Posted on 09/24/2008 1:57:04 PM PDT by counterpunch
SOURCE: House Republicans met in am: Just 4 members support Paulson plan...
It would be interesting to see how many of those earthquakes and other disasters actually come if the Treasury let the market decide the value of these mortgages.
Probably not as bad as being pressed. If some of these companies crash...others will come in and take over the remaining assets and build on that
The real reason Washington is nervous is because most politicians have their investments in these groups...and thru their subsidiaries and partners. The politicians are more nervous than any one else
“I don’t see how we get out of this without either a financial meltdown or a political meltdown.”
If this Treasury plan does not get implemented, you will have both. The economy will tank and the Dems will win the Presidency and gain seats in the Congress. Then the costs will be much greater than $700B. And speaking of that, it is not a $700B cost (i.e. bailout). It is a $700B investment to free up credit in the markets. The government has the luxury of holding these securities until maturity if necessary, these companies don’t because of capital requirements associated with decreased asset values. As the economy & housing market improves the value of the securities the government will increase in value as well (or at least the underlying assets). Much, if not all, of the $700B should be earned back.
I’d rather invest $700B in these securities than spend much more than that in the Dem programs that they will pass, along with higher taxes, if they gain control of government.
My guess is some version of the Treasury plan will be passed by next week.
Agreed.
If they want to get out of this financial fiasco without costing the taxpayers a cent, all they need to do is outlaw Credit Default Swaps retroactively, nullifying them, and rescind Sarbanes-Oxley.
That would make the credit crisis disappear overnight.
That settles it then. If only 4 Republicans support this bill then it is clearly a peice of crap. Toss it and let the company accept the consequences for making so many bad loans.
Unless you are certain of it, I would hold off on the judgment. John has made some good stands while minority leader. I wouldn’t count him out.
Barrystroika. I like that as much as Obamanation.
Palin’s saying the same thing, unfortunately:
Yahoo News “NEW YORK - Republican vice presidential candidate Sarah Palin said Wednesday that the United States could be headed for another Great Depression if Congress doesn’t act on the financial crisis.”
This is beyond disappointing. I had so hoped that she would refuse to carry the water for her RINO overlord.
BTTT
Perhaps a partial bailout where the CEOs and board members of the failed financial businesses have to forfeit their paychecks and golden parachutes and all money donated to any and politicians have to be returned to help fund the bailout.
AND, laws that restrict gov’t from ever doing this ever again.
AND, turn all but the most essential gov’t programs into NAFI’s (non-appropriated fund instrumentalities, can get a start up loan but must pay it and run a profitable business in the free market)
One thing I’ve learned from experience and reading LS’s work is that the market will correct itself to the most advantageous state if given the opportunity. When you allow government to intervene to “correct” the situation they either just prolong the problem or compound it.
That said, I say let AIG face the music. Take the his now so that these companies learn that it’s not the government’s responsibility to hold their hand if they screw up.
Boehner is for waiting on McCain
http://www.freerepublic.com/focus/f-news/2089659/posts
The problem is that Barrystroika may get superceded by McCainost
I’m not sure that’s what she said.
The quote I read that somone here put up looked garbled to me...as if the words “headed for a Great Depression” could have been meant to say she’s NOT saying we’re headed for one if this particular Paulson package doesn’t pass, instead she’s saying it is serious enough that a bipartisan package of some type must be crafted and passed, or else very bad things will happen.
I have to run an errand and don’t have time to run this down, but my I wasn’t convinced that she actually said we’re headed for a Great Depression.
I agree with you. I don’t see what McCain gains from suspending his campaign and delaying the debate. Makes him look like he’s scared to debate Nobama.
Well..let’s just hope McCain doesn’t do something stupid like give the dems everything they want! (eye roll)
I am putting my money on Mike Pence right now as far as the house goes!
Thanks for the ping to the link.
Yes indeed! I forget who (which Freeper) coined the word.
It really really fits! Gorbachev began a series of reforms in the Soviet economy late in the 1980s which became known as perestroika.
We saw what happened.
The initial posting was on a thread where a Middle Eastern Muslim mufti said that America would be brought down from within just as the U.S.S.R. was. Allah would see to it. I guess he read Obama's platform.
I don't like any more government involvment in anything than necessary. On this issue, I'm confused. Good people are on both sides of this.
Good posts devolve.
I wish I could say that Pence is my representative from Indiana but he’s not. However, I have spoken with Mike personally and he is the person who should be the GOP nod for the White House. I like McCain, but Pence is a true conservative.
85 billion divided by 200 million is 425 dollars, not 425 thousand dollars.
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