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Tuesday, May 28, 2024

Sherman Still Voting ‘No’ On Bank Bailout

Rep. Brad Sherman voted against the initial bank bailout bill and said that he’s not voting on the new proposal, either. In a seven-page e-mail, Sherman outlined why he thinks the revised proposal is no better than the original. He made 10 points, summarized below: – Taxpayers highly unlikely to recoup any of the costs under revenue provision added last Sunday; – Treasury will not use the new insurance powers added to the Bill last Sunday; – Tens of billions will go to foreign investors; – Million-Dollar dollar a month salaries will continue; – Oversight Board can critique, not halt, any action; – Few if any homeowners will get mortgage relief; – All $700 billion can be spent by Jan. 20, 2009; – Taxpayers will get little or no equity upside; – Meaningful regulatory reform proposals will be subject to filibuster, delay, and dilution; and – We have time to write a good bill. “There are many things we should do, but panic is not one of them,” Sherman wrote. “We ask Congress not to rush, to hold appropriate hearings, and to carefully consider the right course of action,” from a letter signed by “231 eminent professors of economics, including 3 Nobel Laureates.” As to the fallout, Sherman points out that although the stock market drop Sept. 29 was the largest single-day point drop, as a percentage of market value it only ranks 17th. He adds that most of that drop occurred before the vote when many investors felt passage of the bill was certain, and the market returned to pre-vote levels the following day.

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