Bailout Bill Defies Will of the People
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White House and Congress Suspend Democracy
To Help Wall Street
(Wash. DC) The White House and Congressional leaders from both parties announced a tentative bill to bailout failed financial institutions. The bill is a response to the $700 billion initially request by the White House last week. The bill allocates $250 billion to start with a total authorized of $700 billion. The money will cover the losses of distressed Wall Street firms facing bankruptcy due to bad investments, primarily in risky real estate securities known as subprime securities and "derivatives."
There were no provisions announced to bailout citizens facing foreclosure or help with their bad investments.
Congress plans vote on the legislation today, Monday, Sept. 29, if the leadership gets their way.
Calls to Capitol Hill are reported to be 30 to 1 opposed to legislation that bails out the rogue Wall Street investors. Public opinion polling has shown a majority opposed to the legislation, unless the question contains the unproven assumption that the economy will collapse in a few days without a bill. In a remarkable show of opposition to the bill, 1,200 marched down Wall Street Friday. There were also protests in Chicago and Ohio plus more planned for Monday, Sept. 29.
Sept. 25, 2008 Wall Street bailout protest Video
This public stance developed in spite of dire warnings of a national and global collapse of the economy should the legislation fail to materialize. These predictions are not universal, by far. A public appeal by 200 economists opposes the congressional rush to judgment, summarized in these terms:
" --- we ask Congress not to rush, to hold appropriate hearings, and to carefully consider the right course of action, and to wisely determine the future of the financial industry and the U.S. economy for years to come." Story: McClatchy Newspapers, Sept 25, 2008, Open letter & signatures
Concerns about Proposed Bailout Bill
The original bailout proposed by the White House gave the Secretary of the Treasury unlimited discretion in doling out $700 billion and barred any Congressional or judicial review. The new legislation calls for "consultation" with the following entities. Please note that not one of those to be consulted is an elected official and that Congress is out of the loop.
"(b) CONSULTATION.-In exercising the authority under this section, the Secretary shall consult with the Board of Governors of the Federal Reserve System, the Corporation, the Comptroller of the Currency, the Director of the Office of Thrift Supervision, and the Secretary of Housing and Urban Development." Title I, Sec 101, (b) "Consultation" page 7, lines 18-23 and pages 15, lines 23-24, and page 16, lines 1-9.
The people get involved in the decision making process, presuming Congress is listening. Sec.115. Graduated Authorization to Purchase (pages 40 - 49) provides an option to overrule any particular bailout. Congress has 15 days after a purchase notice by Treasury to introduce a joint resolution disapproving of the bill. The resolution has a tight window to passage, three days, and is subject to a presidential veto. The "fast track" aspects of this guarantee the same types of hurried votes characterized by a majority of members failing to even read a proposed bill (e.g., The Patriot Act).
