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Thoughts Online Magazine
Collected Articles on Culture & Politics
Senate Steps Up After Congress Bobbled It 
2nd-Oct-2008 06:11 am
Inspiration
The Senate stepped up after the House had bobbled the vote on the rescue bill and passed something better than Congress had voted on. Think Resolution Trust Corporation, then add in clearing out some of the deadwood preventing recovery in the tax code. Not bad.

Now to see how serious the House is in response.
Comments 
2nd-Oct-2008 07:41 pm (UTC)
There is one colossal problem about this whole procedure. The Constitution says in so many words that spending bills must originate with the House. The House killed this one. If it accepts it after it has been, for legal purposes, started anew in the Senate, any disgruntled citizen anywhere in the country with a good lawyer will go to a judge and have it declared unconstitutional - and they will have the law on their side. Damn Pelosi and damn the rebels of both parties.
2nd-Oct-2008 08:01 pm (UTC) - Generosity
A generous bill: I half-expected at least one line requiring Bernake to submit to being pilloried, but no such thing! More seriously, there is not much in the way of punative measures against the executives of the (surviving) banks and investment groups. There is only a stipulation in which, only after a given company receives $300M at auction, that they cannot offer a "golden parachute" to new execs.

Also, there seems to be no call for a blacklisting of sitting execs and managers, nor any way for the Treasury to get pre-emptive satisfaction for the given fact that the banks will unload as many of their bad assets on American taxpayers as possible, all the while attempting to cherry-pick those which they think are salvageable. Since they are in an intrinsically better position to know the bad assets from the safe ones, it can be pretty much be expected that they'll at least try to run a game on the Treasury (I'm assuming, of course, that such dubious concepts as "honesty" and "shame" are not endemic amongst this lot, and thus not likely to impede such shenannigans).

Rather generous, then, not to demand the requisite pound of flesh before handing over the money. Unless the FBI already has a few dozen sacrificial lambs picked out and waiting to be unveiled, I'm guessing that many people south of the border will be less than thrilled by this bill...
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