The Franklin County Democrat

The truth for a change. 		Published by the Franklin County Democratic Central Committee
Office: 6908 West Argent, Pasco, Washington
US Mail: PO Box 4883, Pasco, Washington 99301 USA
Email: news@franklincounty-dems.org
www.franklincounty-dems.org Sunday September 05, 2010 Weather at 13:07 PDT: Fair, and 72 ° F.

NEWS

And so we’ve got a choice between a forward-looking agenda that is rebuilding the structure of this economy so it’s working for all Americans, or just going back to the same stuff that got us into this mess. Excerpts from President Obama's speech August 9, 2010 (August 15)

Franklin County Democrats are hosting a meet-and-greet social and picnic at gazebo #1 at Chiawana Park from 4pm to 6:30 pm on Sunday, Aug. 1. Democrats host picnic for local Democratic candidates (July 27)

With a red face and to loud applause, Didier proclaims his hatred for welfare and socialism while accepting huge handouts from the Federal government. Clint Didier - Welfare Queen (May 23)

As part of the health insurance reform reconciliation bill passed on Tuesday, the financing of college education gets overhauled. College financial aid fixed (April 01)

After being introduced by the President, Judge Sonia Sotomajor made the following comments. Judge Sotomayor's comments (May 31)

Highlights from the Associated Press's timeline of President Obama's first 100 days shows just how much has been accomplished in so little time. It also reveals just how bad the situation really was and how much there is yet to do. 100 Day Timeline (May 02)

Whatever you think of the Employee Free Choice Act, the numbers tell the story. Corporate interference in unions (April 12)

Former Treasury Secretary Hank Paulson said last October [2] that the taxpayers shouldn't fret about putting $250 billion in the nation's banks: Paulson got a lousy deal (February 07)

George Fearing, Rebecca Francik, and Laura Grant-Herriot will be presented to the County Commissioners of Benton, Columbia, Franklin and Walla Walla, who will appoint one of them to be Bill Grant's successor. 16th LD caucus chooses 3 nominees to replace Grant (January 31)

The candidates for nomination to the vacant seat left by Bill Grant's passing have been announced. Candidates to replace Grant announced (January 18)

The Democratic 16th LD legistlator from Walla Walla died of a rare form of lung cancer on Sunday January 4, 2009 after serving 22 years in the State Legislature. Bill Grant dies at 71 (January 10)

With Missouri and North Carolina still undecided, the result is a stunning 349 to 163 in favor of Barack Obama. Yes we can and yes we did (November 05)

This is only the second time the New Yorker has endorsed a presidential candidate, and the last time was in 2004 when they endorsed John Kerry. New Yorker endorses Obama (October 07)

Sometimes the only way you fully appreciate a quote is when it is given in its full context. And I quote: Garrison Keillor said it best (October 05)

The conservative columnist and early fan has had a change of heart, finding that after the recent interviews, Sarah Palin is Kathleen Parker: Palin out of her league (September 27)

John McCain should not be traveling in a bus called the Straight Talk Express. No, that equivocating multimillionaire who kowtows constantly to the wealthy should be riding in one of those private, gilded railroad cars. McCain to tax health insurance benefits (September 23)

A letter being circulated by e-mail from Wasilla resident Anne Kilkenny is entirely true, and reveal a lot people should know about Sarah Palin Wasilla resident: the truth about Sarah Palin (September 21)

A simulation of 512 possible outcomes for the 9 states that are up for grabs gives Barack Obama an 83% probability of winning with a 1% chance of the election going to House of Representatives. Obama win 83% probable (September 18)

Located at 6908 West Argent St in Pasco, the new location is expected to help reach out to new voters in the West Pasco area. Franklin County Democrats Open New Office (August 31)

According to Nielsen's ratings, Barack Obama's acceptance speech was watched by 38.4 million television viewers. Obama's 38+ million viewers (August 29)

Senator Barack Obama has chosen Delaware's Senator Joe Biden as his running mate. It's Biden for VP (August 23)

Doc's campaign proposes late October debate to avoid consequences. Hastings avoiding debate (August 21)

The low turn-out is the only surprise in this year's primary. Primary turn-out low (August 20)

Just as the surge of mortgage loan defaults seems to be passing, there are reports of a rise in alternative-A loan defaults. Second Mortgage Default Wave Coming (August 05)

The Benton County Democratic Central Committee and the Franklin County Democratic Central Committee are joining with the Tri-City Democrats to host a picnic where voters can meet this years candidates. Tri-City Dems to Host Candidates (July 18)

Action Fund endorses Senator Barack Obama for President yesterday. Planned Parenthood endorses Barack Obama (July 08)

In a town hall meeting in Charlotte NC, Senator Obama lays out his plan for resurrecting the US economic. Obama touts renewables as economic stimulus (July 07)

Walmart denied Planned Parenthood's Teen Council access to its Richland, WA store on HIV awareness day. Walmart: HIV awareness too controversial (June 28)

George Fearing charmed the delegation with a rousing speech on Saturday afternoon but turned a few heads when he announced he was a pro-life Democrat. George Fearing explains what pro-life means (June 26)

The Department of Justice Inspector General reports finding widespread use of illegal hiring practices in the selection of attorneys and interns. Justice IG report: hiring practices illegal (June 25)

The US Supreme court refused to hear a Sierra Club and Defenders of Wildlife lawsuit seeking to force Homeland security to comply with environmental laws. Court declines to hear border fence case (June 24)

At a meeting with US governors last Friday Barack Obama said nuclear power is Obama: Nuclear power worth considering (June 23)

Expected 10% drop in Nigeria exports raises fear of further tightening of oil markets. Nigerian rebels fuel oil price fears (June 21)

Doc Hastings voted to retroactively limit the liability of telecommunications companies for complying with the illegal Bush administration requests. Hastings votes for wiretapping immunity (June 20)

EDITORIAL

In the distant future, when they speak of US health policy, the year 2010 will be spoken about in the same breath as 1935 (social security) and 1965 (Medicare). Health care reform passes (March 21)

The following is a summary of the top ten changes we can expect to see as a result of the health insurance bill now being considered by Congress. Top 10 Changes to Expect in Health Insurance Bill (January 16)

Dear Congressman Hastings, I am writing to you as the Chairman of the Franklin County Democratic Central Committee regarding health insurance reform on behalf of the thousands of voters in Franklin County who voted for and continue to support President Obama because they want to improve the way Americans get health care. Letter to Congressman Hastings (August 16)

The health care fight has turned ugly, fast. Right-wing mobs are crashing congressional town halls, lies are spreading via anonymous email chains, and Sarah Palin bizarrely said that President Obama was going to set up a Top Five Health Care Reform Lies—and How to Fight Back (August 15)

It's a wonder how little accurate information about health care reform is actually out there. Health care deform (June 20)

Fulfilling the Promise (January 20)

In a news release yesterday, Secretary of State Sam Reed recommends that the legislature adopt new election rules and policies. Some seem like good ideas, but others present serious problems in our view. Reed's electoral reform (January 10)

Long lines are being reported during early voting in several key states and questions are being raised about whether waiting in line for 6 hours isn't just another kind of poll tax for working class Americans. End the new poll tax (November 03)

Barack Obama is our only good choice for President because he’s the only person we can trust to fix the mess the GOP has gotten America into. Why vote for Obama (October 27)

The Gramm-Leach-Bliley Act, also known as the Gramm-Leach-Bliley Financial Services Modernization Act, Pub.L. 106-102, 113 Stat. 1338, enacted 1999-11-12, is an Act of the United States Congress which repealed part of the Glass-Steagall Act, opening up competition among banks, securities companies and insurance companies and allowing commercial and investment banks to consolidate. Hastings voted 'aye' (October 26)

If a bank is big enough, and stupid enough, and the situation is dire enough that its bankruptcy will drag down the world economy if the government doesn't intervene, then the government should own the bank outright regardless of what happens. Bank bailouts for dummies (September 30)

As Wall Street melts down, McCain comes around to the idea that regulation might be required... about 28 years too late. This has got to stop (September 17)

The news of Bristol Palin's pregnancy obviously isn't good, but we have to wonder whether Sarah Palin really believes in abstinence education now. And what about choice, now that she has stated she is proud of her daughter's decision to keep the baby? Palin's Situational Ethics (September 02)

On John McCain's 72nd birthday, we got to know his new running mate. Given his advanced age, it seems we should be sure she's ready to be president and she'd be the kind of president this country wants and needs. Who is Sarah Palin? (August 31)

The complete meltdown on the situation in Georgie reveals the depth of the Bush administration foreign policy failure. Another foreign policy fiasco (August 19)

Barack Obama speaks at the A.M.E. Church General Conference. Obama: our conscience cannot rest (July 08)

FOX has a long history of being over-the-top biased, but they're topping themselves now and advertisers will notice. FOX not-news (June 29)

Facing a long road to November Barack Obama and Hillary Clinton did what they had to yesterday in Unity New Hampshire: the made peace with each other. Unity (June 28)

In his candidate filing for Governor, Dinno Rossi avoided putting his party's name. Dino Rossi: not a Republican?!? (June 24)

With all the recent talk of party unity in support of Barack Obama in the run-up to the November election, I still hear rumblings of discontent among some of Hillary's grassroots supporters. Unforgiven (June 22)

OPINION

Yes, there is a long way to go, but this is a reminder to us, his supporters, of President Obama's many accomplishments. What has President Obama accomplished? (November 19)

Every once in a while I'm asked why I'm a Democrat in an area that is so strongly Republican. Whose side are you on? (March 14)

Dear Republican Leaders: The Republican Party has become the party dedicated to sabotaging the American future. Former Republican's desertion letter (March 10)

The problem with the Big Three automakers is not that they don't innovate. It's that they can't compete against companies that don't pay as much for pensions, health-care, and other benefits. How to save Detroit (November 14)

For years a parable about ten guys who drink beer together every day has been used to argue that taxes are bad. But nobody talked about what happened afterwards. Now we learn the rest of the story. How taxes work in the real world (November 08)

It was only a few months back when our esteemed classmate was echoing the Administration and candidate McCain's happy talk about the economy. The Perfect Financial Storm (October 26)

I have never been so glad as I am now that I'm a Democrat and not a Republican, because right now real Republicans are feeling pretty depressed and abandonned--either that or they're completely oblivious to the reality of the situation. For Obama and proud of it!!! (October 10)

Senator McCain's nomination of Sarah Palin calls his ability to govern into serious question. The choice only highlights his conversion into a Karl Rove-style campaigner who cares only about dividing and conquering. Kissing a rational leader goodbye (September 11)

If Democrats clean up in November, Gov. Chris Gregoire will ask Barack Obama if he will let her “vet some names” for the often-overlooked and often-incompetently filled Cabinet job of U.S. Secretary of Energy. State Dems want say in Obama's team (August 30)

Both McCain and Obama have reason to hope to they can get votes Crossing the line (August 19)

Letters sent to opinions@franklincounty-dems.org must meet certain guidelines to be published. Guidelines for Opinion Letters (June 22)

 [Format for my printer]

Bank bailouts for dummies

By David Chassin, Tuesday September 30, 2008

If a bank is big enough, and stupid enough, and the situation is dire enough that its bankruptcy will drag down the world economy if the government doesn't intervene, then the government should own the bank outright regardless of what happens.

Let's suppose the hypothetical Bank of Bailout has $10 billion in cash asset and $90 billion in non-performing mortgage-based assets (soon to become bad mortgages) on the left side of their balance sheet. On the right side however, they have obligations of say $60 billion, so that the stock is worth $40 billion.

As a result of the crash of seriously over-valued real-estate, the fair market value of these bad mortgages drops below $50 billion, and the bank is at risk of being insolvent. The stock drops to zero and the bank needs to be liquidated to pay its obligations, forcing the quick sale of the mortgage-based assets, which drives the price of bad mortgage assets down further. Oh, and there's one less lender in town, which dries up the supply of credit businesses need to buy inventory and make payroll.

Bank of Bailout is now hurting because these undervalued non-performing assets are making it impossible for the bank to function as a bank. It can't make loans to people because it doesn't have any cash and nobody will loan it any money. Without that business it can't make any money at all and it's situation gets ever worse.

Now Bank of Bailout goes to see Henry "Deep Pockets" Paulson, saying that if he doesn't help now, they will take the US economy down with them. Henry Paulson blinks at this bluff, and proposes to take these bad assets at reduced price, hopefully less than what their worth some years down the road, but certainly more than the market will pay for them now.

The price is a cool $700 billion. He reassures Congress, who is having serious apoplexy at this point, that maybe 15 or 20 years from now the government can make back its money and in the meantime, the bank is relieved of the burden of bad assets and can go back to the business of lending people other people's money, while abuse their credit card fees and taking people's homes, which is what makes our economy work smoothly.

No so fast says Congress!

Huh? Why not? Aahh, because if the government pays too much for the bad assets, then the stockholders will get free money from the taxpayer for having been stupid enough to trust the bozos they put in the bank's board room. But if the government pays too little, the bank goes under anyway and the expensive bailout fails to have the desired effect.

What's a Congressman to do?

The solution is simple. Make the bank's stock goes to zero by decree--all of it. No preferred shares. The government takes complete ownership of the bank until such time as a buyer for new stock in found. In the meantime, the bad assets are picked up by the government, the bank is put back on its feet and then sold to public for some fraction of the price paid for the bad assets. Later, the government can repackage the bad assets and resell them, once the real estate market recovers.

Seems simple enough.

And if you didn't notice, the Republican policies of unmitigated deregulation and cozy relationships between the Federal Reserve, the Securities Exchange Commission, the Treasury, and the big Wall Street banks results in the large nationalization in world history. It was this relationship that permitted the bank to have on $10 billion is asset while racking up $60 billion in liabilities.

And why do you think Paulson is so upset by Congress's resistance?

He's a former Wall Street bank CEO and his pride and joys are about to become the property of the government he despises so much.

It's really hard to feel sorry for him.

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Featured Links

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