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The bill grants the Treasury Department broad authority to safeguard the nation’s two mortgage finance giants, Fannie Mae and Freddie Mac, potentially by spending tens of billions of dollars in federal money to prevent the collapse of the companies, which own or guarantee nearly half of the nation’s $12 trillion in mortgages.
To accommodate the rescue plan for the mortgage companies, the bill raises the national debt ceiling to $10.6 trillion, an increase of $800 billion and the first time that the limit on the government’s credit card has grown to 14 digits.
The bill grants the Treasury Department broad authority to safeguard the nation’s two mortgage finance giants, Fannie Mae and Freddie Mac, potentially by spending tens of billions of dollars in federal money to prevent the collapse of the companies, which own or guarantee nearly half of the nation’s $12 trillion in mortgages
First, let's focus on the aspect that should get the proposal dinged (or renegotiated) regardless of any possible merit, namely, that it gives the Treasury imperial power with respect to a simply huge amount of funds. $700 billion is comparable to the hard cost of the Iraq war, bigger than the annual Pentagon budget. And mind you, $700 billion is not the maximum that the Treasury may spend, it's the ceiling on the outstandings at any one time. It's a balance sheet number, not an expenditure limit.
But here is the truly offensive section of an overreaching piece of legislation:
Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.
This puts the Treasury's actions beyond the rule of law. This is a financial coup d'etat, with the only limitation the $700 billion balance sheet figure. The measure already gives the Treasury the authority not simply to buy dud mortgage paper but other assets as it deems fit. There is no accountability beyond a report (contents undefined) to Congress three months into the program and semiannually thereafter. The Treasury could via incompetence or venality grossly overpay for assets and advisory services, and fail to exclude consultants with conflicts of interest, and there would be no recourse. Given the truly appalling track record of this Administration in its outsourcing, this is not an idle worry.
Originally posted by NGC2736
And this mindset, that the will of the people doesn't matter and that the elitist should be in control because the citizenry is stupid, is the main reason this man should never reach the White House, IMO.
If he thinks it's OK this time, then just like Bush, whenever he doesn't get his way in the future, he'll try to find a loophole to dodge the will of the people. Such concepts of bulldozer leadership are the reason, IMO, that our nation is in such shambles.
Originally posted by Zubbles
Let's be honest shall we...
John McCain did NOT say to bypass Congress. His EXACT quote is as follows:
"The Treasury has at its disposable a trillion dollars that they could begin, without Congressional authority buying up some of these terrible mortgages and help to stabilize the situation."
That is MUCH different than saying that they should bypass Congress altogether and GIVE the treasury a trillion dollars.
I'll explain it once more... He is saying that the Treasury ALREADY has access to a trillion dollars in DISCRETIONARY FUNDS for which it is already ALLOWED to use WITHOUT Congress needing to pass ANY additional bills.
Again, he is NOT saying that the Paulson plan - or whatever you want to call this bailout plan - should be passed WITHOUT Congressional approval. A BIG difference.
Originally posted by Max_TO
Perhaps I am wrong but should the prez and anyone running for that job be telling the world , don't worry we are a great nation and we will over come , instead of saying , if we don't do this we will all crash and burn ? It seems that with there words alone they are feeding the panic and helping make the situation a hole lot worse . They are feeding the panic and not trying to calm the people or the confidence of the people or the world markets one bit . That in its self tells me that there is something very fishy going on .
1. the use of violence and threats to intimidate or coerce, esp. for political purposes.
2. the state of fear and submission produced by terrorism or terrorization.
3. a terroristic method of governing or of resisting a government.
Silly me , I thought that there were laws against that .
He then proposed that President Bush exercise his executive privileges and unilaterally spend $1 trillion to purchase home mortgages.
Originally posted by CuriousFinger
Honestly Talking about this from the comfort of our living rooms is not going to change a damn thing... if you want change... a real change, go down to your local sporting goods store or gun shop, and buy a rifle... then stand at post with the real patriots!!!