|
Update, July 26. Today the Senate passed H.R. 3221, the housing bailout bill, by 72 to 13 (Roll Call #186). President Bush will sign quickly.
H.R. 3221, the American Housing Rescue and Foreclosure Prevention Act of 2008, was passed by the House 272-152 on Wednesday, July 23, 2008 (Roll Call #519).
The Senate voted overwhelmingly (80-13) on Friday morning to end debate, with a vote to clear the housing bill expected on Saturday, July 26. Enactment of this legislation would be a victory for socialism and big government, but a travesty for U.S. taxpayers and limited government. This one-time energy bill was transformed into a vehicle for mortgage foreclosure prevention, then very recently revised again to include plans for preventing the failure of Fannie Mae and Freddie Mac, share-holder owned companies that have lost billions of dollars in the last year and whose stock prices plummeted, but then rebounded this week.
Fannie and Freddie are government-sponsored enterprises (GSEs), created by Congress to serve governmental objectives, such as that of encouraging home ownership. They are two of the world’s largest financial companies, holding two out of every five mortgages. Although Fannie Mae and Freddie Mac operate much like other companies, their close relationship with government is being used as a pretext for exposing taxpayers to part of their $5.2 trillion in outstanding debt and obligations.
H.R. 3221 would grant the administration authority through 2009 to loan money through the Treasury to Fannie and Freddie, or to buy (prop up) their stock. The plan has no dollar cap on the related spending other than by being subject to the nation’s statutory debt limit. The measure includes raising the national debt limit from $9.8 trillion to $10.6 trillion. As an interim measure until legislation is enacted, the Federal Reserve has given open lines of credit to Fannie and Freddie.
The Congressional Budget Office (CBO) announced that the bailout plan could cost the government $25 billion over two years. It was also said that a slight chance exists that additional losses could exceed $100 billion. Senator Judd Gregg (NH) called the numbers arbitrary and of little value. Considering that recent budget deficits are approaching half a trillion dollars, Americans desensitized to government spending might not be alarmed. But remember, the two companies have $5.2 trillion in outstanding debt and obligations, and the Bush administration and the Treasury had wanted Congress to provide a virtual blank check with no caps, not even by the statutory debt limit. If a worst case scenario occurs, according to Rep. Jeb Hensarling (R-TX), the U.S. $9.5 trillion national debt could explode by 50 percent in an instant.
Talking Points to Your Senators:
- Please oppose H.R. 3221, the American Housing Rescue and Foreclosure Prevention Act of 2008. Instead rescue taxpayers from big government and hyperinflationary spending.
- Taxpayers should not be forced to guarantee bad loans made by big banks and lenders, particularly Fannie Mae and Freddie Mac. Allow the free market to work and cleanse itself of excesses. Let poorly run Fannie and Freddie fail or be broken up and sold. It will teach other banks to be circumspect and not expect a bailout.
- Taxpayers should not be forced to cover bank and lenders' losses on irresponsible and scandalous housing loans made to buyers who obviously could never afford their payments when extreme, artificially depressed adjustable mortage rates are reset higher.
- It is unfair for private investors of Fannie and Freddie to reap profits, as in the bubble years, but now expect the taxpayers to absorb their losses, potentially up to $5 trillion.
- Taxpayers should not be forced to prop up the stock price of any company. Put a stop to outrageous government manipulation of the stock market. It is a blatant repudiation of free markets and a warning sign of totalitarianism and corruption.
- Oppose expanding the emergency powers of the Federal Reserve. Reduce them instead.
- Do not allow this flawed bill to be railroaded through the Senate without allowing its members or the public sector time to scrutinize the latest version and suggest alternatives.
Links For Further Insight:
Rep. Jeb Hensarling: Taxpayers Should Not Pay Billions to Prop Up Trillion Dollar Mortgage Companies
Senator Jim Bunning (KY): Floor Statement in Opposition to the Housing Bill.
Andrew Napolitano: Unconstitutional Bailout
Jim Rogers: Fannie Plan a Disaster (Bloomberg) |
►Examining Healthcare
GO BACK TO THE CONSTITUTION.
Stop Bill 3221 it is against the law.
Stop making this country a socialist country
According to USCB data: In 1960, 180 million Americans lived in 58M homes - 3.1 per home. In 2006, 300M Americans lived in 126M homes - 2.3 per home. If 300M people lived at the 1960 occupancy rate, they would need just 96M homes.
We have a housing surplus equivalent to 30 million homes, a 30% overstock.
WHY?
Let me suggest that this is the result of our 50 year experiment with no-fault divorce, CS enforcement as divorce incentive, and government sponsored family breakup in general. The risky subprime loans were an attempt to provide credit to a population that is increasingly unmarried and financially unstable.
NO "bailout" and no tweaking of lending rules will fix the fundamental problem in the housing market - 30 million surplus homes. There are two strategies that will: either government begins taking title to foreclosed, bailed-out homes and demolishes them for conversion to public facilities, OR we find about 90 million foreigners to immigrate, purchase homes and assimilate into our economy.
This is a mis-use of public funds that come from the pockets of us taxpayers. If there is an immediate benefit to us, the average taxpayer, I would like whoever vote for this bill to let the public know through mass media right away and before a vote and get the public's reaction. Of course, only the truth is what we want, not twisted rhetoric!
Regarding: HR3221
This email is to notify you that concerned citizens, of the once sovereign states, are vehemently opposed to the passing of HR3221 that made it through the House on 07/23/08. This bill is nothing less than a corporate welfare scheme, that props up unscrupulous lenders, favors the banking industry, Wall Street alumni, and the private banking cartel that has enslaved all citizens by taxing their labor, The Federal Reserve System. Citizens are becoming increasingly aware of the evils of this banking system and all that support or condone its existence. Furthermore, this legislation HR3221 creates a system whereby the credit card transactions of private individuals would be monitored by the IRS. We have a right to privacy. It is not the Governments’ business how, where, why, when and for what purpose we use our credit cards. Enough already, stop the Communist and Nazi ways of this all powerful, all seeing Federal government! This is a Republic not a Democracy. Eliminate the Fascist Oligarchy that now controls this country. It is time for you to read, restore, uphold and protect the Constitution as you are sworn to do! Advise your colleagues in the Senate to do the same, and to vote in accordance with the wishes of the constituents and oppose this, and any similar legislation! Consequently, we request that you contact your colleagues in the House and urge them to cosponsor, support, and work tirelessly to pass HR2755 abolishing the Federal Reserve System. Thank you.
Why do they get away with this? Ignorance of the public who expects a muslim messiah to save them with his 143 days of experience in the senate, platitudes, and slick marketing.
of the criminal government banking scandal. Perhaps, we might expect the creators of such scandal to offer as a remedial concoction from the same laboratory, what they apparently think is an endless supply to tap into, "money for them to steal out of the pocketbooks of our generation and future generations." Perhaps Congress should offer a moral solution, one out of the past and part of the wisdom that built this great nation: aallow free-enterprise to cleanse such excessive corruption.
H.R. 3221 is nothing more than the advocation of more government to solve what govenment caused in the first place. It is a band-aid solution that will only prolong a day of reckoning that will accellerate hyperinflation and complete the destruction of the dollar. This is a criminal action with the force of law behind it. When Congress advoces such laws, their credibility justifies injustice with force.
What this legislation proposes: is bailing out mprivate investors who made a fortune on Fannie Mae and Freeddie Mac in years p[ast, who now have lobbied Congress to cover their loss in this epedemic of defaults resulting from scandalous and irresponsible loans.
Vote no on H.R. 3221!
I live on social security and my monthly check is already in jeopardy with $4+ gal gas & rising food prices!!
The loan people should go to jail, not be bailed out!!!!!!!
Put the crooks where they belong and lets start calling them "WHAT THEY ARE"!!!!!!!!!
Thank you,
Like a good partent you have to let them learn not bail them out at every turn. Why should I PAY???
Nobody is bailing me out right now that things ars so bad I can;t pay my bills. DO you want to pay them to????
The bailouts and spending has to STOP !!!
I live on social security and my monthly check is already in jeopardy with $4+ gal gas & rising food prices!!
The loan people should go to jail, not be bailed out!!!!!!!
Put the crooks where they belong and lets start calling them "WHAT THEY ARE"!!!!!!!!!
Thank you,