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.  

In other words, they "Made a prettier pig!" This is why Ryan voted for it.

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: 

 

Brookfield7, Fairly Conservative, Betterbrookfield, Jay Weber,  Mark Levin,  Vicki Mckenna

 

When I was on the mechanical tour last weekend, I did watch the “informative” video playing in the lobby. (I cannot call it unbiased.) I kept waiting for the commercial to break in.... (Read this in your best announcer voice.)

...And now a word from our sponsor, your Elmbrook School District.

...They brought you referendum, after referendum, after referendum, after referendum, from 1991 to 1995, until the 5th one for Swanson finally passed.

...The ones who brought you the Swanson Swap that you only found out about before the fact because of a leak to the press.

...The same gang who, after the community spoke out loud and clear to save Swanson, tried to change our school district from a Unified to a Consolidated School District so they wouldn’t need public permission to sell school property ever again. (That measure failed.)

...The same group who purposely neglected maintaining our high schools for at least the past 6 years and then have the nerve to whine about our school’s condition. (This is solvable.)

...Don’t forget our board’s approval of that “needed” 4K program, overriding the publics' displeasure of adding another $67 to our tax bills. It required dipping into our reserves to implement. (It still has some openings, and they said it was such a need?)

...And, last but not least, don’t forget my favorite: the $2.5 million dollar tax bite (defeasance) they took out of your wallet last year on your 2006 property tax bill. NOT TO PAY DOWN THE DEBT, but to invest!

When we voted in 2000 for the 2 new grade schools, we approved that referendum for $17,900,000 not an additional pre funding investment scheme.

Anyway, I thought you should remember who the SPONSOR is of this referendum.

Is it a name you can trust?

ONLY 5 MORE DAYS UNTIL MILLIONS OF DOLLARS TUESDAY!

WANT TO CONTACT ME ANONYMOUSLY? CLICK HERE

LINKS:Brookfield7 postings Betterbrookfield, Votenoapril3.com

Someone gave me their Vote Yes postcard yesterday, so I could take a look at it. (I did not receive one because I do not have children in the district.)

The first thing I noticed was that it was an appeal to the emotions. It asks: ...if you would FEEL compelled to help. It then portrays a list of below average and failing grades for various components in the high schools.

I don’t know what they based these grades on. To me a failing grade would mean it does not meet minimal standards—that it does not function at a reasonable expectation. Example: Mechanical Systems: “F” to me would mean we consistently have interrupted or inadequate service for heat, lights, water, electricity, etc. Anyway, that is their opinion; these grades are not based on facts. The school district's own literature contradicts those bad grades, stating that the schools have been "well maintained" (within operating budgets).

But this is one FACT they got WRONG: No opinion, it is simply incorrect.
And it's in regard to a major component: the price.

They state that the COST is roughly 50 cents a day.

THAT IS NOT TRUE!

THE REAL COST IS ROUGHLY 94 CENTS A DAY.

I added up all of the columns on the district’s cost calculator for referendum question #1 and #2, and it totaled $6,837.65 for an average Brookfield home of $335,000. (That is the number the district has been using, if you would add Elm Grove’s average home value into the mix, that number would be higher).

The postcard also listed various other problems below the report card that I don’t believe are accurate. Hopefully I will address them in a future piece.

I realize the question of the high school referendums is something that can be looked at from both sides: the proverbial water glass half full or empty. BUT one must portray the fact of the glass’ contents accurately or the merit of the argument does not hold water!

ONLY 7 MORE DAYS UNTIL MILLIONS OF DOLLARS TUESDAY!

WANT TO CONTACT ME ANONYMOUSLY? CLICK HERE

LINKS:Brookfield7 postings Betterbrookfield, Votenoapril3.com