A new Wall Street bailout bill is headed our way, loaded with even more federal debt inducing ‘goodies.’ The newer version of the bailout bill still fails to address the underlying problems; reminders of the symptom changing, problem avoidance of the Resolution Trust Corporation (RTC) some twenty years ago.
The RTC cleaned up bad debt accrued by the Savings and Loan Industry (home loan providers), at a cost of $375 - $500 billion (in taxpayer’s money), while it was forbidden from investigating (or turning over to investigating agencies) any evidence of criminal activity.
Similarly, this bill fails to recognize that the ‘mortgage backed’ derivatives (somehow buying into mortgages without buying mortgages) were a steaming pile of fecal matter from their inception, and actually asking taxpayers to buy huge quantities of them instead. I think not.
It does not give the bankruptcy court system the authority (it should always have had) to restructure debt secured by one’s home or property.
This bill does not include an updated version of the Glass-Steagull Act, which includes the regulating of Hedge Funds and Private Equity.
The new bill is a larger, debt inducing, dysfunctional thing that requires rejection; just like the first bad bailout bill.