As usual the elites get what they want; ordinary citizens be damned.
Who Is For and Against the $700 Billion Bailout?
The financial system is close to collapse and something needs to happen. Who is exactly for or against the government’s $700bn Troubled Asset Relief Program (bailout) and why?
For:
Financial Services Roundtable:
The sophisticated interconnectivity of institutional market participants, individual investors, small businesses and pension funds - both large and small – reflects the broad range of Americans who have a great deal at stake in this debate. If the market conditions that have paralyzed the credit markets are allowed to continue and become exacerbated by inaction, every American‘s economic well-being could be at risk. The recovery plan, in its most general sense, offers an opportunity to return to an orderly market while assuring maximum protection for taxpayers and a path to divestiture of private funds purchased by the public
facility. While we understand the details of the proposal are complex, we encourage Members of Congress to enact a bill based on the Treasury proposal as soon as possible.
Securities Industry and Financial Markets Association:
To date, Secretary Paulson and Chairman Bernanke have made some incredibly smart and tough decisions, but it is becoming clear that our markets need a comprehensive approach to address the current conditions. Today Secretary Paulson laid out such an approach and it is bold and very necessary. We are encouraged by Congress’ early reception to this plan and hope it will move with haste to approve it.
In a separate news release they go on to state:
The sophisticated interconnectivity of institutional market participants, individual investors, small businesses and pension funds - both large and small – reflects the broad range of Americans who have a great deal at stake in this debate. If the market conditions that have paralyzed the credit markets are allowed to continue and become exacerbated by inaction, every American‘s economic well-being could be at risk. The recovery plan, in its most general sense, offers an opportunity to return to an orderly market while assuring maximum protection for taxpayers and a path to divestiture of private funds purchased by the public facility. While we understand the details of the proposal are complex, we encourage Members of Congress to enact a bill based on the Treasury proposal as soon as possible.
American Boiler Manufacturers Association – see Financial Services Roundtable
American Land Title Association – see Financial Services Roundtable
Associated Equipment Distributors Association of Equipment Manufacturers – see Financial Services Roundtable
Consumer Bankers Association – see Financial Services Roundtable
Consumer Mortgage Coalition – see Financial Services Roundtable
Edison Electric Institute – see Financial Services Roundtable, and
A reliable and affordable supply of electricity is indispensable to the well-being of all Americans and is in fact the very lifeblood of the U.S. economy. Electric utilities (and their customers) depend heavily upon ready access to capital markets to sustain their day-to-day operations.
The Financial Services Roundtable – see Financial Services Roundtable
Mortgage Bankers Association – see Financial Services Roundtable, and
Recognizing that none of this is finished product and that there are important oversight issues that should be addressed, we are nonetheless disappointed that some legislators have decided this is an opportunity to tack on their favorite pet items. The markets need this facility and they need it fast.
National Automobile Dealers Association – see Financial Services Roundtable
National Association of Home Builders – see Financial Services Roundtable, and
We agree with Fed Chairman Bernanke and Treasury Secretary Paulson that immediate steps need to be taken to stem the financial crisis. The financial markets are in turmoil and the flow of credit has been severely curtailed for housing and other sectors of the economy. There’s no time to waste. Congress must pass legislation as soon as possible.
National Association Manufacturers – see Financial Services Roundtable, and
Business and manufacturers depend on the effective functioning of our capital markets. Without access to credit, manufacturers will be limited in their ability to expand their business, make investments, and even carry out day-to-day operations. If the financial crisis means America stops making things, then our country and our economy are in serious trouble. As employers and community members, manufacturers are also concerned about the financial crisis’ impact on our employees and their families, as well as individual investors and pension plans. All of these rely on a secure and stable financial system.
U.S. Chamber of Commerce – see Financial Services Roundtable, and
Whatever the cost of action, the cost of inaction will be significantly higher. “Main Street” and Wall Street are inextricably connected. The funds that flow through Wall Street drive the activity on Main Street that creates jobs and generates income. Americans have witnessed what has happened to equity markets over the past week, and failure to act will only contribute to even greater declines in the markets, which will erode taxpayers’ retirement savings and pension fund assets. However, that may very well be only the tip of the iceberg because a lockup in credit markets will cripple Main Street’s ability to operate and threaten taxpayer jobs and income.
Against:
John Birch Society:
The American people need to make it clear that passage of the bailout bill will be considered as this Congress' final act in abdicating is constitutional authority to faithfully represent us. If this Congress votes to make itself illegitimate, Americans will vote for a new Congress in just a few weeks.
Against as Currently Proposed:
National Taxpayers Union:
Any plan should permanently restructure accounting rules that force massive write-downs for institutions, some of which could otherwise hold the securities to maturity without fear of failure. ……The RSC’s Fannie Mae and Freddie Mac divestiture plan should be codified with an aggressive and enforceable timetable.. The inflation tax on capital gains should be eliminated and, at the very least, the 15% rate should be cemented into permanent law, if not lowered or scrapped entirely.
70% of Voters against or undecided – There is widespread grassroots opposition to the bailout. It is not organized and historically has little voice against the strong lobbies of the pro group. The most humorous is a website dedicated to purchasing bad investments.
Change to Win Leadership Council includes The International Brotherhood of Teamsters, Laborers' International Union of North America, Service Employees International Union, UNITE HERE, United Brotherhood of Carpenters and Joiners of America, United Farm Workers of America, and United Food and Commercial Workers International Union states:
Now, the Bush Administration wants us to pick up the tab to bail out Wall Street, with no strings attached. Congress should not give the Administration a blank check. It needs to structure a bailout plan that will actually work to stabilize the financial sector without leaving taxpayers holding the bag. And it needs to provide relief to the real victims of this crisis -- the working families whose homes are now at risk of foreclosure. Accordingly, Change to Win believes that the following principles must govern any bailout plan, and that Senator Dodd's proposal provides a good starting point.
AFL-CIO:
Our nation is facing a real crisis and we should move swiftly, but we cannot afford to compound our problems with bailout legislation that is hasty at the expense of thoughtfulness and common sense. We want our tax dollars to provide a hand up for the millions of working people who live on Main Street and not a handout to a privileged band of overpaid executives on Wall Street.
Pro Any Plan:
AARP:
The nation faces a historic economic crisis, and failure to act will risk Americans' jobs, homes, and retirements. AARP is urging bipartisan action on a plan that is in the best interests of our members and future generations. [J]oin AARP in telling Congress to come together now on an appropriate economic rescue package.
Want to play asset management roles in the bailout:
William Gross, chief investment officer of Pimco
Blackstone Group (BX)
BlackRock (BLK)
Morgan Stanley (MS)
Congress has a fiduciary responsibility to the citizens of this country. They have failed to prevent the need for this bailout. Article 1, Section 8 of the Constitution clearly places the responsibility for this situation with Congress. It is clear that action needs to occur immediately, and this action must safeguard the citizens. The vast majority did not create this crisis nor benefit from the economic bubble created. They will indeed suffer the consequences of any solution signed into law. It is up to Congress to minimize the consequences to its citizens.
S Hansen |
