Sentimental Value Is Not Lost on Us: What Does Your Insurance Company Do For You?

Recently We Received This Piece of Advertising Mail from a familiar source. In a previous era, we would not have thought much about it at all. But now that we all seem to be investors in this insurance company deemed to be absolutely essential to the well-being of the world financial markets, it was a hard advertising pitch to ignore.

“Sentimental Value is Not Lost on Us,” either. We never knew that $152,000,000,000 of our money could touch our hearts so deeply.

And As for the Big Question that that big, ol' sentimental insurance giant, AIG, asks us in that blue picture up at the top of the page—

Well, It May Be Best if we just keep our comments to ourselves.

Secretary Paulson Re-Strains Credulity

What in the World Can One Make of Treasury Secretary Henry Paulson? We mean this without rancor or sarcasm, and with all respect due to a member of the cabinet of a sitting president of the United States.

But What Can Anyone Make of It?

Back in September, Channeling Barack Obama™ addressed the confusion created when Secretary Paulson’s testimony before the Senate Banking Committee directly contradicted the contents of his short proposal for bailing out Wall Street. In that circumstance, the man said that his proposal did not try to prevent oversight of the Treasury Department. But the wording of the proposal clearly did just that.

See our previous posting, from 09/24/08, here:

“Treasury Testimony Baffles the Nation”

Either Secretary Paulson Lied, or he is incompetent at understanding the English language. (Which incompetence would beggar belief.)

Now Secretary Paulson, speaking yesterday before the House of Representatives, says that to use the Troubled Assets Relief Program (TARP) for limiting mortgage foreclosures “would violate the intent of the rescue approved by Congress.”

Congressman Barney Frank challenged Secretary Paulson on this statement, pointing to TARP language that allows Treasury to, “use loan guarantees and credit enhancements to facilitate loan modifications to prevent avoidable foreclosures.” [Source: The New York Times, 11/19/2008, p. A30]

So What’s Going On? Why does Secretary Paulson's testimony once-again seem to contradict the facts?

What Is the Difference Between capital injected into banks indirectly to encourage “loan guarantees and credit enhancements to facilitate loan modifications” and similar loan modifications made directly to homeowners to facilitate their staying in their homes and paying off their mortgages?

TARP Funds for Homeowners Rather Than to Banks

One Proposal for Mortgage Modifications would place a TARP agency in an intermediary position between homeowner and mortgage-holder. The agency would extend the term of the original mortgage to a greater length, lessening the homeowner’s monthly payments, while yielding a greater total payment over all. The agency would collect the homeowner’s monthly payment, add to it the difference between this payment and what the mortgage-holder gets, and make the full, original payment.

The Basic Premise Underlying this proposal is that, over time, the underlying value of the home will appreciate in value above what is owed, including any additional principal resulting from the TARP contribution. At sale or transfer, the American taxpayer is made whole—including a profit on the additional money.

This Proposal Allows More Americans to stay in their homes and protect their own financial interests, as well as those of the taxpayer.

The Fewer the Foreclosures, the higher the “floor” that is placed under the prices of American houses overall. Which leads to a shortening of the current economic recession and credit crisis.

How Does This Proposal Mesh with Secretary Paulson’s ideas for loaning funds to troubled banks, so that they in turn can buy up other distressed banks? Under the Paulson plan, housing prices will continue to go lower for quite a while, and it is the banks—not the risk-taking American taxpayers—who benefit the most from the taxpayers' risk.

We Are Looking for Some Guidance, some evidence of any kind, to show that current Secretary of the Treasury Henry Paulson is neither a flagrant liar nor a profoundly incompetent public servant.

Here, We Invite Secretary Paulson to contact us and explain the apparent discrepancies between his previous testimonies in relation to the Troubled Assets Relief Program:

Secretary Paulson, the Floor Is Yours.

And Regardless of Any Appearances to the Contrary, we appreciate your service efforts on behalf of the American people.

Taxpayer “Spread the Wealth” Questions of the Day

Question No. 1: How much is $700,000,000,000 per American citizen?

[Please check one box]
□ A: 5¢

□ B: 13¢

□ C: $2,333.33


Question No. 2: Where does the Republican Party think the money comes from to pay for the Wall Street rescue?

[Please check one box]
□ A: It grows on trees

□ B: If we cut taxes down to zero, we won’t have to pay for anything

□ C: The next Democratic presidential administration

□ D: Any or none of the above


Question No. 3: How does the McCain-Palin ticket propose to pay for government—including the next Wall Street rescue—if they have the honor of being elected?

[Write your answer in the box. Please be specific:]
□


Question No. 4: Which is better for the American citizen?

[Please check one box]
□ A: SHARE THE WEALTH, Democratic-style: People making more than a quarter of a million dollars a year pay a bit more in taxes.

□ B: SHARE THE WEALTH, Republican-style: Everybody in America contributes to a $700,000,000,000 bailout of Wall Street.


Labels Such as “Spread the Wealth” and “Socialism” Are an Easy Excuse for not having any real answers. “Let the other guy do it” may be an easy way to win an election. But it's a lousy way to run a great nation.

______________________________________________
______________________________________________
Answers:

1: C (Based on an estimated 300,000,000 American citizens. $9,333.32 per family of four. )
2: D (It's never mentioned)
3: Wrong
4: A or B (Voters' Choice)

Style Over Substance: The Republican “Spread the Wealth” Plan

The Wall Street Rescue Plan Is the Republican Version of “Spread the Wealth.” The effects of the past twenty-eight years of Republican deregulation and Liberal-bashing have led to the greatest spreading of wealth in the Nation’s history. All 300,000,000 of us must “spread” our “wealth” to protect the McCain-named “greed and corruption on Wall Street.”

If “Spread the Wealth” Is Really the Republican Program, how can Senator McCain and Governor Palin get away with accusing Barack Obama? The answer is simple: it depends on John McCain’s sarcastic tone and Sarah Palin’s humorous barbs about “Joe the Plumber” and “Ed the Dairyman.” By pushing these false examples—of people who would actually gain in the wealth of Wall Street CEOs under an Obama plan—the Republican candidates exercise their own right to “Style Over Substance.”

“Style Over Substance” Is What the Republican Party Has Given Us for the Past Eight Years. Meanwhile, they have “spread the wealth” of middle-class American, to bailout the multimillionaires on Wall Street. $700,000,000,000 and counting: that’s how much taxpayer money the Republican “Spread the Wealth” plan has spread to rescue Wall Street. Where is the “trickle down” in that?

General Colin Powell Makes His Case for Barack Obama eloquently. While John McCain and Sarah Palin believe that being an Arab-American or a Muslim-American or a French-American or an American city dweller is a bad thing, Colin Powell points out the essential American point-of-view:

We Are All Americans. While Sarah Palin talks about “pro-America” parts of the country, nothing in the Barack Obama or Joe Biden record shows either leader categorically dismissing any American citizens as second-class.

“Style Over Substance”? “Second-Class Americans”? That’s the McCain-Palin approach, for which un-American positions they should be resolutely denied election to higher national office.

Style and Substance? That’s What Barack Obama Offers America throughout this long campaign and in presidential leadership to come. Now, early voting is begun in many states throughout the nation. One party in this election clearly seeks to represent all of America. We are one nation. United and indivisible.

Barack Obama and Joe Biden Ask for Your Vote. They need it now. America needs your vote now. It is time to show the “Spread the Wealth” Republicans that “Country First” means all the country. And “Hope” and “Change” represent the real American future, to end this long era that has put the failed policies of “Wall Street First” ahead of the safety and security of the greatest nation the world has ever known.


Thank You for Your Support