Thanks to the 95 Democrats Who Sided with Republicans and Gave the Finger to Pelosi
Current mood: relieved
Category: News and Politics
I love how the Democrats trying to blame the Republicans for not supporting the $700 billion bailout bill. So what! Majority of America opposes an unfair and unjust bill. If you want to put some spin on this, the Democrat leaders should put blame on the 95 Democrats who voted against the bill and sided with the Republicans. In fact, I congratulate those 95 Democrats who stood against and didn't fill prey to House Speaker Nancy Pelosi. I'm glad there are state representatives who have the moral judgement to understand that socialism is wrong.
This is a great day. In today's market, we saw a reversal downward trend to more positive territory. From a 777-point drop to a 485-point upswing, it shows that the market is base on fictional emotional fears and excitement. It tells me that the market is resilient against major catastrophes of our times. It also tells me that the market is warning us that if the problem is not solved, a 777-point drop is considered small potatoes to what devastating revelations the market could really show.
Now, the Senate is showing their proposal, which differs to the House $700 billion bailout. The Senate is proposing to raise the FDIC, which is $100,000 per account, to $250,000. That is an excellent move to bring confidence to the American people. Also, they want to suspend the AMT (Alternative Minimum Tax) to help those 20 million people who may be affected. Even though the Senate gave their best shot in the solution, it is not enough.
To solve this mess, I do support raising the FDIC standards and suspending the AMT, but I really feel that suspending or ending the tax on capital gains will cause an influx of capital into the system. I would support allowing the SEC chairman to suspend the policy for mark to market evaluation and implement fair market value on homes. This is something that can be done without Congress approval, but I still have no idea why the SEC chairman is sitting on his fanny and not do what is right. The main problem is a mark-to-market accounting, where all assets are required to be valued at current market prices. If the market is temporarily depressed, it can cause an artificial crisis, and that is what we are currently seeing. By suspending the mark to market evaluation, we can see an improvement with the banking system. Finally, the Congress must repeal an old law from 1977 called the Community Reinvestment Act, which mandated that all banks must give loans or not to deny a loan to any person seeking to purchase a mortgage or obtain credit. The act prohibits any banking institution from targeting only rich neighborhoods; thereby preventing those not from that class to move into the neighborhood, which is called redlining. By eliminating this awful Act, it is the beginning to the road to recovery with the banking system. It will prevent those who are unable to pay back the loan not to get that loan. It is basic economic 101.
I can 't understand why we are in a dire need to jump the gun and allow the government to grow exponentially. It is bad enough that we dabble in many socialist programs and I really hate to see power given to someone who can abuse the system. Secretary of the Treasury Paulson is asking Congress to give himself unlimited power to do what he pleases with the $700 billion bailout. There is no accountability and to allow a former Goldman Sach executive full reign of this economy to treat it like his business is very risky. I rather like what I outline above and increase domestic oil and gas production in our country. That would definitely alleviate the high cost of gas and it would give the American people a concrete tax break.
It is important to note that it won't cost the taxpayer any money and some of the provision can be done without approval from Congress. My only advice to everybody is not to panic and make haste or rash decision. Let the market correct itself. This market has withstood turbulent times and this is not the end all final solution. The Democrats are to be blamed on our woes. From Jimmy Carter and his Community Reinvestment Act to corruption of Senators Chris Dodd, Barney Frank, Hillary Clinton, and Barack Obama with Fannie Mae and Freddie Mac, there is plenty of blame to go around. It is time to put McCain/Palin into the White House to do their best to get rid of the tumor that is spreading through Washington, D.C.