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House Passes Latest Bailout Bill 263 – 171

From an overjoyed New York Times:

House Approves Bailout on Second Try

By DAVID M. HERSZENHORN

October 4, 2008

WASHINGTON — The House of Representatives gave final approval on Friday to the $700 billion bailout for the financial system, reversing course to authorize what may be the most expensive government intervention in history.

At 1:21 p.m., applause and cheers echoed through the House chamber as the number of “aye” votes crossed the threshold needed for passage with just seconds remaining in the official 15-minute voting period. The vote was 263 to 171.

And in a sign of the urgency surrounding the rescue plan, Congressional staff rushed the newly printed legislation into a news conference where Democratic leaders gathered after the vote and Speaker Nancy Pelosi, Democrat of California, signed it, at exactly 2 p.m

Most Democrats favored the bill (172 yeas to 63 nays), while a slighter majority of Republicans voted against (91 yeas to 108 nays). Every member of the House voted. (There is one vacancy, created by the recent death of Stephanie Tubbs Jones, a Democrat of Ohio.)..

Many lawmakers who changed sides, said they had agonized over the decision amid a torrent of calls and e-mail messages from constituents, and several cited a provision added by the Senate increasing the amount of savings insured by the federal government to $250,000 an account from $100,000.

Several Democrats in the Congressional Black Caucus said they were persuaded to support the bill by Senator Barack Obama, the party’s presidential nominee. But many lawmakers said they were motivated most by fears of economic calamity…

But it was a hollow victory for the administration. After long favoring a hands-off approach and relentlessly pursuing deregulation, the administration found itself interceding repeatedly in the private market this year to avert one calamity after another. And finally after it proposed perhaps the biggest intervention in history, Mr. Bush found himself abandoned by fellow Republicans in the House…

The final agreement called for the $700 billion to be disbursed in parts: $250 billion at first, to get the program started, followed by $100 billion at the discretion of Mr. Bush and the remaining $350 billion upon request of the Treasury with Congress empowered to block the last installment by acting within 15 days…

The deal provides for tight oversight by two boards, including an independent Congressional panel. And requires the government to use its status as an large-scale owner of distressed, mortgage-backed securities to take more aggressive steps to prevent foreclosures.

The bill also seeks to limit the pay of executives of some companies that sell bad debt to the government, including restrictions on so-called “golden parachute” retirement plans.

It also provides several taxpayer protections, including a mechanism for the government to take an equity stake, in the form of stock warrants, in some of the firms that seek government help, which will give taxpayers a chance to make money should the companies profit in the months and years ahead.

And, if the rescue plan has lost money after five years, the bill requires the president to submit a plan to Congress for recouping the losses from the financial industry, perhaps through fees or a tax on securities transactions.

And of course the New York Times cannot help lying about history:

But it was a hollow victory for the administration. After long favoring a hands-off approach and relentlessly pursuing deregulation, the administration found itself interceding repeatedly in the private market this year to avert one calamity after another.

After all, that is their job.

And speaking of jobs:

The deal provides for tight oversight by two boards, including an independent Congressional panel. And requires the government to use its status as an large-scale owner of distressed, mortgage-backed securities to take more aggressive steps to prevent foreclosures.

Isn’t that reassuring to hear that Congress will be keeping an eye on things? And that ACORN will still get their way?

Anyway, there it is:

Allah help us all.

This article was posted by Steve on Friday, October 3rd, 2008. Comments are currently closed.

44 Responses to “House Passes Latest Bailout Bill 263 – 171”

  1. 1sttofight says:

    So if I understand this bill right, I don’t have to make any more of my mortgage payments?

  2. U NO HOO says:

    “So if I understand this bill right, I don’t have to make any more of my mortgage payments?”

    No, you have to make mortgage payments.

    Those who have been “community organized” don’t have to make their mortgage payments.

  3. Consilience says:

    This is from Michelle Malkins website: language from the bailout bill…this makes me sick. I’m afraid an armed rebellion will be our only alternative, since the government has effectively nationalized home owernership.

    Section 110 is the Democrat-backed “Assistance to homeowners” plan — driven by one of the bill’s key stated goals of “preserving homeownership.”

    GENERAL.—To the extent that the Federal property manager holds, owns, or controls mortgages, mortgage backed securities, and other assets ecured by residential real estate, including multifamily housing, the Federal property manager shall implement a plan that seeks to maximize assistance for homeowners and use its authority to encourage the servicers of the underlying mortgages, and considering net present value to the taxpayer, to take advantage of the HOPE for Homeowners Program under section 257 of the National Housing Act or other available programs to minimize foreclosures.

    (2) MODIFICATIONS.—In the case of a residential mortgage loan, modifications made under paragraph (1) may include—
    (A) reduction in interest rates;
    (B) reduction of loan principal; and
    (C) other similar modifications.

    Yes, in the quest to “preserve homeownership” at all costs, it appears the government will be determining the value of homes directly in the marketplace — not only reducing interest rates but also loan principal.

    SEC. 124. HOPE FOR HOMEOWNERS AMENDMENTS. Section 257 of the National Housing Act (12 U.S.C. 1715z-23) is amended—
    (1) in subsection (e)—
    (A) in paragraph (1)(B), by inserting before ‘‘a ratio’’ the following: ‘‘, or thereafter is likely to have, due to the terms of the mortgage being reset,’’;
    (B) in paragraph (2)(B), by inserting before the period at the end ‘‘(or such higher percentage as the Board determines, in the discretion of the Board)’’;
    (C) in paragraph (4)(A)—
    (i) in the first sentence, by inserting after ‘‘insured loan’’ the following: ‘‘and
    any payments made under this paragraph,’’; and

    (ii) by adding at the end the following: ‘‘Such actions may include making payments, which shall be accepted as payment in full of all indebtedness under the eligible mortgage, to any holder of an existing subordinate mortgage, in lieu of any future appreciation payments authorized under subparagraph (B).’’

  4. wardmama4 says:

    They only passed it this time – because it got loaded up with pork – seems to be the only way to get a damn thing passed these days – even in an ’emergency’ and a ‘crisis’.

    The section Ms Malkin discussed (as did Rush) is guaran’-damn-teed to insure that Obamanation gets the minority and illegal vote. [Even though yes, I know McAmnesty voted for it too].

    I would advocate the purchase of coins (gold included), guns, ammo and non-perishable food – but then I don’t want to sound too paranoid or crazy. So I will just say learn to shoot, cook and maybe hunt – you just won’t know what you will be needed to do in the near future.

    Someone said this election is actually setting it up for a 3rd party candidate to win in 2012 – I’d say now is more important than waiting 4 years. Master of the Universe Obama just might not let the un-chosen to vote in 2012. He certainly is attempting to silence them in 2008.

  5. 1sttofight says:

    Master of the Universe Obama just might not let the un-chosen to vote in 2012.

    One man , One vote…………..One man, Many bullets.

  6. marinetbryant says:

    Kiss our once great democratic Republic good-bye. Say hello to USSA.

    Tom

  7. ptat says:

    About this “Allah help us” stuff—-please remember, Allah is not the one who helps. He is more likely just to kill you, because he has proven to be pretty moody, violent and easily offended. As you well know, it is God, as known by His story, the Bible, that we should look to for help……

  8. Colonel1961 says:

    Hey, Barney – why the long face? Signed, B. O’Reilly

    On a more serious note: remember that now is the time to stock up on whisky, guns, ammo and dirty magazines – just in case. And necessarily in that order…

  9. Steve says:

    “About this “Allah help us” stuff—-please remember, Allah is not the one who helps.”

    Surely you can recognize a joke when you see one.

  10. shel777 says:

    As a Republican, I am sorry to say this, but Bush has proven to be a RINO, and I truly believe this was a parting gift to his buddies in the mortgage and banking biz. remember, it was HE in 2002, who strongly urged HUD to make mortgages (the U in HUD stands for Urban, and we all know what “Urban” means these days) to minorities. Barney Frank, another choice Democrat thief, threatened to sue for racism if HUD did NOT give such loans.

    In October, 202, Bush said, in part,” More and more people own their homes in America today. Two-thirds of all Americans own their homes, yet we have a problem here in America because few than half of the Hispanics and half the African Americans own the home. That’s a homeownership gap. It’s a — it’s a gap that we’ve got to work together to close for the good of our country, for the sake of a more hopeful future. We’ve got to work to knock down the barriers that have created a home ownership gap.

    “I set an ambitious goal. It’s one that I believe we can achieve. It’s a clear goal, that by the end of this decade we’ll increase the number of minority homeowners by at least 5.5 million families..”

    http://www.whitehouse.gov/news/releases/2002/10/20021015-7.html

    Barney Frank said, in part, “These two entities — Fannie Mae and Freddie Mac — ARE NOT FACING ANY KIND OF FINANCIAL CRISIS… The more people EXAGGERATE these problems, the more pressure there is on these companies, the less we will see in terms of AFFORDABLE HOUSING.” and the theme of defending the doomed institutions is minority home ownership (read– “you are racist if you oppose Freddie & Fannie’s imprudence”).

    http://www.americanthinker.com/blog/2008/09/mustread_to_understand_the_fan.html

    Looks like the socialists as well as militant homosexuals were at it again – as well as RINO Bush whom I have lost ALL respect for.

  11. Steve says:

    “As a Republican, I am sorry to say this, but Bush has proven to be a RINO, and I truly believe this was a parting gift to his buddies in the mortgage and banking biz. remember, it was HE in 2002, who strongly urged HUD to make mortgages (the U in HUD stands for Urban, and we all know what “Urban” means these days) to minorities.”

    Sorry, I don’t remember that at all.

    But I do remember this:

    Bush, McCain Tried To Reform Freddie Mac | Sweetness & Light
    http://sweetness-light.com/archive/bush-mccain-tried-to-reform-housing-finance

  12. Grassy Knoll says:

    Hey, good news. The federal bailout – now signed by Bush – will not crimp the Democrats’ spending plans! Obama said he is still on track to sign an economic stimulus spending bill, if elected. Isn’t that great? And San Fran Nan said not to worry because the cost of bailout bill will be offset in part by raising taxes on higher-income people. She calls it “investing in the future.” And Barney Frank is in favor of all this, too, so let not your heart be troubled. Everything is OK.

  13. Consilience says:

    We passed a threshold today in our nation and things will never be the same. We must throw ALL of them out by any means necessary, and then prosecute them ALL (who voted for this POS) for violating their oaths and the US Constitution.

  14. Colonel1961 says:

    Proud to report that my two Senators voted ‘Nea’…

  15. retire05 says:

    This day is a sad day for our nation. In one felled swoop, our elected officials just socialized the banking industry. Hugo Chavez must be smiling. Now, the government has the authority to do with your money, in any bank, what they will, and if they decide your money should be in another bank, they can move it.

    Up until now, the move toward socialism has been creeping up on us. Today it broke out in a dead run.

    There is no way the government can pay for this without raising our taxes. But how much are we willing to pay? A couple with a joint income of $70,000/year now pays about 20% (total) in taxes on that income. Add to that the 3-5% income tax most states have, the property taxes they pay on that small home they managed to save for, the sales taxes tacked on to every gallon of milk or pound of hamburger they buy and the school supplies their kids need, and it doesn’t take long to figure out that one of that couple is working for the government. Licence plates for the car? A tax. If you are are a small business you pay inventory tax (tax on the product sitting in your store), including inventory that you haven’t received but was in shipment on the last day of the year.

    So when this couple is really only taking home $35,000/year and are struggling, what is the incentive to keep doing it? When those who live in government housing, get food stamps, a welfare check that covers their government subsidized utilities, what’s the point? Anyone here wonder why the welfare rolls are increasing?

    James Madison is rolling over in his grave today. As is John Adams, Thomas Jefferson and every signer of the Constitution.

    Be sad. Be very sad. And let the Congressmen and Senators that voted for this monstrosity that they will soon be out of a job.

  16. texaspsue says:

    This is disgusting! One step closer to socialism and another step away from a free Republic. As marinetbryant says, “hello to USSA”.

    Where did you find a list of House yea and nay votes, Colonel1961?

  17. JohnMG says:

    Colonel1961; ……”Hey, Barney – why the long face? Signed, B. O’Reilly……”

    Barney had to be the “girl” last night. I don’t think he likes it. ;-}

  18. BigOil says:

    Justification for government control of our financial system was sold on the basis of preventing this ‘crisis’ from spilling over into Mainstreet. Stock markets have responded to our elected morons with a 10% decline this week. A nice one-two punch. We lose out in our 401K’s, and our tax dollars are confiscated to pay for ‘affordable housing’.

    At least we retain the privilege of working until we are in our graves to advance the greater good in a socialist state.

  19. BillK says:

    Was there any doubt?

    After a week of “tell your Congress folks to pass this, or you’re all unemployed” we get this.

    Once again proving the MSM can steamroller through anything they want to, from Obama to this.

    Am I the only one who thinks at least some of the stock market reaction was not to passage or lack thereof but due to the continued discussion of the plan?

    After all, we had the biggest jump this week the day after the vote failed.

    I guess we’ll see if the market tanks further Monday.

  20. U NO HOO says:

    “multifamily housing”

    Would that be a slum?

  21. U NO HOO says:

    Bill O’ did say Barney wasn’t man enough to admit guilt.

  22. 1sttofight says:

    Finaly the RNC is hitting back. Why didn’t they do this last week?

    http://hotair.com/archives/2008/10/03/awesome-new-gop-ad-lowers-the-boom-on-dems-over-subprime-disaster/

  23. A Mad Pole says:

    When I read the news, I was flabbergasted. The U.S. slide towards socialism just picked up some serious pace.

    It is very ironic and sad, that the country so many Poles fled to in search of freedom (both pollitical and economic) is turning into a country that they fled from.

  24. Colonel1961 says:

    The vote listing was at http://www.senate.gov.

  25. BillK says:

    A Mad Pole. where have you been?

    Picked up pace? It’s been a done deal since Monday in all but name, and Americans like it.

  26. texaspsue says:

    “It is very ironic and sad, that the country so many Poles fled to in search of freedom (both pollitical and economic) is turning into a country that they fled from.”

    Exactly, A Mad Pole! Think of all of the citizens from many, many Countries that came to America for those reasons. Do they not see the truth? We have a two choices this Election, Socialism or Freedom. (Vote accordingly.)

    God bless America!

  27. Liberals Make Great Speedbumps says:

    This is BULLSHIT!!!!!!! I’ve already contacted my Rep. (Jean Schmidt) and told her politely that she can kiss my ass in Nov. She’s the same asshole who apologized to Murtha for “insulting” him on the Senate floor, for that pigs’ Haditha statements. Screw them all, vote all of the bastards out!

  28. Liberals Make Great Speedbumps says:

    Ditto for Sens. Voinovich in 2011 & Brown in 2013! (not that I’d vote for Brown anyway!)

  29. BillK says:

    You’re missing the fact that many, if not most, Americans don’t want “freedom.”

    They want Mom & Dad.

    They want “low taxes” but they want Government services.

    They want “free” health care.

    They want their employers to be forced to give them a pension.

    They want lifetime guarantees of employment.

    They want to be forgiven when they buy things they can’t afford.

    They want someone to “do something” if their employer doesn’t know how to build products the market wants.

    They want someone to “do something” if they don’t get a raise every year.

    They want someone to “do something” if their cable or satellite TV goes up in price.

    They want someone to “do something” if they ignored all financial advice and had their retirement plan invested 100% in company stock.

    They want someone to “do something” if they are about to retire and ignored all financial advice and had any more money than they could afford to lose in the market.

    They want someone to “do something” if gas goes up $1/gallon.

    They want someone to protect them – but only immediately after an attack; any other time it’s “invasion of their privacy.”

    They want someone to force banks to give them loans and then force them to not foreclose when they don’t pay them back.

    They want guarantees of a “middle class” lifestyle that would exceed the wildest fantasies of the wealthiest in most other countries in the world and definitely at any other time in the history of Man.

    They want all these things.

    But freedom? Not as such.

    I have no doubt if you gave a list of conditions in Communist Poland or the USSR to most Americans today they’d say “Hey, where is this, if they can do it why can’t we?”

    Everything Reagan achieved is, for the most part, now gone, aside from the military, and that’s next come January.

    The left has wanted to erase the Reagan years for decades, and now they’ve succeeded and returned us to the days of FDR, with ample help from many, many Republicans.

    Where to go now?

    I don’t know.

    For the past week every statement out of McCain’s mouth has made it less and less likely I could ever vote for the man – even drunk.

    There is one, and only one reason (other than the defeat of Obama) why I can even conceive of pulling that lever for McCain in November.

    Her name is Sarah Palin (even despite her support for the plan.)

    You can see why smart pundits like Ann Coulter and Rush Limbaugh stay out of politics; who needs the brain damage?

  30. artboyusa says:

    “…but Bush has proven to be a RINO” – when was he ever anything else? Well, they rammed this pos through and we’re boned once more. BillK’s right – we’re all a bunch of whining babies now and getting whinier and more babyish by the day. We want to be looked after, we want to be protected, we only want to hear happy news and we want to keep hearing how special and wonderful we all are and we want it all for nothing. No effort, no hard work, no sacrifice and no heavy lifting -just gimme everything and gimme it now. And there’s the Dems – more than happy to fast forward the infantilization process.

    But at least maybe now we won’t have to hear that stupid linkage of the word “Wall Street” and “Main Street” every time we turn on the TV -until this fiscal masterpiece flops and they start all over again. Give it three months.

  31. MrPurple says:

    Au contraire, artboyusa –

    Allow me to ‘think differently’ for a moment.

    I think Bush, McCain and the Republicans may have played this brilliantly.

    The bill needed to pass. You hate, I hate it, everyone hates it. The people that voted for it hate it. It still needed to pass.

    The fact remains that the Democrats caused this problem and refused to address it amongst Republican warnings since 2003 at least.

    A majority of Democrats supported it – a minority of Republicans supported it. This was passed by Democrats.

    It’s also noteworthy that the Democrats largely passed a ‘Bush bailout’ – which surely can’t help them with their base.

    McCain turned that $100 million for ACORN into $60 million for NASCAR (wtf?) with tax cuts attached and still got the Democrats to step into this BS bailout.

    Now we just need to see McCain play this out along this scenario.

    This bill was brought to you by the Democrats – who couldn’t figure a way out on their own so they looked to their arch enemy in order to solve the problem they created.

    If there was ever an opportunity to sway borderline voters to McCain this is it.

    Yes, there are some holes in this outlook – but if played correctly this can actually help McCain and Republicans in a big way on Nov 4.

    IF they play their cards right.

  32. artboyusa says:

    Interesting point, Mr P. Let’s hope the good guys can find some advantage in this.

  33. A Mad Pole says:

    BillK, all in all, the U.S.A is right now almost exactly as the Roman Empire right before the fall.

  34. BigOil says:

    BillK – In 4 weeks we will find out if your supposition that the majority of Americans desire a nanny state is correct. I fear you may be right.

    Using history as a guide, a northern liberal like Barry has never won a national election. Next biggest liberal for comparison would be Carter. On this site we all know what a disaster that was. Most people under 40, however, do not understand the malaise created by a weak-kneed ultra liberal President because they did not live through it. Their only understanding of history is the re-written history in liberal textbooks.

    If McCain does not take the gloves off, he will have the dubious distinction of losing to the most liberal Presidential Candidate in the history of the Republic.

  35. 1sttofight says:

    OK, you turn your computer on in the morning and everything is working great and you get a lot of stuff done. About midafternoon you notice that it is getting slower and slower and you know why, it is getting clogged up with a bunch of useless files that just take up space and do nothing to help you do your job. You have no alternative but to reboot which will clear the system of all the useless files that are dragging the whole system down.

    Folks, it is time to REBOOT the USA.

  36. Consilience says:
  37. Consilience says:

    Mr Purple, I like the way you think, however the republicans aren’t that smart. Hell, McCain is running “STEM CELL ADS!!!!!!!!!!!!!!!” in the metro Washington DC market!!! How a campaign could be so successful and then get off topic so quickly is astonishing.

    I believe the bill passed yesterday was criminal. Further, I voted for Bush twice (holding my nose, but the alternative wasn’t), but he should be impeached for sending the first Paulson plan to Congress—which gave unsupervised, extra-constitutional power to the treasury secretary. Bush proved he either doesn’t respect the Constitution he swore to defend, or is stupid. The members of Congress who voted for this bill should be thrown out of office and publicly rebuked. I have to tell you, I get sick at my stomach listening to folks on the right talking about the “courage” of republicans who voted for this POS—no, the republicans proved they value the power of government over the Constitution.

  38. texaspsue says:

    Do most Americans even realize exactly what other “Christmas tree ornaments” the Liberals snuck into the Bill? It’s not pretty.

    http://news.cnet.com/8301-13578_3-10057618-38.html

  39. wardmama4 says:

    You know Recall/Impeachment – and of course the refusal to pay Income Tax are all ways – but there are two problems: everyone is afraid of being the only one and secondly in terms of the Federal government it does take more than one person to ‘take on city hall’ – and that is combined with a lot of citizens who find more interest in American Idol than in the election of the POTUS.

    The only good news – is that they don’t turn out – they can’t vote by phone or computer -so why bother. And a lot of people who do ‘answer’ polls on the phone and online – don’t bother to vote. My neighbors b**** right and left about the ‘state’ of things but aren’t registered to vote and like my new sil – have never voted. His having never lived anywhere for more than 3 years – I buy his attitude more than my neighbors – which is just plain don’t care.

    That is the only thing keeping me from dispair after this whole mess – collapse the economy – survivors and little spenders like me – aren’t going to be in as much pain as the whinners and cryers who don’t even know how to do much of anything other than text messages and decorate their facebooks pages.

    And that might be the whole point of America going to hell (socialism) in a handbasket – the first to go will be the useless.

  40. Rmy-mac-was-here says:

    Col,
    I checked and am also proud that both my Senators said NAY as did my Congressman (both times). I take it your from a Plains State maybe?
    God help us. So where we sign the partyline Commisar! repeat after me: eihzbeeneytye porjaulsta! kahk dyelah? h(flem it up)ahrahshow, Dohbrie ueden.
    Sorry cant spell cirrillic on a non-cirrillic processor. For those of you who require translation- roughly: Excuse me please! how are you? Fine, Good Morning.
    That way, when the Commisars show up you can at least talk to them before they nataionalize (big college word for confiscate-steal) your private property.
    These a$$clowns in our govt need to actually attend a tar and feather party, maybe even as the guest of honor. Do you realize the following: now just doing kitchen math I NOW (btw so do you) owe an additional 4000 dollars as a breadwinner. (I came to this figure by basicly pointing our that if there is roughly 200 million breadwinners ie tax payers, then 800+billion roughs out to about 4000$ EACH.) Tell all your asshat congresscritters thanks a lot (sarcasm).

  41. BillK says:

    BigOil, the problem is not just that young Americans know nothing about Carter other than the rosy revisionist tales of him written by liberals into the history books.

    It’s that even those who did live through his Presidency have seemingly forgotten that lesson and have either joined the “Well Obama promised me this” crowd or are members of the brain-dead “it couldn’t be worse…” community.

    One of the reasons past “great civilizations” have fallen is when their economies consisted of more net takers than providers.

    We’re not all that far from that today, and at some point the providers are going to say “#$@! this” and the whole nasty deck of cards will collapse.

    The question is how long that effect can be put off by oh, say Government action to buy bad loans in the hope that creditors will… issue more loans.

    Sigh.

    wardmama4, sadly you also miss the point in that the “useless” are a very loud constituency that have influence with the MSM and vote. You can’t vote by computer in most places – yet – but even slackers can send back their postage paid absentee ballots without having to move the old pizza boxes off the kitchen table or even replace the bong water.

    Thus the net effect won’t be the “useless” go, but rather “the useless have so little – that means we must take even more from those who have any use whatsoever.”

  42. Rladystears says:

    I agree with consilience. Even IF this needed to pass, which it did not, it was written up in a way that gives one man control of many decent Americans’ taxes.

    I pray that a super-flu does not hit our shores. Will we have money for vaccines?

    No matter, which side one is on, the way it was passed was wrong. If handled right, the congress could have had hearings all week with expert economist from various groups, some professors from universitys, etc., and still passed it on Friday but with more checks and balances.

    How did the president change all the minds of the “NO’s”?

    “Truly, there are tears in our lady’s eyes,
    looking over her nations vast comprimise….”

  43. 1sttofight says:

    How did the president change all the minds of the “NO’s”?

    With huge chunks of pork.

  44. wardmama4 says:

    These losers, but most importantly those of us out here who are preparing to vote just might want to take heed to these words. . .

    . . .But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security. . .

    Declaration of Independence in Congress, July 4, 1776

    [emphasis mine]


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