I heard both Congressmen Paul Ryan and Jim Sensenbrenner interviewed on Jay Weber's radio show this morning. (Hour 4 Part 2). Since I trust the opinion of both of these men, I was curious as to why Ryan voted YES and Sensenbrenner NO on the latest bailout bill. 

First Congressman Ryan, who does have a degree in economics. The following are some notes I took from the interview--they are not direct quotes. Listen to the podcast if you can.

Ryan said the bill yesterday was the Paulson plan with quite a bit of tweaks.

The original Paulson bill was 3 pages: Give me a blank checkbook with $700billion.

We wrote a [Republican] alternative. Ours said, Let's make the firms buy insurance.

We rewrote the bill, added stock options--warrants to taxpayers, so the taxpayer is first in line to get money back (if there are profits--that means ACORN would not be getting funding as the orig. Paulson bill stated.) Executives won't get a Golden Parachute.

This bill was $350 billion: $250b immediately and $100b later. An additional $350b would need to be voted on in the future.  

Over the weekend, credit markets went crazy. The problem is not just on Wall Street. Credit markets are shutting down. [That means cash flow for payrolls is unavailable.] There is a fear of recession.

"I'm now sincerely worried this could lead to recession."

Jay Weber: Can we move slowly or do we need to move quickly?

Ryan: Tax money goes out the door either way, this way (bailout) or from FDIC (if banks fail.) Paulson mishandled this so badly.  We added 107 pages to his bill. 

I have never seen things like this [credit freezing up]--ever. Businesses won't be able to cash flow payrolls.

Weber: There is a deep distrust of Congress.

Ryan: 2,300 calls [to my office] almost all against the bailout. [That is changing a little now.] We have to corral Wall Street so it doesn't spill to Main Street.

Weber: Why aren't Republicans hammering this?

Ryan: I am. Since 2002 I have voted against Freddie and Fannie every time.

I think Paul Ryan voted for this measure because he is genuinely worried about our economy shutting down. He knows that if businesses cannot get credit to meet their payrolls, that means workers do not get paid. With many Americans just a paycheck away from being broke, we cannot afford to let that happen. Businesses also use credit to purchase supplies and equipment for future production.

Then it was Congressman Jim Sensenbrenner's turn:

Paulson [Barney Frank] plan fatally flawed from the beginning. That money all came from taxpayers.

The word was, $700billion would not be enough.

America can't afford this. We are wealthy, but there is a limit. 

All of this is inflationary. Interest rates will shoot up. [Remember] 20% prime rates during Carter? 

We should go back to the regular order [of crafting legislation] with committee meetings, rather than Paulson saying we have to do this.

Weber: We're racing against the clock.

Sensenbrenner: When markets opened [today] they were up 200, so hopefully the markets have calmed down.

Paulson is pushing for now. It bailed out the people who caused the problem.

I'm prepared to go back when Pelosi calls us back.

This is a case of Congress serving the people. 

Weber: What angers people is Frank and Dodd in charge of the fix. Is there any mechanism to say when you failed the people, get off the committee!

Sensenbrenner: The Community Reinvestment Act was a significant factor [to what is going on.] 

The process worked yesterday. The speeches like from Pelosi need to stop. She also knew there were not the votes to pass. Why did she bring the bill to the floor? [To fix blame on the Republicans]

Weber: Would you change the Community Reinvestment Act?

Sensenbrenner: Repeal of that law should be in the new package now.

The Security and Exchange Commission dropped the ball--enforcement was not vigorous. 

The Justice Department should investigate if any fraud was committed. [Imprisonment would serve as a deterrent.]

So there you have the Yea and the Nay. Where is Solomon when you need him? 

Conservatives would hope the next version of the bailout bill would be better for taxpayers, that it keeps money from ACORN and repeals the Community Reinvestment Act. With this crew I don't have much hope.

My fear is that the next version will included ACORN funding again or worse. The Democrats will vote for it, and President Bush, who is really over a barrel here, will have to sign it.

Calls from Americans running 500 against, to 1 in favor, of the bailout might be the only thing that saving us from an UGLY pig of a bill.

Post Script: Along the lines of Sensenbrenner's request that they craft this bill carefully, 165 Economists rip bailout plan:

The economists say they are well aware of the current financial situation and agree there's a need for bold action but ask Congress "not to rush."

They urge lawmakers to hold appropriate hearings and "to carefully consider the right course of action." 

Right now the market is up 307 points from yesterday's close. You can check anytime on USAToday. (If you leave it open, it automatically refreshes.) 

Please, comment content should relate to the subject of the post. Although I try to respond to many, do not interpret my lack of a response as agreement.

Links: 

Former Presidents of the United States are expected to be just that, Former Presidents. Their days of power are to be over once they leave the White House. Sometimes they are called upon to be good will ambassadors, but they are not to give their 2 cents on important issues. Certainly, they are not to meddle in foreign affairs unless asked by the current administration!

Someone must have forgotten to give former President Carter that memo however.

If it bothers you that Jimmy Carter is laying a wreath on Palestinian Yassar Arafat's grave or meeting with Hamas "despite requests from the Bush administration not to interfere in Middle East peace negotiations", you may wish to send Jimmy your 2 cents worth on his conduct.

Rep. Joe Knollenberg introduced the Coordinated American Response to Extreme Radicals Act, which spells out CARTER Act, to keep taxpayer dollars from going to the Carter Center.

There is also an email you can send to various officials including the President and Secretary Condoleezza Rice asking that Carter be prevented from holding future meetings with terrorists outside of the U.S. by revoking his passport. (If this is too drastic a measure for you, you may omit that request from the email.)

Follow this GOPUSA link for more information and the create an email page where you can pick and choose the Carter issues that are important to you.

Most people would agree Jimmy Carter was not much of a president. (I am trying to be kind.) He has done some good work since then, however, with his Habitat For Humanity project. It would be great if Mr. Carter would stick to his Habitat project and leave Hamas and foreign policy to the current administration.

Links: 4th Annual Weed Out, May 3rd, Mary Knoll Park

"From: Paul Olsen
Sent: Friday, February 01, 2008 7:43 AM

Subject: State Sen. Olsen drops role in pushing

alternative fuel mandate

Renewable fuels...
creates jobs $$$$
clean environment $$$$$
supports local economy $$$$$$$
keeps our dollars home $$$$$$$$$$$
its the future $$$$$$$$$$$$$$$$$$
a flip flop senator who doesn't defend reality

WORTHLESS !!!"

Now for the conflict of interest issue.

We know that Senate Bill 380 sponsor Senator Olsen removed his name from the bill and will abstain from voting for it due to a perceived conflict of interest. That article from the Oshkosh Northwestern paper stated: (Emphasis added)

Olsen came under fire shortly after the bill was introduced in early January because he has family ties to the ethanol industry and is a part owner of a grain mill that sells corn for ethanol production. Olsen was a co-sponsor of Senate Bill 380, which would require vehicle fuel distributors to make renewable fuels 25 percent of their total sales volume by 2025.

On Wednesday, Wisconsin Government Accountability Board Director Kevin Kennedy indicating Olsen's support of the bill would not violate conflict of interest statutes even though Olsen has a one-third ownership stake in Olsen's Mill, a family business that sells corn to Olsen's brother's ethanol plant, Utica Energy LLC...

...The Wisconsin Government Accountability Board's Standards of Conduct for elected officials generally requires legislators to step away from discussions, votes or support for legislation that will have a benefit for the legislator, a member of the official's immediate family or any organizations with which the legislator is associated...

...Kennedy's decision indicates "immediate family" applies to a spouse or children, but not to brothers or sisters. He said the actual impact of the legislation on Olsen's Mill, in which Luther Olsen has a financial interest, would be "unspecific and speculative."

"Thus, based the facts you have provided, in my view you may participate in the sponsorship, consideration and vote on legislative proposals that increase incentives for manufacturing and using ethanol and renewable fuels without violating laws administered by the Government Accountability Board," Kennedy's letter reads.

So, according to the Government Accountability Board, there was no real conflict of interest.

But here is another tidbit from Jay Webber that I was unaware of. (My alarm is set to WISN so I catch a bit of his radio show each morning.) According to Jay this morning, ethanol producers cannot purchase corn from just anyone--it is not like just any Farmer John Doe can take his load of corn to Senator Luther Olsen's brother's Utica Energy LLC ethanol factory. No, Jay said it had to come from a licensed grain mill, such as Olsen Mill, the one Senator Luther Olsen is a co-owner of!  To me, that really crowds that perceived conflict of interest line.

Jay also told about a very interesting email Charlie Sykes spoke about on his radio show. It was from Senator Luther Olsen's Chief of Staff Heather Smith. It evidently is a response to an email sent by Luther's brother Paul. Pretty interesting stuff. The complete email is at the bottom of the Charlie Sykes link. Here are just a few excerpts:

Why? [does Luther have a target on his back over this issue] Because of you [brother Paul]. They know that you are the c h i n k in Luther's armor. It doesn't matter what any ethics board says about if it's ok or not. Anyone who is not completely retarded running a political campaign knows how to make a perceived ethical problem look just as bad as a real one.

So, in other words, she does not think there is any real conflict of interest! 

I also found it interesting that Ms. Smith noted there was not one call from a constituent in favor of ethanol--after all, their calls would be from Luther Olsen's district, presumably a more favorable district toward ethanol considering the potential for new jobs.

There were not a hundred calls, or ten, or EVEN ONE CALL from a constituent who wanted to tell Luther, "Heck yeah, vote for this, it's great!" We got a memo from a "special interest group" and the DNR, and heaven knows the DNR should always be listened to.

 

Is it any wonder we need to watch all of our politicians regardless of their party? 

Let Governor Doyle know if you agree with his assessment of ethanol in Wisconsin. 

608-266-1212, 414-227-4344

Blogs: Brookfield7, Fairlyconservative

Links: Betterbrookfield,  Vicki Mckenna