Defeat the Cram Down Bullshit Bailout Bill: Emergency Economic Stabilization Act of 2008

Posted on October 2, 2008. Filed under: Blogroll, Comedy, Economics, Investments, Life, Links, Music, People, Politics, Quotations, Rants, Raves, Regulations, Taxes, Video | Tags: , , , , , , , , , , , , , , |

I am still urging all conservatives and libertarians in Congress, Democrats and Republicans, to defeat the Bailout Bill now known as the Emergency Economic Stabilization Act of 2008. 

 Any Senator or Representative that votes for this should be defeated in November.

The bill is just business as usual.

Instead of focusing on the immediate financial crisis, the American elites in Washington have added a long list of provisions that have absolutely nothing whatsoever to do with the financial crisis.

Our so called “leaders ” in Washington are simply not leveling with the American people, shame on them.

Instead of focusing on what the American people will accept, they simply ignore their constituents–the arrogance of incumbency.

Bailout Bill vs. Rescue Economy American People (REAP) Law

They do so at their peril.

Just say no!

If they have time to lard up the bailout bill with earmarks, then we have the time to place the blame on those who really caused the problem–the defenders and protectors of Fannie Mae and Freddie Mac in Congress.

Shocking Video Unearthed Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis


Explosive Video, Fannie Mae CEO calling Obama and the Dems the “Family” and “Conscience” of Fannie Mae


Obama and Democrats are Responsible: Fannie Mae/Freddie Mac






Empty Words


Time for the FBI to arrest those at Fannie Mae and Freddie Mac that committed fraud and offer some of them deals if they know of any members of Congress that accepted bribes in exchange for their support.

Vote the bastards out of office in Novmember.

The American elites of both political parties shafted the American people once again.

Shame on them!

Any Republican or Democrat that voted for this bill will not be getting my vote.

Time for a revolt and a third party.

The Great American Sell-out (More on the BIG BAILOUT plan)

No Bailout for Jobs hit hard by trade deficit (Lou Dobbs)

Lou Dobbs – Lobbyist Using Scare Tactics to push bailout!

Lou Dobbs – Big Bailout Boondoggle




Subprime crisis explanation by The Long Johns


Let Wall Street Burn…


Government BAILOUT….


Background Articles and Videos

Senate bailout bill keeps growing

“…To calm voters fearful of bank failures, the $100,000 cap on federal insurance for deposits would also be raised to $250,000—a concession backed by both parties but also aimed at community banks who can be helpful in building small town support for the larger bill.

With each permutation, the bill has steadily grown in size. Treasury’s initial plan was about three pages long. The House version, which failed, stretched to 110. The Senate substitute now runs over 450 pages. And tucked away in the tax provisions is a landmark health care provision demanding that insurance companies provide coverage for mental health treatment—such as hospitalization—on parity with physical illnesses.

Really a bill onto itself, the mental health parity measure has been a bipartisan priority for top lawmakers in both chambers but has stalled because of disagreements again over how to pay for its estimated $3.8 billion five-year cost. In the current climate, that seems to be no longer a stumbling block, and if the Treasury plan becomes law, it will also. …”


List of Earmarks, etc…   [Rich Lowry]

…apparently in the bailout bill (based on a list going around). Pretty outrageous. Isn’t this in John McCain’s wheelhouse?

New Tax earmarks in Bailout bill

– Film and Television Productions (Sec. 502)

– Wooden Arrows designed for use by children (Sec. 503)

– 6 page package of earmarks for litigants in the 1989 Exxon Valdez incident, Alaska (Sec. 504)      

Tax earmark “extenders” in the bailout bill.

– Virgin Island and Puerto Rican Rum (Section 308)

– American Samoa (Sec. 309)

– Mine Rescue Teams (Sec. 310)

– Mine Safety Equipment (Sec. 311)

– Domestic Production Activities in Puerto Rico (Sec. 312)

– Indian Tribes (Sec. 314, 315)

– Railroads (Sec. 316)

– Auto Racing Tracks (317)

– District of Columbia  (Sec. 322)

– Wool Research (Sec. 325)

McCain will support earmark-stuffed Senate Crap Sandwich; Obama: Me, too!

By Michelle Malkin
“…McCain has made his battle against earmarks the hallmark of his campaign. He couldn’t stop talking about them for the first half of the last week’s first presidential debate.The Senate bill is stuffed with earmarks to grease its passage. I repeat:

– Film and Television Productions (Sec. 502)

– Wooden Arrows designed for use by children (Sec. 503)

– 6 page package of earmarks for litigants in the 1989 Exxon Valdez incident, Alaska (Sec. 504)

Tax earmark “extenders” in the bailout bill.

– Virgin Island and Puerto Rican Rum (Section 308)

– American Samoa (Sec. 309)

– Mine Rescue Teams (Sec. 310)

– Mine Safety Equipment (Sec. 311)

– Domestic Production Activities in Puerto Rico (Sec. 312)

– Indian Tribes (Sec. 314, 315)

– Railroads (Sec. 316)

– Auto Racing Tracks (317)

– District of Columbia (Sec. 322)

– Wool Research (Sec. 325)

McCain supports them all.

Business as usual.

No earmark left behind. …”

Why I Oppose the Wall Street Bailout

Dick Armey

“…This week, Congress will vote on the largest federal bailout in history—$700 billion in spending authority to purchase the troubled assets of Wall Street’s major investment houses.  As a free market economist I unequivocally oppose this legislation because it violates the basic working tenets of free market capitalism and individual responsibility.  Equally important to me, it likely violates our Constitution and stands in direct contradiction to the founding principles of our great nation.  

Granting the Treasury broad authority to buy troubled assets from private entities poses a significant threat to taxpayers and fundamentally alters the relationship between the private economy and the federal government.  Despite the sweeping breadth of the proposed bailout, there is virtually nothing in the bill that addresses the underlying problems that created the housing bubble and the oversized and over-leveraged financial services sector that grew with it.  Taxpayers have become Wall Street’s newest financier, with little more than a promise—and a report to Congress on “regulatory modernization”—that Congress will not let this happen again. …”


“…Despite the publicly-voiced concerns of many of us – both in and out of government – about Fannie and Freddie, the GSEs’ defenders in Congress turned a blind eye to the inherent weaknesses in the system.  The financial system held together as long as housing prices continued to increase.  As the housing market weakened, it became evident that the value of mortgages underlying the new financial instruments was too low to meet the necessary financial obligations.  As the true market value became evident, the market for these mortgage backed securities (originated by Fannie and Freddie) dried up as investors triggered a flight to safety.  Considering the fact that many of these firms were leveraged by as much as 30-to-1, the retrenchment was severe.The large government intervention that Congress is proposing would create changes whose effects will linger long into the future.  The Treasury plan would fundamentally alter the workings of the market, rewarding poorly run investment firms at the disadvantage of prudent ones, and transferring the burden of risk to the taxpayer.  At the same time, the $700 billion proposal does not offer fundamental reforms required to avoid a repeat of the current problem.  Congress has been reluctant to reform the government sponsored enterprises that lie at the heart of today’s troubled markets, and there is little to suggest their resolve to pass the necessary reforms will increase in the wake of a bailout.



In addition to the moral hazard inherent in the proposal, the plan makes it difficult to move resources to more highly valued uses.  Successful firms that may have been in a position to acquire troubled firms would no longer have a market advantage allowing them to do so; instead, entities that were struggling would now be shored up and competing on equal footing with their more efficient competitors. The financial services sector is over-leveraged and too large.  Winding this down will, indeed, impose painful costs.  Congress is seeking to explicitly transfer these costs to taxpayers, who will underwrite a new government plan devised to correct the old government plans.  Taxpayers are being called upon to make a significant sacrifice, with little evidence to suggest that the troubled markets will be settled.  In fact, there is evidence to suggest that the latest intervention will delay the required adjustments in the financial services sector.  The $700 billion intervention is just the largest, latest in a series of failed bailouts with no guarantee that the desired outcome will even be achieved. …” 






I. Stabilizing the Economy

The Emergency Economic Stabilization Act of 2008 (EESA) provides up to $700 billion to the

Secretary of the Treasury to buy mortgages and other assets that are clogging the balance sheets

of financial institutions and making it difficult for working families, small businesses, and other

companies to access credit, which is vital to a strong and stable economy. EESA also establishes

a program that would allow companies to insure their troubled assets.

II. Homeownership Preservation 

EESA requires the Treasury to modify troubled loans – many the result of predatory lending

practices – wherever possible to help American families keep their homes. It also directs other

federal agencies to modify loans that they own or control. Finally, it improves the

HOPE for Homeowners program by expanding eligibility and increasing the tools available to the

III. Taxpayer Protection

Taxpayers should not be expected to pay for Wall Street’s mistakes. The legislation requires

companies that sell some of their bad assets to the government to provide warrants so that

taxpayers will benefit from any future growth these companies may experience as a result of

participation in this program. The legislation also requires the President to submit legislation

that would cover any losses to taxpayers resulting from this program from financial institutions.

IV. No Windfalls for Executives

Executives who made bad decisions should not be allowed to dump their bad assets on the

government, and then walk away with millions of dollars in bonuses. In order to participate in

this program, companies will lose certain tax benefits and, in some cases, must limit executive

pay. In addition, the bill limits “golden parachutes” and requires that unearned bonuses be


V. Strong Oversight

Rather than giving the Treasury all the funds at once, the legislation gives the Treasury $250

billion immediately, then requires the President to certify that additional funds are needed ($100

billion, then $350 billion subject to Congressional disapproval). The Treasury must report on the

use of the funds and the progress in addressing the crisis. EESA also establishes an Oversight

Board so that the Treasury cannot act in an arbitrary manner. It also establishes a special

inspector general to protect against waste, fraud and abuse.



Oct 1, 2008 –

Oct. 1, 2008—
The latest version of package legislation which includes the Emergency Economic Stabilization Act can be found here: Click link
For one-page summary of the EESA: Click link
For section-by-section analysis of the EESA: Click link 

Emergency Economic Stabilization Act of 2008

“…OpenCongress Summary:The bailout would allow the government to use up to $700 billion in taxpayer money – $350 billion initially, and the rest with Congress’s approval – to buy troubled assets from struggling financial institutions. It would also establish a program whereby the government would offer insurance to companies for their assets rather than buying them. Additionally, the bill establishes “appropriate standards” for the compensation of executives at companies that sell assets to the government, creates a congressional oversight panel and requires the government take equity stakes in bailed out companies. …”

Emergency Economic Stabilization Act of 2008 

Dick Armey speaks at ALEC Part 1


Dick Armey speaks at ALEC Part 2


Dick Armey speaks at ALEC Part 3



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