MonkeyCrash

Senate Passes Bailout Plan With Sweeteners; How Did Your Senator Vote?

// October 2nd, 2008 // 2 Comments » // ECONOMY, Featured Articles, POLITICAL ARENA

The Senate passed the Bailout Bill Wednesday with “sweeteners” in order to appease both parties. The said sweeteners are as follows:
FDIC - Increase, from $100,000 to $250,000, the limit on federal bank deposit insurance. The limit would revert to $100,000 at the end of 2009 unless extended by Congress.

ENERGY – Legislation providing business tax breaks for production of and investment in industries promoting clean energy such as solar, wind and biodiesel.

DISASTER RELIEF – Grant tax relief for victims of natural disasters in the Midwest, such as flooding, tornadoes and other severe weather events.

TAX BREAKS – A one-year fix to the Alternative Minimum Tax that will exempt 20 million Americans from paying higher income taxes. In recent years the AMT has required a “patch” to help more and more middle class taxpayers avoid paying a tax that was never intended to include them. This year the patch is costing $64 billion, for example. Extend until end of 2009 the deduction for state and local general sales taxes.

EDUCATION AID - Extend individual tax breaks, including deductions for higher education costs and teachers’ personal expenses, until 2009.

RURAL AREAS – Extend through 2011 a program that funds rural schools and local governments that have low property-tax bases because they lie within or are adjacent to federal lands.

HEALTH CARE – Require group health plans that include mental health or addiction treatment to provide coverage for those conditions that is equitable to other medical coverage.

The House will most likely vote on the Bailout Bill this Friday and it is unclear if they will get the votes needed to pass the plan. Interesting enough the bill was only 12 votes short from passing earlier in the week. Twelve Democrats from Barney Frank’s committee voted against the bill. Perhaps Barney can convince his own committee to vote yes before blaming the Republicans for everything that doesn’t go his way.

How did your Senator Vote Wednesday? Here is the Roll Call:

MonkeyCrash is Your Source For Conservative Opinion

Mortgage Crisis Solution: Motivate Homeowners Like Sales Reps

// October 1st, 2008 // No Comments » // ECONOMY

Mortgage Crisis Solution: Motivate Homeowners Like Sales Reps

Posted By, Allyn Paul

I’ve been convinced that with the current state of the economy, the government needs to act as a charity and give out $700 billion. I just don’t think investment bankers should be the recipients. The charity should go to homeowners, and they should have to “do” something to get it! They should earn it.

In my middle-class, middle-manager mind, the solution is simple: if we could get homeowners to pay their mortgages on time, we’d be out of this crisis in a matter of months. It will not be a quick fix, but it will be a rewarding one.

At my office, when my sales force is lagging for the month, I create a contest to motivate them. More often than not, money is the “hot button” that motivates, and I’ve learned to push that button early and often. So let’s pretend that everyone in the US with a mortgage is a “sales rep” and congress is the “sales manager.”

How can we motivate our reps to not only perform, but excel? Incentivize them!

Basic Incentive Plan

For Anyone with a Mortgage on their Primary Residence: Run an incentive plan for 6 months (November 1, 2008-May 2009) stating, “anyone who makes their mortgage payment on time every month during that period will be sent a check from the government for $8,000 in June 2009.”

This is for anyone with a mortgage: on time, late or whatever.

Acceleration Bonus For Over-Achievers

For Those Behind On Their Payments: If your mortgage is already behind at the start of November 2008, you are not required to catch up to be eligible for the basic incentive above. You just have to make 6 monthly mortgage payments on time during the contest, but instead of the $8,000 being sent directly to you at the end, the money will be sent to your mortgage company on your behalf to cover arrearage and late fees. (anything left over is sent to you)

However, if during the 6 month period you not only make your monthly payments on time but work extra hard and “catch up” or “become current” on what you were behind, you will get an additional $2,000 for each month you were able to become current on. (3 month maximum)

For Those Who Are Making Payments On Time As Agreed Already: If your mortgage is current at the start of November 1, 2008 your incentive is to get ahead! You will be paid $2,000 for every 1.5% of the principle mortgage amount you send in over and above your monthly payment during the 6 months! (4.5% maximum)

Just like any good sales incentive, if at the end of the contest the manager sees it is making clear headway towards the bottom line, it can be extended for another period of time. Sometimes you may also adjust the contest to focus on another area or need.

Congress or the IRS would also need to put some stops in place. For example, anyone participating in the plan would need to register and have their credit run so as to thwart those who would run out and advance credit cards in order to catch up their debts. We don’t want to rob Peter in order to pay Paul. I am sure there are other fail-safes that could be added.

The root of this idea is to teach us all a lesson while stimulating the economy. You see, I don’t believe that the majority of people who are behind on their mortgages are that way because they have to be. I wonder how many people who are over their heads with mortgage debt still have cable television, a flat screen HDTV and a family cell phone plan with unlimited data package?

How many of them are eating fast food for lunch everyday and drinking beers and Vodka on the weekends? So what if they lose their house; they’ll just go find an apartment and stock it up with that same HDTV, internet cell phone, beer and vodka.

On the flip side, you have the honest and hard-working folks out there who do keep their bills current and still afford the finer things in life. They live within their means. The extra money they earn will surely find its way back into the economy in the form of spending, whether on luxury items or lifestyle upgrades; ie: economic stimulation.

Don’t get me wrong, I understand there are people in real trouble in this country. But the truth is most have just not been motivated properly to make their house payments. There truly is no incentive for them to do so, negative or positive.

A sales rep once said to me, “You catch more flies with honey than with vinegar, so motivate us with positives instead of negatives.”

He was right.

So all you lawyers in Congress need to start thinking like middle managers. What can you do to turn around the country’s “sales numbers?” Is it better to inject money into big company coffers, or put it in the hands of the employees/people?

We elected you, and will be voting again soon. Just beware: swallowing vinegar may cause vomiting. So are we gonna get the honey or what?

Allyn Paul is a big company middle manager. He lives within his means; simply.

His blog, Life and Lawns, offers lawn care tips and advice.

Video: Democrats Defend Fannie Mae and Freddie Mac in 2004

// September 30th, 2008 // No Comments » // ECONOMY

After Pelosi’s speech I decided to post this You Tube video showing Democrats attacking Republicans who called for regulation of Fannie and Freddie back in 2004. The Democrats in this video, one of which is Barney Frank, claim that Fannie and Freddie are sound! This is why we are in this economic mess today.

MonkeyCrash is Your Source For Conservative Opinion

Transcript: Pelosi’s Speech Moments Before Bailout Bill Fails

// September 30th, 2008 // 3 Comments » // ECONOMY, Featured Articles

Text of a speech given by Speaker Nancy Pelosi moments before the Bailout Bill was voted down.

Madam speaker, when was the last time anyone ever asked you for $700 billion? It’s a staggering figure. And many questions have arisen from that request. And we have been hearing, I think, a very informed debate on all sides — of — of this issue here today. I’m proud of the debate.

$700 billion. A staggering number. But only a part of the cost of the failed Bush economic policies to our country. Policies that were built on budget recklessness. When President Bush took office, he inherited President Clinton’s surpluses — four years in a row, budget surpluses, on a trajectory of $5.6 trillion in surplus. And with his reckless economic policies, within two years, he had turned that around.

And now eight years later, the foundation of that fiscal irresponsibility, combined with an anything goes economic policy, has taken us to where we are today. They claim to be free market advocates, when it’s really an anything goes mentality. No regulation, no supervision, no discipline. And if you fail, you will have a golden parachute, and the taxpayer will bail you out.

Those days are over. The party is over in that respect. Democrats believe in a free market. We know that it can create jobs, it can create wealth, it can create many good things in our economy. But in this case, in its unbridled form, as encouraged, supported, by the Republicans — some in the Republican Party, not all — it has created not jobs, not capital, it has created chaos.

And it is that chaos that the secretary of the Treasury and the chairman of the Fed came to see us just about a week and a half ago — seems like an eternity, doesn’t it, so much has happened, the news was so bad. They described a very, very dismal situation. A dismal situation describing the state of our economy, the fragility of our financial institutions and the instability of our markets, our equity markets, our credit markets, our bond market.

And here we were listening to people who knew of what they spoke. Secretary of the Treasury brings long credentials and knowledge of the markets. More fearful, though, to me, more scary, was the statement — were the statements of Chairman Bernanke [Ben S. Bernanke, chairman of the Federal Reserve], because Chairman Bernanke is probably one of the foremost authorities in America on the subject of the Great Depression. I don’t know what was so great about the Depression, but that’s the name they give it. And we heard the secretary and the chairman tell us that this was a once in a hundred year phenomenon, this fiscal crisis was so drastic. Certainly once in 50 years, probably once in a hundred years.

And how did it sneak up on us? So silently, almost on little cat feet. That they would come in on that day — and they didn’t actually ask for the money, that much money that night. It took two days until we saw the legislation that they were proposing to help calm the markets. And it was on that day that we learned of a $700 billion request.

But it wasn’t just the money that was alarming. It was the nature of the legislation. It gave the secretary of the Treasury czar-like powers, unlimited powers, latitude to do all kinds of things and specifically prohibited judicial review or review of any other federal administrative agency to review their actions.

Another aspect of it that was alarming is it gave the secretary the power to use any money that came back from these infusions of cash to be used at the discretion of the secretary. Not to reduce the deficit, not to go into the general funds so that we could afford other priorities. To be used at the discretion of the secretary. It was shocking. Working together in a bipartisan way, we were able to make major improvements on that proposal, even though its fundamental basis was almost arrogant and insulting.

The American people responded almost immediately. Overwhelmingly, they said they know that something needs to be done. Say 78 percent of the American people said Congress must act. Fifty-eight-some percent said, but not to accept the Bush proposal. And so here we are today, a week later and a couple of days later, coming to the floor with a product — not a bill that I would have written, one that has major disappointments with me, beginning with the fact that it does not have bankruptcy in this bill — and we will continue to persist and work to achieve that.

It’s interesting, though, to me that when they describe this, the magnitude of the challenge and the precipice that we were on and how we had to act quickly and we had to act boldly and we had to act now, that it never occurred to them that the consequences of this market were being felt well in advance by the American people. And unemployment is up, and therefore we need unemployment insurance. That jobs are lacking, and therefore we need a stimulus package. So how can on the one hand could this be so urgent at the moment, and yet so unnecessary for us to address the effects of this poor economy in the households of America across our country?

We’ll come back to that in a moment. Working together, we put together some standards — and I am really proud of what Barney Frank did in this regard. The first night, that night, that Thursday night, when we got the very, very dismal news, he immediately said, if we’re going to do this — and Spencer Bachus was a part of this as well — in terms of if we’re going to do this, we must have equity for the American people. We’re putting up $700 billion, we want the American people to get some of the upside. So equity, fairness for the American people.

Secondly, if they were describing the root of the problem as the mortgage-backed securities, Barney insisted that we would have forbearance on foreclosure. If we’re now going to own that paper, that we would then have forbearance to help responsible homeowners stay in their home.

In addition to that, we have to have strong, strong oversight. We didn’t even have to see the $700 billion or the full extent of their bill to know that we needed equity and upside for the taxpayer, forbearance for the homeowner, oversight of the government on what they were doing, and something that the American people understand full well, an end to the golden parachutes and the — a — review and reform of the compensation for C.E.O.’s.

Let’s get this straight. We have a situation where on Wall Street people are flying high, they are making unconscionable amounts of money. They make a lot of money, they privatize the gain, the minute things go tough, they nationalize the risk. They get a golden parachute as they drive their firm into the ground, and the American people have to pick up the tab. Something is very, very wrong with this picture.

So just on first blush, that Thursday night, we made it clear, meeting much resistance on the part of the administration, that those four things, equity, forbearance, oversight, and reform of compensation. Overriding all of this is a protection of the taxpayer. We need to stabilize the markets. In doing so, we need to protect the taxpayers.

And that’s why I’m so glad that this bill contains a suggestion made by Mr. Tanner [Representative John Tanner, Democrat of Tennessee] that if at the end of the day, say in five years, when we can take a review of the success or whatever of this initiative, that if there is a shortfall and we don’t get our whole $700 billion back that we have invested, that there will be an initiative to have the financial institutions that benefited from this program to make up that shortfall.

But not one penny of this should be carried by the American people. People asked, and Mr. Spratt [Representative John M. Spratt Jr., Democrat of South Carolina] spoke with great knowledge and eloquence on the budget and aspects of the budget. $700 billion, what is the impact, what is the opportunity cost for our country of the investments that we would want to make?

O.K., now we have it in place where the taxpayer is going to be made whole and that was very important for us. But why on the drop of a hat can they ask us for $700 billion, and we couldn’t get any support from the administration on a stimulus package that would also help grow the economy?

People tell me all over the world that the biggest emerging market, economic market in the world, is rebuilding the infrastructure of America. Roads, bridges, waterways, water systems in addition to waterways. The grid, broadband, schools, housing, certain schools. We are trillions of dollars in deficit there.

We know what we need to do to do it in a fiscally sound way, in a fiscally sound way that creates good-paying jobs in America immediately. Brings money into the treasury by doing so, and again does all of this in an all-American way. Good-paying jobs here in America.

We can’t get the time of day for 25, $35 billion for that, which we know guarantees jobs, et cetera, but $700 billion. So make no mistake, when this Congress adjourns today to observe Rosh Hashanah and have members go home for a bit, we are doing so at the call of the chair. Because this subject is not over, this discussion about how we save our economy.

And we must insulate Main Street from Wall Street. And as Congresswoman Waters [Representative Maxine Waters, Democrat of California] said, Martin Luther King Drive, in my district Martin Luther King Drive, and Cedar Chavez Road and all of the manifestations of community and small businesses in our community. We must insulate them from that. And so we have difficult choices, and so many of the things that were said on both sides of this issue in terms of its criticisms of the bill we have and the bill that we had at first, and the very size of this, I share. You want to go home, so I’m not going to list all of my concerns that I have with it.

But it just comes down to one simple thing. They have described a precipice. We are on the brink of doing something that might pull us back from that precipice. I think we have a responsibility. We have worked in a bipartisan way. I want to acknowledge Mr. Blunt and Mr. Boehner, the work that we have done together, trying to find as much common ground as possible on this.

But we insisted the taxpayer be covered. We all insisted that we have a party-is-over message to Wall Street. And we insisted that, that taxpayers at risk must recover — that any risk must be recovered. I told you that already. So, my colleagues, let’s recognize that this Congressional — this legislation is not the end of the line.

Mr. Waxman [Representative Henry A. Waxman, Democrat of California] will be having vigorous oversight this week, hearings this week on regulatory reform and other aspects of it. I hope you will pursue fraud and mismanagement and the rest. Mr. Frank and his committee will continue to pursue other avenues that we can stabilize the markets and protect the taxpayer. For too long, this government, in eight years, has followed a right-wing ideology of anything goes, no supervision, no discipline, no regulation.

Again, all of us are believers in free markets, but we have to do it right. Now, let me again acknowledge the extraordinary leadership of Mr. Frank. He has been an exceptional leader in the Congress, but never has his knowledge and his experience and his judgment been more needed than now. And I thank you, Mr. Frank, for your exceptional leadership, Mr. Chairman.

I also — so many people worked on this, but I also want to acknowledge the distinguished chair of our caucus, Mr. Emanuel. His knowledge of the markets, the respect he commands on those subjects, and his boundless energy on the subjects served us well in these negotiations. But this, this is a bipartisan initiative that we are bringing to the floor. We have to have a bipartisan vote on this. That is the only message that will send a message of confidence to the markets.

So I hope that — I know that we will be able to live up to our side of the bargain. I hope the Republicans will, too.

But my colleagues, as you go home and see your families and observe the holiday and the rest, don’t get settled in too far, because as long as the American — this challenge is there for the American people, the threat of losing their jobs, the credit, their credit, their jobs, their savings, their retirement, the opportunity for them to send their children to college.

As long as in the households of America, this crisis is being felt very immediately and being addressed at a different level, we must come back, and we will come back as soon and as often as it is necessary to make the change that is necessary. And before long we will have a new Congress, a new president of the United States, and we will be able to take our country in a new direction.

MonkeyCrash is Your Source For Conservative Opinion

Video: O’Reilly and John Kerry Square Off Over Bailout Bust

// September 30th, 2008 // No Comments » // ECONOMY, Featured Articles

The more I see of Bill O’Reilly the more I like. This is a great interview/debate about who caused the economic crisis and why the bailout bill failed. After watching this video I thanked God that Kerry didn’t win in 2004. This is a must see!

MonkeyCrash is your Source For Conservative Opinion

Democrats Couldn’t Sell Bailout Bill To Their Own Party, Still Blame Republicans

// September 30th, 2008 // No Comments » // ECONOMY, Featured Articles

The Democrats are blaming the Republicans for the failure of the bailout bill, but perhaps they could have done a better job of selling the bill to their own party. Over 90 democrats voted against the bill.

Here is the voting record:

DEMOCRATS

YEA

Ala. – Cramer, Davis

Ariz. – Berry, Ross, Snyder

Calif. – Berman, Capps, Cardoza, Costa, Davis, Eshoo, Farr, Harmon, Honda, Lofgren, Matsui, McNerney, Miller (G.), Pelosi, Richardson, Speier, Taushcer, Waters, Waxman, CO-DeGette, Perlmutter

Conn. – DeLauro, Laron, Murphy, FL-Boyd, Brown, Hastings, Klein, Mahoney, Meek, Wasserman, Schultz, Wexler

Ga. – Bishop, Marshall

Ill. – Bean, Davis, Emanuel, Foster, Gutierrez, Hare, Schakowsky

Ind. – Donnelly, Ellsworth

Iowa – Boswell, Loebsack

Kan. – Moore

La. – Melancon

Maine – Allen

Md. – Hoyer, Ruppersberger, Sarbanes, Van Hollen

Mass.- Capuano, Frank, Markey, McGovern, Neal, Oliver, Tsongas

Mich. – Dingell, Kildee, Levin, MN-Ellison, McCollum, Oberstar

Mo.- Carnahan, Skelton

N.J. – Andrews, Holt, Pallone, Sires

N.Y. – Ackerman, Arcuri, Bishop, Clarke, Crowley, Engel, Hall, Higgins, Israel, Lowey, Maloney, McCarthy, McNulty, Meeks, Nadler, Rangel, Slaughter, Towns, Velazquez, Weiner

N.C. – Etheridge, Miller, Price, Watt

N.D. – Pomeroy

Ohio – Ryan, Space, Wilson

Okla. – Boren

Ore. – Hooley

Pa. – Brady, Doyle, Fattah, Kanjorksi, Murphy (P.), Murtha, Schwartz, Sestak

R.I. – Kennedy, Langevin

S.C. – Clyburn, Spratt

Tenn. – Cohen, Cooper, Gordon, Tanner

Texas – Edwards, Gonzalez, Hinojosa, Johnson, Reyes

Va. – Boucher, Moran

Wash. – Baird, Dicks, Larsen, McDermott, Smith

W.Va – Mollohan, Rahall

Wis. – Baldwin, Kind, Moore, Obey,

DEMOCRATS

NAY

Ariz. – Giffords, Grijalva, Mitchell, Paster,

Calif – Baca, Becerra, Filner, Zee, Napolitano, Roybal (Allard), Sanchez (Linda), Sanchez (Loretta), Schiff, Sherman, Solis, Stark, Thompson, Watson, Woolsey

Colo. – Salazar, Udall

Conn. – Courtney

Fla. – Caster

Ga. – Barrow, Johnson, Lewis, Scott,

Hawaii – Abercrombie, Hirono

Ill. – Costello, Jackson, Lipinski, Rush

Ind. – Carson, Hill, Visclosky

Iowa – Braley

Kan. – Boyda

Ky. – Chandler, Yarmuth

La. – Cazayoux, Jefferson

Maine – Michaud

Md. – Cummings, Edwards

Mass. – Delahunt, Lynch, Tierney

Mich. – Coyners, Kilpatrick, Stupak

Minn. – Peterson, Walz

Miss. – Childers, Taylor, Thompson

Mo. – Clay, Cleaver

Nev. – Berkley

N.H. – Hodes, Shea-Porter

N.J. – Pascrell, Payne, Rothman

N.M. – Udall

N.Y. – Gillibrand, Hinchey, Serrano

N.C. – Butterfield, McIntyre, Shuler

Ohio – Kaptur, Kucinich, Sutten

Ore. – Blumenauer, DeFazio, Wu

Pa. – Altmire, Carney, Holden

S.D. – Hurseth, Sandlin

Tenn. – Davis, Lincoln

Texas – Cuellar, Doggett, Green (Al), Green (Gene), Jackson (Lee), Lampson, Ortiz, Rodriguez

Utah – Matheson

Vt.- Welch

Va. – Scott

Wash. – Inslee

Wis. – Kagen

REPUBLICANS

YEA

Ala. – Bachus, Bonner, Everett, Rogers

Ariz. – Boozman

Calif. – Bono (Mack), Valvert, Campbell, Dreier, Herger, Lewis, Lungren, McKeon, Miller (G), Radanovich

Colo. – Tancredo

Conn. – Shays

Del. – Castle

Fla. – Crenshaw, Putnam, Weldon

Idaho – Simpson

Ill. – Krik, LaHood

Ind. – Souder

Ky. – Lewis, Rogers

La. – McCrery

Md. – Gilchrest

Mich. – Camp, Ehlers, Upton

Minn. – Kline

Miss. – Pickering

Mo. – Blunt, Emerson

Nev. – Porter

N.J. – Ferguson, Saxton

N.M. – Wilson

N.Y. – Fossella, King, McHugh, Reynolds, Walsh

Ohio – Boehner, Hobson, Pryce, Regula

Okla. – Cole

Ore. – Walden

Pa. – Peterson

S.C. – Brown, Inglis, Wilson

Texas – Brady, Granger, Sessions, Smith

Utah – Cannon

Va – Cantor, Davis, Wolf

Wis.- Ryan

Wyo. – Cubin

REPUBLICANS

NAY

Ala – Aderhold

Alaska – Young

Ariz. – Flake, Franks, Renzi, Shadegg

Calif. – Bilbray, Doolittle, Gallegly, Hunter, Issa, McCarthy, Nunes, Rohrabacher, Royce

Colo. – Lamborn, Musgrave

Fla. – Bilirakis, Brown-Waite, Ginny, Buchanan, Diaz-Balart (L), Diaz-Balart (M), Feeney, Keller, Mack, Mica, Miller, Ros-Lehtinen, Stearns, Young

Georgia – Brown, Deal, Gingrey, Kingsten, Linder, Price, Westmoreland

Idaho – Sali

Ill. – Biggert, Johnson, Manzullo, Raskam, Shimkus

Ind. – Burton, Buyer, Pence

Iowa – King, Latham

Kan. – Moran, Tiahrt

Ky. – Davis, Whitfield

La. – Alexander, Bustany, Scalise

Md. – Bartlett

Mich. – Hoekstra, Knollenberg, McCotter, Miller, Rogers, Walberg

Minn. – Bachmann, Ramstad

Mo. – Akin, Graves, Hulshof

Mont. – Mehberg

Neb. – Portenberrym, Smith, Terry

Nev. – Heller

N.J. – Frelinghuysen, Garrett, LoBiondo, Smith

N.M. – Pearce

N.Y. – Kuhl

N.C. – Coble, Foxx, Hayes, Jones, McHenry, Myrick

Ohio – Chabot, Jordan, LaTourette, Latta, Schmidt, Tiberi, Turner

Olka. – Fallin, Lucas, Sullivan

Pa. – Dent, English, Gerlach, Murphy, Pitts, Platts, Shuster

S.C. – Barrett

Tenn. – Blackburn, Davis, Duncan, Wamp

Texas – Barton, Burgess, Carter, Conway, Culberson, Gohmert, Hall, Hensarling, Johnson (S), Marchant, McCaul, Neugbauer, Paul, Poe, Thornberry

Utah – Bishop

Va. – Drake, Forbes, Goode, Goodlatte, Wittman

Wa. – Hastings, McMorris, Rodgers, Reighert

W.Va. – Capito

Wisc. – Petri, Sensenbrenner

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WaMu Gives CEO $20 Million As Bank Fails

// September 26th, 2008 // 1 Comment » // ECONOMY

As WaMu employees fear for their jobs the CEO Alan H. Fishman is $20 million richer. Talk about a golden parachute! Fishman has only been on the job for 3 weeks and has made more than most of us will make in a lifetime for being CEO of a failed bank for 17 days.

Fishman was the former chairman of Meridian Capital Group, and was brought on to lead the failing bank out of mortgage troubles that lead to a $3.3 billion second-quarter loss.

More on Fishman:

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Video: President Bush on the Economic Crisis; “Economy in Danger”

// September 25th, 2008 // 1 Comment » // ECONOMY

President Bush addressed the nation today about the on-going financial crisis and warns that if the $700 billion dollar bailout is not passed by Congress the American people will suffer the consequence down the road. Bush also asked that McCain and Obama meet with him along with Congress to discuss the need for the bailout and get it passed. We have posted the video of the speech. Read the Transcript: Bush on the Economic Crisis.

Bush on the Economic Crisis

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President Bush Addresses the Nation On The Economic Crisis;Transcript

// September 25th, 2008 // 1 Comment » // ECONOMY

President Bush addressed the nation concerning the economic crisis and the need for the $700 billion dollar bailout by congress. Below is the transcript of his speech.

President Bush on the economic crisis.

September 24, 2008

Good evening. This is an extraordinary period for America’s economy.

Over the past few weeks, many Americans have felt anxiety about their finances and their future. I understand their worry and their frustration.

We’ve seen triple-digit swings in the stock market. Major financial institutions have teetered on the edge of collapse, and some have failed. As uncertainty has grown, many banks have restricted lending, credit markets have frozen, and families and businesses have found it harder to borrow money.

We’re in the midst of a serious financial crisis, and the federal government is responding with decisive action.

We boosted confidence in money market mutual funds and acted to prevent major investors from intentionally driving down stocks for their own personal gain.

Most importantly, my administration is working with Congress to address the root cause behind much of the instability in our markets.

Financial assets related to home mortgages have lost value during the house decline, and the banks holding these assets have restricted credit. As a result, our entire economy is in danger.

So I propose that the federal government reduce the risk posed by these troubled assets and supply urgently needed money so banks and other financial institutions can avoid collapse and resume lending.

This rescue effort is not aimed at preserving any individual company or industry. It is aimed at preserving America’s overall economy.

It will help American consumers and businesses get credit to meet their daily needs and create jobs. And it will help send a signal to markets around the world that America’s financial system is back on track.

I know many Americans have questions tonight: How did we reach this point in our economy? How will the solution I propose work? And what does this mean for your financial future?

These are good questions, and they deserve clear answers.

First, how did our economy reach this point? Well, most economists agree that the problems we’re witnessing today developed over a long period of time. For more than a decade, a massive amount of money flowed into the United States from investors abroad because our country is an attractive and secure place to do business.

This large influx of money to U.S. banks and financial institutions, along with low interest rates, made it easier for Americans to get credit. These developments allowed more families to borrow money for cars, and homes, and college tuition, some for the first time. They allowed more entrepreneurs to get loans to start new businesses and create jobs.

Unfortunately, there were also some serious negative consequences, particularly in the housing market. Easy credit, combined with the faulty assumption that home values would continue to rise, led to excesses and bad decisions.

Many mortgage lenders approved loans for borrowers without carefully examining their ability to pay. Many borrowers took out loans larger than they could afford, assuming that they could sell or refinance their homes at a higher price later on.

Optimism about housing values also led to a boom in home construction. Eventually, the number of new houses exceeded the number of people willing to buy them. And with supply exceeding demand, housing prices fell, and this created a problem.

Borrowers with adjustable-rate mortgages, who had been planning to sell or refinance their homes at a higher price, were stuck with homes worth less than expected, along with mortgage payments they could not afford.

As a result, many mortgage-holders began to default. These widespread defaults had effects far beyond the housing market.

See, in today’s mortgage industry, home loans are often packaged together and converted into financial products called mortgage-backed securities. These securities were sold to investors around the world.

Many investors assumed these securities were trustworthy and asked few questions about their actual value. Two of the leading purchasers of mortgage-backed securities were Fannie Mae and Freddie Mac.

Because these companies were chartered by Congress, many believed they were guaranteed by the federal government. This allowed them to borrow enormous sums of money, fuel the market for questionable investments, and put our financial system at risk.

The decline in the housing market set off a domino effect across our economy. When home values declined, borrowers defaulted on their mortgages, and investors holding mortgage-backed securities began to incur serious losses.

Before long, these securities became so unreliable that they were not being bought or sold. Investment banks, such as Bear Stearns and Lehman Brothers, found themselves saddled with large amounts of assets they could not sell. They ran out of money needed to meet their immediate obligations, and they faced imminent collapse.

Other banks found themselves in severe financial trouble. These banks began holding on to their money, and lending dried up, and the gears of the American financial system began grinding to a halt.

With the situation becoming more precarious by the day, I faced a choice, to step in with dramatic government action or to stand back and allow the irresponsible actions of some to undermine the financial security of all.

I’m a strong believer in free enterprise, so my natural instinct is to oppose government intervention. I believe companies that make bad decisions should be allowed to go out of business.

Under normal circumstances, I would have followed this course. But these are not normal circumstances. The market is not functioning properly. There has been a widespread loss of confidence, and major sectors of America’s financial system are at risk of shutting down.

The government’s top economic experts warn that, without immediate action by Congress, America could slip into a financial panic and a distressing scenario would unfold.

More banks could fail, including some in your community. The stock market would drop even more, which would reduce the value of your retirement account. The value of your home could plummet. Foreclosures would rise dramatically.

And if you own a business or a farm, you would find it harder and more expensive to get credit. More businesses would close their doors, and millions of Americans could lose their jobs.

Even if you have good credit history, it would be more difficult for you to get the loans you need to buy a car or send your children to college. And, ultimately, our country could experience a long and painful recession.

Fellow citizens, we must not let this happen. I appreciate the work of leaders from both parties in both houses of Congress to address this problem and to make improvements to the proposal my administration sent to them.

There is a spirit of cooperation between Democrats and Republicans and between Congress and this administration. In that spirit, I’ve invited Senators McCain and Obama to join congressional leaders of both parties at the White House tomorrow to help speed our discussions toward a bipartisan bill.

I know that an economic rescue package will present a tough vote for many members of Congress. It is difficult to pass a bill that commits so much of the taxpayers’ hard-earned money.

I also understand the frustration of responsible Americans who pay their mortgages on time, file their tax returns every April 15th, and are reluctant to pay the cost of excesses on Wall Street.

But given the situation we are facing, not passing a bill now would cost these Americans much more later.

Many Americans are asking, how would a rescue plan work? After much discussion, there’s now widespread agreement on the principles such a plan would include.

It would remove the risk posed by the troubled assets, including mortgage-backed securities, now clogging the financial system. This would free banks to resume the flow of credit to American families and businesses.

Any rescue plan should also be designed to ensure that taxpayers are protected. It should welcome the participation of financial institutions, large and small. It should make certain that failed executives do not receive a windfall from your tax dollars.

It should establish a bipartisan board to oversee the plan’s implementation, and it should be enacted as soon as possible.

In close consultation with Treasury Secretary Hank Paulson, Federal Reserve Chairman Ben Bernanke, and SEC Chairman Chris Cox, I announced a plan on Friday.

First, the plan is big enough to solve a serious problem. Under our proposal, the federal government would put up to $700 billion taxpayer dollars on the line to purchase troubled assets that are clogging the financial system.

In the short term, this will free up banks to resume the flow of credit to American families and businesses, and this will help our economy grow.

Second, as markets have lost confidence in mortgage-backed securities, their prices have dropped sharply, yet the value of many of these assets will likely be higher than their current price, because the vast majority of Americans will ultimately pay off their mortgages.

The government is the one institution with the patience and resources to buy these assets at their current low prices and hold them until markets return to normal.

And when that happens, money will flow back to the Treasury as these assets are sold, and we expect that much, if not all, of the tax dollars we invest will be paid back.

The final question is, what does this mean for your economic future? Well, the primary steps — purpose of the steps I’ve outlined tonight is to safeguard the financial security of American workers, and families, and small businesses. The federal government also continues to enforce laws and regulations protecting your money.

The Treasury Department recently offered government insurance for money market mutual funds. And through the FDIC, every savings account, checking account, and certificate of deposit is insured by the federal government for up to $100,000.

The FDIC has been in existence for 75 years, and no one has ever lost a penny on an insured deposit, and this will not change.

Once this crisis is resolved, there will be time to update our financial regulatory structures. Our 21st-century global economy remains regulated largely by outdated 20th-century laws.

Recently, we’ve seen how one company can grow so large that its failure jeopardizes the entire financial system.

Earlier this year, Secretary Paulson proposed a blueprint that would modernize our financial regulations. For example, the Federal Reserve would be authorized to take a closer look at the operations of companies across the financial spectrum and ensure that their practices do not threaten overall financial stability.

There are other good ideas, and members of Congress should consider them. As they do, they must ensure that efforts to regulate Wall Street do not end up hampering our economy’s ability to grow.

In the long run, Americans have good reason to be confident in our economic strength. Despite corrections in the marketplace and instances of abuse, democratic capitalism is the best system ever devised.

It has unleashed the talents and the productivity and entrepreneurial spirit of our citizens. It has made this country the best place in the world to invest and do business. And it gives our economy the flexibility and resilience to absorb shocks, adjust, and bounce back.

Our economy is facing a moment of great challenge, but we’ve overcome tough challenges before, and we will overcome this one.

I know that Americans sometimes get discouraged by the tone in Washington and the seemingly endless partisan struggles, yet history has shown that, in times of real trial, elected officials rise to the occasion.

And together we will show the world once again what kind of country America is: a nation that tackles problems head on, where leaders come together to meet great tests, and where people of every background can work hard, develop their talents, and realize their dreams.

Thank you for listening. May God bless you.

MonkeyCrash is Your Source For Conservative Opinion

Transcript: From Green Bay; John McCain On Our Financial Markets

// September 21st, 2008 // 1 Comment » // ECONOMY, POLITICAL ARENA

September 19, 2008.

Green Bay, Wisconsin:

Remarks By John McCain On Our Financial Markets

Thank you all very much. It’s a great pleasure to be introduced by Governor Sarah Palin – and I can’t wait to introduce her to Washington.
If Governor Palin and I are elected in 46 days, we are not going to waste a moment in changing the way Washington does business. And we’re going to start where the need for reform is greatest. In short order, we are going to put an end to the reckless conduct, corruption, and unbridled greed that have caused a crisis on Wall Street.

Here and all across our country, people are wondering what exactly is happening on Wall Street. And with good reason, they want to know how their government will meet the crisis. Clear answers are hard to come by in Washington.

As Senator Obama’s leader in Congress memorably put it the other day – and I quote – “no one knows what to do.” Perhaps given that reaction, it shouldn’t surprise us that the Congressional leaders of this do-nothing Congress also said that they weren’t going to take action until after the election, claiming that it wasn’t their fault. I am hopeful that last night’s discussions are a sign they have changed their mind and will take action soon. But any action should be designed to keep people in their homes and safe guard the life savings of all Americans by protecting our financial system.

There are certainly plenty of places to point fingers, and it may be hard to pinpoint the original event that set it all in motion. But let me give you an educated guess. The financial crisis we’re living through today started with the corruption and manipulation of our home mortgage system. At the center of the problem were the lobbyists, politicians, and bureaucrats who succeeded in persuading Congress and the administration to ignore the festering problems at Fannie Mae and Freddie Mac.

These quasi-public corporations lead our housing system down a path where quick profit was placed before sound finance. They institutionalized a system that rewarded forcing mortgages on people who couldn’t afford them, while turning around and selling those bad mortgages to the banks that are now going bankrupt. Using money and influence, they prevented reforms that would have curbed their power and limited their ability to damage our economy. And now, as ever, the American taxpayers are left to pay the price for Washington’s failure.

Two years ago, I called for reform of this corruption at Fannie Mae and Freddie Mac. Congress did nothing. The Administration did nothing. Senator Obama did nothing, and actually profited from this system of abuse and scandal. While Fannie and Freddie were working to keep Congress away from their house of cards, Senator Obama was taking their money. He got more, in fact, than any other member of Congress, except for the Democratic chairmen of the committee that oversees them. And while Fannie Mae was betraying the public trust, somehow its former CEO had managed to gain my opponent’s trust to the point that Senator Obama actually put him in charge of his vice presidential search.

This CEO, Mr. Johnson, walked off with tens of millions of dollars in salary and bonuses for services rendered to Fannie Mae, even after authorities discovered accounting improprieties that padded his compensation. Another CEO for Fannie Mae, Mr. Raines, has been advising Senator Obama on housing policy. This even after Fannie Mae was found to have committed quote “extensive financial fraud” under his leadership. Like Mr. Johnson, Mr. Raines walked away with tens of millions of dollars.

Senator Obama may be taking their advice and he may be taking their money, but in a McCain-Palin administration, there will be no seat for these people at the policy-making table. They won’t even get past the front gate at the White House.

My friends, this is the problem with Washington. People like Senator Obama have been too busy gaming the system and haven’t ever done a thing to actually challenge the system.

We’ve heard a lot of words from Senator Obama over the course of this campaign. But maybe just this once he could spare us the lectures, and admit to his own poor judgment in contributing to these problems. The crisis on Wall Street started in the Washington culture of lobbying and influence peddling, and he was square in the middle of it.

The financial services industry – and there are many honest and honorable people who work in it – plays a vital role in our economy. Mutual fund companies help Americans save for retirement. Banks and lending companies provide the mortgages that help us buy our homes. Investment firms supply the seed money that helps entrepreneurs create tomorrow’s jobs. Insurance companies protect us against unknown risks.

Yet as the financial crisis continues and bailouts and bankruptcies mount, it’s clear financial firms have lost the trust of the American people. That trust cannot be regained unless we adopt some fundamental reforms. Government has a clear responsibility to act and to defend the public interest. That is exactly what I intend to do.

First, to deal with the immediate crisis, I will lead in the creation of the Mortgage and Financial Institutions trust – the MFI. The underlying principle of the MFI or any approach considered by Congress should be to keep people in their homes and safe guard the life savings of all Americans by protecting our financial system and capital markets. This trust will work with the private sector and regulators to identify institutions that are weak and fix them before they become insolvent. The MFI is an early intervention program to help financial institutions avoid bankruptcy, expensive bailouts and damage to their customers. This will get the Treasury and other financial regulatory authorities in a proactive position instead of reacting in a crisis mode to one situation after another.

The MFI will restore investor and market confidence, build sound financial institutions, assist troubled institutions and protect our financial system while minimizing taxpayer exposure. This is an important step, but it is not enough. I will also take the additional actions needed to make sure a crisis like this is never allowed to build and break over the American people again.

Second, I will propose and sign into law reforms to prevent financial firms from concealing their bad practices. An inexcusable lack of financial transparency allowed Wall Street firms to engage in reckless behavior that padded their profits and fattened executive bonuses when times were good, but now imperil the financial security of millions of Americans when their bets turned sour.

So much of the damage to our economy could have been avoided if these practices had been exposed to the light of day. Americans have a right to know when their jobs, pensions, IRAs, investments, and our whole economy are being put at risk by the recklessness of Wall Street. And under my reforms for the financial sector, that fundamental right will be protected.

Third, we need regulatory clarity. The lack of transparency in our financial markets went unnoticed by the regulatory agencies scattered throughout Washington charged with protecting the common good. We’ve got the SEC, the FDIC, the CFTC, the SIPC, the OCC, the Fed. At best, this confusing assortment of regulators and institutions was egregiously lax in carrying out their responsibilities. At worst, they engaged in the old Washington game of guarding their bureaucratic turf, instead of safeguarding the public interest and protecting investors.

Many in the financial services industry also either forgot or neglected their duty to act ethically and honorably. This shortcoming was aided and abetted by the creation of financial instruments that allowed lenders to escape any responsibility for the risk of their loans. In the past, lenders had to pay a price if they made a bad loan. Today, Fannie Mae and Freddie Mac worked with Wall Street to bundle together all these dicey subprime loans and then pushed them off on investors who didn’t have the tools of transparency needed to assess or even understand the risk.

The current system promotes confusion, encourages bureaucratic infighting and creates incentives for financial firms to cut corners. We need to enhance regulatory clarity by holding the same financial activity to one regulatory standard. We don’t need a dozen federal agencies doing the job badly – we need the best federal agencies to do the job right.

Fourth, we must ensure that consumers and investors are protected. Our regulatory system must protect consumers and investors by punishing individuals who engage in fraud, break contracts, or lie to customers – like the predatory lenders who know you can’t afford an adjustable rate mortgage, but mislead you into signing one. These actions are criminal and the people who commit them should be behind bars. And corporate governance rules will be reformed so that shareholders have a clear say in determining the pay of CEOs and other senior executives. On my watch, the consequences for corporate abuse will not be more enrichment, but more likely an indictment.

Fifth, in cases where failing companies seek taxpayer bailouts, the Treasury Department will follow consistent policies in deciding whether to guarantee loans. It must have well developed remedies for a financial crisis. With billions of dollars in public money at stake, it will not do to keep making it up as we go along.

Finally, the Federal Reserve should get back to its core business of responsibly managing our money supply and inflation. It needs to get out of the business of bailouts. The Fed needs to return to protecting the purchasing power of the dollar. A strong dollar will reduce energy and food prices. It will stimulate sustainable economic growth and get this economy moving again.

All of these measures will calm and help us to avoid future panics and disasters in the financial markets. But to get through this tough time for America, and to come out stronger, we need a strategy of economic growth. And the massive new tax burden that my opponent plans for the American economy is exactly the wrong answer. His tax increase – along with the enormous new federal programs he proposes – are the surest way to turn a recession into a depression. In every respect, the Obama tax hikes would make things even worse for the working people of this country.

I have proposed, and will sign into law, an economic recovery plan for working Americans that is directed to the middle class. It will grow this economy, create millions of jobs and bring opportunity back to Americans. You will get a tax policy that creates family prosperity and allows you to save for the future. I will not raise your taxes on income or investments. And we will simplify the tax code so people can understand it and do their tax returns themselves.

I will give every family a $5,000 credit to buy their own health insurance policy and let them chose their own doctor. This will make insurance affordable to every American.

I will double the child exemption from $3,500 to $7,000 to help families pay for the rising cost of living.

Under my plan, a married couple with two children making $35,000 will get $5,000 to pay for health insurance and additional medical expenses. This family would get another $1,050 from my child exemption. That adds up to over $6,000. That is a lot more than what any hardworking middle class family, gets under the Obama plan.

Business taxes will be cut from the second highest in the world at 35 percent to 25 percent. Tax incentives will spur investment in new plants and equipment. Research and development incentives will keep companies on the cutting edge of their industries. Healthcare costs will diminish. Companies will stop sending jobs overseas to low-cost, low-tax countries and start creating jobs here in America.

I will expand markets for our goods and services. A one in five of all jobs in this country are linked to world trade. In five states alone Pennsylvania, Ohio, Michigan, Wisconsin and Colorado over 5 million jobs depend on trade. My economic recovery plan will create millions of jobs in America instead of driving them overseas.

I will adopt an “all of the above” energy policy which expands our use of oil, natural gas, clean coal and nuclear facilities. We will embark on a national mission to build an alternative energy base, creating millions of new jobs. We will create the most diversified energy economy in the world. And, I will return to the American economy the $700 billion dollars we send overseas every year to buy oil.

My opponent offers a very different economic future. He has continuously shifted his position on taxes. At the beginning of this campaign he promised to raise taxes on your savings and investments. He said he won’t raise taxes for most people but he has voted 94 times in his short Senate career for tax increases and against tax cuts. He said he would only tax the rich, but he voted this year to raise taxes on those making just $42,000. Senator Obama has simply not given Americans good reason to trust him with your tax dollars.

My opponent is against lowering taxes on businesses which are the second highest in the world. He will impose mandated health insurance on businesses that would cost up to $12,000 per employee. He opposes free trade. He also wants to take away the fundamental right of workers to have a secret ballot when voting to be part of a union.

Now is not the time for these destructive policies that will cripple business growth, destroy jobs and hurt the middle class. Now is the time to take action to address this crisis and take action to put our economy back on a path of growth.

Even though Democratic leaders say they don’t know what to do, I believe the deep problems afflicting our financial system won’t be solved by one political party. There is only one candidate in this race who has a record of reaching across the aisle to work out the bipartisan solutions needed to move our country forward in times of crisis – and I will bring that same spirit of bipartisan cooperation to the White House. It took members of both parties to get America into this mess, and it will take all of us, working together, to lead the way out.

Thank you.

MonkeyCrash is Your Source For Conservative Opinion