McCain Sucks, Palin Sucks = No Bush left behind

NOT AN ENDORSEMENT – – just a point of interest only, since Perot *was 100% right* about “that giant sucking sound”. I have no clue if  this is the best plan, but it seems like a good plan that I have not heard mentioned in the mainstream media. . . . I found it by googling ‘Perot bailout’ as I was interested in what he’d have to say.

Emergency Financial Rescue Plan – Posted on September 28th, 2008 in Federal Budget, National Debt by PerotCharts – http://perotcharts.com/2008/09/emergency-financial-rescue-plan/

The Main Street Rescue Plan

Phase One — Immediate Action

1. Suspend or modify the “mark-to-market” accounting regulations that have caused the write-down of mortgage backed securities on the books of the financial institutions, which in turn have caused their capital positions to become impaired.

2. Declare a 120-day moratorium on mortgage foreclosures to plug the financial black hole

a. Keeps families in homes while components of the plan are put in place

b. The property does not fall into disrepair

c. Values in the surrounding neighborhood do not fall due to unoccupied homes

3. Declare a 120-day moratorium on payment of dividends by banks

a. Banks that need capital are worried that failing to pay dividends will be seen as a sign of financial instability.

b. A temporary ban across the board will end fears and allow strengthening.

4. Require banks to strengthen their capital base to meet a new, higher national standard.

a. Federal government provides capital for banks that are unable to meet the new standard.

i. Federal government gets warrants for making a loan.

ii. Federal government gets immediate equity for a capital investment.

b. This procedure enables the banks to retain the troubled mortgage backed securities to provide time for them to work out the problems with the loans rather than dropping the problem in the lap of the federal government. The government never touches the bad loans.

5. Raise the FDIC guarantee on bank accounts from $100,000 to $250,000,

a. This provides banks with opportunities to expand their deposit base through increased confidence of depositors.

b. With adequate capital requirements in place, there should be very few bank defaults, thus adding no additional cost to the federal government.

c. Add brokerage accounts to the insurance coverage

6. Create a true “Social Security Lockbox” for the profits to be earned by the federal government (from the warrants and equity in Item 4, above)

a. Strengthen the Social Security system.

b. Enable all Americans to share in the profits of the rescue plan.

7. Require the Social Security Lockbox to invest the proceeds in something other than federal government bonds, as under current law.

a. This would ensure that lawmakers could not put their hands on the proceeds to spend making up shortfalls caused by deficit spending.

b. Permit the lockbox proceeds to be invested in AAA-rated state and local infrastructure bonds.

i. Provides safe, long-term investments

ii. Creates jobs

8. Create a strong, independent board to oversee the rescue plan, including the administration of the warrants and equity of the financial institutions held by the federal government.

a. The board would advise Congress.

b. The board would consist of:

i. Secretary of Treasury (Chair)

ii. Federal Reserve Chairman

iii. Comptroller General

iv. Appointees of House and Senate (both parties)

v. Outside, independent experts

9. Create a new Joint Committee of Congress to oversee the plan and provide recommendations to Congress.

a. This removes oversight responsibility from the Senate Banking Committee and House Financial Services Committee.

b. This allows all committees that have some shared responsibility to participate in oversight.

10. Create an Emergency Financial Crimes Unit in the Department of Justice

a. Investigate any criminal acts that led to this crisis

b. Seek disgorgement of assets from individuals and institutions found guilty.

c. Put a career prosecutor in charge of a staff of 300 or more qualified attorneys and support staff.

d. Assures the public that if crimes have been committed, the guilty will be held accountable.

Phase Two – Action by Congress in early 2009

1. Reinstitute a modernized Glass-Stegall Act, which covers all financial institutions including hedge funds.

2. Amend bankruptcy regulations to give federal bankruptcy judges ability to modify the terms of mortgages and give homeowners more time to work through their financial problems.

3. Give HUD/Fannie Mae/Freddie Mac emergency authority/monies to do workouts with homeowners on individual, troubled mortgages before foreclosure.