Posted on 09/30/2008 7:19:38 AM PDT by 1curiousmind
Now that the government-heavy bailout of the financial markets has been thumped by the House, Congress must explore a more market-based approach.
Republicans and Democrats sent a strong message Monday in rejecting the U.S. Treasury's plan to put up, if need be, $700 billion to take bad debt off Wall Street's ledger....
But in political defeat and financial despair, there is opportunity:
• Cut the growth-killing corporate tax rate, "zero out" the capital gains tax and return a prodigious amount of private capital to the market.
• Repeal Sarbanes-Oxley. The regulations designed to combat fraud only encumbered many thin-margin smaller businesses with millions in compliance costs, damaging job creation where it can be most prolific.
• The "mark-to-market" bank accounting method must be scrapped. It fueled "value uncertainty" that killed confidence.
• Raise the FDIC guarantee on transaction accounts at banks. Without it, the government's deal last week granting an unlimited guarantee on money market funds could cause bank runs.
Government has failed multiple times in the current crisis. It's now time for government to enable the very markets it derides and disrespects to save the day.
(Excerpt) Read more at pittsburghlive.com ...
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
Isn’t this Newt’s plan????????
Sounds like a plan!
Opportunity:
• Cut the growth-killing corporate tax rate, "zero out" the capital gains tax and return a prodigious amount of private capital to the market.
• Repeal Sarbanes-Oxley. The regulations designed to combat fraud only encumbered many thin-margin smaller businesses with millions in compliance costs, damaging job creation where it can be most prolific.
• The "mark-to-market" bank accounting method must be scrapped. It fueled "value uncertainty" that killed confidence.
• Raise the FDIC guarantee on transaction accounts at banks. Without it, the government's deal last week granting an unlimited guarantee on money market funds could cause bank runs.
GINGRICH: “I think, first of all, they should replace the current snapshot to market with a rolling three-year average.
I think, second, they should change the current loan reserve pattern so it’s not pro-cyclical.
I think, third, they should zero capital gains.
I think, fourth, they need to adopt an energy plan to keep about $500 billion a year here at home instead of going overseas.
But on a practical level, if they need to open up a window to loan money to treasury plus 2 percent, and people want to come in and borrow the money and the responsibility (ph) of a workout not a bailout, and those people want to work their way out over the next three to five years. I’m comfortable saying this is a liquidity crisis; let’s meet it; let’s loan the money. But let’s make sure they are responsible for their bad debt, and they’re going to work their way out.
This idea that we’re going to buy the paper and some bureaucrat in Washington is going to be responsible for $700 billion in bad paper, I think, is socialism at its worst. I can’t imagine why this administration is doing it. I think it is profoundly wrong, and I hope it is defeated if it comes to the floor in this form.”
http://newt.org/tabid/102/articleType/ArticleView/articleId/3742/Default.aspx
Yes it is. Presented on Greta last night.
“Bust up these Beasts”: Steve Forbes bailout plan - break up Fannie Freddie monopoly status
http://www.freerepublic.com/focus/f-news/2093778/posts
Did anyone hear Newt Gigrich on Greta last night talking about mark to market and temporarily suspending Sarbanes-Orxley? (I think I have that name correct.)
Isn’t this Newt’s plan????????
Yes it is. Presented on Greta last night.
No wonder he chose Biden.......
“So THEY will hear us....McCain in particular - THIS COULD SAVE YOU SIR!”
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I have to believe there are McCain insiders on FR. Please explain to us why in the heck he is failing to take the lead on this. Is he or is he not a “maverick”? This may well be his only chance to prove himself to be the opposite of Bush when it comes to handling crises like this.
thanks. maybe McCain will latch onto one of these plans.
McCain and Obama are busy pushing populist non-solutions like raising the FDIC ceiling to $250,000. His reaction to this mess is reminding everyone why he is not a leader and does not have the temperment to be President. He's like George Wallace with turrets.
Fire Chris Cox! Hire Andrew Cuomo! Raise the FDIC limit! Pass the bailout! Don't pass the bailout! No, pass the bailout!
McCain can’t possibly gain any ground by endorsing the same plan Bush and 0bama do. Get out in front of this thing and push for what the voting public wants and not the people that created the problem.
The start of the resolution of this is to repeal the CRA, auction off the assets of Fannie and Freddie and dissolve those entities and fire all their employees.
“Get out in front of this thing and push for what the voting public wants and not the people that created the problem.”
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Exactly. What is so hard to understand about that?!?
I just don’t get it.
I have to believe there are McCain insiders on FR. Please explain to us why in the heck he is failing to take the lead on this. Is he or is he not a “maverick”? This may well be his only chance to prove himself to be the opposite of Bush when it comes to handling crises like this.
Too bad we have McCain as the GOP candidate. This will fly right over his head.
Fixing what got us into this mess in the first place instead of throwing money at it? Wow, what a concept! /sarc
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