Letters to the Editor

Salon Radio: Digby on the bailout What are the dangers for Democrats in supporting a bailout? And why are they about to do it? Glenn Greenwald [2008-09-24]

• I'm confused

  Dems are caving in on equity stake? Am I missing something?

  From Obama's 9/21 remarks on the Paulson Plan:

  http://www.barackobama.com/2008/09/21/a_statement_of_principles_for.php

  Taxpayers should be protected. This should not be a handout to Wall Street. It should be structured in a way that maximizes the ability of taxpayers to recoup their investment. Going forward, we need to make sure that the institutions that benefit from financial insurance also bear the cost of that insurance.

  Not very specific, but it sounds like he wants a taxpayer equity stake in the bailed-out firms.

  And from TMP, a copy of the current Dem counter proposal:

  http://www.talkingpointsmemo.com/docs/working-draft-house-bailout-plan/

  Maximizing Taxpayer Benefits. Makes clear that (1) Treasury must obtain warrants (or similar assets) if they engage in a direct purchase from a company; (2) must remit profits back to the general fund; and (3) the Secretary consider the institution's heath before making the plan so not to artificially prop-up companies that will fail anyway.

  They have abandoned the above?

  -- kovie
  [Read kovie's other letters]
  Permalink Flag Wednesday, September 24, 2008 03:32 PM
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