This blog is an alternative 7 point proposal to the One that Henry Paulson has placed before the Senate Banking committee. Consider it a frame work….and tell me what you think. I’m thinking of sending this to My Congressman, Chuck Schumer. Any errors in language are my own, and I apologize for them. (Note: I have sent this to Chuck Schumer’s office. Silly me.)
1) All power to make deals of any variety to buy “Bad paper” Be it commercial or home mortgages, or anything else that has been previously proposed shall be vested in the Congress, and must pass committees in both houses prior to approval.
2) All deals are to be considered loans, and are to be paid back to the Government in full. Failure to pay back the loan will result in forfeiture of said loan and all mortgage paper loaned to that company will be returned to the Government, along with a portion of stock or other instruments in the company equaling the governments total expenditure in said loan plus ten percent.
3) There shall be no limit in the Amount of money loaned, provided that company shows the capacity to meet liquidity requirements laid out by the United States Senate Committee on Appropriations.
4) Any company agreeing to any loan from the government to buy “bad paper” must guarantee, in writing that they will, within a specific period of time, pay 100% of the loan. Length of time to pay will be determined by the United States House Committee on Appropriations.
5) Any Company Agreeing to a loan will agree to pay Interest on said loan. That interest will start at a rate to be determined by the United States House Committee on Appropriations, and will be no less than 3%, and no more that 31.9%.
6) No Company shall have the pay of any executive or any other member of their ownership taken away, unless in forfeiture of debt, in which case the pay of all executives at said company will be garnisheered. The level of garnisheering will not be more than 18% of total salary, and amount garnisheered cannot be greater than the total Amount of loan, but not less than 18% of total annual salary, including net worth of all stock options and other instruments that could conceivably be considered compensation for their jobs.
7) This law shall be in effect for 2 years from the date of signing, and will, at that time, end. Any debt owed at that point Must be paid back as required by the ruling of the United States Senate Committee on Appropriations in a manner deemed timely by them.
As you can tell, I am neither an economist nor a legislator, just a concerned citizen, giving his opinion, and an alternative. I hope you Like it. I hope it makes sense, from a feasability and economic standpoint. That would be nice. 
