Posted on 09/25/2008 12:15:43 AM PDT by Fred
The decision by John McCain to suspend his campaign is giving panicky GOP lawmakers political cover and appeared to inject new life into negotiations on a proposed $700 billion bailout of the financial markets.
At press time, Senate Democrats emerged from a meeting with Treasury Secretary Henry Paulson and reported a conceptual deal they hoped could receive a vote before markets open on Monday.
Majority Whip Dick Durbin (D-Ill.) said a bill could be produced as early as Thursday, with debate and a vote likely over the weekend.
Ideally, Durbin said the Senate would finish the bill before Monday.
Republicans have emerged as the chief obstacle to swift passage of President Bush’s bailout proposal, and House Speaker Nancy Pelosi (D-Calif.) and Minority Leader John Boehner (R-Ohio) held a summit Wednesday with Paulson to try to calm the revolt among lawmakers.
The administration has pulled out all the stops to win support for the package.
President Bush was to address the nation about the bailout on Wednesday night, and lobbying groups with deep ties to Republicans earlier in the day circulated letters urging their allies to support the president’s plan.
Paulson also indicated that the administration was dropping its resistance to limiting the multi-million dollar severance packages offered to executives of firms that take advantage of the bailout.
“The American people are angry about executive compensation,” Paulson said. “We must find a way to address this in the legislation, but we must do so without undermining the program.”
Yet Rep. Tom Cole (Okla.), the chairman of the House Republican campaign committee, declared the only way to save the bailout would be for McCain and Sen. Barack Obama (D-Ill.) to take the lead, and for the Senate to vote before the House.
“These guys are more influential than their votes at this particular time,” Cole said.
He said McCain and Obama were the voices that would matter most to lawmakers wrestling with a difficult vote just weeks before presidential and congressional elections.
“I think they should deal with it first,” Cole said of the Senate. “They have both of the presidential candidates, and it’s hard to see anyone voting for a package if the nominee of their party doesn’t.”
Sen. Bob Corker (R-Tenn.), a member of the Senate Banking Committee who has participated in talks on the bailout, said Republican senators discussed the need for the upper chamber to take the lead during a private meeting Wednesday afternoon.
“Maybe it would be best at this point for the Senate to take the lead,” said Corker, who said this sentiment is “growing” among his colleagues.
Paulson squeezed the meeting with Pelosi and Boehner between two appearances before congressional committees, at which many Republicans expressed opposition to the rescue plan, while Democrats seemed more accepting, but interested in making changes.
Wall Street markets did not plunge for a third straight day, although the Dow Jones industrial dipped by 29 points. The NASDAQ, the largest U.S. electronic stock market, was up for the day.
Republicans are the key to passing the bailout because Pelosi has told members of her caucus she won’t bring the package to the floor unless there is substantial Republican support. But conservative Republicans have rallied against the plan, and former House Speaker Newt Gingrich (R-Ga.) said earlier this week that Republicans should vote against the it.
House Financial Services Committee Chairman Barney Frank (D-Mass.) said his staff was working with the staff of Sen. Chris Dodd’s (D-Conn.) Banking Committee to reach agreement on a single bill, rather than separate House and Senate versions.
Frank added that he believes Pelosi has a minimum threshold of Republican votes necessary to bring the bill forward, but he said he did not know what that number was.
“They’re not even close to having enough votes,” said Rep. Jason Altmire (D-Pa.), a freshman facing a tough reelection. “This has to be bipartisan.”
Senate Majority Leader Harry Reid (D-Nev.) pleaded for Republicans to support the package, which conservatives have roundly criticized as too expensive and an overreach of federal power.
Reid said Tuesday that only one Republican on the Banking panel could be counted on to support the proposal first floated by Paulson and Federal Reserve Chairman Ben Bernanke.
Several conservative Republicans continued to voice opposition on Wednesday.
Rep. Jeb Hensarling (R-Texas) complained that the bailout plan was a “slippery slope to socialism.” He said there are more free-market options, such as a suspension of the capital gains tax, that would bring relief to financial markets without intervention.
“The markets are panicking,” added Rep. Gresham Barrett (R-S.C.). “The government doesn’t need to panic too.”
But senior Republicans on the Financial Services Committee were more supportive, urging lawmakers to work with Paulson and Bernanke.
With support apparently slipping, businesses and trade groups not directly affiliated with the financial services industry on Wednesday began to lobby more forcefully in favor of the rescue package, an effort that participants hoped would provide additional political cover to members worried that voters will view the plan as a taxpayer-funded bailout of rich Wall Street investors who made bad bets.
The National Association of Wholesaler-Distributors, a group that counts 40,000 members, urged Congress “in the strongest terms possible” to approve the administration’s plan.
“This is one of the hardest letters that I’ve ever written, because normally we’re against government intervention in the marketplace,” said Jade West, NAW’s vice president for government relations.
But the crisis warranted sweeping government action, West said, because the fallout of the credit crunch will soon begin to affect the broader business community.
“This is a Main Street, not a Wall Street, position.”
Now the message NAW’s members want carried to Capitol Hill is, “Do something, damn it,” West said.
Lobbyists for the U.S. Chamber of Commerce, the Real Estate Roundtable, the National Federation of Independent Business and the International Franchise Association all urged Congress on Wednesday to act.
David French, vice president of government relations for the International Franchise Association, said franchisees were already reporting difficulty in getting credit.
“Stuff that was available two years ago is just not available today,” French said.
“From our perspective, this is much more than a Wall Street problem.”
Several Democrats said the administration and Bush himself needed to do a better job of explaining to the public the consequences of not passing the bailout.
“I get the why,” said Rep. Mel Watt (D-N.C.). “But my constituents are asking me why, not how. The administration has to be honest with America about the ‘why.’ ”
I will not support any candidate that supports a bailout.
>> ...“They’re not even close to having enough votes,” said Rep. Jason Altmire (D-Pa.), a freshman facing a tough reelection. “This has to be bipartisan.”...
Because if it’s gang-rape, it’s not really rape.
Rep. Jeb Hensarling (R-Texas) complained that the bailout plan was a “slippery slope to socialism.” He said there are more free-market options, such as a suspension of the capital gains tax, that would bring relief to financial markets without intervention.
it won’t work. obviously any cut in taxes is nice. but markets simply won’t touch the junk out there.
So how long has it taken congress to not fix social security?
In best Han Solo voice: "I got a bad feeling about this."
better to lose an election than sink the economy
McCain, you magnificent bastard! :)
The only way markets will touch the junk that's out there at anything close to its value will be if the paper value is allowed to conform to reality. A market devaluation is not only inevitable--it would also be beneficial if the panic effects could be controlled. A bailout is exactly the wrong medicine in this crisis, since it will maintain the fictitious asset valuations that are causing the liquidity crisis in the first place.
if the paper value is allowed to conform to reality
how do we do that
By repudiating the concept of a bailout.
Well, I have to agree with you. McCain showed decisive leadership at this time. His political instincts have been rather good these past 4 weeks.
If he gets elected, and I will vote for him, I image that I will disagree with many of the things that he does. But he has good political skills.
NO BAIL OUT!
If the Democrats are for it you know it has to be bad.
George W. Bush, Ben Bernanke & Hank Paulson disagree with you. These geniuses think that the U.S. Government (read: the American People) should buy this toxic debt from Wall Street for ABOVE fair market value prices, QUICK! NOW! DON'T DELAY!
That way, the banks holding the garbage won't have to realize the actual (true) loss on their accounting ledgers.
Nope, Republican leaders of this Nation - guys we fought hard to elect into office - want to let the taxpayers be on the hook for the massively overstated prices on the toxic debt.
Some of this debt would be overpriced at 10 cents on the dollar - but our very generous Government, in order to "protect main street", will end up paying 40, 50, 60 cents on the dollar for the sh!tpile - and then will tell the American people what kind of great (money making opportunity - hah!) deal it just put together.
THANKS, BUT NO THANKS BUSH!
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