Saturday, September 20, 2008
A Modest Proposal: re Bailout Plan
Dear Congressmen LaTourette, Brown, and Voinovich,
I've been doing a bit of thinking about this bailout plan that Congress and the EXECUTIVE branch of government is cooking up. I don't like it. However, it appears that it is not a matter as if it is going to pass, but more like when is it going to pass. Guesstimates range that this package will run the taxpayers anywhere between $700,000,000,000.00 and $1,500,000,000,000.00. Since Congress and Treasury/Fed (acting on behalf of the Executive Branch) are hatching out a plan, I thought it might be helpful to "bounce" a few ideas.
1. Jail anyone who was responsible for reckless financial behavior on Wall Street. This would apply to any company who will receive Federal monies. This would include: CEOs, Boards of Directors, and Company Officers.
2. CEO's and company officers in every financial institution where there is distressed debt should return all wages and salaries for the last 10 years. This will be seen as a act of good faith to the taxpayer.
3. Replace all standing boards of directors on any financial institution that would be insolvent without the government bailout.
4. Companies participating in the Bailout Plan should produce common shares payable to the U.S. government on a percent basis. (i.e. If Bank of America were to lay-off $70 billion in bad debt, then they would have to "give" the Federal government $70 billion in preferred shares.)
5. Distressed homeowners who receive help in this Bailout Package would preform 40 hours of community service for every $1,000.00 in "forgiven" debt.
6. Interest free loans for anyone who currently owns a home, and has not been late on any payments. There is a glut of expensive homes which need occupants. The government would greatly benefit by having RESPONSIBLE homeowners upgrade, and irresponsible homeowners downgrade to our old houses.
7. Limit the Fed. through regulation.
8. Re-organiztion of Department of Treasury...with additional Congressional oversight.
9. Balanced budget amendment.
10. A public apology from every member of Congress, Department of Treasury, the Fed , and the executive branch.
11. A new version of the Glass-Stegall Act.
12. Since this Bailout Plan is designed to save the richest 2%-3% of Americans, I propose increasing their tax rate back to the 70% level.
13. End lobbying of ANY institution that is subsidized by the taxpayer.
14. Financial institutions who receive help in the government BAILOUT should be forced to end all stock options, and utilize those funds to convert these financial institutions to acceptable accounting practices.
15. Only the losses claimed by financials and that were "marked to market" on the books can be claimed. Of course, these losses would have to be claimed before the short ban was put in place. Complete disclosure right?
While the negotiations are being considered, I hope you take the time to read these ideas as possible resolutions to this serious crisis.
Posted by at 6:34 PM