EMERGENCY ECONOMIC STABILIZATION ACT OF 2008
Printed From: MiddletownUSA.com
Category: Outside World
Forum Name: News, Info and Happenings outside Middletown
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URL: http://www.middletownusa.com/forum/forum_posts.asp?TID=578
Printed Date: May 03 2024 at 10:20pm
Topic: EMERGENCY ECONOMIC STABILIZATION ACT OF 2008
Posted By: John Beagle
Subject: EMERGENCY ECONOMIC STABILIZATION ACT OF 2008
Date Posted: Oct 02 2008 at 3:22pm
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S UMMARY OF THE “EMERGENCY ECONOMIC STABILIZATION ACT OF 2008”I. Stabilizing the Economy The Emergency Economic Stabilization Act of 2008 (EESA) provides up to $700 billion to the Secretary of the Treasury to buy mortgages and other assets that are clogging the balance sheets of financial institutions and making it difficult for working families, small businesses, and other companies to access credit, which is vital to a strong and stable economy. EESA also establishes a program that would allow companies to insure their troubled assets. II. Homeownership Preservation EESA requires the Treasury to modify troubled loans – many the result of predatory lending practices – wherever possible to help American families keep their homes. It also directs other federal agencies to modify loans that they own or control. Finally, it improves the HOPE for homeowners program by expanding eligibility and increasing the tools available to the Department of Housing and Urban Development to help more families keep their homes.III. Taxpayer Protection Taxpayers should not be expected to pay for Wall Street’s mistakes. The legislation requires companies that sell some of their bad assets to the government to provide warrants so that taxpayers will benefit from any future growth these companies may experience as a result of participation in this program. The legislation also requires the President to submit legislation that would cover any losses to taxpayers resulting from this program from financial institutions. IV. No Windfalls for Executives Executives who made bad decisions should not be allowed to dump their bad assets on the government, and then walk away with millions of dollars in bonuses. In order to participate in this program, companies will lose certain tax benefits and, in some cases, must limit executive pay. In addition, the bill limits “golden parachutes” and requires that unearned bonuses be returned.
V. Strong Oversight Rather than giving the Treasury all the funds at once, the legislation gives the Treasury $250 billion immediately, then requires the President to certify that additional funds are needed ($100 billion, then $350 billion subject to Congressional disapproval). The Treasury must report on the use of the funds and the progress in addressing the crisis. EESA also establishes an Oversight Board so that the Treasury cannot act in an arbitrary manner. It also establishes a special inspector general to protect against waste, fraud and abuse.
The latest version of package legislation which includes the Emergency Economic Stabilization Act can be found here: http://banking.senate.gov/public/_files/latestversionAYO08C32_xml.pdf - Click link ------------- http://www.johnbeagle.com/" rel="nofollow - John Beagle Middletown USA News of, for and by the people of Middletown, Ohio. |
Replies:
Posted By: spiderjohn
Date Posted: Oct 02 2008 at 7:08pm
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same bill as rejected in the House the other day, except now loaded with pork to get it through the Senate. Will sail through the House 2morrow.
McCain and Obama have been very silent for a pair who want to lead.
Public should start a violent revolution!
Dow crashed over 300 in anticipation of tomorrow's passage.
This is completely backwards imo.
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Posted By: Mike_Presta
Date Posted: Oct 02 2008 at 8:46pm
This is the crux of the problem--and the reason that this Bill, if enacted, will live in infamy!
How does the government try to fix a catastrophy caused by a federal program that made loans to unqualified borrowers???
By LOWERING STANDARDS and EXPANDING the program!!!
We are DOOMED!!!
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John Beagle wrote:Posted By: VietVet
Date Posted: Oct 03 2008 at 7:41am
| Mike- We all should be use to this concept by now. In today's world, the notion of lowering standards and expanding programs that will fail are commonplace. Look at the schools. Look at the all voluntary military nowadays. The Army and Marines have lowered their qualifications just to meet the enlistments numbers. The nation's academic sector has lowered their standards to make the numbers look good on the achievement testing. The schools continue to teach to curriculum that has produced failed results. The military has become "softer" in terms of discipline where officers are "buddies" with enlisted. It is quite different than when I was in from 1968 to 1972. Mental "toughness" is not as apparent as before, even in the Air Force. I work at Wright-Patt around the new generation of Air Force members and I see that times have changed as it relates to that toughness and discipline. We don't try to raise the bar for excellence, we lower it to expect little to nothing from people and are a dumber/more irresponsible society for it. |
Posted By: Mike_Presta
Date Posted: Oct 03 2008 at 9:53am
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There was an AP story in yesterday's (Thursday's) Journal reporting that a new THREE HUNDRED BILLION dollar program has been authorized to help low income families obtain home loans!!! This is SEPARATE from and IN ADDITION to the Emergency Economic Obliteration Act!!! Together, these two programs raise the national debt by OVER ONE TRILLION DOLLARS, or MORE than TEN PERCENT!!! (This does NOT count the administrative costs!!!) We are DOOMED!!! |
Posted By: John Beagle
Date Posted: Oct 03 2008 at 11:15am
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Another $300 Billion? Are you sure Mike?
Just one more reason congress has such a low approval rating. ------------- http://www.johnbeagle.com/" rel="nofollow - John Beagle Middletown USA News of, for and by the people of Middletown, Ohio. |
Posted By: Mike_Presta
Date Posted: Oct 03 2008 at 12:58pm
All I know is what I read in yesterday's Middletown Journal, so NO...I am NOT sure!!!
The story was on page A3, with the headline: "Mortgage aid program starts"!
In the third paragraphe it states: "The $300 billion, three-year program is designed to help borrowers who owe more on their loans than their homes are worth."
According to the story, the "program kicked off on Wednesday, October 1" and it was "passed by Congress this summer as part of a massive housing bill." The story further states: "It is one of several goverment efforts to stem the mortgage crisis."
All of that indicates that this "crisis" certainly was NOT a surprise, and begs the question: "If the $300 Billion in this program was only 'part of a massive housing bill' and it was only 'one of several' efforts to stem the mortgage crisis, EXACTLY HOW MANY TRILLIONS (with a T) have the scoundrels in congress committed our grandchildren to once this latest bill passes???
Yet, they insist that we continue to back and encourage loans to those who cannot qualify and on which they will likely default!!
We are doomed!!!
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Posted By: arwendt
Date Posted: Oct 03 2008 at 5:06pm
I totally feel the same way.
We as a people have forgotten what it means to be free and we are doomed.
But..
On the bright side some Mongolians came out to the office today and sang for us.
http://www.youtube.com/watch?v=mHI1ulFR88I - http://www.youtube.com/watch?v=mHI1ulFR88I
Right... it's not helping me either.
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