Saving the Credit Markets: Exempting the excise tax on wooden arrows.
Posted on October 2, 2008
Filed Under Congress, Politics, Diversion |
A four page bailout bill becomes a four hundred page tome stuffed with fat, and it’s done to attract recalcitrant House members to vote for it. It passes the Senate, and the Dow is down 262 points as I write.
When members of congress wonder why 90% of the American public holds them in contempt: see above.
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2 Responses to “Saving the Credit Markets: Exempting the excise tax on wooden arrows.”
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Jeff - my biggest problem with it is that by definition the taxpayer has to pay well above par for the assets we buy (probably close to maturity value) to recapitalize the banks.
There is absolutely no way this will earn the taxpayer a time in the long run - it’s flat out a gift to wall street.
None of that cash will be “trickling down” to main street - it’s simply to give the banks enough capital to survive their impending losses.
The reason for the rush is there is a huge wave of REO pending by early next year that will force them to recognize their losses on these “assets”.
Disgusting.
Git …
It’s not so much that we’ll be paying over par, it’s that no one knows what par is.
But even if somewhere down the road we’re able to sell them for a profit, you’re absolutely right: the taxpayer will never see a dime. The money will go to providing for more arrow subsidies…