Bailout Plan Will Fail to Keep Families in Their Homes Per Kucinich & Black Caucus Members

[1776Forever]

The following report on Dennis Kucinich website and the article from USA Today on why the Black Caucus didn't vote for the bill show it was because the bill didn't protect the taxpayers when they have to file Bankruptcy and keep people in their homes:

Bailout Plan Will Fail to Keep Families in Their Homes
Treasury will own troubled assets without any control

Rep. Dennis Kucinich

http://kucinich.house.gov/News/DocumentSingle.aspx?DocumentID=103966

Washington, Sep 29 -

Congressman Dennis Kucinich (D-OH) today sent the following letter to all members of the House of Representatives:

September 29, 2008

Bailout Plan Will Fail to Keep Families in Their Homes:
Treasury will own troubled assets without any control
Terms of bad mortgages cannot be changed absent controlling share of underlying securities

Dear Colleague:

If you are tempted to vote for this legislation because you think it will keep people in their homes, think again: in fact, Treasury will not be able to change the terms of bad mortgages because the Act does not require Treasury to purchase a controlling share in the underlying mortgage backed securities and collateralized debt obligations. The Secretary will be powerless to make any real and substantive change in the terms of mortgage. The Secretary will have NO power to avoid foreclosures and keep families in their homes.

............

And the following from the Black Caucus standpoint:

http://www.statesmanjournal.com/apps/pbcs.dll/article?AID=/20080930/UPDATE/80929064

Politics, fear spell out doom for bailout
By RICHARD WOLF, KATHY KIELY, FREDREKA SCHOUTEN and JOHN FRITZE • USA TODAY
September 30, 2008

(snip)

Congressional Black Caucus members Jesse Jackson Jr. of Illinois, Bennie Thompson of Mississippi and John Lewis of Georgia sat stoned-faced as Pelosi leaned over to talk with them in the final minutes of voting. All three had voted against the plan.

Pelosi told them, Jackson said, that the stock market was falling fast and asked for their support to help revive the bill. Lewis shook his head and neither Jackson nor Thompson budged.

Jackson said he wants an economic stimulus package and regulations barring banks from buying mortgage securities included in any bailout. “We have to give a carrot and stick at the same time to Wall Street,” he said.

Then Rep. Joseph Crowley, D-N.Y., shouted to his Republican colleagues, “The Dow just dropped 600 points!”

For vulnerable Republicans, a call from Bush didn’t matter as much as thousands of calls from back home. “America just seems to be in a populist mood right now,” said Rep. Tom Davis, R-Va., who is not running again and voted in favor.

.........

Where and how this finally plays itself out is going to take some time it looks. I just hope the little guy is taken care of when it all comes together!

[moodforaday]

1. K&R

:kick: