“Dollar Bill” Jefferson, the indicted lawmaker with cold cash in his freezer, made the Nov 4 runoff in his Congressional district.
Damn that corrupt son of a bitch.
Category: Congress
House Passes Bailout
I’m not sure that there was a realistic alternative at this time, thought I think that the package sucks.
$700 billion to the rich pigs on Wall Street….*sigh*
Kentucky US Senate Very Much in Play
The rule of thumb is that undecideds break 2/3 for the challenger, and McConnell is about as incumbent as they get.
45-44 Mitch McConnell (R) over challenger Bruce Lunsford (D).
After what was done to Daschle, I really hope that they DSCC pulls out the stops on this one.
I Love Barney Frank
In the “Heterosexually yours in a chaste and biblically appropriate kind of way,” that the Jesus’ General does. Or at least I love the distinguished gentleman from Massachusetts when he says stuff like this:
Frank: “We don’t believe they had the votes and I think they are covering up the embarrassment of not having the votes. But think about this: somebody hurt my feelings so I will punish the country. I mean that’s hardly plausible. And there were twelve Republicans who were ready to stand up for the economic interest of America but not if anybody insulted them. I’ll make an offer: Give me those twelve people’s names and I will go talk uncharacteristically nicely to them and tell them what wonderful people they are, and maybe they’ll now think about the country.”
There is some serious ownage going on here.
Senate Passes Bailout Package
74-25, with Kennedy not voting, for obvious reasons.
House of Representatives Passed New Credit Card Regulations
It’s some fairly minor stuff, but it’s a start, though I doubt that it will make it past the Senate, though considering that the distinguished gentleman from MBNA Delaware is otherwise occupied, it’s possible.
Basic provisions:
- requires a notice period for interest rate increases
- prohibits interest charges on balances paid during grace periods
- bars issuers from applying payments first to lower-interest debt while debt carrying a higher interest rate remains unpaid.
Update: Dodd Bill Does Have Bankruptcy Changes
According to Politico.com:
Among the major provisions Dodd is adding:
- Authority for bankruptcy judges to restructure mortgages for homeowners facing foreclosure. This was considered a poison pill in a housing bill that passed Congress earlier this summer, but it has gained much more currency now that Washington wants to bail out Wall Street.
Two snaps up to the distinguished gentleman from Connecticut.
Lawmaker Pushback on Paulson’s Plan
I think that it’s clear that Paulson’s plan will be subject to sagnificant modifications in the legislative process with the Democrats seeing a need for new and stronger regulations, an equity stake in exchange for the bailout, and seeing serious questions raised by the portions of the proposed law that prohibit judicial review.
Of course, if I were them, I’d also be flipping out over the idea of Treasury hiring the Wall Street firms who f%$#ed up in the first place to manage the assets once they are purchased.
I would also note that some Congressmen want some sort of mortgage aid to distressed homeowners to be a part of the plan. (IMNSHO, allowing bankruptcy judges to handle this is the best, cheapest, and most efficient way to handle this).
I should note that the the Wall Street boys hate the idea of restrictions or equity stakes, but they have always wanted, to quote Dire Straits, their , “Money for Nothing”.
It does appear, however that the White House and the Congress are narrowing their differences.
Bailout Plan Opinions
Deep Thought
Any member of Congress who looks at the plan to give Hank unchecked power to transfer $700 billion from the Treasury to his friends’ companies and has any reaction other than ‘You’ve got to be f%#@ing kidding me’ does not deserve to hold office.
Krugman opposes the plan, at least in the form presented by Henry Paulson, though he is more receptive to Chris Dodd’s version, which requires equity from the firms rescued for buying their part of the big sh$#pile.
Sebastian Mallaby, who normally favors economics for the benefit of rich folk, hates the Paulson plan too.
Brad DeLong is of a similar mind to Krugman.
In The Nation, William Greider calls the Paulson plan a, “historic swindle.”
Dean Baker, as is his wont, gets into some fairly specific proposals in some depth, which which I agree.
Robert Reich is less specific, but he does add one specific proposal: allowing primary mortgages to be modified by a bankruptcy judge, with which I also agree.
As for me, I will merely note that Henry Paulson holds hundreds of millions of dollars worth of shares on Goldman Sachs, and the idea that he get a blank check to work this is therefore nuts.
I Wish This Were My Congresscritter
Matt Stoller, of Open Left, got the following missive from an unnamed Congressman:
Paulsen and congressional Republicans, or the few that will actually vote for this (most will be unwilling to take responsibility for the consequences of their policies), have said that there can’t be any “add ons,” or addition provisions. F$#@ that. I don’t really want to trigger a world wide depression (that’s not hyperbole, that’s a distinct possibility), but I’m not voting for a blank check for $700 billion for those mother f$#@ers.
Nancy said she wanted to include the second “stimulus” package that the Bush Administration and congressional Republicans have blocked. I don’t want to trade a $700 billion dollar giveaway to the most unsympathetic human beings on the planet for a few f$#@ing bridges. I want reforms of the industry, and I want it to be as punitive as possible.
Henry Waxman has suggested corporate government reforms, including CEO compensation, as the price for this. Some members have publicly suggested allowing modification of mortgages in bankruptcy, and the House Judiciary Committee staff is also very interested in that. That’s a real possibility.
We may strip out all the gives to industry in the predatory mortgage lending bill that the House passed last November, which hasn’t budged in the Senate, and include that in the bill. There are other ideas on the table but they are going to be tough to work out before next week.
I also find myself drawn to provisions that would serve no useful purpose except to insult the industry, like requiring the CEOs, CFOs and the chair of the board of any entity that sells mortgage related securities to the Treasury Department to certify that they have completed an approved course in credit counseling. That is now required of consumers filing bankruptcy to make sure they feel properly humiliated for being head over heels in debt, although most lost control of their finances because of a serious illness in the family. That would just be petty and childish, and completely in character for me.
I’m open to other ideas, and I am looking for volunteers who want to hold the sons of bitches so I can beat the crap out of them.
Don Young Finally Wins Republican Primary for Alaska’s House Seat
That only took a two week recount.
He beat Sarah Palin’s bitch, Lt. Governor Sean Parnell in a closely fought race, and due to his ethics problems, the race becomes more likely to become a Democratic pickup in November.
Making a Bad Situation Worse
Well, it appears that the American House fetish and the lobbying of predatory realtors is getting results, as the House Financial Services Committee has approved the markup of H.R. 6694, which re-institutes the insane downpayment assistance program, in which sellers make a payment to non-profits, plus a “service charge”, and the non profits “gift” this to a potential home buyer, so that they can qualify for a FHA loan.
Typical scenario: a home owner has a buyer who has no downpayment for a $100K house, so the home seller “donates” $6000 to to a “non-profit” group, which takes a $500 fee, and “gifts” the remainder to the home buyer, so the home buyer now buys the house at $106,000, which the FHA recognizes as 5% down, and so qualifies for a loan.
Of course, the buyer has still put no money down, and they owe more on the mortgate, and the statistics show a much higher default rate.
It does not put people in houses. It creates a default/foreclosure timebomb.
Foreign Relations Committee Tells Condi to Go Cheney Herself
Condoleeza Rice has negotiated agreements with the UK and Australia to allow for smoother transfers of defense technologies between the nations, as ITAR (International Traffic in Arms Regulations) can be a rather ponderous apparatus.
After repeated delays in the State Department supplying information regarding the impact of these treaties on existing statute, U.S. Senate Foreign Relations Committee has decided to defer consideration of the compacts until after Bush and His Evil Minions&trade are out of office.
Payback is a bitch, bitch.
Please, God, Please Make This So!
Barney Frank is saying that Congress will look at limiting executive pay as a part of any bailout package.
I’m Matthew Saroff, and I unreservedly approve this idea.
As to the limit: The salary of the President of the United States, with the possibility of an equal bonus.
That’s around 800 grand a year, which is fine by me, and a real haircut for these contemptible greedy f%$#s
How it Should Be Done
The Democrats are worried about the offshore drilling issue being used against them. They know that it’s bogus, but it’s also VERY easy to demagogue.
What do do?
Pass a bill that allows it, but contains provisions that will make the Republicans vote against it.
Include things like:
- Reducing the distance to shore from 100 to 50 miles when the Republicans want it much closer.
- Having the states receive no royalties from new drilling, which makes legislative approval next to impossible.
- Eliminates $18 billion in tax breaks for big oil.
- The bill would also force the release of 70 million barrels of oil from the nation’s emergency reserves
- Provide tax breaks for efficient building construction and companies that promote bicycle commutes
- Require all utility companies to generate at least 15 percent of their power by alternative fuels by 2020.
The senate will never pass this, it will never get pasty filibuster.
All of which have Bush threatening a veto, so you have a trifecta: The Dems vote for it, the Repugs vote against it, and then they have to vote to support Bush’s veto.
Job well done.
It’s Definitely the Weird Season
You may recall Vito Fossella, who dropped out of his race for reelection after he was busted for driving drunk from his wife to his mistress, both of whom have borne him children.
Well, the Republicans selected Francis H. Powers, whose son Francis M. Powers was running against him on the Libertarian ticket.
And then Francis H. Powers died.
Well, it now looks like Vito Fossella is considering re-entering the race.
The political gods are smoking some serious dope in Staten Island.
KC-X Tanker Contest Canceled
Looks like SecDef Bob Gates is dumping this one on the next administration.
I can’t say I blame him. The Airbus is a better aircraft, more modern and with greater fuel offload capacity, and it’s already flying, whereas the Boeing Frankenplane, cobbled together out of 3 different 767 models, has stronger pork barrel congressional support.
A delay might move Boeing to submit a shortened 777 as a bid, which would be more competitive, but the 787 is out, if just because they are so far behind schedule that they would not be able to begin deliveries until some time around 2020.
It might also have something to do with the strike, which obviously makes Boeing hitting any delivery, for any customers, which would give the delegation from Washington State more of an opportunity to whine.
Republicans Looking to Make Lieberman’s Party Change Official
This is no surprise, but he won’t change caucuses unless kicked out of the Dem caucus, which he should be, because Joe Lieberman is all about Joe Lieberman, and as a kinda-sorta Dem who spews Republithug talking points, he has more power, gets more face time, and is lauded as a bipartisan by the Beltway Gasbags, so I do not believe that Republicans will be successful in getting him to switch parties.
It’s a pity, because it would be good for the Democratic party and the nation.
Oh My God, They are Nationalizing Fannie and Freddie
It appears that regulators have sent a letter notifying the GSEs of this, here and here, and the details will be announced tomorrow.
It won’t be called a nationalization, my money would be on “conservatorship”, but the share holders are rumored to get little to nothing, and management will be replaced by people who answer to the government
One of the interesting dynamics here, and one that is barely covered in the financial press is the fact that Fannie and Freddie have been aggressive lobbyists and soft money contributors (their employees are big hard money contributors) for years, and with a nationalization, that will stop.
This means that Congress will stop writing laws, and pressuring regulators, for the benefit of Fannie and Freddie, which is apt to lead to major changes in said laws, regulation, and oversight.
Democrats Rebuke Lieberman for Speech at Republithug Convention
Yep, they are saying that they are very, very, disappointed.
Sorry, but Lieberman jumped the shark when he refused to investigate failures during Katrina; in which he clearly showed that he was aggressively covering up for Bush and His Evil Minions&trade, and you did not do anything then.
And we are supposed to expect that you will do something now?
Fool me once, shame on you, fool me twice, we won’t get fooled again.