Wisconsin House votes on the bailout plan:

Aye -

Obey,Moore,Baldwin,Ryan,Kind

No -

Sensenbrenner, Kagen, Petri

All votes are online here.

As this is being written we are in the midst of the second day of testimony before Congress by Ben Bernanke and Henry Paulson in support of the Administration’s proposed financial rescue package.

The basic sales pitch is that the Nation’s financial problems are at this moment so severe that the only solution is to expose to risk $700 billion dollars of taxpayer money to buy assets with a currently unknown price…and to give the absolute and total power over what those valuations are, what should and should not be bought, what repayment terms will be sought—and additionally, what happens to any money recovered--to one man, Henry Paulson.

There are those who are not on board.

You now have an opportunity to weigh in on both the treasury department's version of the bailout and on Senator Dodd's proposal.  These will be updated online as they change, and you can comment on each section, thanks to the Sunlight Foundation.

Treasury Bill

Dodd's Version

AUTHOR'S NOTE: This was originally published on February 14th of this year, but it seems to be exceptionally timely today.

We had a lively discussion last week regarding the causes and possible future of the “subprime crisis” that is on everyone’s lips these days.

Having examined the sources of the problem, and noting the lack of holistic thinking about how things might be resolved, I’ve taken it upon myself to come forward with an idea that can actually get at the root causes of today’s difficulties...and do it in a way that offers a potential “win-win-win” outcome for homeowners, investors—and the taxpayer.

Paying attention, Presidential candidates?

Good—because time is short, and we need to get to work.

For today’s solution to make sense, we, like Sherman and Peabody, need to make use of the “WABAC Machine”. We’ll set the time dial to the late 1980s, and we’ll set the location as the headquarters of the Resolution Trust Corporation.

What we’d find is a governmental organization established at the height of the “savings and loan crisis” of the 1980s.

The proposal from Treasury for bailing out the mortgage industry is short and sweet.  I have to ask you - if I were to ask you for $700 billion dollars  and the authority to spend it --- Wouldn't you like to be able to have something to say about what I do with it?  Note in particular that the proposal doesn't allow any review by any court of purchases made - It was said a while ago that the Bush Doctrine really just states "We can do whatever the fuck we want" and I think that this is further proof.

If congress puts up with this then I would guess that they have completely agreed that power needs to rest solely in the Executive Branch. I had to read it three times before I  could believe it --

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.