Posted on 09/27/2008 9:52:51 PM PDT by BAW
House and Senate negotiators have reached tentative agreement on a financial rescue plan after a marathon Capitol negotiating session that started Saturday afternoon and stretched into early Sunday morning.
House Speaker Nancy Pelosi (D-Calif.) and Sen. Majority Leader Harry Reid (D-Nev.) said the deal still had to be “committed to paper,” a process that will continue throughout the night.
Republican Whip Roy Blunt (R-Mo.), the chief Republican negotiator, said he was “looking forward to what we’re going to see on paper” but said he was optimistic that it would be something House Republicans could support.
Said Treasury Secretary Henry Paulson: “We’ve been working very hard on this and we’ve made great progress toward a deal which will work and will be effective in the marketplace and effective for all Americans . . . .We’ve still got a lot to do to finalize it, but I think we’re there.”
The plan is likely to give Paulson a relatively free hand accessing the first $350 billion of the $700 billion he sought. It was not clear when the remaining $350 billion would become available, but Treasury apparently agreed that a future Congress could block its release though a joint resolution signed by the president.
The deal also includes much greater oversight than the Bush administration had initially proposed; an opportunity for the government to take an equity share in the companies it helps, either through warrants or options to buy stock; and a provision limiting the compensation paid to executives of those companies.
To help win the support of House Republicans, the deal also likely includes an option under which Paulson and future Treasury secretaries could choose to sell companies government-backed insurance to cover securities – thereby improving their value – rather than buy the assets as initially proposed.
(Excerpt) Read more at politico.com ...
This will be yet another example of free market getting blamed for problems caused by government interference with the free market. I don’t think I am ever going to forgive the Bush Administration or the current Congress for this one, no matter what they pass. Especially if it ends up costing McCain the election.
If this deal turns out to be acceptable to the GOP House (relatively speaking), I want Blunt, Boehner, and McCain to give their own press conference and tell the truth about what happened last week (as reported in the Politico story). The public needs to know.
This would be laughable;le if it wasn't so ignorant. Who do you think will have to pay the $7 billion-$2 trillion back? All those people you say won't be hurt. Whose money is going to be further devalued? all those people's that you say won't be hurt. Whose Country built on capitalism will sink further into government controlled socialism? The Country of all those people you say won't be hurt.
2. Potential credit worthy borrowers might be hurt without this providing enough liquidity so lenders continue to lend.
This is bull. There are plenty of sound financial institutions that are now and will be happy to lend to sound creditors.
3. We hope potential uncredit worthy borrowers hopefully will not get loans after this. The are in general not hurt, they just don’t get to borrow for houses they cannot afford.
There is nothing in this bill that will make it any harder for deadbeats to get mortgages. The legislation requiring this is not being repealed.
4. Lender who were hurt by the actions of prior Congresses who passed laws forcing them to lend to the uncredit worthy are the ones hurting and since we did this to them we should help them out.
You're way out in liberal kooksville now. There are plenty of sound financial institutions, working under the same laws, who do not have portfolios of bad loans and are financially sound. These are the institutions that should be rewarded. Reward success not failure. That is the American way that built this Country. The government now wants to destroy this and make taxpayers prop up corrupt losers.
NO WAY!
Okay, so I’m not alone...
This place sometimes seems as shallow and uncritical as Bill O’Reilly.
Nationalizing the banking industry. What a quaint idea.
That will not happen, at least not before this year's election. And even if they did, who would report it?
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
I am not a Kool-Aid drinker, but I know facts. This has to do with little guys being given loans they were not credit worthy enough to merit. The “little guys” FROM GROUPS WHO TRADITIONALLY VOTE DIM are not hurting, they benefitted from this.
As to the “scare tactics,” I would love to hear your evidence that the commercial paper market is just fine. I know that lending is up over the last two years. But the last two years is not the issue. The issue is there a credit crunch now. So pony up and give me the evidence you have to counter what the President, Secretary of the Treasury and the Chairman of the Fed are saying about the commercial paper market?
Fox News will report it. Their reporting has been excellent on this entire mess, Bret Baier in particular.
Not good enough. Fox News is basically preaching to the choir because most conversative Republicans don't watch other cable new channels and liberals/moderates generally don't watch Fox News.
As an example, Hannity had an interview with Governor Palin to help her defend some of her positions. Did that make it to the MSM? Not a chance.
Just saw this:
http://www.washingtonpost.com/wp-dyn/content/article/2008/09/28/AR2008092800064.html?hpid=topnews
There’s a difference between insuring it and having an ownership stake which - believe me - could very easily need to nationalizing under President 0bama.
A Stamp Act!!! Note the party who wants this!
The Brits did this about a year ago. They had to recind it or face revolution.
yitbos
McCain can tell the true story in campaign appearances, speeches, press releases, ads, you name it. He is the GOP nominee for President. The media has no choice but to cover him. As Sarah Palin told Shawn Hannity, every conservative candidate has to learn how to put up with — and, when necessary, work around — left wing media. There is no point whining about it (her exact words as I remember them).
4. Lender who were hurt by the actions of prior Congresses who passed laws forcing them to lend to the uncredit worthy are the ones hurting and since we did this to them we should help them out.
there are 2 problems here. 1) freddie mac
2) inflation. and I think we’re only going to see more inflation by bernanke
Is there some reason why you are ALWAYS pessimistic? Do you enjoy living life with the glass half empty?
Certainly this gives the government more of an incentive to inflate. So I too worry about that.
So, when I see what is happening in other states and how they are starting to swing toward the DEMs away from the GOP, even with a race-bater such as Obama running for the DEMs, I sense many of these states going in the direction that CA and my county/congressional district did the past 20 years.
So sue me for me a pessimist.
I really do not understand this mortgage insurance idea. The House republicans had an opportunity and blew it.
We? Ya’ll got a mouse in your pocket?
Where do think the money is coming from?
The cartoon is spot on.
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