I don’t want to call it a “bailout plan,” because it doesn’t appear to contain any such provisions. All I have from Matt Stoler is this:
U.S. Rep. Peter DeFazio (OR-04), an outspoken critic of the Bush/Paulson bailout, along with Rep. Kaptur (OH-09), Rep. Scott (VA-03), Rep. Cummings (MD-07), Rep. Doggett (TX-25), Rep. Holt (NJ-12), Rep. Edwards (MD-04) and Rep. Hirono (HI-02), will introduce legislation today to address the failures in the financial markets. DeFazio believes that the Paulson/Bush proposal is based on a flawed premise: if the American taxpayers spend $700 billion to buy Wall Street’s toxic assets – a plan pundits are calling “trash for cash” – it will create liquidity in our financial markets and will somehow trickle-down to Main Street.
DeFazio’s plan is not in any way based on the Paulson/Bush plan. Instead of throwing taxpayer dollars at the program and crossing our fingers that the plan work, the measure will direct the Administration to take five simple steps, suggested by noted economist and former head of the FDIC, William Isaac, to re-regulate the markets and move America towards a healthy financial future.
The legislation will be available at the press conference.
Who: Rep. DeFazio, Rep. Kaptur (OH-09), Rep. Scott (VA-03), Rep. Cummings (MD-07), Rep. Doggett (TX-25), Rep. Holt (NJ-12), Rep. Edwards (MD-04) and Rep. Hirono (HI-02)
What: Press Conference to introduce legislation to fix financial markets
Where: House Radio and TV Gallery
When: 3 pm TODAY
3:00 has already come and gone on the east coast, so I’ll try to track this down for more information. Obviously it won’t pass, but it may reframe some of the discussion, especially with most of the “no” voting Republicans back home running for re-election.
Addendum: I couldn’t find any mention of the story on CNN’s front page, but the page did contain this story about a woman in a cow suit chasing kids and urinating on her neighbor’s front porch. Yeah, that’s national news.
Second addendum: It doesn’t look like it’s in bill form yet, but the Nation reports on the Progressive Caucus proposal. It incorporates Obama’s proposal of an increase in the FDIC insurance limit from 100 grand to 250, which could save small businesses if the banks fail. Looks like they’re willing to let the banks fail. And basically, the FDIC, not the Treasury Department, would become equity owners in return for promissory note loans to banks who qualify. The proposal also requires some increased SEC regulations, which I don’t understand with a quick reading. For instance, I’m not really sure what they mean by an “economic value standard” to determine the value of the institution’s assets. I don’t know what the “up-tick” rule is that they would restore. And I don’t know what a “naked short sale” is, but it certainly sounds like something that should be prohibited.
Third addendum: Here’s yet another bailout plan!
Expropriate the Bourgeoisie Through Workers Revolution!
No to the Bailout of the Capitalist Speculators!
Down with the Dictatorship of Finance Capital!
How goes the grammar of slogans? The first is fine declarative grammar. The second one is horrible grammar. But we take for granted the third. I’m not sure it’s grammatically correct.