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September 23, 2008

$700 Billion: Bail-out, Evasion or Trickery?

  Seven hundred billion dollars – that’s ‘11’ zeros.  It’s almost incomprehensible to me.  I had to write it out – $700,000,000,000. This is the amount of money George Dubya wants us to entrust Henry Paulson with.

This so called “bailout” of America’s failed financial institutions seems to me to be the greatest heist in America ever; this will be the greatest highway robbery in broad daylight, in the middle of day with everyone watching with our eyes wide open.

How can anyone with any common sense give $700,000,000,000 of American citizens’ money; of middle class American’s money to ONE person to ‘handle’ with virtually no oversight?

According to a draft of the bailout proposal, all decisions by Treasury Secretary Henry Paulson, “are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.” What the heck!!!

I don’t care if anyone tells me that I have to trust the ‘experts’.  This just doesn’t sound right to me.  Not at all.  I don’t trust this solution. Not me, not today, not tomorrow. No way.

One thing that bothers me is that the very executives who destroyed their companies are going to get to put a share of hundreds of billions in their ‘pockets’. Plus they will get this money practically hassle free. Less hassle than it would take for you or me to get an unemployment check after working years and making a contribution to the system. These CEOs get to evade their responsibilities. That just doesn’t sit right with me.  Not at all.

I am one of those people who believe that this ‘bailout’ has to be inspected and dissected with a fine tooth comb with little or no room no trickery and thievery. There is just way too much of your dollars and my dollars at stake. Accountability and oversight has got to be paramount!  The current proposal only requires one oversight report to Congress every 6 months. What kind of crap is that?  This has to be the worst business decision ever…ever!

Dubya Bush is saying, just give us the money and trust us, we’ll handle it. Yeah, right, just like we trusted him with the WMD and the Iraq war. To quote George W. Bush, “There’s an old saying in Tennessee — I know it’s in Texas, probably in Tennessee — that says, fool me once, shame on — shame on you. Fool me — you can’t get fooled again.”  You get the idea, right?

The Bush administration is urging Congress to quickly stabilize the financial system by temporarily transferring the bad debts of American financial institutions to taxpayers. The proposed plan would give the Treasury Secretary Paulson sole power to manage the funds and the buying and reselling of mortgage debt. “This is something that has to work. I very much believe it will work”, said Paulson.

So we should trust Paulson (who said 2 weeks ago that the economy was strong!) because he simply believes it will work?!  Where are the spreadsheets, economic forecasts, market analyses and scientific formulas?  I want to see credible reports and projections!  I want more than ‘I believe’ from Paulson.

I believe that I am going to come up with one of the most innovative business idea ever and become a billionaire overnight – that’s what I believe.  Will a bank give me a loan based on what I believe???  I think not!

 If you count all the combined bailouts so far this year, we would be in excess of one trillion dollars (12 zeros) $1,000,000,000,000. That is more than double the entire cost of the Iraq War. How ridiculous is that???

We the taxpayers are being handed the bill – a bill where none of the funds will help out homeowners currently facing foreclosure.  

President Bush — who has been an invisible man throughout the lending crisis — issued a statement cautioning Congress not to cap CEO compensation.  What the heck – should we be taking business advice from Dubya?!  Doesn’t this sound like a scam to you?

This is the same George Dubya who spent a huge part of his first term traveling around America trying to convince citizens that Social Security was in imminent danger and could only be saved by fusing it with Wall Street. 

I think is it’s time to end the practice of paying CEO millions to ruin their companies – it just doesn’t make sense.  CEOs should be rewarded for excellence, not failure.  If you and I didn’t do our job well we would be fired with little or no compensation.  These CEO have seemingly had nothing to lose – they fail and get rewarded.  Where else would this work??? It’s like a CEO welfare program.  Ridiculous.

 

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14 Comments »

  1. http://puddydunne.wordpress.com/2008/09/24/monopoly-is-not-a-game-for-americans-act-now/

    It is a planned effort to the Bilderberg monopoly To control the EU and NAU.

    Comment by Puddy Dunne — September 23, 2008 @ 10:57 pm | Reply

  2. Puddy Dunne – this is serious stuff. I don’t think people even understand how SERIOUS this is. There has to be some other ‘plan or scam’ – how do they even know they need $700B? This is beyond shady.

    Comment by Paulette — September 23, 2008 @ 11:06 pm | Reply

  3. $700B / 300M is only $2333 per person.

    Comment by Peter Davis — September 23, 2008 @ 11:56 pm | Reply

  4. Dear P, I see you’re working overtime on this, and it’s paying off. Honey, I LOVE your idea to give us each two million to sink it back into the economy. i’m very worried about all this: seems to be just too convenient that this bailout is happening just when bush is getting ready to leave office. they know this kinda life can’t continue indefinitely, especially when obama takes over, so they’re “bailing” now. it smacks of corruption worst than haliburton, especially since lehman has $2.5 billion still in reserve for employee bonuses!!! bush and his cronies plan to retire in style is all this says to me. if not, it’s the greatest example of ineptness i have ever witnessed.

    Comment by angelic1 — September 24, 2008 @ 12:05 am | Reply

  5. Heather, you’re exactly right. ‘Suddenly’ the GOP has the answer and they want to use their ‘quick’ solution. It’s all too reactionary. Not enough thought is being put into this. There is always more than one way to skin a cat.

    Comment by Paulette — September 24, 2008 @ 7:16 am | Reply

  6. Peter, you know what? I want my $2300. I don’t need to send that to Washington. I’ve worked for it. I’ve made sound financial decisions and have lived within my means. I don’t have debt other than my house, and that’s a 30-year, fixed rate mortgage. I don’t think it’s too much to ask that the financial institutions (and the government, for that matter) live within THEIR means. No one is going to bail me out if I lose my job or get into trouble somehow. But we’re expected to do so for Morgan Stanley and Goldman Sachs. I don’t like that one bit.

    And yet, no one on Wall Street has said something like, “Our bad. We messed up, we’re sorry, and it won’t happen again.” It wouldn’t make bailing them out any easier financially, but it would lessen the bad taste in my mouth, at least a small amount.

    Comment by deannaizme — September 24, 2008 @ 2:46 pm | Reply

  7. One more thing: I think a bailout is necessary. I don’t like it, but I think it’s needed. But there better be some oversight and some safeguards in place. This is a hell of a lot of money.

    Comment by deannaizme — September 24, 2008 @ 2:47 pm | Reply

  8. Paulette, the comment you left on my post wondering whether McCain could say such a thing – well, I’m sure you must have heard what he once called Cindy in public, not to mention this joke about a woman getting raped:

    http://thebruceblog.wordpress.com/2008/09/01/mccains-ugly-jokes-against-women/

    Comment by Bruce — September 24, 2008 @ 4:53 pm | Reply

  9. Deanna’s comments are right on. I agree with them

    Comment by Bruce — September 24, 2008 @ 9:14 pm | Reply

  10. Please sign this urgent petition on the bailout and pass on via blog and email:

    http://thebruceblog.wordpress.com/2008/09/24/sign-the-public-citizen-petition-now-tell-congress-to-put-your-interests-first-in-a-financial-bailout/

    Comment by Bruce — September 24, 2008 @ 10:08 pm | Reply

  11. Bruce – I’m really trying to give him the benefit of the doubt because, because, because???

    Comment by Paulette — September 25, 2008 @ 10:00 am | Reply

  12. Deanna – I agree. We have to be fiscally responsible and we make necesssary the necessary sacrifices so that we’re able to save and vacation etc.

    A CEO making millions of dollars should be held to the highest standards and should know how to budget and take educated risks not willy nilly risks.

    These CEOs should NOT receive a severance package AT ALL! As a matter of fact they should be asked to return some of the bonus money they’ve received.

    Comment by Paulette — September 25, 2008 @ 10:05 am | Reply

  13. To give you an idea of what CEO entitlements would be in this sordid tale of “Two Cities” – Wall Street and Main Street is as follows:-

    Beleaguered bank Washington Mutual’s report in NEW YORK (CNNMoney.com) states that Washington Mutual Chief Executive Alan Fishman could walk away with more than $13 million in salary, bonuses and severance – Total $18 million after less than three weeks on the job, according to the terms of his employment agreement. That racks up to a salary of $928,571 per day. Kerry K. Killinger got a payout of $22 million.

    When Fishman took up his post at WaMu, stock prices had fallen 70% into penny stock territory but was still able to walk away with a “PACKET”…

    Merrill Lynch – CEO Stanley O’Neal PAYOUT: $161.5 MILLION

    COUNTRYWIDE FINANCIAL – CEO ANGELO MOZILO PAYOUT: $121.5 MILLION

    CITIGROUP – CEO CHARLES PRICE PAYOUT: $68 MILLION

    AMERICAN INSURANCE GROUP (AIG)
    ROBERT WILLUMSTAD PAYOUT $7 MILLION
    MARTIN SULLIVAN PAYOUT $47 MILLION
    MAURICE (HANK) GREENBURG 12% STAKE WORTH $3 BILLION

    LEHMAN BROTHERS CEO RICHARD FULD PAYOUT:$22 MILLION

    FANNIE MAE/ FREDDY MAC CEO’S DANIEL MUDD & RICHARD SYRON WAS SET TO RECEIVE IN PAYOUTS: $21.7 MILLION AND $31.2 MILLION RESPECTIVELY. The government says they weren’t paid – GO FIGURE!!!

    BEAR STEARNS CEO JIMMY CAYNE PAYOUT: $61.3 MILLION PLUS $4.6 MILLION IN JP MORGAN STOCK…

    INDYMAC BANK CEO MICHAEL PERRY PAYOUT $37.49 MILLION

    AND WACHOVIA BANK CEO KEN THOMPSON PAYOUT: $8.7 MILLION

    Other CEO’s to follow in his vein will follow hard and fast as the 700 billion con becomes ratified on Capitol Hill…

    I hope the American people will VOTE out the dead-weight come November 4th…

    Comment by dreamstarworld — September 28, 2008 @ 1:54 pm | Reply

  14. Dreamstarworld – thanks for this compilation! I find this to be CRAZY – that’s approximately $500M in ‘bonuses’ for destroying companies, employees’ lives and the economy.

    I think the WAY contracts are negotiated should be change. There should be a bonus percentage agreed upon in advance if the company shows growth under the CEO’s management and there should be a clause that tells the CEOs (CFOs, etc) that they will NOT earn a bonus if the company fails under their leadership.

    It’s ridiculous to reward management for failure – RIDICULOUS!!!

    Now thousands are potentially going to lose their job and end up broke while the CEOs who caused the problem will have a fat bank account! LUDICROUS! Preposterous! Outrageous!

    Comment by Paulette — September 28, 2008 @ 4:33 pm | Reply


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