Curried Wealth Building
Finding an Edge

If you want help with your finances, give me a call at 703-791-3243.
September 23, 2008 
 
Issue 7  -  What a Stinking Pile

The more I hear about this "bail-out", the more disgusted and annoyed I become.  After watching Bernanke and Paulson parade around the talk shows and then in front of congress, I  have come to two conclusions.  One Ben Bernanke is completely out of his league, an academic professor who hasn't even held a real job, is just going along for the ride.  Parroting what he is told, you can literally see that he doesn't even know/believe what he is talking about.  He is the typical pointy headed intellectual who believed he knew it all before taking the job and now has no idea what's going on.  He is a complete and utter tool.

Hammerin' Hank Paulson is another case altogether.  I am convinced he is an evil man who, through his actions, is displaying characteristics which demonstrate a man who will actually give up the country to save his pals bacon.  I have seen him lie on at least a dozen occasions.  I'm not talking the run of the mill political double speak.  I'm talking, "the moon is made out of blue cheese," absolute lies.

One example.  While in front of the Senate Hank said that he always wanted oversight.  He welcomes oversight and he didn't understand why anyone thinks otherwise.  Well Hank, I'll tell you why.  It's right in the proposed legislation that you tried to ramrod through congress this past weekend.  Here it is in its entirety:

"Treasury's bail-out proposal

The legislative proposal was sent by the White House overnight to lawmakers.


Last Updated: September 20, 2008: 11:47 AM EDT


NEW YORK (CNNMoney.com) -- Here's the text of the legislative proposal sent by the White House overnight to lawmakers:


LEGISLATIVE PROPOSAL FOR TREASURY AUTHORITY TO PURCHASE MORTGAGE-RELATED ASSETS

Section 1. Short Title.

This Act may be cited as ____________________.

Sec. 2. Purchases of Mortgage-Related Assets.

(a) Authority to Purchase.--The Secretary is authorized to purchase, and to make and fund commitments to purchase, on such terms and conditions as determined by the Secretary, mortgage-related assets from any financial institution having its headquarters in the United States.

(b) Necessary Actions.--The Secretary is authorized to take such actions as the Secretary deems necessary to carry out the authorities in this Act, including, without limitation:

(1) appointing such employees as may be required to carry out the authorities in this Act and defining their duties;

(2) entering into contracts, including contracts for services authorized by section 3109 of title 5, United States Code, without regard to any other provision of law regarding public contracts;

(3) designating financial institutions as financial agents of the Government, and they shall perform all such reasonable duties related to this Act as financial agents of the Government as may be required of them;

(4) establishing vehicles that are authorized, subject to supervision by the Secretary, to purchase mortgage-related assets and issue obligations; and

(5) issuing such regulations and other guidance as may be necessary or appropriate to define terms or carry out the authorities of this Act.

Sec. 3. Considerations.

In exercising the authorities granted in this Act, the Secretary shall take into consideration means for--

(1) providing stability or preventing disruption to the financial markets or banking system; and

(2) protecting the taxpayer.

Sec. 4. Reports to Congress.

Within three months of the first exercise of the authority granted in section 2(a), and semiannually thereafter, the Secretary shall report to the Committees on the Budget, Financial Services, and Ways and Means of the House of Representatives and the Committees on the Budget, Finance, and Banking, Housing, and Urban Affairs of the Senate with respect to the authorities exercised under this Act and the considerations required by section 3.

Sec. 5. Rights; Management; Sale of Mortgage-Related Assets.

(a) Exercise of Rights.--The Secretary may, at any time, exercise any rights received in connection with mortgage-related assets purchased under this Act.

(b) Management of Mortgage-Related Assets.--The Secretary shall have authority to manage mortgage-related assets purchased under this Act, including revenues and portfolio risks therefrom.

(c) Sale of Mortgage-Related Assets.--The Secretary may, at any time, upon terms and conditions and at prices determined by the Secretary, sell, or enter into securities loans, repurchase transactions or other financial transactions in regard to, any mortgage-related asset purchased under this Act.

(d) Application of Sunset to Mortgage-Related Assets.--The authority of the Secretary to hold any mortgage-related asset purchased under this Act before the termination date in section 9, or to purchase or fund the purchase of a mortgage-related asset under a commitment entered into before the termination date in section 9, is not subject to the provisions of section 9.

Sec. 6. Maximum Amount of Authorized Purchases.

The Secretary's authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time

Sec. 7. Funding.

For the purpose of the authorities granted in this Act, and for the costs of administering those authorities, the Secretary may use the proceeds of the sale of any securities issued under chapter 31 of title 31, United States Code, and the purposes for which securities may be issued under chapter 31 of title 31, United States Code, are extended to include actions authorized by this Act, including the payment of administrative expenses. Any funds expended for actions authorized by this Act, including the payment of administrative expenses, shall be deemed appropriated at the time of such expenditure.

Sec. 8. Review.

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

Sec. 9. Termination of Authority.

The authorities under this Act, with the exception of authorities granted in sections 2(b)(5), 5 and 7, shall terminate two years from the date of enactment of this Act.

Sec. 10. Increase in Statutory Limit on the Public Debt.

Subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting in lieu thereof $11,315,000,000,000.

Sec. 11. Credit Reform.

The costs of purchases of mortgage-related assets made under section 2(a) of this Act shall be determined as provided under the Federal Credit Reform Act of 1990, as applicable.

Sec. 12. Definitions.

For purposes of this section, the following definitions shall apply:

(1) Mortgage-Related Assets.--The term "mortgage-related assets" means residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before September 17, 2008.

(2) Secretary.--The term "Secretary" means the Secretary of the Treasury.

(3) United States.--The term "United States" means the States, territories, and possessions of the United States and the District of Columbia.

First Published: September 20, 2008: 11:33 AM EDT"


I direct your attention to section 8.  This section basically says that Ole Hank is basically a deity.  He can do whatever he wants, whenever he wants, and oh by the way, you can't sue him if you don't like it.  Does that sound like someone who welcomes oversight?  I don't think so either.

How about Sec. 12 definition 1.  It says here that they can purchase things that were originated or issued before September 17, 2008.  Well, that seems odd.  Last Wednesday is the cutoff.  You don't suppose Ole Hank's cronies up at Goldman Sachs were shifting (or as they will refer to it, reissuing) some things around last Monday and Tuesday do you?  Nah, that's probably my imagination getting the best of me.  Seriously, who didn't know that these piles of toxic waste weren't in trouble last year, let alone last week.  This is so crooked and corrupt that it defies description.  These guys are literally trying to steal this country.  If this passes, and right now it looks like it will, it practically guarantees our demise as a great nation.

There are alternate plans out there that have a chance to end this without Armageddon and won't loot the coffers of the tax payer.  I urge you to call or email your congressman and urge them to NOT pass this stink pile.  It is not intended to help the country or you.  It is intended to help the idiots, thieves and crooks who caused this mess in the first place.  Don't just sit there while Rome burns, let them know, in no uncertain terms that you won't stand for anything even close to what is being talked about.  Do it now.

Wow, I went a whole blog without mentioning gold.  I know it doesn't matter because you already have some lined up or bought.  You do, don't you?