Yesterday's rejection of the $700 billion bailout plan of Wall Street's Folly by the House of Representatives was exactly what was needed. The vote SHOULD have been 435-0 against the plan, but some badly misguided Representatives were not on the side of the American taxpayer.
And yesterday's knee-jerk reaction on Wall Street was sheer panic, nothing more. They badly overreacted to a very bad plan that even Wall Street is lukewarm about, as evidenced by today's stock market results. The Dow Jones Industrial Average recovered 485 points of the 777 points that they lost yesterday. The way that it goes up and down, they could make that back within a day or two.
I REALLY enjoyed Speaker Pelosi's pre-vote speech. I could just see the votes flying straight out the window and into the nearest toilet. Nice job, Speaker Pelosi. Yesterday's vote was symbolic of both her speakership and of Democratic control of Congress. More from the do-nothing majority party.
Now, Congress should offer to LOAN Wall Street $700 billion, in exchange for certain concessions on the part of companies that accept the lifeline: a large share of their profits go back to repaying the taxpayer, in addition to repayment plans to the U.S. treasury, and so forth. And they can NEVER leverage mortgages again, and can only borrow a percentage of their total net worth, not thirty times their total net worth.
THAT'S fair to the taxpayer, and will allow the companies to survive. And if a company goes under, the proceeds from the sale of assets of the company go to reimbursing the U.S. treasury.
NO corporate handouts, Congress.
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