The bailout plan has been released. The plan cost is $700 billion. This is in addition to $200 billion for Fannie Mae and Freddy Mac, and $85 billion for AIG. Total bailouts in the past 2 weeks round up to $1 trillion.
The full text of the plan is here.
The plan can be summarized as follows:
1) This plan is called "The Biggest US federal Bailout EVER" or BUBE (exact name tbd)
2) The Treasury Secretary will be allowed to spend the money however he wants including a) forming entire new government departments and hiring people b) issuing government contracts at will and hiring private corporations as he sees fit c) purchasing entire banks or financial service companies d) buying up mortgages e) give more details on this later.
3) This act is meant to a) stabilize the financial system b) minimize taxpayer cost.
4) Congress will get a self-assessment report card issued by the Treasury every 6 months. (see secrecy clause 8)
5) Mortgages purchased are in full control of the government, including a) the right to repossess the underlying properties b) the right to extract revenue from auction, sale, or rental of that property c) the right to repackage mortgages in default as federally insured debt d) the government is stuck with any and all debt purchased before the 2 year deadline.
6) This bailout is limited to $700 billion.
7) To pay for the bad loans that will be purchased under this act, we can sell good T-bills, taxpayer money, or just print money.
8) The details of how the $700 billion are spent will be secret, and no review or legal action will be allowed.
9) This offer expires in 2 years. Spend it quick!
10) Our national debt limit will be expanded to $11.3 trillion.
11) Cost of mortgages purchased will follow Bush 41 era laws on the subject. (Why is this clause in here -- are there new updated laws that are being regressed?)
12) Mortgage = Mortgage, Treasury Secretary = Treasury Secretary, USA = USA
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