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Healthcare Reform, Wamu, And Wall Street Bonus

Most Americans objected to Mr. Paulson's TARP but Congress passed it anyways.

Now the same thing is happening with President Obama's health care reform.

I thought the legislative branch is supposed to represent "we, the people."

"As the Senate sprints to pass a health-care bill by Christmas, the latest NBC News/Wall Street Journal poll finds that those believing President Obama's health -reform plan is a good idea has sunk to its lowest level.

Just 32 percent say it's a good idea, versus 47 percent who say it's a bad idea."

"Here we have the latest health care reform polls:

RCP Average 12/1 – 12/19 — 38.0 51.4 Against/Oppose +13.4
Rasmussen Reports 12/18 – 12/19 1000 LV 41 55 Against/Oppose +14
NBC News/Wall St. Jrnl 12/11 – 12/14 1008 A 32 47 Against/Oppose +15
Associated Press/GfK 12/10 – 12/14 1001 A 36 44 Against/Oppose +8
Gallup 12/11 – 12/13 1025 A 46 48 Against/Oppose +2
ABC News/Wash Post 12/10 – 12/13 1003 A 44 51 Against/Oppose +7
Pew Research 12/9 – 12/13 1504 A 35 48 Against/Oppose +13
FOX News 12/8 – 12/9 900 RV 34 57 Against/Oppose +23
CNN/Opinion Research 12/2 – 12/3 1041 A 36 61 Against/Oppose +25
Quinnipiac 12/1 – 12/6 2313 RV 38 52 Against/Oppose +14"

In addition, I am really concerned about the pattern at which our government has been following to get things done.

First, the Stimiulus Bill was rushed to passage and not read.

"What a joke. Your Congress has voted to spend almost $790 billion of your money on a stimulus package that not a single member of either chamber has read.

The 1,073-page document wasn't posted on the government's Web site until after 10 p.m. the day before the vote to pass it was taken. I don't care if you're Evelyn Wood, you can't read almost 1,100 pages of the lawyer talk that makes up all legislation in eight or 10 hours."

Next, ignoring proper pay order in the GM bankruptcy, the Administration succeeded in prioritizing UAW benefits over those of bondholders by labeling them as being greedy and unpatriotic.  Well, guess what, not all these bondholders were reckless hedge funds; some were actually teachers unions. 

"White House puts UAW ahead of property rights"
"Instead, they have been forced to negotiate through JP Morgan, which they view as having a conflict of interest... As of last night’s deadline, we were part of a group of approximately 20 relatively small organizations; we represent many of the country’s teachers unions, major pension and
retirement plans and school endowments who have invested through us in senior secured loans to Chrysler. Combined, these loans total about $1 billion. None of us have taken a dime in TARP money."

Finally, with the healthcare reform:

"President Obama told ABC News’ Charles Gibson in an interview that if Congress does not pass health care legislation that will bring down costs, the federal government 'will go bankrupt.'"

Now if we are going to spend billions for this health care program, there needs to be some serious reformation on price control on both the insurance premiums and prescription cost.


"Thing is, as the Senate bill stands (which is the one the President was supporting), there are no cost controls. In fact, the Senate bill allows the insurance industry to charge you double or triple for being old or having pre-existing conditions. And the Senate bill mandates that you buy insurance at whatever price the industry wants to charge you.

Now, get rid of the mandate in the Senate bill and I could support it. Hell, do what I saw suggested on another site today and tie the mandate to a trigger that only activates if the insurance industry triggers a public option. But as it is, this is a bad bill that doesn't contain costs..."

We cannot allow a repeat of government failure in protecting average consumers and small businesses, as in its lukewarm and unsuccessful attempt to impose stricter financial regulation.

After pumping billions and billions of tax dollars into the banking sector to save the "systemically important" institutions such as Citigroup, our Congress has yet delivered a comprehensive regulatory overhaul to prevent these same corrupt bankers from destroying our economy again.

The last I heard, Goldman Sachs was still placing risky bets with FDIC- backed funds and JP Morgan was still handing out billions in bonuses.

There has also been ZERO change to address regulatory failure.

Case in point: FDIC's fire-sale of Wamu to JP Morgan.

FDIC seized Wamu based on liquidity pressure and then sold the bank for $1.9 billion.  Yet within days, it then established a bond guarantee program TLGP to help TBTF institutions solve the very same cause that led to the Wamu takeover.

Ms. Bair should have have seized EVERY SINGLE INSTITUTION that ended up using TLGP, including Goldman Sachs and JP Morgan, who obviously were also  facing severe liquidity pressure, e.g., the former used TLGP to raise over $20 billion while the later over $40 billion.

Washington Mutual Inc subsequently filed a lawsuit demanding accountability from the regulatory agencies.

According to court filing, Wamu had $4 billion in deposit and no solvency analysis was ever performed by OTS.

Over 10,000 people lost their jobs in the Wamu seizure. 

That meant over 10,000 people, along with their family members, lost their health insurances and the abilities to pay rent or mortgages.

It is time for our government to listen to the people and protect them, not TBTF institutions and special interest groups:

"Why aren't our leaders standing up for us on health care reform? Why are they listening to the lobbyists hired by the healthcare industry, and not worrying more about the estimated 45,000 Americans who are dying each year because of our broken approach to healthcare?

It's time for Medicare for all — Medicare works just fine for me, my wife, and millions of other American citizens who are over 65.
Dr. James Nicholl, Cullowhee"

President Obama, please start demonstrating fiscal responsbility and restore faith to those who had elected you for CHANGES against corruption and injustice.

And you can start that NOW by demanding institutions using TLGP, TALF or whatever government program to pay ZERO bonus until they completely liberate themselves from any type of taxpayer assistance.

You can then use that money to create JOBS and save and reform the FDIC, an agency that has become too corrupt and too bankrupt to execute its most important mandate: protecting trillions of our hard-earned savngs.