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http://www.humanevents.com/article.php?id=28678

Republican Study Committee Releases Alternative to Bailout Proposal

The Republican Study Committee has released an alternative to the Treasury Department’s bailout proposal and will discuss the proposal at a press conference today. Conservatives have expressed concern that the Treasury’s proposal will alter the country’s free-market system, awards massive authority to the Treasury, and fails to penalize debtholders and shareholders. The committee’s free-market alternative is listed below:

REFORMING A TAX CODE THAT DISCOURAGES CAPITAL FORMATION

Two-Year Suspension of the Capital Gains: Immediately suspend the capital gains rate from 15% for individuals and 35% for corporations. By encouraging corporations to sell unwanted assets, this provision would unleash funds and materials with which to create jobs and grow the economy. After the two-year suspension, capital gains rates would return to present levels but assets would be indexed permanently for any inflationary gains.

REFORMING A FAILURE IN GOVERNMENT INSTITUTIONS

Schedule the GSEs for Privatization: Transition Fannie and Freddie over a reasonable time period to truly private companies without special government privileges and open them up to real market competition. This reform would 1) establish commonsense limits for their capital requirements and portfolio holdings relative their size, 2) focus their mission on affordable housing only, not profit making, 3) require them to pay an appropriate risk-based amount for the government guarantee they enjoy, 4) subject them to state and local taxes and accurate SEC filings like every other private for-profit corporation, and 5) ultimately provide for the phase out their GSE charters once their conservatorship has ended. In a matter of mere weeks, Fannie and Freddie have gone from too big to fail to too dangerous to repeat. This hybrid illusion must not be allowed to continue.

Stabilize the Dollar: Repeal the Humphrey-Hawkins Full Employment Act which diverts the Federal Reserve’s attention from long-term price stability to short-term economic growth. In an effort to fuel the economy, this additional mandate has encouraged the Fed to keep rates artificially low, fueling economic boom and busts, and now a strong up-tick in inflation and the decline of the dollar (as investors free dollars for hard assets). This reform would require the Fed to establish a numerical definition for price stability and maintain a policy that promotes it over the long-term.

REFORMING A FAILURE IN GOVERNMENT REGULATION

Suspend “Mark to Market” Accounting: Suspend the mark-to-market regulatory rules for long-term assets. These rules require financial firms to mark assets at current market levels, even where the no market exists and any immediate transactions would result in fire-sale prices. Instead of allowing firms to mark these assets to their true economic value, these rules contribute to a downward spiral as firms have to evaluate their assets not on the basis of their long-term investment but rather on a short-term mania.

Yep all anyone has to do is go to Google Finance and look at the Dow or S/P or Nasdaq and max the graph out to max. It shows all down to 1971. It is crystal clear.

We are in no danger at all.

But when was the last time on CNBC or FOX or any financial TV show that you saw a graph of the stock market out to 1971?

Its a big scam. Election year Overthrow of the Country in a bloodless Coup. This Bailout will wipe out more banks faster than any supposed looming fiancial disaster.

IT REWARDS FAILURE.

The good banks out there will be the ones who suffer because they won’t be getting any of the gravy off of the BULLSHEET BAILOUT GRAVY TRAIN. ...so what will investors do, they will pull their cash out of these good banks and put it in the banks that are contolled by the gobamint.

KILL THE BULLSHEET BAILOUT NOW.

Hopefully the dems will keep adding more and more requirement and restrictions that it will die and get vetoed by our next President - President McCain.