President Obama's First Legislative Initiative in [Market-Ticker]

Posted 2008-11-05 11:16
by Karl Denninger

President Obama's First Legislative Initiative

My recommendation: Repeal the "Bankruptcy Reform Act."

Senator Obama voted "Nay".

Send up a bill to repeal that act. I bet Congress would pass it and both Nancy Pelosi and Harry Reid would be for it, as it goes directly to "helping the little guy." Sign it.

This instantaneously shoves all the bad debt written by the imprudent bankers back where it belongs, while at the same time not letting imprudent borrowers off the hook (going bankrupt isn't painless by any means!)

Market discipline is a wonderful thing, and this would go a long way toward restoring it.

I strongly recommend that President Obama do so 20 minutes after being sworn in as President, and tell the American People right here that he will do so as part of his "First 100 Days" initiatives.

What 'ya say Mr. President?

Discussion below (registration required to post)

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User Info	President Obama's First Legislative Initiative in forum [Market-Ticker]
Fidgit Posts: 17784 Incept: 2008-02-18 Tax Unit #1,384,923,781	Here's hoping... 2008-11-05 11:23:15 Permalink
Mtgspy Posts: 6202 Incept: 2007-10-27 Banned	ya, but that would just come right back up Ben's alley and right into Paulie's TARP. That's guaranteed. ---------- I'll stay away from this one, I'll instead grab my and watch the pretty fireworks. - Karl Safety is the greatest risk of all, because safety leaves no room for miracles and miracles are the only sure thing in life. - A random black supporting actor. We iz all gonna diiiiiieeeeeeee. - Raingod 2008-11-05 11:24:10 Permalink
Jnojr Posts: 784 Incept: 2008-09-18 San Diego, CA	Far too many people abused the bankruptcy process to charge up enormous amounts of debt and then skip away, scot free. It stopped being a last-ditch action that was only taken very reluctantly years ago. Bankruptcy lost it's social stigma, and so reform was necessary. By and large, the people who are unable to discharge their debts should not have run them up in the first place, and should serve as an object lesson to others. We cannot continue to coddle people and insulate them from all risk in life. If you spend more than you can repay, you deserve to have your life made miserable for you. 2008-11-05 11:28:13 Permalink
Infidel Posts: 5463 Incept: 2007-08-27 between here and there	BHO top contributors University of California $909,283 Goldman Sachs $874,207 Harvard University $717,230 Microsoft Corp $714,108 Google Inc $701,099 JPMorgan Chase & Co $581,460 Citigroup Inc $581,216 National Amusements Inc $543,859 Time Warner $508,148 Sidley Austin LLP $492,445 Stanford University $481,199 Skadden, Arps et al $473,424 Wilmerhale Llp $466,679 UBS AG $454,795 Latham & Watkins $426,924 Columbia University $426,516 Morgan Stanley $425,102 IBM Corp $415,196 University of Chicago $414,555 US Government $400,819 Genesis 0 ---------- "DON'T BELIEVE THEM, DON'T FEAR THEM, DON'T ASK ANYTHING OF THEM." -ALEXANDER SOLZHENITSYN. 2008-11-05 11:29:05 Permalink
Genesis Posts: 130717 Incept: 2007-06-26	Mtg - not if Obama kills the TARP. ---------- I don't care* if it makes sense -- only if it makes money. -- Me* Bank (n): See scam, fraud and theft. *Eat a bankster -- they're low-carb.* *What part of "shall not be infringed" was unclear?* 2008-11-05 11:29:19 Permalink
Fatso Posts: 3239 Incept: 2008-02-03 Mars Hotel	Quote: We cannot continue to coddle people and insulate them from all risk in life. Well, yes. But wouldn't that start with the banks that issue credit/credit cards. If they don't make sure the borrower is credit worthy, shouldn't they be made to face the consequences of their bad judgement? 2008-11-05 11:32:23 Permalink
1000ohms Posts: 7384 Incept: 2007-09-06 aka inflam Banned	Mtg - why have you not reported to your muslim reeducation camp yet???? ---------- I make somewhat of a sport out of costing people their merchant accounts doing this. I recognize that small tickets are a problem but the solution isn't do violate the rules you voluntarily agreed to when you got your merchant account. - Genesis 2008-11-05 11:33:45 Permalink
1000ohms Posts: 7384 Incept: 2007-09-06 aka inflam Banned	Fatso is right - any **ing IDIOT knows you do not loan money to deadbeats!!! The truest evidence that the banks are at fault is HAPPENNING RIGHT NOW. Look at ALLLLLLLLL the credit they are pulling back from retail consumers (HELOCs cut, credit card lines reduced, rates up) When it is in their interests to people over for their gain, they do it (MY FRIEND HAD HERS CUT WITHIN A DAY OF NOTIFYING HER). They COULD have loaned more responsibly at ANY TIME, but they didn't - ** THEM!!!!! ---------- I make somewhat of a sport out of costing people their merchant accounts doing this. I recognize that small tickets are a problem but the solution isn't do violate the rules you voluntarily agreed to when you got your merchant account. - Genesis 2008-11-05 11:38:56 Permalink
Digdouggler Posts: 2808 Incept: 2007-11-26	Stellar idea Gen. ---------- The regulators have transformed into brokers 2008-11-05 11:57:34 Permalink
Opusprime Posts: 1033 Incept: 2007-07-27	KD, I hope you're sending your resume to Rahm Emanuel today. 2008-11-05 12:01:34 Permalink
Themortgagedude Posts: 8849 Incept: 2007-12-17 saint louis	Opus, What the hell job you got Gen applying for? Secretary of Common Sense That post has been vacant for about 20 years. ---------- I'm already visualizing you with duct tape over your mouth. 2008-11-05 12:09:44 Permalink
Micronin127 Posts: 1181 Incept: 2008-01-21 Swampscott, MA	How about lifting the ban on Medicare from negotiating bulk discounts on prescription drugs for seniors? Reimportation is a red herring. We wouldn't need to reimport from Canada if we simply negotiated the same price discounts ourselves. Medicare Part D is costing us way too much money. Either eliminate the prescription drug benefit or figure out a way to get the costs back in line. Last modified: 2008-11-05 12:15:25 by micronin127 2008-11-05 12:15:03 Permalink
1000ohms Posts: 7384 Incept: 2007-09-06 aka inflam Banned	BUT, BUT, BUT MICRO!!! - If we cut into big Pharma's profits like that, HOW THE HELL WILL THEY HAVE ENOUGH MONEY TO LOBBY CONGRESS FOR FAVORABLE LEGISLATION????? that idea is not feasible ---------- I make somewhat of a sport out of costing people their merchant accounts doing this. I recognize that small tickets are a problem but the solution isn't do violate the rules you voluntarily agreed to when you got your merchant account. - Genesis 2008-11-05 12:18:11 Permalink
Mtgspy Posts: 6202 Incept: 2007-10-27 Banned	"Mtg - not if Obama kills the TARP." There is the proof that it just cannot be done. Everyone and their uncle knows TARP cannot be killed. Not after being voted _twice_ with MAJOR coercions. ---------- I'll stay away from this one, I'll instead grab my and watch the pretty fireworks. - Karl Safety is the greatest risk of all, because safety leaves no room for miracles and miracles are the only sure thing in life. - A random black supporting actor. We iz all gonna diiiiiieeeeeeee. - Raingod 2008-11-05 12:18:47 Permalink
Mo Posts: 12158 Incept: 2007-06-26 Pa.	Look at 2008, micro: http://www.opensecrets.org/industries/in.... ---------- Welcome to Pottersville 2008-11-05 12:20:48 Permalink
Genesis Posts: 130717 Incept: 2007-06-26	Mtg - never say never. We choose between killing TARP and killing government. ---------- I don't care* if it makes sense -- only if it makes money. -- Me* Bank (n): See scam, fraud and theft. *Eat a bankster -- they're low-carb.* *What part of "shall not be infringed" was unclear?* 2008-11-05 12:22:24 Permalink
Dashingdwl Posts: 9760 Incept: 2007-06-26 los angeles	There is no way in hell Obama kills the TARP. It will grow, morph and be another 'tool' in his bag o' tricks. ---------- When you are hard and disciplined, you can be principled. People fear you because they have no leverage against you. It's the truest form of Liberty. 2008-11-05 12:26:24 Permalink
1000ohms Posts: 7384 Incept: 2007-09-06 aka inflam Banned	Out of curiousity.... Anyone think we roll back affirmative action now? I would be shocked if it happened right away, but in a year or 2, maybe?? I would be equally shocked if AA was expanded from here.... ---------- I make somewhat of a sport out of costing people their merchant accounts doing this. I recognize that small tickets are a problem but the solution isn't do violate the rules you voluntarily agreed to when you got your merchant account. - Genesis 2008-11-05 12:29:08 Permalink
Micronin127 Posts: 1181 Incept: 2008-01-21 Swampscott, MA	Earmark Reform.... Lobbyist Reform (end revolving door).... Line Item Veto.... And how about getting the Justice Department kicked into gear so we can some perp walks for the fraudsters.... I completely agree on repealing the Bankruptcy Reform Act. The debt should be defaulted and with a clean slate will come new capital formation as folks rebuild their life savings. It will take time, but that will form the basis for a real economic recovery in 12-18 months. Last modified: 2008-11-05 12:39:35 by micronin127 2008-11-05 12:38:58 Permalink
Aztrader Posts: 6648 Incept: 2007-09-10 Scottsdale, AZ	He needs to kill the TARP first so that the taxpayers aren't given these bad debts. I have no pity on any person that ran up a bunch of bad debt and now wants to walk away. I want to see him reverse everything that Paulson has put into place. 2008-11-05 12:39:13 Permalink
Micronin127 Posts: 1181 Incept: 2008-01-21 Swampscott, MA	How about a recission bill to reverse some of the over-the-top pork that was stuffed into the EESA legislation. The TARP was $700 billion, but there was $150 billion of crap stuffed into that bill that was completely unrelated. Subsidies for wool... subsidies for bicycle commuters... $150 billion in pork!!! That's a good place to start demonstrating you can be fiscally responsible. 2008-11-05 12:42:59 Permalink
Jinxx0r Posts: 4230 Incept: 2007-08-10	I hope we pull out of iraq in the first 15 minutes... i also hope they start sending out free money via a stimulus package... the bigger the better. Make this idea third, as my wife and I are going to go back on our vow to not use credit cards and plan to max out as many credit cards as they send us to buy as much stuff as we can. it's going to be epic. 2008-11-05 12:44:11 Permalink
Jinxx0r Posts: 4230 Incept: 2007-08-10	DELETED, you're right, this one was off topic. Last modified: 2008-11-05 12:59:30 by jinxx0r 2008-11-05 12:47:33 Permalink
Stormrunner Posts: 135 Incept: 2008-01-29 OC CA	KD, Martin was consul to many of the largest moneyed elite. He has recently published, from prison I might add a treatise on his views of cycle theory which relates to the fix we find ourselves in. Specifically he speaks to retribution and the heavy hand of the law seeking scapegoats for malfeasance on the part of the regulatory structure diverting blame from itself as a protection of its own self interest which could have the effect of chasing capital out of the US market. He also speaks to balancing the destruction of credit with monetization in effect increasing the supply of money as opposed to borrowing which merely shifts the location of capital likely increasing the devastation. Its a moderate length read, and though you may not agree with what is said I think you might find it compelling on many levels. http://www.contrahour.com/contrahour/fil.... 2008-11-05 12:52:56 Permalink

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