Posted on 09/28/2008 6:42:42 PM PDT by pabianice
I had trouble believing my eyes a little while ago. Rep. Boehner and several other top Repubs came before the cameras looking like whipped dogs. They have folded and will support the Pelosi-Reid bail-out plan with several revisions. Boehner did give credit to John McCain for helping not make the plan even worse. Boehner said that individual Repubs would have to use their own consciences about voting for or against the plan. This sad spectacle followed Reid-Pelosi-Schumer-Frank standing before the cameras like conquering heros, smiling and waving to a fawning, drooling press as they described how the Dems have saved the economy despite the Repubs' eight years of trying to destroy the middle class.
Obama now 10 points up on McCain.
I think Rep. Issa of Calif. is a hold-out.
If the GOP had any nads at all, they would all walk out. Leave the whole mess to the dimwits.
kickoutofcongress.com all who support the bailout
The Dems are the majority in both chambers. They have the votes to pass this “crap sandwich.” Why do they need the Pubs?
Most R’s will vote no....but it won’t matter.
Fiddle dee dee—I think they ended up with a much better bill than they would have had McCain not come in and supported Cantor’s counter-proposal; it would have been the height of folly NOT to work this out—even Gingrich and others who took such a hard stand a few days ago have backed off.
Maybe they should vote “present”.
It's part of their job description.
It was preordained.
Likewise, if the dems had any balls, they’d have passed their own plan as soon as possible. If the bailout is really so urgent, why did they have to convince the minority party?
Then they are out of office plain and simple.
If the government is going to own all of this and the taxpayer owns the government; shouldn’t we have a say.
Other takes:
NRO-The Corner
Sunday, September 28, 2008
Time to Follow [Jack Fowler]
Just finished watching the House Republicans leaders’ press conference on how they are backing the re-crafted bailout deal, made more palatable by their diligent efforts, and urging GOP members to vote yes. Kudos to them and in particular to Eric Cantor: he is so dang impressive. When you expect your political leaders to step up, and they do, you must reciprocate by following and supporting them and if you do you’ll still be able to place your head on the pillow with a clear conscience. Conservatives should support them in backing the bailout plan. And then, when that is completed, roll up our sleeves and join Cantor & Co. as they work to craft and enact a broader strategy to improve America’s fiscal health.
09/28 08:56 PM
*
NRO
September 27, 2008, 9:31 a.m.
A Paulson-Cantor Plan Is a Win-Win
Actually, for taxpayers, the bank rescue plan is a win-win-win-win. By Larry Kudlow
http://article.nationalreview.com/?q=YWE3ZTg5MDZjOTI2MDA4MjYxMGQ3ZDg1YzI5MTBmOWE =
The single-biggest mistake in the Paulson bank-rescue-plan marketing effort has been the failure to explain clearly how taxpayers are going to recoup $700 billion used to buy toxic assets at auction in order to unfreeze the banking system. In other words, folks don’t understand how taxpayers will be paid back, and may actually make profits, which will enable the new government debt to be erased after the Treasury bank-rescue is completed.
Here’s the key point: Any loan package bought by the Treasury will be 100 percent taxpayer owned. Period.
Let’s walk through this hypothetical for a moment. Through a market-driven auction, the Treasury will purchase some dollar amount say $100 billion of loans that banks will sell. The Treasury will then buy those loans at the prices that fill the auction, starting with the lowest prices and working up. Now, the Treasury will hold those bonds either to maturity or for a sale in the open market if rising prices in the market make that sale attractive. In other words, suppose the Treasury buys a bond package at 20 cents on the dollar. They hold it for a while, and if market conditions improve, they sell it for 50 cents on the dollar to some buyer (e.g., an investment fund, a private-equity fund, a hedgie). The Treasury will make the sale at the higher price in order to gain a profit for taxpayers.
In the meantime, as the Treasury holds the loans, the government will get monthly cash-flows coming in on the mortgages, or on any other loans that it owns. So it is win-win for taxpayers. First, taxpayers get the cash flow generated by the assets. (Something like a 10 percent interest rate.) Second, if the loan is sold for profit, the taxpayers will own that profit. And the new law must of course stipulate that all the cash flows and/or profits go for debt-reduction to protect taxpayers.
I don’t think a lot of folks understand this win-win scenario. Let me repeat: The taxpayers own the bonds the Treasury buys; the taxpayers own the cash flows generated by the bonds; the taxpayers own the profits when the bonds are sold; and the taxpayers benefit when the profits and cash flows are used to pay-down government debt.
Actually, for taxpayers, it’s a win-win-win-win.
Think about this. The troubled assets purchased by the Treasury right now are likely to be very under-priced because of the chaotic and frozen market conditions. But over time, through monthly cash-flow payments or through loan sales, taxpayers will get all their money back and in great likelihood a handsome profit.
I have been in conversation with leading House Republicans all day. And they understand these key points. Unfortunately, this understanding did not materialize in their original meeting with Mr. Paulson a few days ago. But now the actual reality is sinking in.
Another point: Republican leader Eric Cantor has an excellent idea for a federal bond insurance guarantee for straight mortgage-backed paper, financed by private-sector insurance premiums. That will improve investor confidence in mortgage bonds and will make those bonds highly marketable. Importantly, senior Treasury officials have told me that Mr. Paulson will accept the insurance idea as an option in the final bill, alongside the ability of the Treasury to purchase distressed assets.
Sources also tell me that other conditions will be necessary to bring the House GOP along. First, the ACORN slush fund must be removed. Second, the so-called union proxy to run a slate of corporate directors is a big problem. Third, all profits from the Treasury rescue mission must be used to reduce the national debt 100 percent. Fourth, Republican members are opposed to bankruptcy judges setting mortgage terms and interest rates (Sen. Obama also is opposed). Fifth, the so-called government equity ownership of banks is distasteful because it effectively creates a corporate tax increase on banks at a time when they are struggling. And last, the Treasury secretary’s request for $700 billion is regarded as way too high.
Essentially, House Republican leaders want a slimmer, cleaner Paulson plan supplemented by Mr. Cantor’s mortgage-bond insurance program. I think it’s a good package that would be great news for stock and bond markets that are now ailing badly. It would set the stage for a gradual return to normalcy on the part of bank lenders, including loans to small businesses, consumers, and homeowners. It would be a pro-growth package at a time when the economy desperately needs a prosperity tonic.
Larry Kudlow, NRO’s Economics Editor, is host of CNBC’s Kudlow & Company and author of the daily web blog, Kudlow’s Money Politic$.
Where did you read Gingrich back off?
I thought he was wrong to begin with on this but I’d like to see what he has said since.
At least the Bushbots can rejoice.
That sentence nailed it when you compare the Republican news conference with the celebrating that went on during the DemocRAT news conference earlier today. The GOP just got another "bipartisan" wedgie from the DemocRATS.
I cannot understand why they don’t do exactly that. If they hate it so much, why not let the Democrats vote it through. The country hates it, so why not win some friends.
...in honor of Barack Obama.
“Obama now 10 points up on McCain.”
I can’t believe the Republicans are caving in to this bailout!
I feel like we are moving towards socialism faster and faster everyday. America can’t elect a socialist madman like Obama. We just can’t! God have mercy on America!
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