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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: SliderOnTheBlack who wrote (12097)	9/30/2008 10:22:31 AM
From: jim_p	29 Recommendations Read Replies (3) \| Respond to of 50498

If I were a Republican in Congress today I would tell Nancy P that there will be no approval of any bail out of any type until she resigns as speaker of the House for her political comments. The banks need capital, not more write downs. The only plan that makes any sense at all would be as follows: 1. $500-700B to be used to buy 10 year redeemable preferred stock in the banks based upon the percent of their assets that are MBS. 2. The rate would be 1% over the fed funds rate plus an amount equal to any dividend paid to the common shareholders so the banks don't dig themselves into a deeper hole and most important we wouldn't have government in the business of rewarding people who bought homes they could never afford and in the business of making an artificial market for mortgage securities. 3. No warrants and no compensation limits. Compensation should be up to the directors, and maybe some input from the shareholders? 4. Get rid of mark to market accounting for a period of two years for any assets with an expected life of over 5 years. 5. Bring back the uptick rule and make naked short selling a criminal offense. The tax payers would get 100% their money back plus interest before the common shareholders and we would get a little higher interest rate then what the banks can already get from the discount window and the preferred stock would be capital that the banks could use to make loans against. No one gets rewarded for making bad loans or taking out loans they could never repay. The markets have 10 years to cleaning up their own problems and the free markets will be the best to correct all of the problems in the shortest possible time period. Anything short of this will only make the problems worse and take longer to resolve. The bottom line is there is no simple solution to today’s problems and it will take the markets many years to resolve the issues. Since this makes common sense I’m sure it will never get passed from the most incompetent Congress/President in the history of this country. Jim

To: SliderOnTheBlack who wrote (12097)	9/30/2008 10:37:09 AM
From: roguedolphin	2 Recommendations Respond to of 50498

<<<"Something has to be done, I just hope that at the very least, a balance between bailing our Wall St. & Main St. can be reached.">>> I think the only thing that "needs to be done" is bailout the FDIC and all the depositors that thought they were insured to $100,000 per bank account. THAT..... IS THE ONLY BAILOUT I CAN UNDERSTAND AND MORALLY AGREE WITH! Those depositors can provide the future needed "capital" to pick up the pieces of the carnage of the biggest credit bubble/greed binge of all time... ...And return the country to a sane policy of work and saving instead of easy credit and greed. It's the only moral and sane answer I can think of.