Saturday, October 4, 2008

"In order to accept this plan, ... he needs to be more scared"
Artist: Kate Purdy

Greg Bacon's blog

All that talk about the bailout bill going to help "Mr. and Mrs, Jones," helping Main Street and the American people and not Wall Street was just that, talk.

Inserted into the bill on page 61, was a provision snuck in by the Senate to make it MORE difficult for homeowners to seek mortgage relief.

From Democracy Now

JUAN GONZALEZ: Can you remember a time when there has been so much public anger and opposition to a piece of legislation, but yet the House and the Senate seem to be moving along and going ahead to pass it?

ROBERT JOHNSON: They can, what I would say, use the crisis anxiety of the market fragileness to, how would I say, accomplish their aims on behalf of money and do no service for the public. We have no mortgage relief in this bill whatsoever. As a matter of fact, the Black Caucus, some housing advocates and the AFL-CIO spent the night negotiating with Barney Frank’s staff to take out provisions that made mortgage relief harder. Now, I will say Barney Frank’s staff was working very hard to do that—they’re on the same side—but on the Senate side, somebody snuck that in on page 61 of the bill.

AMY GOODMAN: Explain. What do you mean?

ROBERT JOHNSON: There was a provision, that made it more difficult to get mortgage relief than under existing law, put in that bill at that time. But there are many other provisions of this bill.

They always say in the headlines now, it was “heads they win, tails you lose,” like that’s something looking backwards. It’s heads, Wall Street won yesterday; tails, the taxpayer lose now. But the structure of this bill, which depends upon buying overpriced assets, means heads, tomorrow, in a recovery, the banking industry wins again, and the population, the taxpayers who supported them in this bill, don’t go with them.

No one's riding to the rescue of Main Street or the Jones's.

All that pork that got inserted into the bill?

It's was pork, alright.

A big piece of sausage and I'll give you one guess as to where it got inserted.

Scared yet, America?

You should be, since there were traitors like Rep. Steven LaTourette (R-Ohio) who practically begged Paulson and Benrnanke to frighten the "little people" in his district by explaining the credit crisis to the "guy on the couch" in his district who is worried about losing his car, house and job. "In order to accept this plan, ... he needs to be more scared," LaTourette said.

Or this news from back in April, when Bush was deadset against any bailout ...... for homeowners.

"The Bush administration calls the bill a "bailout," saying it "strongly opposes" the legislation sponsored by House Financial Services Committee Chairman Barney Frank, a Massachusetts Democrat, intended to make it easier for homeowners to refinance their loans and stay in their homes.

The committee, which estimates that the program could help 1.5 million homeowners who are having difficulty paying their mortgages, is expected to approve Frank's bill next week."

An intervention that might have saved Main Street.

But no gravy to Wall Street.

Scared now?

You'd better start quivering in your boots, because there were NO provisions in the bailout for regulatory reform nor any mechanisms set up to address the massive amount of fraud and laws stomped on by Wall Street in their headlong rush to the gravy.

And that 700 Billion is only an opening bid. The US debt level was increased an additional 1.3 TRILLION Dollars. As soon as that same gang of thieves, liars and con artists move that initial 700 billion offshore, they'll be back for the 600 billion still left on the table.

Gravy only for the Big Boys

What if the Public Knew This?

On Saturday, Sept. 27, Gretchen Morgenson of the New York Times reported a remarkable story that may further shake public confidence in the bailout and the man in charge, Secretary of the Treasury, Henry M. Paulson. The Secretary held a top level meeting at the New York Federal Reserve Bank with “the nation’s most powerful regulators and bankers.” There was only one Wall Street executive in the room, Lloyd C. Blankfein, CEO of Goldman Sachs, the investment banking firm Paulson ran as chief executive before joining the Bush administration.

Discussed at the meeting was the fact that AIG owed Goldman Sachs $20 billion and was about to default. Following the meeting AIG was bailed out to the tune of $85 billion dollars. Paulson’s former firm, Goldman Sachs, clearly benefited as a result of the AIG bailout.

And you thought Lincoln abolished slavery.


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