since the job market will so constrained, you will have nowhere else to go.
- The bill does nothing at all to address access for homeowners to stay foreclosure and and reset loans to current 30yr fixed mortgage rats.
- The bill does nothing to preserve access to student loans.
- The bill has very very little oversight since the first $250billion is a blank check to the Fed.
[The Fed can buy ANY type of securities at the price of their choosing.. and since we are the investors, we are going to be stuck with securities that will have been bought far above market value, so there is no hope of profiting off these debts we are buying. ]
- Executive Compensation - The warrants and stock options may or may not be extinguished. It is merely a recommendation at is stands. The limit of $500k/yr salary is whitewash since many executives have real salaries not far above that amount, but make their real money on bonuses paid in options and warrants. Even still, $500k/yr is 4 times higher than the highest average household income of North Fulton County in Atlanta GA, a very affluent and top 2% demographic in our Metropolitan Statistical Area. These exec's should be fired, and I mean sacked. They should be investigated for criminal negligence and/or fraud. And if they are able to keep their jobs, the salary and ALL compensation to which they are entitled, including any benefits, perks, and options, should be limited to a pre-tax amount of $125,000/year, the average income for an affluent neighborhood in a major city in the South East.
This bill is an awful mistake driven by fear, impatience, special interest goading our officials to a rash response. There is no current catastrophe that giving banks a free ride will fix. We must directly save homeowners, business loans, and student loans. This bill does NONE of this. It just rewards the ranks of the status quo for their failures.
Thank you.
Respectfully submitted,
Bryan Grant, Atlanta GA
BSM, MSM of Technology
Commercial Broker, President, Convivia Group Real Estate
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