Organizing for America | Mandy Brown's Blog: Is this a trap?

Is this a trap?

By Mandy - Sep 23rd, 2008 at 1:46 pm EDT

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I’ve been thinking about the latest proposal from the fed to bail out AIG and other US and global mortgage related companies. I don’t know too much about the economy, but I am very suspicious of the Bush administration’s 11th hour attempt to bully the congress and the American public by once again scaring us into submission. It reminds me of before going to war with Iraq and all their fear mongering about the mushroom cloud and smoking gun. Why now? Why all of a sudden? Why wait till it’s too late? Were they sleeping at the wheel and woke up and suddenly realized that the car is spinning out of control? Or is this an attempt to help John McCain? Let’s say that we really have to do this, to bail these guys out before the whole global economy collapses.In that case, I hope that the law makers are smart enough not to get bamboozled by Bush administration and take a little time to study this proposal and put in some provisions for checks and balances. $700 billion is a lot of money for the taxpayers to just give away. And the next president and the next treasury secretary will inherit this mess and have to clean it up.

Members of congress have the opportunity to demand a few things from the administration and the Wall Street.In his blog, Robert Reich has 5 recommendations for congress which I think make a lot of sense.

"The government (i.e. taxpayers) gets an equity stake in every Wall Street financial company proportional to the amount of bad debt that company shoves onto the public. So when and if Wall Street shares rise, taxpayers are rewarded for accepting so much risk.
Wall Street executives and directors of Wall Street firms relinquish their current stock options and this year’s other forms of compensation, and agree to future compensation linked to a rolling five-year average of firm profitability. Why should taxpayers feather their already amply-feathered nests?
All Wall Street executives immediately cease making campaign contributions to any candidate for public office in this election cycle or next, all Wall Street PACs be closed, and Wall Street lobbyists curtail their activities unless specifically asked for information by policymakers. Why should taxpayers finance Wall Street’s outsized political power – especially when that power is being exercised to get favorable terms from taxpayers?
Wall Street firms agree to comply with new regulations over disclosure, capital requirements, conflicts of interest, and market manipulation. The regulations will emerge in ninety days from a bi-partisan working group, to be convened immediately. After all, inadequate regulation and lack of oversight got us into this mess.
Wall Street agrees to give bankruptcy judges the authority to modify the terms of primary mortgages, so homeowners have a fighting chance to keep their homes. Why should distressed homeowners lose their homes when Wall Streeters receive taxpayer money that helps them keep their fancy ones?"

Members of congress have the opportunity and are in the position to demand a few things from the administration and the Wall Street. So I would hate to see these guys get away with highway rubbery and steal my hard earned money.Bush/McCain bear a big part of responsibly for deregulation and Bush especially for falling sleep at the wheel. The greedy Wall Street was left to do whatever it feels and we all know that if there’s no structure, there will be chaos.

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