Is This What We Want? (Behind the scenes from Rep Gohmert-unbelievable!)

Human Events ^ | 29 September 2008 | Representative Louie Gohmert

[SE Mom]

On Friday, September 19, rank and file Republican members of Congress were notified of a conference call that would include Treasury Secretary Henry Paulson, and Fed Chairman Ben Bernanke. I would never disclose confidences, but it is quite public now that we were told an economic disaster was about to take this country that could be worse than the crash of 1929.

Now, that’s a real attention-getter. It sure got mine.

My years as a judge force me to demand factual evidence to support expert opinions. The factual evidence was then and is now less than satisfactory. Yes, credit was becoming a real problem. Yes, there were major banks in trouble, but those were investment bankers, not the bedrock community bankers who for the most part have done fairly well since the 1980's about having better security for their loans. (It is also public record that I did outside counsel work back in the 80's for both the FDIC and the RTC, so I was familiar with problems then, and telltale signs of problems now.)

It was clear to Secretary Paulson that something had to be done immediately so that we could pass it on Monday or Tuesday at the latest to inject $700 billion into the banking system. That would be done by having the federal government purchase mortgage backed securities from the ailing big-boy-banks.

...

I’ve not been in Washington all that long but one adage I’ve learned is that, “No matter how cynical you get, it is never enough to catch up.”

[SE Mom]

Isn’t THAT the truth?

[mathluv]

'It is a brilliant political move for the Democrats. They don’t need political cover, but, hey, the Republicans seemed to buy it so why shouldn’t the Democrats use it?'

How true!

'But McCain did disappoint: the Democrats, not the Republicans.'

I like this part.

[mathluv]

'President Bush just believes his friends would not ever manipulate him (at least he doesn’t until they write a book and prove that they would and did.) He believes what Sec. Paulson and his minions have told him.'

I think the President expects people to be as 'non-partisan' as he tries to be. He has said that he is the President of all of the people. I wonder what he will say this morning.

[Jagdgewehr]

Bump (for a later read).

[XR7]

Are we are going to let all the low-lifes that let this happen walk away with their fortunes intact by indebting our children? When do we, as a nation, say enough is enough? Will John McCain? Is he really a "maverick"? Or will he go along with all of the rest of the crowd and embrace expediency over principle?

WaMu CEO Alan Fishman Gets $18 Million Golden Parachute

Alan H. Fishman, the CEO of Washington Mutual, will likely be unemployed after only a few weeks on the job. But don't cry for Fishman. He's set to walk away with about $18 million in bonuses after his three week stint at the failed savings and loan giant. His "golden parachute" is raising eyebrows, particularly because of his short tenure at WaMu. Washington Mutual was the nation's largest savings and loan. It was taken over Thursday night by federal bank regulators and then sold to JP Morgan Chase for $1.9 billion. This, as lawmakers continued to work on a $700 billion bailout for bad debt in the financial industry. According to the Securities and Exchange Commission, Washington Mutual gave Fishman a $7.5 million bonus when it hired him on Sept. 8, and guaranteed him $11.6 million in severance if he was terminated, the so-called "golden parachute" that has created controversy when failed executives walk with huge rewards. Fishman also was eligible for annual bonuses of up to 365 percent of his annual base pay of $1 million

http://www.associatedcontent.com/article/1066149/wamu_ceo_alan_fishman_gets_18_million.html

[snippy_about_it]

We’ve also been told that the Republican leaders are trying to convince members who are retiring to vote since the fall-out won’t matter to them personally.

What about voting your conscience.

[Principled]

The Democrats expected him to be political; not principled.

:) "House Republicans are right on this one"

Principled indeed!

[Scotswife]

“-The Treasury has been working on this for months- yet at the last minute when it appeared we were in a crisis- this socialist plan was the best they could do..

-Paulson can’t be trusted as an honest broker.

-The liberals are winning the PR war.”

And what about Bernanke?

The man is no slouch.

I believe Bernanke is telling the truth.
Not that I think the dems are capable of coming up with something without ruining it...but clearly something has to be done.

It is Bernanke’s opinion that in the Great Depression the Fed make a terrible mistake by allowing banks to fail (although Feds hands were somewhat tied back then).

So the premise is - how to prevent the banking system from collapsing?

[Road Warrior ‘04]

All the reports I heard said that the meeting broke down with loud yelling and that McCain never really said much during the whole meeting. That is true, but what he did say was that the "...House Republicans are right on this one."

All heck broke loose! The Democrats expected him to be political; not principled. How could he disappoint them? But McCain did disappoint: the Democrats, not the Republicans.

If this is true, and I have no reason to dispute it, I have new found respect for McCain. Although, it does say "all the reports I've heard" and not first hand knowledge.

[SE Mom]

I know- though I did read another account that jives with this one. I can’t cite the source though- I’ve read too much this week!

[GWMcClintock]

ping-a-ling

[IamConservative]

I am not seeking a Treasury Secretary that is loyal to the president, any president.

One thing that has started to evolve in my understanding is that this crisis is more about declining home values than mortgage defaults. Mortgage defaults are somewhere in the 5% and $250B range. There are many times more the losses in values of mortgage backed securities that are not yet in default. So, we know what has unraveled so far. What goes next as the bubble deflates?

With those questions in mind, Paulson made a few billion during the creation of this bubble as CEO of Goldman Sachs. Where is that money now? What conflicts of interest might he be serving? Any coincidence that Buffet ponied up $5B in Goldman Sachs? What might he know about what Paulson plans to do with the $700B? With only four months left to serve, will Paulson blow the whole wad in that time?

This stinks like last weeks fish to me.

[IM2MAD]

I wish Pres. Bush had impanelled a Blue Ribbon commission comprised of unbiased economists and others financial gurus (Forbes) to suggest legislation. No members of Congress included! And had done it IN PUBLIC rather than allow those responsible for the mess in the first place and who had already benefited from Fannie and Freddie via special deals and campaign contributions try to fix it in secret BEHIND CLOSED DOORS and with a 6:2 advantage. Where’s the equal representation?

[SumProVita]

Americans must DEMAND an investigation of all of this.

[GWMcClintock]

Here’s a concept—

What about voting in the best interest of your constituents?!

[Carley]

I hope my comments didn’t suggest any support at all for Paulson. SEC chairman Cox ought to resign and take Paulson with him.

Then we must begin cleaning house and senate. Sadly, the dem voters love their corrupt politicians.

[668 - Neighbor of the Beast]

It is only a national crisis because Washington has gotten involved. Water is pouring through the hull, via holes they created by law, and they figure they can ease the flow of those leaks by poking other holes.
Far as I’m concerned they are all criminally incompetent.

[foxfield]

The reality is that DEMOCRATS SAW IT AS A VOTE-GETTING OPPORTUNITY.

I'm not usually given to conspiracy theories, but I can't help thinking that this entire "crisis" wasn't somehow timed to happen just now--kind of an early October surprise.

[IamConservative]

I hope my comments didn’t suggest any support at all for Paulson.

Not at all. The word loyalty caught my eye. Paulson is one of the principles that cooked up this whole leveraged hedge fund stuff and made a few billion on the ride up. I am questioning his loyalties. Are they to the US or Goldman Sachs based on what he knows will happen next?

[mathluv]

That would have been a good idea. Having Dodd and fwank involved is ridiculous!