Wednesday, October 1, 2008

Bailout About To Get Better: And We're Not Kidding

The public, faced with what they see, rightly or wrongly, as a giveaway "bailout" to correct the sins of Fannie Mae, Freddie Mac and the Democrats, is irate. So what do you suppose is the best thing you can do at this point? I mean, the very, most absolute, best thing - something that screams "finally, somebody is going to pass a law that makes sense for this country?"

I'd say pair the bailout with more tax cuts is in line with what the American Taxpayer needs, from AP:

Majority Leader Harry Reid and GOP Leader Mitch McConnell say, however, that they're going to add a tax cut package already rejected by the House on Monday.

The bipartisan move caps a day of behind-the-scenes maneuvering on Capitol Hill over what sweeteners to add to the bill to attract votes from House Republicans.

Reid and McConnell's move may prove popular with Republicans, but it risks a showdown with House leaders insisting that a popular measure extending certain business tax breaks be financed by tax increases elsewhere in the code.
This is fantastic news. We take a bad plan and improve it to get a real consensus on what needs to be done. This will make Democrats face the truth that Tax Cuts are good for the Economy and the American Worker. Maybe we can get some Dems (who frankly couldn't find their way out of a wet paper bag) who are on the line for re-election to vote for it. Maybe even the banking committee members will vote for it.

Same thing. Every time, it's the same thing. The Republicans have to show leadership on an issue when Democrats won't. So good, my position has changed. I was previously totally against the Paulson plan and now I am warming up to the Free Market based plan.

Lest you think it couldn't get better still, we've got another idea that's been floated from everyone from conservatives to progressives:

Another possible change to the bill would call on regulators to modify "mark to market" accounting rules. Such rules require banks and other financial institutions to adjust the value of their assets to reflect current market prices, even if they plan to hold the assets for years.

Some House Republicans say current rules forced banks to report huge paper losses on mortgage-backed securities, which might have been avoided.

Of course, we got into the "mark to market" accounting because Bad Actors misstated their assets. We need it now, because the true value of assets are not being properly stated because of the failed Clinton and Carter policies of providing loans to low-income families who could not afford to pay them back.

Liberals have been looking hard for ways to blame the current economic mess on the fundamental principles of Capitalism, John McCain, deregulation, Ronald Reagan, and Rush Limbaugh. They are convinced that more government intervention (which caused the issue in the first place) is what is needed now, blah blah blah. And of course in the last two years they did nothing about it, and even when McCain and Bush (that's right, I said it) wanted to step in to PREVENT this mess, Barny Frankfurter and Nancy Pe-loser and their friends stopped it.

Serious voices are calling for the suspension of the Capital Gains Tax, elimination of the repatriation tax and dare I say it, application of the Fair Tax to fix this economic crisis. Taxing securities transactions would be horrific for this crisis because, it is the lack of the flow of funds - how would taxing that flow do anything to incentify people to act? It seems all the Democrats can ever suggest is more big government and taxing more money from the Small Business Owner or the American Worker.

The American people have the collective resolve to come together and face the reality of this crisis. A house for everybody is an admirable goal, but not when the cards are stacked against them.

In Response to: Bailout
About To Get Worse: You've Got To Freaking Be Kidding Me

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