The proposed bailout plan is a sellout of the American public

Clusterstock has the gory details. Here’s their rundown of two of the most loathsome provisions.

“Preventing Unjust Enrichment”: Treasury can’t pay more for the crap assets than the banks bought them for (a horrifying possibility, given that most of the securities have already been written way down). This provision, however, doesn’t apply to banks who acquired the assets via mergers or to banks in bankruptcy or conservatorship. It also means that the Treasury can and will pay far more than market value for this garbage (and, thus, go against the advice of Warren Buffett and Bill Gross, among others, who recommend paying market prices).

Executive compensation at bailed-out companies. Toothless: The plan ostensibly prohibits golden parachute payments to CEOs and other “C-level” execs at bailed-out companies. However, it really only prevents payments on severance deals that are struck AFTER the bailout.

Congress has now almost completely ignored the will of the people, who are strongly opposed to the plan. They said they would stop the most obnoxious parts of the plan but for the most part have done nothing of the sort except to pretend they have by tossing up a few transparent fig leafs.

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