The Cody Word
  • October 2, 2008 11:19 AM EDT by Cody Willard

    Take A Look At The Actual Bill: The Bailout Package Takes Away Your Right To Choose How To Allocate Your Own Capital and Gives It To The Treasury

    I've been a fool I've been a fool
    Forgivin' you each time that you've done me wrong
    I've been a long time leavin' but I'll be a long time gone
    – Waylon Jennings

    This TARP Act isn’t just about the $850 billion bill. It’s much scarier than that. It takes away all rights that you and I have as individuals to choose how to allocate our own capital.

    Yup, I actually went through and read the same 499 page document yesterday that one of your Representatives said on Happy Hour that he probably wouldn’t have time to read it but one of his aides certainly would before he’d be voting on it. A complete centralization of banking authority to one person and an $850 billion bill, yet some of the people’s representatives aren’t even going to bother reading it.

    Here’s some of my notes that I think underscore why so many hardworking, freedom-loving Americans are revolting against this bill and those who vote for it:

    1 SEC. 2. PURPOSES.

    2 The purposes of this Act are—

    (1) to immediately provide authority and facilities that the Secretary of the Treasury can use to restore liquidity and stability to the financial system of the United States;

    and

    (2) to ensure that such authority and such facilities are used in a manner that—

    (A) protects home values, college funds, retirement accounts, and life savings;

    (B) preserves homeownership and promotes jobs and economic growth;

    (C) maximizes overall returns to the taxpayers of the United States; and

    (D) provides public accountability for the exercise of such authority.

    That’s an awfully huge leap to assume that any single person, much less a non-elected Secretary of the Treasury COULD restore liquidity and stability to the financial system of our country. Doesn’t liquidity and stability only come from you and me?

    How can a government “protect home values, college funds, retirement accounts and life savings" from the inherent cycles in any economy? And further, what about those of us who don’t yet own a home and wouldn’t mind getting a good bargain? We’ve been saving and waiting patiently. And if we maximize overall returns to the “taxpayer”, we simply end up with a bigger government, no? Geez, glad you guys think the guy you’re granting total monetary and economic authority to in this country should try to be held accountable. Good luck with that.

    (5) FINANCIAL INSTITUTION.—The term ‘‘financial institution’’ means any institution, including, but not limited to, any bank, savings association, credit union, security broker or dealer, or insurance company, established and regulated under the laws of the United States or any State, territory, or possession of the United States, the District of Columbia, Commonwealth of Puerto Rico, Commonwealth of Northern Mariana Islands, Guam, American Samoa, or the United States Virgin Islands, and having significant operations in the United States, but excluding any central bank of, or institution owned by, a foreign government.

    And this is why Middle America can rightly claim that this is a bail out of the NYC and Wall Street. You really want us to believe that taking $700 billion out of the private, profit-seeking, free-will market and giving it to any institution, including, but not limited to, any bank, savings association, credit union, security broker or dealer, or insurance company is fair, virtuous or beneficial to those in the private, profit-seeking, free-will market?

    (9) TROUBLED ASSETS.—The term ‘‘troubled assets’’ means—

    (A) residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before March 14, 2008, the purchase of which the Secretary determines promotes financial market stability; and

    (B) any other financial instrument that the Secretary, after consultation with the Chairman of the Board of Governors of the Federal Reserve System, determines the purchase of which is necessary to promote financial market stability, but only upon transmittal of such determination, in writing.

    So those of us doing business after March 14, 2008 get nothing? That’s fair and virtuous and beneficial to the market?

    And 9B is really where I blow a fuse – we’re granting two very fallible people full of wild conflicts of interest, including having tons of friends and colleagues and family at the biggest banks in the world the sole discretion to determine how to dole out $700 billion of yours and my money? You really think Ruidoso Community Bank is going to get the same shake as Goldman Sachs, where Mr. Paulson just recently came from? You really think Warren Buffett and GE and Goldman Sachs will be speaking in yours and my best interest when they get to talk to Mr. Paulson while you at home in Ruidoso get taxed to pay for it all up front?

    (c) NECESSARY ACTIONS.—The Secretary is authorized to take such actions as the Secretary deems necessary to carry out the authorities in this Act, including, without limitation, the following:

    (1) The Secretary shall have direct hiring authority with respect to the appointment of employees to administer this Act.

    (2) Entering into contracts, including contracts for services authorized by section 3109 of title 5, United States Code.

    (3) Designating financial institutions as financial agents of the Federal Government, and such institutions shall perform all such reasonable duties related to this Act as financial agents of the Federal Government as may be required.

    (4) In order to provide the Secretary with the flexibility to manage troubled assets in a manner designed to minimize cost to the taxpayers, establishing vehicles that are authorized, subject to supervision by the Secretary, to purchase, hold, and sell troubled assets and issue obligations.

    (5) Issuing such regulations and other guidance as may be necessary or appropriate to define terms or carry out the authorities or purposes of this Act.

    Yeah, on top of it all, the same banks that are going to be pawning this junk off on us taxpayers at any price Treasury decides they want to give ‘em after being lobbied and politicized are going to be making billions on fees administering this bail out.

    And MOST IMPORTANTLY, do we really wanna give one non-elected dude in the US government the right to “Designating financial institutions as financial agents of the Federal Government, and such institutions shall perform all such reasonable duties related to this Act as financial agents of the Federal Government as may be required”? And the same dude can go around “Issuing such regulations and other guidance as may be necessary or appropriate to define terms or carry out the authorities or purposes of this Act “ Does that sound anything at all like a free country? Or more like a Communist country? You tell me!!!

    SEC. 112. COORDINATION WITH FOREIGN AUTHORITIES AND CENTRAL BANKS. The Secretary shall coordinate, as appropriate, with foreign financial authorities and central banks to work toward the establishment of similar programs by such authorities and central banks. To the extent that such foreign financial authorities or banks hold troubled assets as a result of extending financing to financial institutions that have failed or defaulted on such financing, such troubled assets qualify for purchase under section 101

    And I’m all for globalization. But of the free-will kind. Not of the kind where rich bankers and politicians around the world are colluding to the “establishment of similar programs by such authorities” that grant themselves complete control of our money supply, our banking industries and our mortgage industries.

    We taxpaying Americans who are talking about revolt and class warfare and populism uprising aren’t asking for anything from any of you here. We’re simply asking you to leave us alone. That’s why we know we’re in the right and those of you begging our so-called leaders are wrong. Freedom is right.

Alana

This bill frightens me more than any stock market crash ever could. I am a devout Christian, and once again it looks like God is our last and only hope for sanity in an insane world.

October 3, 2008 at 10:52 am

Scotty

No more talking. Blogs are nice venting sessions but they will not impact the situation or impart change. WE MUST FIRE THEM!! It's our voice.

October 2, 2008 at 8:40 pm

Scotty

This bill is unconstitutional at best. We need to fight for our basic rights and future generation’s rights. This is that serious. I believe Paulson is involved with the Chinese too much, he is on the hot seat with some of them and things need to get fixed before he leaves along with saving his own financial skin. Congresses new plan basically boils down to this, “there will be things to help you out also, if you go with me on this,” hence 451 pages. This is a gone is the country-as-we-know-it issue and we need to stand united without regard to party. WE NEED TO FIRE ANYONE WHO VOTES FOR THIS BILL PERIOD. Is there a website or repository to list members who vote yes to this. Cody, Dave, Neil. We need a central website that will list these individuals so masses can take action. Simple website advertised on major network were people can obtain this simple information. Not complex and overly informative, just simply if the members voted yes or no, period. I would do it but I don’t have the skills. If one exists, PLEASE push it so we can act. I will gladly fire all YES votes without regard for any other issues or party. The deal is done and emailing won’t help 451 pages took care of that. Firing is the only way.

October 2, 2008 at 8:27 pm

Scotty

Opportunties are really shrinking in this country. If the big fat cats can't be replaced due to bad management and poor decisions, how will smart entrepreneurs rise up to take the lead? We can't build a better financial system that way.

October 2, 2008 at 8:26 pm

John

Cody, tell us where to go and start the revolution! I agree with a previous post of not paying taxes... Try to barter if you can, else let's hold another revolt in April and not pay taxes to a corrupt government. Lastly, Cody can you find out who wanted the extra 'goodies' in the bill - you have the inside track!!

October 2, 2008 at 7:48 pm

Aerosmith1952

Cody, you have hit a home run for all of us with your blog. How can we stop these guys from ruining the financial status and democratic heart of our country? I've e-mailed my senators and representative almost daily, and they still voted for this bailout bill. People should listen to folks like you, and Dave Ramsey, and Neil Cavuto, before the higher ups on Wall Street and Congress collude any more, and take any of our tax dollars. How can we taxpayers and loyal Americans stop this thing?

October 2, 2008 at 7:35 pm

Carol

Hi, Cody, Since you and Cavuto are the only people on TV who seem to have any sanity left I'm emailing you. I'm not in any way a 'conspiracy nut,' and yet there is one conspiracy I believe in, The New World Order. I believe this bailout is one more step toward concentration of power into the hands of a powerful group I have heard that The Governor of the Bank of England has been quoted as saying that he had heard through the Federal Security Service of the Russian Federation that a notice had been issued by the US Federal Reserve Bank that Bush is preparing to declare an economic emergency next week and will further announce that the Presidential election will be indefinitely postponed. This bill was railroaded to the Congress by the Administration in an urgent and unconscionable way. This was two weeks ago. The stock market is fine. Let it drop a couple of thousand points and we'll all be healthier as a nation. Stick to your guns. This whole thing is bad business, no matter what the circumstances.

October 2, 2008 at 7:22 pm

Philosopher

The revolution is near.

October 2, 2008 at 6:50 pm

Shannon Starrenburg

Orlando- Just wanted to reply to your comment. I am a Christian; however, not a fanatic! I have read several different commentaries on the Book of Revelation, and quite honestly you are absolutely correct. In the commentaries, all of them gave reference to a "one world government" with a "one world banking system." Scary isn't it! For anyone who is interested the best commentary I have read is by the late "Donald Grey Barnhouse."

October 2, 2008 at 5:45 pm

Chris W.

Freedom was stolen from Americans decades ago with an 11th hour vote. If you look back far enough you can see where government programs were started to turn the land of opprotunity into the land of handouts. Lets face it, a dependent society is easier to control then an independent one. Americas have become hooked on government programs sold as assistance, but are really contracts of extortion. Which control millions of votes, loyalty and obedience. If you want real change, every state should gather emough signatures to recall every congressman and senator for a recall election. This can be done in every state and would reeducate everyone that this a country of WE THE PEOPLE!!

October 2, 2008 at 5:07 pm

Enough

McCain, Why Warren Buffet or Meg Whitman as your Treasury secretary? Why not a professor or better yet a panel of professors that study various economic disciplines for a living? I for one have had enough of people being appointed to positions that are making money off of the economic policies of what has become our severly flawed government. That might prevent a repeat of this mess we are in........

October 2, 2008 at 5:05 pm

Enough

Right on Cody!! Hey get me elected president and I'll appoint you as Secretary of the Treasury!!!! Seriously this "bill" is a travesty at best. Who is really being rescued? The majority of us need to wake up and stop listening to Career Politicians and Celebrities telling us what WE need. We are in an economic mess, and we are partly to blame because WE continue to turn a blind eye to the fact that most of our elected officals make their living off our backs and the pockets of big Corporations. However WE CAN change things by voting these crooks our of office!!

October 2, 2008 at 4:54 pm

M. Day

This is a 499 page bill that our Senators voted on last night but did not read or possible understand, as some admitted on the Senate floor last night. Yet the many Senator said last night on the floor of the Senate that "we the people" don't understand what’s going on. Well Senators, there is an old saying "Do not sign your name to what you do not read", so Senators "DO NOT VOTE FOR ME ON WHAT YOU DO NOT READ OR UNDERSTAND".

October 2, 2008 at 4:37 pm

G Carter

Is it too late to initiate a voter recall petition for each of the Representatives and Senators who voted YES for this Wall Street Welfare bill? My Representative and Senator voted NO to this bill for many of the reasons expressed by Cody. (I hope they stick to their guns and refuse to pass this enlarged with PORK Wall Street Welfare bill when it comes up again on Friday.) I guess that no matter how much lipstick and paint you put on it, this pig is still a pig. I just confirmed that the Federal Reserve system can, does, and will extend credit to U.S. banks as needed, however, the FED is to be used as a "source of last resort" by these financial institutions. I cannot believe that there is a "credit crunch" for those responsible and creditworthy persons and entities.

October 2, 2008 at 4:34 pm

Ed Every

This site outlines an approach to the mortgage default crisis that needs nowhere near 750 $B. Study it and help refine the approach with your comments. The site is: http://sites.google.com/site/solvingitwo750b/Home

October 2, 2008 at 4:27 pm

Glenn Goodman

This is all too depressing.... Is this really happening? Does anyone care?? With this, and the oil situation in certain parts of the country (from where I am writing this), inflation, bad economy - seems like quite the nightmare. At least I still have a job....

October 2, 2008 at 4:27 pm

Tatiana

Obama said “Vote for what’s right for the country not what’s popular.” ..Translation - 'The hell with the people, this will be so much easier when I become a true communist dictator'

October 2, 2008 at 4:23 pm

Dennis

If this bail out bill passes we need to have a 1,000,000 man/woman march on Washington DC and take back our country.... but we had better do it before the low lifes & ignorant people in this country vote in Obama. His campaign is pandering to those voters who can not think for themselves and do not know how to work. Obama is being supported by all the media, CBS, NBC, ABC, CNN.. they all want to control you.. a SOCIALIST STATE. Please call, fax & email all of your congressional memebers & tell them to vote no or they will lose your vote in November..

October 2, 2008 at 3:39 pm

joe

BIG BROTHER 1984, OR SHOULD WE SAY 2008 !!!!!!!!!!!!!!!!!!!!!!!!!!

October 2, 2008 at 3:36 pm

Russ

Things can get worse. Frighteningly Oblaba can reappoint Paulson to czar for life in order to maintain continuity. Take a look at what our public servants have achieved for us thus far. An unelected power monger making decisions on behalf of his Wall Street cronies. Remember Alan Greenspan - BE AFRAID, BE VERY AFRAID.

October 2, 2008 at 3:35 pm

Rob

We as citizens should really stop paying taxes.

October 2, 2008 at 3:20 pm

Jack

How many congressmen/women will not read the bill and, instead, vote Yes or No based on what some "Aide" tells him or her? Is that not shirking one's responsibility?

October 2, 2008 at 3:11 pm

Orlando

I know this might sound weird ,.. But if anyone out there is religious. This is a set up for a total government take over (eventually a world take over) to hand ALL assets and ALL power to one entity ,.. Here I go ,.. I'm going to say it ,.. Get ready ,.. "THE ANTI CHRIST" ,.. "No person can sell or buy without the mark" ,.. COMPLETE control is the name of the game, After all the good book says that the generation that saw Israel become a nation (1948) will witness the rapture & tribulation ,.. I had to say it ,.. I just want to end by saying that this was NOT the America my parents and I escaped from Cuba for when I was 7 years old back in 1974. I am now exiled in the most powerful socialist country in the world. I hope that mars lander would hurry up and confirm if mars is habitable ,.. I'm gone !!! AMERICA has been murdered by AMERICANS ,.. Our ENEMIES were always in WASHINGTON.

October 2, 2008 at 3:11 pm

Jennifer G

All I can say is God Help Us!!! It's amazing to me how crooked people are and how willing folks now are to just give up so easily what we have fought so hard to build and preserve in the past. We are a country of Socialists and heading towards Communists fast. I am astounded by how so many people are STILL out there supporting Obama regardless of his ties to Fannie Mae and ACORN, as well as following the heard on this pivotal vote, while in the same breath they are screaming bloody murder about these organizations. Do they not see the connection???? Do they really think anything but a deeper spiral toward no freedom at all will occur under an Obama Presidency? Or do they hate Bush so much that they will sell their souls and freedom to the devil (Big Gov't). Again . . . GOD HELP US. I don't know if we can survive 4 years. No one fathomed 9-11 could ever occur. We are fooling ourselves if we honestly believe we can't become the next Soviet Union.

October 2, 2008 at 3:08 pm

Lloyd Pilant

Obama said of the bailout, speaking to fellow senators, "Vote for what's right for the country not what's popular." My interpretation, "Don't listen to the people you represent, but vote for something that will line your pockets!"

October 2, 2008 at 3:02 pm

about this blog

  • Cody Willard is an anchor on the FOX Business Network. Willard is also the principal of an investment management company. He was a long-time featured columnist for the Financial Times and TheStreet.com as well as a regular featured economist and stock picker on CNBC's ''Kudlow & Company."

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