Oil's energy contribution has declined by about 12% since 1999. The world's economies have also declined by about 12%. (Using conventional metrics, which are time delayed determinations, this will only be seen in hind sight). The massive destruction of asset values now occurring testifies to it happening.
Peak is well behind us, world economies have peaked and will continue to decline.
(a) Authority to Purchase.—The Secretary is authorized to purchase, and to make and fund commitments to purchase, on such terms and conditions as determined by the Secretary, mortgage-related assets from any financial institution having its headquarters in the United States.
(b) 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:
(1) appointing such employees as may be required to carry out the authorities in this Act and defining their duties;
(2) entering into contracts, including contracts for services authorized by section 3109 of title 5, United States Code, without regard to any other provision of law regarding public contracts;
(3) designating financial institutions as financial agents of the Government, and they shall perform all such reasonable duties related to this Act as financial agents of the Government as may be required of them;
(4) establishing vehicles that are authorized, subject to supervision by the Secretary, to purchase mortgage-related assets and issue obligations; and
(5) issuing such regulations and other guidance as may be necessary or appropriate to define terms or carry out the authorities of this Act.
Sec. 3. Considerations.
In exercising the authorities granted in this Act, the Secretary shall take into consideration means for—
(1) providing stability or preventing disruption to the financial markets or banking system; and
(2) protecting the taxpayer.
Sec. 4. Reports to Congress.
Within three months of the first exercise of the authority granted in section 2(a), and semiannually thereafter, the Secretary shall report to the Committees on the Budget, Financial Services, and Ways and Means of the House of Representatives and the Committees on the Budget, Finance, and Banking, Housing, and Urban Affairs of the Senate with respect to the authorities exercised under this Act and the considerations required by section 3.
Sec. 5. Rights; Management; Sale of Mortgage-Related Assets.
(a) Exercise of Rights.—The Secretary may, at any time, exercise any rights received in connection with mortgage-related assets purchased under this Act.
(b) Management of Mortgage-Related Assets.—The Secretary shall have authority to manage mortgage-related assets purchased under this Act, including revenues and portfolio risks therefrom.
(c) Sale of Mortgage-Related Assets.—The Secretary may, at any time, upon terms and conditions and at prices determined by the Secretary, sell, or enter into securities loans, repurchase transactions or other financial transactions in regard to, any mortgage-related asset purchased under this Act.
(d) Application of Sunset to Mortgage-Related Assets.—The authority of the Secretary to hold any mortgage-related asset purchased under this Act before the termination date in section 9, or to purchase or fund the purchase of a mortgage-related asset under a commitment entered into before the termination date in section 9, is not subject to the provisions of section 9.
Sec. 6. Maximum Amount of Authorized Purchases.
The Secretarys authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time
Sec. 7. Funding.
For the purpose of the authorities granted in this Act, and for the costs of administering those authorities, the Secretary may use the proceeds of the sale of any securities issued under chapter 31 of title 31, United States Code, and the purposes for which securities may be issued under chapter 31 of title 31, United States Code, are extended to include actions authorized by this Act, including the payment of administrative expenses. Any funds expended for actions authorized by this Act, including the payment of administrative expenses, shall be deemed appropriated at the time of such expenditure.
Sec. 8. Review.
Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.
Sec. 9. Termination of Authority.
The authorities under this Act, with the exception of authorities granted in sections 2(b)(5), 5 and 7, shall terminate two years from the date of enactment of this Act.
Sec. 10. Increase in Statutory Limit on the Public Debt.
Subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting in lieu thereof $11,315,000,000,000.
Sec. 11. Credit Reform.
The costs of purchases of mortgage-related assets made under section 2(a) of this Act shall be determined as provided under the Federal Credit Reform Act of 1990, as applicable.
Sec. 12. Definitions.
For purposes of this section, the following definitions shall apply:
(1) Mortgage-Related Assets.—The term mortgage-related assets means 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 September 17, 2008.
(2) Secretary.—The term Secretary means the Secretary of the Treasury.
(3) United States.—The term United States means the States, territories, and possessions of the United States and the District of Columbia.
Section 8 really lays it out there doesn't it? Decisions are non reviewable by any agency, including the Supreme court. It's over folks, this is either stopped next week or our government has officially been taken over by corporate banking interests... to thunderous applause no less. _________________ "If you're always looking for the invisible hand to guide you, you will find that the invisible hand often gives you the invisible finger." - some guy on CNBC
Joined: Oct 06, 2006 Posts: 1371 Location: East Texas
Posted: Sat Sep 20, 2008 12:00 pm Post subject: Re: Text of Financial Crisis Legislation - yup, it's a coup
All Hail, Citizens of the Land
Subjects of the Creed of Greed
The Wall Street Overlords stand before you
And bask in your subjugation accomplished by your own hand.
Huzza!
Kneel and Obey!
Huzza! _________________ Yes, we are. As we are.
And so shall we remain; Until the end.
Last edited by AgentR on Sat Sep 20, 2008 12:01 pm; edited 1 time in total
Joined: Mar 12, 2007 Posts: 1009 Location: As close as I can get to the beginning of the pipe.
Posted: Sat Sep 20, 2008 12:01 pm Post subject: Re: Text of Financial Crisis Legislation - yup, it's a coup
I'm looking at your sig line and the coup comment, o2NY. Good comments. I've got another one for you. Someone on Minyanville had a headline this week to the effect that Adam Smith's Invisible Hand had been amputated. _________________ "When fascism comes to America it will be wrapped in a flag and carrying a cross." --Sinclair Lewis
Joined: Mar 12, 2007 Posts: 1009 Location: As close as I can get to the beginning of the pipe.
Posted: Sat Sep 20, 2008 12:03 pm Post subject: Re: Text of Financial Crisis Legislation - yup, it's a coup
Is anyone still wondering why they took Elliott Spitzer out in February with a prostitute scandal? _________________ "When fascism comes to America it will be wrapped in a flag and carrying a cross." --Sinclair Lewis
Posted: Sat Sep 20, 2008 12:19 pm Post subject: Re: Text of Financial Crisis Legislation - yup, it's a coup
Things are getting interesting.
Do folks see also that JP Morgan, Bank of America and others were taking out the investment banks? Citibank is a loser in this too. WFB is going strong.
So, doesn't this put a floor under housing prices or are they still likely to sink as much as they would have before?
Joined: Aug 23, 2004 Posts: 574 Location: New Zealand
Posted: Sat Sep 20, 2008 12:27 pm Post subject: Re: Text of Financial Crisis Legislation - yup, it's a coup
Upper limit of $700 Billion? Wonder how long that will last.
Oh and the debt limit gets raised too... $11.3 Trill? _________________ Congress has found themselves in a bear trap. They will chew off three legs, and still be caught in it...
Joined: Mar 12, 2007 Posts: 1009 Location: As close as I can get to the beginning of the pipe.
Posted: Sat Sep 20, 2008 12:34 pm Post subject: Re: Text of Financial Crisis Legislation - yup, it's a coup
That's a good question, Geoff. I don't think this puts a floor under housing prices, as we've still got two years of contraction in prices due to mortgage resets. And that will be during a period of massive contraction of the economy, the likes of which we've never seen before. We're still 2 or 3 SD above the mean on the price of houses. I think that the only way for housing prices to settle out is if .gov buys all the rest of the mortgages and gives the houses to the taxpayers. Who knows--that could happen. We're halfway there already.
Debt limit was previously raised...last month, was it, Idiom?? And before that, when was it raised? Exponential growth starting to kick in. Woohoo! _________________ "When fascism comes to America it will be wrapped in a flag and carrying a cross." --Sinclair Lewis
Posted: Sat Sep 20, 2008 12:37 pm Post subject: Re: Text of Financial Crisis Legislation - yup, it's a coup
Wow.
You know, it's been quite a few years now that I have been telling people that we were watching the decline and (eventual) end of America as we know it. I guess it just never occurred to me that I might be actually able to pinpoint that specific end when it took place.
I figured it would be chipped away a little at a time, so slowly deteriorating that the majority would never realize what was gone until it was too late to change anything. I guess that's what has happened up to this point... but wow. How quickly the unraveling has come about.
I just don't see this being stopped. Less than 1% of the population would even bother to take the time to see what the text of the legislation states, let alone do the work necessary to understand the implications. The secretary of the Treasury is, if this passes, now the most powerful person in the land. Not even the Supreme court can rule against him.
I am just floored.
Our country has been conqured, not by an invading army, but by greed propelled by the apathy of the masses. Indeed, as I have told people over the last dozen or so years that I have paid attention to this country falling apart - we won't fall to another country. We'll rot from the inside out.
I wonder how bad the rotting stench will get before the majority notices.
K
Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.
Section 8 really lays it out there doesn't it? Decisions are non reviewable by any agency, including the Supreme court. It's over folks, this is either stopped next week or our government has officially been taken over by corporate banking interests... to thunderous applause no less.
Surely Section 8 is unconstitutional (separation of powers?).
Joined: Apr 27, 2005 Posts: 245 Location: new york city wacko
Posted: Sat Sep 20, 2008 12:49 pm Post subject: Re: Text of Financial Crisis Legislation - yup, it's a coup
Doom- there's been some discussion about this on another thread I'm following and still no one knows how it possibly could be constitutionally legal. _________________ "If you're always looking for the invisible hand to guide you, you will find that the invisible hand often gives you the invisible finger." - some guy on CNBC
Posted: Sat Sep 20, 2008 12:49 pm Post subject: Re: Text of Financial Crisis Legislation - yup, it's a coup
Iaato wrote:
as we've still got two years of contraction in prices due to mortgage resets.
As you can see in the figure below, the peak of the subprime options occurs this year. So that's good. However, the other classes of mortgages still have a year or two to go before they peak. Given the state of the economy, that's still a troubling scenario.
edit: er, just right click on the frame and open the figure in a new tab/window.
Joined: Jun 18, 2005 Posts: 3985 Location: In a van down by the river
Posted: Sat Sep 20, 2008 1:01 pm Post subject: Re: Text of Financial Crisis Legislation - yup, it's a coup
It is the solidifying and end process of Corporate Fascism. It is complete.
World bankers are now above the law, beyond the law.
Quote:
"If the American people ever allow the banking system to control their money, first by inflation, then by deflation; their children will one day wake up homeless on the continent their fathers conquered." Thomas Jefferson
Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.
Section 8 really lays it out there doesn't it? Decisions are non reviewable by any agency, including the Supreme court. It's over folks, this is either stopped next week or our government has officially been taken over by corporate banking interests... to thunderous applause no less.
Surely Section 8 is unconstitutional (separation of powers?).
It's most certainly unconstitutional. However many bills have been passed with dubious constitutional merits. So this will create many legal problems down the road.
You may remember the controversial deal making by the government in 1980s S & L crisis where deals very lucrative to private investors could not later be overturned. _________________ It's already over, now it's just a matter of adjusting.
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