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.

Karen

I agree with Sharron.. If anyone is marching on Washington tomorrow please post here. Also, revolt sounds good.... Now suppose you are stupid, And now suppose you are a member of Congress -But I repeat myself Mark Twain

October 2, 2008 at 3:00 pm

Ray in PA

Did you mention the sections on foreclosures and renegotiating the interest and principle on the toxic assets? I don't know how people can say with a straight face that we're going to make money on these assets in the long run. Treasury will pay too much for them (particularly if mark-to-market is dropped). Then we'll be asked to forgive principal & interest on the loans so that they're worth less than what we paid for them. Another question... Where is the provision that says the banks have to reloan the money once the banks are recapitialized? If they don't, how is this plan going to work to re-energize the ecomomy. Hate to say it but there are a lot of businesses and individuals who are too highly leveraged and we shouldn't be loaning them any more money. Sure that's going to hurt the economy and we're going to lose lots of jobs. But really, how long did we think we could keep buying houses, cars, TVs, etc. we couldn't afford on credit cards? If you want to get depressed, look at Charlie Rose's interview with Zorkin & Zuckerman. They're convinced this bailout won't solve the problem and that more stuff is headed our way... Wonderful...

October 2, 2008 at 2:56 pm

Wayne S

Cody, I agree with you about 25% of the time. But you are right on here. The tyrants have taken over. For over 3 days you can't even get on the house.gov website to email your congressman. I guess free investing and free speech are over.

October 2, 2008 at 2:50 pm

Keisha

I hate to say this, but the only thing I can say now is..I hate the "leaders" of this country and everything they stand for. I use to be a "proud american", not anymore! In my opinion, us American citizens should stand together (even stronger now than ever) and find a way to punish all those responsible for our crisis. Also in my opinion, Bush..he's going down in history as the most idiotic, egotistical, money greedy, high and mighty, self-centered, most hated, moron president ever. I pray that this bill doesn't pass. There's soooo much wrong with this picture and just one thing about it is, it's not to help us citizens or to "save" our economy...it's to save "their" butts! Again my opinion, they can take the bill...shove it up their rear and put a permanent cork in it!

October 2, 2008 at 2:43 pm

Peter

Steve Jones, I am also a businessman, but we DO NOT not need to listen to the Buffets, Trumps, etc. They have a self interest to keep the current system of derivatives (without proper assets to back up the bad part of the portfolio) propted up so they can cash HIGH and run. Even if we keep the current system propted up, do you think these billionaires are going to keep their money into a country who's debt/asset ratio is ABSOLUTELY HORRIBLE. I would "hope" that they would be loyal to America. I suspect Buffet's recent move of his 3 billion investment is to create a false sense of security, and this allows him to keep his other investments (overly priced due to the derivative monster) propted up. We absolutely do not know how far and wide this derivative "ponsi-scheme" runs throughout our society. The bottom line is America is tapping out on credit. The only billionaire I listen too is Pickens. It seems his profits are actually tied to the vested interest the US on a long term basis. If you read Barrons, the people with money have been talking about 5-10 yr cash positions & metals-----NO EQUITY POSITIONS as these global derivatives start to unwine. What does that tell you?

October 2, 2008 at 2:37 pm

LauraM

I dont know why you people expect anything different from this country. The facts are: 1) THIS IS STOLEN LAND. You cannot say you discovered a place if people are already living there. 2) THIS COUNTRY WAS BUILT BY STOLEN PEOPLE. That was not a Carnival Cruise ship that my family came on. The largest corporations such the former Lehman Bros., JP Morgan Chase, Aetna, CSX, New York Life have all admitted to profiting off of slavery. I am sure all of the others have as well. 3) PEOPLE WHO STEAL LAND AND PEOPLE WILL STEAL MONEY. Thats a no brainer. 4) STEALING MONEY, PEOPLE AND LAND is not a sign of freedom. There for nothing in this country was ever really free. It just took the rest of you longer to catch with reality. Or for reality to catch up with you.

October 2, 2008 at 2:37 pm

Shannon Starrenburg

"We the people of the United States of America" BLAH, BLAH, BLAH! Here's a thought, our two party system has let us down so much; however, you keep putting them back in office! WHY! And if you are not voting them in office, could it be our our highly secretive, but most trustworthy electoral college (which is ran by the government) is hiding something? WAKE UP PEOPLE! Do you honestly think we are at this juncture by pure coincedence or could it be remotely possible that this has been a plan in the making for some time now? As for the upcoming election- not that it really matters who you vote for (because whoever has been groomed to win, will win) why don't we give the independent our vote. Bob Barr spoke very pointedly about how much he was against this bailout. At any rate, I'll leave you with a question to ponder on - When was the last time, that you can remember, a member of congress or even the president doing something that was GREAT, NOBLE, and for his people? Have a great day! PS. If anyone knows of any government revolt groups, please give the information on this thread.

October 2, 2008 at 1:48 pm

Conor

Wow, are you telling us to buy A, B, C, D? Is there a hidden message in there? Nice program FoxBusiness, Try to turn it off on the editorials though.

October 2, 2008 at 1:43 pm

Justin

Cody, you are the only one keeping it real. What's it like working with a bunch of communist pigs? Cheryl wont even acknowledge that this legislation is in fact a bail out. Emac turned into a big red bear was well when she pushed the bail out in one of her recent blog entries. WTF is going on man? This obviously isn't America any more. If our government wont respect the individual sovereignty of its citizens, I say bring on the revolution. I hope someone influential organizes a march on DC the second the house passes this bill. I'd drive from Texas to be there.

October 2, 2008 at 1:19 pm

Timw

You think its bad with Paulson getting this money and power? Wait until Jan 20-09 when Obama gets it.

October 2, 2008 at 1:17 pm

Michael H

Nice single letter blinking stock tickers Cody.

October 2, 2008 at 1:05 pm

John Betz

Well, what can I say, the same Senators patting them each other in the back last night are are the same clowns bought and paid for by the very people who got us into this mess in the first place and now they wanrt me to bail them out!!!! to hell with that, lets do something positive..... TERM LIMITS.... comes to mind, 2 Four year for Reps. and 2 Six year for Sen., the get the hell out and get a job like the rest of us!

October 2, 2008 at 1:00 pm

GRUMPY YOUNG MAN

The solution? Make foreclosure a crime, institute debtor prisons! PERSONAL RESPONSIBILITY, NOT GOVERNMENT RESPONSIBILITY!

October 2, 2008 at 12:58 pm

Scott Bourne

Cody, I wish you had a bigger box to stand on when you state these things. The American people have been dumbed down threw atrition, public schools and political correctness. If this final sell out of America is passed in the house I am all for taking back the government. I say write in votes demand some one out side both parties. we need neither of them any more. The 2 party system sucks. Bush had better not plan on retiring in TEXAS we no longer claim him.

October 2, 2008 at 12:58 pm

m abbott

If the House of Representatives votes for this bill, the headlines should read: AMERICA IS DEAD 7/4/1776 - 10/3/2008 She died at the ripe old age of 232 years. Services for AMERICA are to be announced later. The official ceremony will be held in Washington, DC where AMERICA was held hostage, tortured, and suffered under the guise of "we know what's best for AMERICANS". The elected representatives are being charged with the death of AMERICA, and will lose their jobs as a consequence. Other charges may be pending.

October 2, 2008 at 12:56 pm

Steve L Jones

NO BAILOUT PLEASE I am a concerned citizen & small business owner in manufacturing. Please do not pass any government bailout plan. I & all of my friends & family want to see an alternative plan. Why can’t the politicians get a group of REAL business men together (Wynn, Trump, Buffett, Pickens, etc.) & work out a real solution, instead of hosing us again. The business men have some great ideas. We also want investigations and penalties for the ones who caused this mess. Please remind everyone Wall Street does not create wealth, wealth is created by only 3 activities - Mining, Manufacturing & Agriculture I am opposed to this huge bailout, the banks that are properly run are still in business and I can still get a loan if needed. No one is going to bail out my business if I steal the cash and pay myself a huge bonus. I say let the cheaters bail themselves out. Let honest private business men buy the assets at auction and keep the government out of business. It is obvious the government doesn't know how to run a business (Fannie Mae & Freddie Mac). Let the people who know how to run a business take them over. Surely they are not so stupid as to give someone a loan that has no money down & no proof of income. There was no crisis until the government got involved and started this bailout thing, now everyone has their hand out. The idea of no one being able to get a loan for a home or business is just the government officials using "the boogie man in the closet" scare tactics, and we all know it. All who vote for this bailout will lose votes in the next election. Guess the politicians let their egos get in the way. They all think they are smarter than the folks that actually run businesses, so they look down on us. PS. They need to fire Paulson, didn’t he run Lehman in the ground? Sincerely, Steve L. Jones Fort Smith AR

October 2, 2008 at 12:53 pm

Bill_in_NYC

Capitalism and freedom have been dying slow deaths in this country for years. This bill should effectively put them out of thier misery with one fell swoop. Congratulations to the politicians. Pat yourselves on the back for destroying the last bastion of freedom left on the planet. You know this is what you wanted. Don't deny it. You are power hungry, not freedom hungry. Unable to succeed in a society that rewards people based on ablility and hard work, you have weasled your way through cracks and changed society to where people are rewarded and make fortunes by begging for favors from you. You use the police, IRS, courts and threats of prison to extort money from the very people you swore to protect and represent. You then redistribute the stolen wealth to your friends, your families, and pad your own accounts. Sadly, I feel as though I am living through Part III of "Atlas Shrugged".

October 2, 2008 at 12:50 pm

Grant

The Senate version is even more ludicrous than the House version. Did any of you catch the "Insurance" increase to $ 250,000 expires on Dec 31, 2009! I really wish one of the news stations would get that out there. "Quit your complaining and we will increase the FDIC amount for a year." That really ought to soften some hearts. What will be even funnier is if people have $250,000 in their accounts after the in sured amount reverts to $100,000 and THEN their bank fails! No doubt the government would have to step in and do something about that crisis. Where does this all end. How big do you have to be to have your losses socialized. I keep hearing the talkinh heads spout off about how small business is America's foundation and everything would colapse without it. Why does the government allow small businesses to go under on a daily basis all over the country? Any small business I know of have always been told: "It is not the business of the Government of the United States to interfere with private business matters."

October 2, 2008 at 12:45 pm

Heinz Berger

The economic rescue plan proposed has too much pork in it. The idea that Bush will spend 100billion if the bill is passed is crazy. Why would anyone give him that much credit when he doesn't even understand mainstreet. Bush will leave office as the worst presdent of all time.

October 2, 2008 at 12:35 pm

Tena Gallagher

I can't believe that no matter how many people have urged their Senator or Congressmen not to vote for this...they vote for it anyway. I was a staunch McCain supporter until last night. His vote "yes" has changed my vote to "no"...I'm either going to write in a candidate (maybe Neil Cavuto...or Cody you might be a cool President) or see who else is listed on my ballot here in Los Angeles. If he would have shown REAL leadership regarding this issue...he would have been able to win by a landslide. With his "yes" vote...he has lowered himself to mediocrity. They have tried no other option. Their response is to throw money at the problem...and then to add insult to injury (to the American people) THEY ADD PORK??????? WOODEN ARROWS?????? I was a proud American until last night...but, quite frankly, I don't want to live in the United States of Socialism.

October 2, 2008 at 12:30 pm

CRab

You need to have a serious talk with the rest of the FoxBusiness crew...they still don't seem to get it...

October 2, 2008 at 12:22 pm

monkeyfurball

Why keep whining about it. It's a done deal.

October 2, 2008 at 12:21 pm

Carl Bates

You can see my comments and leave some also at www.thestogeyman.blogspot.com ! I go as far as stating I want someone in jail, resigned, humiliated, I want blood!

October 2, 2008 at 12:08 pm

Carl Bates

Well done Cody. I differ from Mr arren Buffet in that my thoughts are "God help us if this passes" because we will have given up too much power to the Government and taken another step closer to Socialism.

October 2, 2008 at 12:05 pm

Kirsten Kohl

Adding 1 BILLION dollars in pork to a plan that they say is necessary to avoid an "economic pearl harbor" is plain old fashioned black mail. "You want to save your country... you want to unfreeze credit so that people can get paid, buy cars, save their businesses.... you want to prevent millions from losing their jobs..... then give me my pork!" Outrageous!! Kirsten Kohl Parkland, FL

October 2, 2008 at 11:59 am

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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