Advertisement

Archive for Wednesday, September 24, 2008

Boyda critical of bailout proposal

September 24, 2008

Advertisement

U.S. Rep. Nancy Boyda, D-Topeka, on Tuesday criticized President Bush's bailout proposal for Wall Street.

"President Bush is asking Congress for sweeping new power with no judicial review, no effective oversight, and no real limit on the money that can be spent," Boyda said.

"He's trying to ram it through with little debate by sowing fear and anxiety. I don't like those tactics, and I don't like his proposal," she said.

Boyda said she will work to develop a plan that minimizes expense and maximizes profits for the taxpayer.

She said she wants to restore the availability of credit, protect responsible banks, enact new regulations and prevent those responsible for the meltdown from profiting in the bailout.

"We can't pay for every bad decision that anyone ever made in this country," she said. "Our goal should be the best deal for the taxpayer that gets the markets running again. I think Bush's plan fails on both counts. It takes from the taxpayer for Wall Street's benefit, but it doesn't provide the capital the banks need to get this country moving again."

Comments

lee66049 5 years, 10 months ago

Staff, poor person...must have forgotten Bush, and McCain both called on congress for reform of Fannie and Freddie, yet Dodd and Franks both shut them down....then Dodd of course has all of that Fannie and Freddie money. How about those facts? I like them. USe GOOGLE, its your friend. Logrithmic has such difficulty in seeing democratic corruption, in this present situation. No problem...FBI is looking into it.....we will all enjoy reading about the results of the investigation. Obama contributions will be very interesting as well as his adviser, Mr. Raines. Good news in oil is looks like the democratic congress does nothing and drilling starts October 1st. Given their the congressional record who is surprised. The poll that has Obama up by nine....is that the ABC News poll that only surveyed 28 percent republicans? LOL good...you run with that...LOL

0

lee66049 5 years, 10 months ago

Staff perhaps you could show us your two sided views?This is going to be great, I can tell. :) For the record. I don't listen to Rush, Hannity or one news source. I read CNN.com, Foxnews.com, USAToday.com and google. I vote for Barbara Ballard every time.

0

BrianR 5 years, 10 months ago

Lee, that article doesn't support your assertion.

0

The_Bends 5 years, 10 months ago

Given the vast amount of liquidity available, but currently out of the market, it seems like Walltreet is trying to extort taxpayers with the threat of a recession. Also, I might be wrong, but it sure seems like giving taxpayers an equity position in these companies would be a huge mistake. When the government ultimately starts selling shares, the supply increase will cause share prices to drop. This drop could both lower the capital available to companies and the value of the taxpayer's shares. Seems like a lose lose situation to me.How about just giving these companies a loan with a variable interest rate thereby allowing taxpayers to recapture as large a share of the company's returns on the loans as possible? Something needs to be done, but we certainly cannot count on the Wallstreet scumbags (including Paulson) to look out for our best interest.Here's a nice article on some alternative proposals - http://www.msnbc.msn.com/id/26861562/

0

whatatown 5 years, 10 months ago

Yes, the bailout plan makes perfect sense! Let's have the people that these companies screwed over pay for their recovery. That is the American way. Because after all, we bail out every failing industry, factory, restaurant chain, mom and pop store, and lemonade stand. Right? America has no business that goes under. Right? Poor decisions people make in running their business has no affect on the outcome of that business because government is always there with a smiling face and a helping hand. Right? NO! So why do we keep bailing out the big guys? Our dollar is plummeting and the fed's want to print more? Someone please explain how everything I have ever learned about economics is apparently wrong. Here I am thinking that the more money that is put into circulation brings down the value of the dollar, but the top economists seem to think that is the way to go. Or at least the top economists appointed by our puppet monkey Bush. Let's just hope that by the time Bush gets out of office we are still able to afford canned peas and hamburger helper.

0

Godot 5 years, 10 months ago

"BrianR (Anonymous) says: I did follow the money and it led to McCain and Charles Keating."That is a partisan lie. You partisan fools just keep playing your fiddles while Rome burns.

0

staff04 5 years, 10 months ago

Actually, lee, there was a bipartisan effort by former Financial Services Committee Chairman Mike Oxley (R) to reform Fannie and Freddie, amongst others...a little thing called GSE reform. It failed to move forward after a veto threat from the Bush Administration.You want facts, I got 'em.

0

lee66049 5 years, 10 months ago

Dear Ms. soon to be unemployed Boyda.Congress has had oversight over these lending institutions and did nothing. You should know you were a star in the do nothing congress. Speaking of hand in your wallet or pocketbook.....did everyone see Obama got the second highest contributions from Freddie and Fannie Mae in history? He is a first term senator, right?Did everyone see Obama's financial adviser got almost 100 million dollars from Freddie and Fannie Mae. So unless your integrity plays partisan politics there is a need to be concerned.The good news is the FBI is looking into the matter. LOL!

0

janeyb 5 years, 10 months ago

lee66049---agreed. Obama has the chance to put his Barbara Streisand campaign money where his mouth is, but has chosen to hide out in Florida and call John McCain a chicken. It is ok though, because Barack keeps in touch with his cell phone and Blackberry. Of course Senator Obama called Senator McCain "first" to ask him if he would join in issuing a joint statement outlining their shared principles and conditions for the Treasury proposal and urging Congress and the White House to act in a bipartisan manner to pass such a proposal. How Presidential! Obama should go to Washington. Sometime before the November election he should see what the Senate Chambers look like.

0

lee66049 5 years, 10 months ago

Brain I disagree: Surely you saw this"These connections - and Mr. Raines' own words - contradict the notion he was the peripheral figure to the Obama campaign Mr. Dobbs, Mr. Kurtz and Ms. Tumulty would like you to believe."

0

Godot 5 years, 10 months ago

This partisan bickering is a waste of time. The crooks are imbedded in both parties.

0

Richard Heckler 5 years, 10 months ago

Rep Nancy Boyda,How about prosecution and jail time? These white collar criminals are wrecking a lot of lives somewhere. Don't rush it. Get to the bottom of it even if goes beyond the Januaury swearing in of a new president, Don't want any pardons.

0

lee66049 5 years, 10 months ago

Darn Logrithmic I was hoping you would point out that Mr. Davis had quit the company years before and the payments went to the company after he was gone. Just like the NY Slimes article inferred. Funny you still read that paper with their financial troubles, reporters fired for lying, layoffs, record drop in subscriptions. Here's what Logrithmic will not tell you, I personally loved the commerical.John McCain unveiled a new TV ad this afternoon that tries to paint Democratic rival Barack Obama as so inexperienced on the economy that he has to listen to shady characters."Obama has no background in economics," the announcer says."Who advises him? The Post says it's Franklin Raines, for 'advice on mortgage and housing policy,' " the announcer says, citing a Washington Post report this week."Shocking. Under Raines, Fannie Mae committed 'extensive financial fraud,' " the announcer says, as another newspaper headline appears on screen. "Raines made millions. Fannie Mae collapsed."Raines, the head of Fannie Mae from 1998 to 2004, agreed in April to pay nearly $25 million in a settlement with the government in an accounting scandal."Taxpayers? Stuck with the bill," the announcer continues, as an image of an elderly woman appears. "Barack Obama, bad advice, bad instincts. Not ready to lead."Google Franklin Raines....it is hysterical.

0

lee66049 5 years, 10 months ago

Brian or should I say "Whatever"Give us more of the same crowd....Which nominee canceled his campaign to go work in Washington and which is still out being a politician, saying call me if you need me.Bet he doesn't get the call. And if you don't know what I am talking about. Turn on the news.

0

Grundoon Luna 5 years, 10 months ago

I would expect someone who uses "teach" in their screen name would know a little about government. The democrats, even with a majority, still do not have enough power in Congress to override a Bush Veto and the republicans are certainly not going to cross the party line (and they will pay for it in 41 days, I can't wait!).Bush I presided over the S&L crisis, of which McSame was involoved, and now II is over this F U B A R situation still trying to line the pockets of his "base."I can't believe there are fools that blame the democrats for this fiasco and are still thinking McSame and Palame are the answer. McSame can't be trusted and Palame is nothing more than Bush in drag. Good thing most peopel don't think like you fools.

0

BrianR 5 years, 10 months ago

I did follow the money and it led to McCain and Charles Keating. "I am a deregulator.... I believe in deregulation," John McCain, 2003

0

lee66049 5 years, 10 months ago

Correction: Obama got 105 thousand not millionRaines got almost 100 million. I apologize.

0

lee66049 5 years, 10 months ago

Staff no I was referring to five years ago...not four months ago:New Agency Proposed to Oversee Freddie Mac and Fannie MaeBy STEPHEN LABATONSeptember 11, 2003The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac - which together have issued more than $1.5 trillion in outstanding debt - is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates.

0

lee66049 5 years, 10 months ago

Interesting Logrithmic would not mention Obama said yesterday his economic plan will not work. He has had to shelve the entire plan. And has yet to release a new one. Hard for democrats to run to a plan that does not exist. Logrithmic completely missed the fact that Obama received $105 million dollars in contributions from the failed Freddie and Fannie may scandal. And most importantly we see Logrithmic standing lock step with Obama financial adviser Franklin Raines.Former Fannie Mae chairman and chief executive Franklin D. Raines has agreed to a multimillion settlement with a federal regulator over his alleged responsibility for improper accounting at the mortgage finance giant.The regulator, the Office of Federal Housing Enterprise Oversight, said Raines had agreed to forgo stock, cash and other benefits worth $24.7 million in exchange for dismissing the charges against him. However, the regulator's estimate wasn't the only way of looking at the value of the settlement.Some financial advisor. Log I can do this all day.

0

lee66049 5 years, 10 months ago

When will the left stop blathering about Bush...he is not running for president? OK you like talking about Bush, remember when he asked congress to regulate Freddie and Fannie Mae? It was out of control....yet Dodd, Kerry and Obama were receiving money from the Mae institutions. So what did the democrats do? Nothing...they couldn't they were getting money. Raines the CEO a democrat took just shy of 100 million from the Mae Twins. Then the democrats take over congress....result? Record spending levels, no regulation of any type, record prices in oil, government grows to record levels, near record collapse of the entire financial structure. So you hang on to your Bush issues....I for one will not vote for him this November....or Boyda for that matter.

0

BrianR 5 years, 10 months ago

The genesis of the current problems precede Obama being in any office. There is no Raines - Obama connection, that is a neocon lie.

0

staff04 5 years, 10 months ago

leeYou are the one who said Franks. Were you referring to Barney Frank? You mean the guy who was NOT the chairman of the Committee of jurisdiction five years ago? The guy who, in the minority had very little power to block GSE reform efforts?The fact is, the Administration proposed "my way or the highway" reform that even the Republican Majority couldn't agree to. When members of both parties came together to attempt commonsense compromise reform, the White House threatened a veto and lobbied the House leadership to kill the effort.Sorry if the truth doesn't fit into your talking points-based agenda (yes, I get the RNC talking points every day too, along with Rush and FOXNews), but that's the way it happened. I was there for it.

0

bd 5 years, 10 months ago

I sure miss the days of the whitehouse sexcapades!

0

Godot 5 years, 10 months ago

Follow the money. Who stands to gain the most in power in money from this destruction of our financial system?Here is a clue.Warren Buffett, an Obama backer and one of his financial advisers, just dumped $5 billion into Goldman Sachs, obtaining an ownership position in the company by purchasing stock warrants at a 10 per cent discount.Follow the money, folks.

0

jmadison 5 years, 10 months ago

Will the over 300 members of congress who took money from Freddie Mac and Fannie Mae, the root cause of most of the problem , recuse themselves from voting on any bailout?I guess not since there wouldn't be a quorum available to vote on any bill?Sen Dodd of CT took the most money and he now presides over the fix.The press has done a miserable job in exposing the vast corruption of our political class of both parties.

0

staff04 5 years, 10 months ago

lee, who are you talking about? Franks? Trent Franks had nothing to do with it.If you think Bush calling for reform 6 months ago would have saved us, then you sir, live in a fantasy land.Bottom line--Oxley tried, nobly, to get bipartisan GSE reform passed but the White House threatened a veto and the Tom Delay Republican Majority refused to stand up to him.Google works for finding blogs that support one's opinion. It is no substitute for personal experience working on the issue.Oh, and "calling on Congress" to do anything means squadiddly. Everyone "calls on Congress" to do things. Oxley proposed a solution and Bush and McCain refused to allow the reform.Dodd gets money from Fannie and Freddie. McCain hires them to work for him. Seems like a wash to me...except that Dodd isn't running for President.

0

staff04 5 years, 10 months ago

I read the article the first time you posted it. No, I don't see "Barney Franks." I see Barney FRANK. You said Franks in your first post. Trent Franks is another member of Congress. If you want to talk about Congress, you should know what you are talking about.It's funny how much power you are willing to attribute to the minority party when Republicans are in charge...but when the tables are turned, the minority is somehow helpless?I have already outlined the facts of how the reform efforts went down in 2003. Carry on with your one-sided views.

0

MyName 5 years, 10 months ago

What do you mean "allow them to exist". How are you going to stop them short of eliminating Congress completely or rewriting the Constitution in some bizarre way? And the Democrats didn't stop the bill on their own, they were in the minority and if the Republican majority in 2003 had wanted to pass it in the House (where Frank is a Congressman) they could have done so. Rules are different in the Senate, but that's not relevant to what you have mentioned.Also, I didn't ask you to post the whole article. Just post a link to it and have read it before you ask a question which was already answered in the article. Frank and some of the other Democrats on the committee viewed the bill as a sham reform that didn't change the basic hybrid nature of these companies and didn't do anything but shuffle the oversight around in such a way as to distance the Administration from responsibility over these companies. That's what they meant when they said it was "shell game".

0

lee66049 5 years, 10 months ago

Staff no I was referring to five years ago...not four months ago:Why did Democrats block the Bush administrations attempts to regulate Fannie Mae and Freddie Mac? ?5 years ago they saw this coming..Yet Democrats blocked the attempts at regulation. WHY?http://query.nytimes.com/gst/fullpage.ht... ''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''Representative Melvin L. Watt, Democrat of North Carolina, agreed.''I don't see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,'' Mr. Watt said.

0

lee66049 5 years, 10 months ago

Myname; For integrity purposes I did try to put the whole article in it was over 3,000 characters long. I did misspeak on Barney Franks versus Barney Frank.If minority parties have no say or no control. Why do we allow them to exist? So they do have a major voice and can cancel a bill if that bill doesn't get votes to go forward.

0

lee66049 5 years, 10 months ago

Brian followed the money.....did you follow it to Dodd, Kerry, Obama, and Raines or did the trail run cold on ya?

0

BrianR 5 years, 10 months ago

Godot (Anonymous) says:"That is a partisan lie. You partisan fools just keep playing your fiddles while Rome burns."Wow, that is so rich coming from you and the "give us more of the same" crowd.

0

MyName 5 years, 10 months ago

lee66045:>Yet Democrats blocked the attempts at regulation. WHY?If you had linked the whole article, and actually read it, you would already have the answer to the question. In the 6th paragraph:"Mr. Snow said that Congress should eliminate the power of the president to appoint directors to the companies, a sign that the administration is less concerned about the perks of patronage than it is about the potential political problems associated with any new difficulties arising at the companies."Basically the Democrats opposed it because they viewed the legislation as an effort to deflect responsibility for the problems arising and Fannie and Freddie away from the administration. Oh, and the Representative's name that you are maligning is Barney Frank not "Franks".

0

lee66049 5 years, 10 months ago

Brain are you sure? I mean really really sure? Because if you had googled Raines Obama you would have found on: http://www.realclearpolitics.com/articles/2008/09/how_close_are_raines_and_obama.htmlMr. Johnson and Mr. Raines aren't the only figures in the subprime mortgage scandal to be connected to the Obama campaign. Jamie Gorelick, rumored to be an attorney general candidate in an Obama administration, was vice chairman of Fannie Mae from 1997 to 2003. Penny Pritzker, Mr. Obama's national finance chairman, has been described as "the Michael Milken of the subprime mortage crisis" for her pioneering of the packaging of bad loans with good ones at her now defunct Superior bank in suburban Chicago."The financial engineering that created the financial meltdown was developed by the Pritzkers and Ernst and Young, working with Merrill Lynch to sell bonds securitized by sub-prime mortgages," said Timothy Anderson, a retired bank consultant.These connections -- and Mr. Raines' own words -- contradict the notion he was the peripheral figure to the Obama campaign Mr. Dobbs, Mr. Kurtz and Ms. Tumulty would like you to believe.

0

lee66049 5 years, 10 months ago

Staff read the last paragraphs again...See Barney Franks? Did I say he was the head of anything when he lead the charge against reforming Freddie and Fannie Mae. What is the hard part?New Agency Proposed to Oversee Freddie Mac and Fannie MaeBy STEPHEN LABATONSeptember 11, 2003The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.After those assurances, Franklin D. Raines, Fannie Mae's chief executive, endorsed the shift of regulatory oversight to the Treasury Department, as well as other elements of the plan."We welcome the administration's approach outlined today," Mr. Raines said. The company opposes some smaller elements of the package, like one that eliminates the authority of the president to appoint 5 of the company's 18 board members.Freddie Mac, whose accounting is under investigation by the Securities and Exchange Commission and a United States attorney in Virginia, issued a statement calling the administration plan a "responsible proposal."The stocks of Freddie Mac and Fannie Mae fell while the prices of their bonds generally rose. Shares of Freddie Mac fell $2.04, or 3.7 percent, to $53.40, while Fannie Mae was down $1.62, or 2.4 percent, to $66.74. The price of a Fannie Mae bond due in March 2013 rose to 97.337 from 96.525.Its yield fell to 4.726 percent from 4.835 percent on Tuesday.Significant details must still be worked out before Congress can approve a bill. Among the groups denouncing the proposal today were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing."These two entities - Fannie Mae and Freddie Mac - are not facing any kind of financial crisis," said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."Representative Melvin L. Watt, Democrat of North Carolina, agreed."I don't see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing," Mr. Watt said.

0

slowleak 5 years, 10 months ago

BAS AKWORDS !When other governments nationalize successful businesses in order to redistribute their profits to the citizens of those countries, we become morally outraged and label it undemocratic socialism. However, our own government seems willing to rush forward to "rescue" or "bailout" Wall Street businesses guilty of gross mismanagement and criminally negligent behavior. It seems that our free market theory has been replaced with a philosophy of privatizing wealth and socializing losses! We are told that the public should pay for Wall Street boondoggles without sharing in the windfall profits of successful corporations ( Exxon , for example ) . Down on the farm, they call this "all pit and no peach". To make matters worse, our elected officials are pressured to act immediately without examining the long-term implications of the so-called remedy or putting in place concrete safeguards against repeat offenses. What Wall Street needs right now are fewer CPAs and more CPHs (Chrome Plated Handcuffs). When did bank fraud stop being a crime? To add insult to injury, the plan includes bailing out foreign banks with your tax money! We are asked to trust the government with 700 billion more dollars to deal with this self-inflicted crisis by the same administration that has in the past suggested that government programs are incapable of efficiently running anything more complicated than a bake sale. Stop this insanity now. Insist that your elected representatives slow down or stop this process! Your children, grandchildren and great-grandchildren are counting on you.

0

BrianR 5 years, 10 months ago

Whatever, troll boy. Now i suppose we could spend hours defining "peripheral" but that's not going to happen. Go on, keep believing the spin, you are clueless.

0

staff04 5 years, 10 months ago

Lee, I did. I praised the Republican former Chairman of the Financial Services Committee for his committment to bipartisan compromise legislation.I have spoken several times to bipartisanship and chastised those who have not embraced such efforts.I do the same thing when Democrats are the obstructors, but you specifically tried to lay blame on the Minority party when the White House and Congress were held firmly by the Majority. You attempted, through half-truth, to make a case, and I merely presented the whole story to complement your assertions and be certain that people are not mislead by what you said.I don't care who you vote for, but I'm glad you uphold your end of the social contract.I'm happy that you read the news...some other suggested reading would be Congressional Quarterly and National Journal, if you want non-partisan factual information about what makes the wheels turn in Washington.Have you figured out the difference between Franks and Frank yet? Maybe that would be a good place to start.

0

james bush 5 years, 10 months ago

What this country needs is a good dose of marxism and all the little people will be happy like Boyda when the aristocrats hang or whatever. Vote for Obama to insure that all the crooks in DC are replaced by socialists!

0

staff04 5 years, 10 months ago

I think it is a joke to think that McCain is coming to the rescue now. The rescue package has been in the works since last Friday and is being finalized as we type. Where was he for that?McCain has no role on any of the relevant committees that are involved in the negotiations.Neither does Mr. Obama.To attempt to make a campaign claim that "I'm going back to Washington to work on this" is a joke. It would be a joke if Obama said it.I think McCain is not prepared for a debate and doesn't want to answer a bunch of questions that he would likely encounter given his past support for the people responsible for this economic crisis.

0

Commenting has been disabled for this item.