Jim Lindgren Is Excellent

Jim Lindgren points out multiple problems with Chris Dodd's original draft.  My only reassurance - the current plan has moved beyond that.

I had derided the Dodd approach to equity stakes last week but Lindgren has more trashing from a different direction.

And his insight on the housing slush fund is an eye-opener - the original Dodd language called for 20% of the profit on each sale to be diverted to the Dem slush fund; this is far different from 20% of *net* profits.  In a net profit scenario, losses on some sales would offset gains on others.  Under Dodd, any profit is immediately subject to diversion, regardless of whether there are other, greater losses.  That is not taxpayer protection.  What it is is absurd.

Comments

[clarice]

I expect someone at ACORN drafted it. Dodd in any event is far too stupid to know the difference. When they threw his crooked dad out of the Senate they should have had an exclusionary clause banning his dumbbell son as well.

[clarice]

OK-Simon's video is finally up and my previous ACORN blog's been updated with TM's post on Lindgren.
If we can't agitate folks to get out of their Barcalounger's and head for the Hill on this one, nothing will move them.

[matt]

when you have a room full of lawyers, this is what you get.....most of them seem to be angling for something well out of the scope of an investment deal.

having been involved in a couple of deals in my time, usually it is the lawyers who stand off to the side while the principals work out the key points. This is one of the fundamental flaws in having a Congress full of lawyers.

[Lori]

Just emailed my senator (Dodd, unfortunately). Told him to get rid of the slush fund.

[clarice]

Thank you, Lori, Let me introduce Jane from Mass..You two might want to drown your sorrows (over your crappy elected officials)in drink.

[Extraneus]

Isn't this indicative that the Democrats don't take this as seriously as some other folks do? Maybe they know something we don't.

[glenda waggoner]

When will the MSM ask the Dodd and Gorelick's of the democratic party, if they
knew this was going to happen and ONLY their
side has the correct answer..why didn't something get done in the years of majority
they did and now enjoy? The hypocrisy is equal to the villagers in Auschwitz claiming they "didn't know what was going on in the camps". They (dims) could pass most any garbage (and Have) and call it legislation for the middle class but want
bi-partisan support for the bailout to CTA.
What about suing the executives who took ridiculous percs and stock and cash options when either fired or left Fannie, Fred & Countrywide. What is the statute of limitations on fraud? I really don't care who's career goes down, that trash need to be cleaned up in Congress. No earmarks. People apply for fed aide, like a regular American flood refugee has to. Need a bridge-ask Interior-Need specialized early childhood classes-go to Education-Make those prima d's shuttle bus ride to work-xnay on limos-limit all staff-dock their pay if they don't show up to work- ideas?

[Charlie (Colorado)]

Isn't this indicative that the Democrats don't take this as seriously as some other folks do? Maybe they know something we don't.

Or, maybe they're just the sort of moron that figures you can't have an omelet without breaking a few eggs.

[Extraneus]

I wonder if Schumer's helpful letter to IndyMac fits into any of this.

[Lori]

The problem is that most people in this country know nothing about ACORN and the housing slush fund. I just spent the afternoon at a high school football game chatting with several adults (overeducated, all connected with wall street in one way or another, consider themselves highly informed). They knew nothing about the slush fund and looked at me like I was nuts. I swear if you don't read blogs there is no way you can be informed.

[joan]

Lori: I swear if you don't read blogs there is no way you can be informed."

That's the problem in a nutshell (to use an old cliche) -- our mainstream media doesn't care about this corruption, nor does our mainstream media report anything negative about the Democrats, the Left, or the Liberals.

What in the hell is wrong with this group? The journalists we used to look up to -- the people who exposed corruption, who saved the average American from vile, filthy deals?

Lord, they make me sick to my soul.

[sbw]

Joan, the underlying problem is that ordinary people don't hold journalists accountable.

They don't hold journalists accountable because they don't know enough to hold each other accountable.

They don;t hold each other accountable because they don't know they should and they don't know how.

Schools are taught by ordinary people like these.

[Geezer]

Any clue as to the composition of the House Republican 100?

[clarice]

Here you go, Geezer:
http://www.house.gov/hensarling/rsc/rsc_memberslist.shtml>House GOP members

[Sara (Pal2Pal)]

Oh Boy, my Congressman is one of those House Republicans. If they are going in with this attitude, it doesn't look good to me. The following appears on the Home page of his .gov website:

September 23, 2008

Washington, DC – Rep. Darrell Issa, a founder and former CEO of a NASDAQ listed technology company, today made the following statement expressing concern and opposition about transferring Wall Street’s mistakes onto the back of taxpayers:

“As disturbing as the volatility and turmoil on Wall Street are, the prospect of transferring trillions of dollars of risk and losses to taxpayers is appalling. How can any American look their neighbor in the eye and suggest that they should bear the losses for the mistakes and greed of America’s wealthiest financial firms? I am emphatically against it.

“Accountability is a pillar of our free market economic system. The market rewards good business decisions and punishes bad ones. The course of action supported by the Administration and the Congressional leadership undermines this fundamental principle by bailing out those on Wall Street who made risky and foolhardy decisions by transferring their losses to taxpayers. Losses on Wall Street should be first and foremost the responsibility of the investors and creditors who engaged in these business transactions.

“As a private citizen who was an entrepreneur and business owner before I came to Congress, I accepted the risks and benefitted from the rewards that resulted from my decisions. The barons of Wall Street should be held to the same standard as every small business owner and every citizen. These financiers knew the hazards they were exposing their firms and investors to when they made decisions to invest heavily in sub-prime mortgage backed securities, and did so in pursuit of greater profits. They called the tune, let them face the music.

“The American economy has time and again weathered political shocks and financial hardships and proven itself resilient. I am confident that we will get through the current turmoil, overcome the losses now being incurred, and return to financial prosperity. Harnessing taxpayers with an additional trillion dollars in debt won’t advance that process.

“The proper role of the Administration and the Congress at this time is to provide proper oversight of the Federal Reserve, Securities and Exchange Commission and other financial regulatory agencies; to determine the factors that led to current crisis; to make policy and regulatory changes to prevent a recurrence; and to investigate and prosecute civil and criminal wrongdoing in the marketplace that may have contributed to the financial meltdown we are witnessing.”

[glasater]

I'd like to give a message to the D's in congress and to Zero. If he gets elected--I along with a ton of other folks aren't going to work anymore to support the sorry a$$ of those who do not chose to participate in this great country.
I am flat out tired of working hard to support a bunch of no good free loaders--and that's exactly what Zero wants to do with ACORN.

[Charlie (Colorado)]

Oh Boy, my Congressman is one of those House Republicans.

You mean idiots?

[Jim Ryan]

Background video. Must-see-TV. But don't have high blood pressure:

Some Congress at VP's place.

And this one.

God save the republic.

The Dems who caused this mess: "There is no problem with FM. We don't need McCain's regs."

The House GOP who won't clean up this mess: "There won't be a depression."

Those House GOP? They will have to eat chuck instead of prime rib during the CRA Depression. While the children of real conservatives make do without meat.

[JM Hanes]

My Congresswoman, Virginia Foxx, has a decent though somewhat non-committal statement on her front page. She does provide a link to the actual Paulson proposal and some 3rd party assessments, which shows some welcome respect for her constituents' interest in making informed decisions.

I don't know exactly where she stands at this particular moment in time, but she was part of the original crowd that occupied the House after Pelosi adjourned without addressing off shore drilling. I expect she's part of the current Republican resistance movement. I sent a "Just say no to ACORN" email, but I'd be surprised if she hasn't been talking to bankers here at home already. This was Wachovia HQ before the big merger and there are still plenty of upper level pros in town for consultation.

[dking]

I know we need a bill but this is getting ridiculous.

Name them and shame them.

[Jim Ryan]

That link (Some Congress at VP's place) seemed to go down for a while. It's back. The same video is also here. This is as tragic as politics can get. The other link (this one) multiplies the injuries.

[Holly]

***glasater: I along with a ton of other folks aren't going to work anymore to support the sorry a$$ of those who do not chose to participate in this great country.***

This reminds me so much of the book vilified by every liberal I know -- Atlas Shrugged. We need a John Gault.

[glasater]

Atlas Shrugged was an influential to me while I was in college--and some of it did stay with me through the years.
Ayn Rand did have some resurgence ISTM ten or so years ago. I used to see reprints of her books on the tables of Barnes & Noble about that time. Too bad it didn't stick around longer.

[M. Simon]

My ACORN article. It explains why the Obama team and the Clinton people do not get along:

ACORN Is Not About Nuts

[M. Simon]

My ACORN article. It explains why the Obama team and the Clinton people do not get along:

ACORN Is Not About Nuts

[JBean]

M. Simon --

I'm afraid that most people aren't aware that this community activist slush fund, called the National Housing Trust Fund, has already been created with the passage of H.R. 3221: Housing and Economic Recovery Act of 2008, signed into law July 30.

The WSJ wrote about it in July: $60 Million Baby. (Dodd's version passed.)

A nationwide activist group, The National Low Income Housing Coalition,  is now worried that the Fund is threatened by the Fan/Fred takeover, so apparently Dodd was trying to secure the future of this not-so-small army of Democratic supporters with the bailout provision. It looks like the future of the Fund now rests on who gets into the White House.

[M. Simon]

JBean,

Thanks! I think I noted that in the article without giving details. I'll update the article later today to include your info.

[JBean]

M Simon --

I see it now -- I must have scanned it too quickly. Great article!

By the way, here's a link to the housing bill, with the vote tallies for House and Senate -- it's instructive to see which Republicans have been consistent in opposing the Fanny/Freddie boondoggle. Bachman, Cantor and other House Reps.certainly have. The Senate Republicans are, well, pathetic on the issue.

H.R. 3221: Housing and Economic Recovery Act of 2008

(I just tried the link, which was fine 15 minutes ago, but now it's "temporarily unavailable," so I guess you'd have to check back later, I hope.)

[M. Simon]

JBean,

I just included the WSJ bit as an update to the article and cross posted it to Classical Values.

Forgot to give you a H/T - I will correct that.