Many of us are skeptical about the wisdom of the proposed $700 billion bailout. Turns out a few House Democrats share the sentiment. Enter Rep. Peter DeFazio (D-Oregon) and his No BAILOUTS (Bringing Accounting, Increased Liquidity, Oversight and Upholding Taxpayer Security) Bill.
Aside: Is it just me, or is anybody else sick of the cheesy, strained acronyms that are forced onto just about every piece of legislation that comes out of Congress these days? Hey Congress, I've got your acronym: The DYJASWTCUWAA Act (DO YOUR JOBS AND STOP WASTING TIME COMING UP WITH ASININE ACRONYMS)
I won't bore you all with the details, which can be found here, but let's just say the price tag doesn't involve a 7 and 9 zeros. DeFazio's bill calls for increased oversight through the SEC (hey, at least he's not proposing yet another federal agency with yet another asinine acronym for a name), a popular increase in the FDIC insurance limit from $100,000 to $250,000, and a "Net Worth Certificate Program" (and, in the spirit of this post, those are hereinafter referred to as NWCP's). The NWCP basically allows the FDIC to make loans to banks in exchange for a promissory note. A similar program was initiated in 1982 with much success.
Here's what I like about DeFazio's plan: (1) it doesn't just throw a whole pile of money at a big problem and hope that makes it better; (2) it attempts to establish oversight in the trading of securities, no matter what they're called; and (3) it doesn't bail out irresponsible companies that probably need to go by the wayside in order for our economy to truly recover.
This bill's definitely not as sexy as its $700 billion counterpart, but it's worth a look. More importantly, people are using their brains to find creative solutions to this problem instead of taking yet another Bush power grab and pretending it's going to save the nation from financial ruin. Our economy is screwed because there are fundamental problems with the way we've been doing business for quite sometime. Throwing a whole bunch of money at it is only a bandaid. The time has come to address the fundamental problems with our economy such as the fact that "service economy" really means that we don't produce anything and simply pass money between ourselves, continually putting a bigger number on it, when it really retains the same value.
