And one thing to remember in all of this, The Glass-Stegall Act of 1933, separated the business of lending institutions and securities institutions. And if the government profits from this, by purchasing assets from private companies for profit, then isn't that against the Constitution? I mean, really. Government takes over a financial institution, and then makes money off of it..................
The Senate is suppose to vote on their own version of the $700 billion bill today. At first glance, the Senate's version of the "Emergency Economic Stabilization (PDF)" bill seems similar to the original House's version of the "Emergency Economic Stabilization (PDF)" bill right down to the same vague definition of "Troubled Assets".
Sec. 3. Definitions
(9) TROUBLED ASSETS. - The term "troubled assets" means -
(A) residential or commercial mortgages any securities, obligations, or other instruments that are based on or related to such mortgages, that in each was originated or issued on or before March 14, 2008, the purchase of which the secretary determines promotes financial market stability; and
(B) any other financial instrument that the Secretary, after consultation with the Chairman of the Board of Governors of the Federal Reserve System, determines the purchase of which is necessary to promote financial market stability, but only upon transmittla of such determination, in writing, to the appropriate committees of Congress.
So, the Secretary still has all powerful, SINGLE power to make a decision on the vague term of "troubled assets". Consultation does not mean approval. And if a loan was given after March 14, 2008, then the bill does not apply to that loan.
But hey, at least the Senate fixed the little error under TITLE I - Troubled Assets Relief Program, Sec. 116. Oversight and Audits. (a) COMPTROLLER GENERAL OVERSIGHT (3) REPORTING
REPORTING: The Comptroller General shall submit reports of findings under this section, regularly and no less frequently than once every 60 days.
The bill from the House, did not have the "60" in the wording. It simply stated "no less frequently than once every days...."
HOWEVER, everyone is talking about the increase in FDIC insurance on deposits from $100,000 to $250,000. What they aren't saying is that IT IS ONLY TEMPORARY. IT IS NOT PERMANENT. From the bill:
SEC. 136 FEDERAL DEPOSIT INSURANCE ACT; TEMPORARY INCREASE IN DEPOSIT INSURANCE. -
(a) FEDERAL DEPOSIT INSURANCE ACT; TEMPORARY INCREASE IN DEPOSIT INSURANCE. -
(1) INCREASED AMOUNT. - Effective only during the period beginning on the date of enactment of this Act and ending on December 31, 2009, section 11(a)(1)(E) of the Federal Deposit Insurance Act (12 U.S.C. 1821 (a)(1)(E) shall apply with "$250,000" substituted for "$100,000".
(2) TEMPORARY INCREASE NOT TO BE CONSIDERED FOR SETTING ASSESSMENTS. - The temporary increase in the standard maximum deposit insurance amount made under paragraph (1) shall not be taken into account by the Board of Directors of the Corporation for purposes of setting assessments under section 7(b)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2)).
(3) BORROWING LIMITS TEMPORARILY LIFTED. - During the period beginning on the date of this Act and ending on December 31, 2009, the Board of Directors of the Corporation may request from the Secretary, and the Secretary shall approve, a loan or loans in an amount or amounts necessary to carry out this subsection, without regard to the limitations on such borrowing under section 14(a) and 15(c) of the Federal Deposit Insurance Act (12 U.S.C. 1824(a), 1825(e)).
So here's the deal. If you have more than $100K in a FDIC insured bank, up to $250K, yes your deposits are insured, but it ends on December 31, 2009, when it goes back to $100K. I guess the Senate has a crystal ball enabling them to see the future that "all will be well" on January 1, 2010.
And Wall Street gets its blank check.............................
The magic number of $700 million does appear in the wording:
SEC. 115. GRADUATED AUTHORIZATION TO PURCHASE.
(a) AUTHORITY. - The authority of the Secretary to purchase troubled assets under this Act shall be limited as follows:
(1) Effective upon the date of enactment of this Act, such authority shall be limited to $250,000,000,000 outstanding at any one time.
(2) If at any time, the President submits to the Congress a written certification that the Secretary needs to exercise the authority under this paragraph, effective upon such submission, such authority shall be limited to $350,000,000,000 outstanding at any one time.
(3) If, at any time after the certification in paragraph (2) has been made, the President transmits to the Congress a written report detailing the plan of the Secretary to exercise the authority under this paragraph, unless there is enacted, within 15 calendar days of such transaction, a joint resolution described in subsection (c), effective upon the expiration of such 15-day period, such authority shall be limited to $700,000,000,000 outstanding at any one time.
Oh, and also in this bill, there are changes about getting tax credits to help small businesses and promote renewable energy, as well as an expansion of the child tax credit and help for the victims of the recent hurricanes.
As a taxpayer, another $2,300 will be added to your share of the national debit - though not your taxes... yet.
The bailout are expected to add up to $1.8 billion overall. That's $15,000 per US household.
The house is set to vote on the bill on October 1, the House is expected to discuss the bill on October 2.
Thomas Jefferson once said: "If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks... will deprive the people of all the property until their children wake-up homeless on the continent of their fathers' conquered... The issuing power should be taken from the banks and restored to the people, to whom it belongs properly.
We, the average "Main Street" taxpayer are screwed.........................