Posted by guest , Oct 01, 2008 9:57AM

Senators are much better politicians than Congressmen (not a compliment).

They find a piece of legislation that is going to get HUGE amounts of coverage and national attention. Then try and cram their local pork project into it as a rider.

Then you point to the good folks back home and say "Hey look what I got for you."

Posted by guest , Oct 01, 2008 9:58AM

I'm only willing to predict that they'll vote.

Posted by guest , Oct 01, 2008 10:02AM

is the senate's Patriot Act Bailout bill essentially the "Paulson Plan"?

Posted by guest , Oct 01, 2008 10:03AM

Here's a plan that would nearly eliminate the risks of politicization of the process and need for bureaucratic discretion, and would get the economy moving:

A Financial Rescue Plan that:

1. Is easy to implement — no reverse auction needed because the amounts of preferred stock to purchase in federally insured financial institutions and to loan to homeowners are matters now in financial records.

2. Would provide real help to homeowners without negotiating with lenders.

3. Would provide management the incentive to repay the government in order to receive the balance of its compensation.

4. Would have gains and losses remain with the financial institutions that now own the "toxic" securities while providing the institutions with capital for needed business.

THE PLAN:

1. Treasury preferred stock purchases in any federally insured bank or broker dealer, at the election of the institution, in an amount by which the institution's acquisition cost of home loans (or pools of home loans) exceeds carrying value.

(a) Such preferred stock would have a cumulative dividend, compounded annually, of 11%, and would be convertible into shares of the institution's common stock at that stock's book value as of the date that the government acquired the preferred stock.

(b) Such preferred stock could be redeemed by the institution at its election at any time at par plus the cumulative dividend on 30-days notice to the government (to allow for the government's optional conversion into the institution's common stock).

(c) While the preferred stock was outstanding, other than the preferred dividend (i) no dividends could be paid on any other classes of stock and (ii) the compensation of any of the institution's employees, officers, directors or consultants at an annual rate above the salary of the President of the United States would be payable by warrants redeemable only after the preferred stock's redemption.

2. Treasury loans to any homeowners of 20% of any debt secured by the home and outstanding as of September 30, 2008, with the loan proceeds being used to pay any delinquent loan payments and the balance applied against principal.

Such loans would be unsecured, would be amortizable over 30 years, would float at 1% over the 2-year Treasury rate adjusted every two years, would be repayable without penalty at any time, and would be collectible like taxes--i.e., could not be discharged in bankruptcy and would have priority over all other debts.

3. Repeal mark-to-market accounting for assets that do not trade in a broad, active market.

4. Prohibit the sale in interstate commerce of any future home loans (except if guaranteed by the Veteran's Administration) on which the borrower has not paid all closing costs and 20% of the acquisition cost of the home.

This plan would:

1. Cost far less than $700 billion

2. Rescue those institutions worth saving

3. Rescue those homeowners who want to retain their homes

4. Teat the government as an investor and lender

5. Reduce the likelihood of the problem ever occurring again.

Posted by guest , Oct 01, 2008 10:05AM

last

Posted by guest , Oct 01, 2008 10:06AM

Are McCain and Obama planning to show up and vote? If yes, then did they say already how they will vote on the Patriot Act Bailout Bill?

Posted by guest , Oct 01, 2008 10:09AM

@8-- obama has said he will. no word from mccain:

http://online.wsj.com/article/SB122282082956692611.html?mod=article-outset-box

"Sen. Barack Obama's campaign issued a statement Tuesday evening that the senator will return to Washington, D.C., for the vote"

Posted by guest , Oct 01, 2008 10:21AM

morning masters of the microverse, what's o/n LIBOR at?

(too poor for bloomberg)

Posted by guest , Oct 01, 2008 10:28AM

check out greenlight capital's earnings release today

Posted by guest , Oct 01, 2008 10:34AM

@12 3.79

Posted by guest , Oct 01, 2008 10:36AM

link to the bill is here: http://michellemalkin.com/2008/10/01/read-the-senate-bailout-bill-here/

Posted by guest , Oct 01, 2008 10:56AM

This is now officially called The Kitchen Sink Act of 2008.

‘‘To provide authority for the Federal Government to purchase and insure certain
types of troubled assets for the purposes of providing stability to and preventing disruption in the economy and
financial system and protecting axpayers, to amend the Internal Revenue Code of 1986 to provide incentives for
energy production and conservation, to extend certain expiring provisions, to provide individual income tax relief,
and for other purposes’’.

Posted by guest , Oct 01, 2008 11:39AM

I predict the bill won't pass. In the last few days the media has been complicit in the scaremongering, but when they allow a financial expert to speak, there is often a strong case made against the bill. Realtors and I-bankers have been "Strongly encouraged to lobby for the passing of the bill. Still the majority of people are not self interested and are still protesting the passing of the bill. And I was right on the first vote ;)

Posted by guest , Oct 01, 2008 12:17PM

It's truly a sign of how serious Washington is that some anonymous solon thought to throw in this earmark:

Sec. 503. Exemption from excise tax for certain wooden arrows designed for use by children.