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 ...
I won’t be happy until Boehner, Pence and Cantor tell me I can be happy.
My gut feeling is that the dems played a bit of bait and switch, telling Rep. Blunt what he wanted to hear so they could have this celebratory fist pump announcing victory but then when we see it in black and white, it will be much different than promised.
What would the Republicans do then? Back out and say they were hoodwinked or go with the flow?
It’s just my guess and of course I could be so paranoid with these leftist yahoos that it’s my nature to see the liberal barbarians at the gate even when they might not be this time.
On second thought...of course they’re there. I just hope this doesn’t turn out as badly as my gut is telling me.
Well I guess you’ll be up at 630 am to post the latest Rasmsusen numbers if they’re bad, but you can go back to sleep if McCain gains ground. Haha, just kidding.
Still can’t find anything in the constituton authorizing the government to extort money from taxpayers to bail out poorly managed multi-bilion dollar financial firms.
Hopefully this deal with band aid up the market and stop the McCain bleeding so we can go back to the normal campaign. The next white knuckle event will be the VP debate. Any error by Palin will be trumpeted by the media to no end, but they’ll cover up any Biden gaffes.
"And while McConnell was not yet ready to abandon House Republicans — or John McCain — sources said his views might change if there were still no deal by Sunday evening."
yitbos
Certainly if the Politico article is right they got little besides ACORN out of it. Still it is important that emergency bills not become Christmas trees.
So you think the constitution bars taxation? I think there is a specific ammendment that authorizes income taxation. In addition there is a commerce clause, that permits government intervention in markets. And if ever something was being done for the general welfare, ie preventing a credit crunch and a 1930s style contraction, this is it.
So sorry you need to make a political or better an economic argument, because your constitutional one holds no water. Maybe the wories about the economy are wrong, but certainly authorizing the Dept. of Treasury to buy up assets is legal. We did buy Alaska at one time and you are not trying to say that was illegal, are you?
“We are buying assets.”
Who is “we”?
“Buying” And where is the money coming from? Is the fed going to keep the Zimbabwe pressing running?
“Assets.” I have one dollar I’ll sell to you for three.
Excellent points.
Here is the logic the backers of this plan are pushing:
“The country is in trouble because of too much easy credit and undersecured loans. On the advice of the lenders responsible for this crisis we propose to fix the problem by offering easier credit and undersecured loans to these same people.”
Loan money is available right now from responsible lenders for qualified buyers. The CEO of my Credit Union just did an editorial to that effect.
If the goal of this “fix” was to get liquidity into the mortgage market the money should be made available to responsible lenders who are not ready to go belly up with all the bad loans they have made.
The real object of the plan is to bail out fat-cat cronies on Wall Street. The plan rewards poorly managed but well connected businesses and punishes thrift and sound business practices.
Please reread my post.
I didn’t say the constitution bars taxation.
I said I couldn’t find constitutional authority for forced massive wealth redistribution.
No need to think that there might be a specific ammendment authorizing income taxes - any student of the constitution can tell you it is a fact.
Then you are left with your claim that the purchase of Alaska was unconstitutional.
We are buying some assets. Do you believe the constitution allows the US to buy assets? Do you think there is some restriction to real or tangible assets or can the US constitutionally buy paper assets? Do you think there is some clause in the Constitution that speak to the correct valuation of assets and says what the US can or can not pay when it purchases assets. Purchase of assets is what this bill is about.
“...uncritical as Bill O’Reilly,” I really like that phrase. My wife will like it even more as she can not stand him.
Horrible friggin’ deal. For fear of an adverse equity market reaction which is ultimately necessary to correct for the excesses of the home price bubble fueled by inflationary policies of the Fed in concert with the issuance of a mountain of debt by quasi-Federal government agencies, we just kick the problem on down the line.
At some point you give up everything you believe in just to, perhaps, have a better shot at winning an election.
This really didn’t become a major crisis until Goldman looked vulnerable. Now who do we know who used to work at Goldman?
Naturally those who enabled and abetted Fannie and Freddie in creating this mess will skate through the rest of their lives without so much as a slap on the wrist.
Right now Treasury is scaring Congressmen with tales of a market crash and the possibility of the swarthy masses violating breaking into their homes and violating them in every way biologically possible.
Warren Buffett breaks off a crumb for a nice stake in Goldman with a guaranteed return, then calls up his gal pal Nancy and proceeds to instruct the Congress that, yeah, you need to help my return on that deal.
Conservative House GOPers fight the good fight for a little bit, but ultimately cave. Senator McCain and Lindsey ‘Cracker’ Graham hug...er, huddle and decide that the deal sounds marginally more conservative than the original proposal.
Barack, of Kenya cum Indonesia cum Hawaii cum LA cum New York cum Hyde Park cum Oprah doesn’t get called so he calls in and learns what someone else who was doing his job decided.
Meanwhile, out in flyover country, the rest of us have the honor of paying for this madness.
Why, why on Earth should I care about where we go from here? Yeah, so ACORN nuts don’t get some federal goodies. Grand. What is left now to defend? Lost in all of this recent crisis is that Detroit received their own socialist special, a $25 bil handout likely to increase as politicians from both parties fight for the votes of union members and former union members in Michigan whose ridiculous wage and benefit demands, enabled by law, have helped destroy the American automotive industry and set it on a path to DC with hat in hand.
I love my country, but I hate most of the morons who live here. You claim to enjoy freedom but most of the time you are using the federal piggy bank to enrich yourself when you aren’t crapping on the Constitution.
You debate like a democrat.
In what way? What are you “debating me” about? We agree:
1. that the government can raise funds via taxation, borrowing or printing money, right?
2. that the government can buy assets like Alaska or securities, right?
3. that the purpose of this bill is to allow treasury to be a whole bunch of assets, right?
So it would seem that we are in agreement, this bill whether you like it or not is Constitutional.
if this is a bailout in installments, its even worse. We’ll get reamed several times over. I don’t know how we’re gonna stop a freight train express on a Sunday.
//////////////////////
I predicted this. (Buffett’s “time bomb” goes off on Wall Street
Wednesday, September 24, 2008 12:16:00 AM · 11 of 28
TomasUSMC to politicket
The Bailout Bullsheeters will come out with a smaller delayed spread out plan of 5 or 6 bi-monthly “SMALLER” bailouts.
Each of which will start out at less than 100 billion (Like the old 99.99 price tag) but whose fine print and loop holes will balloon secretly to a trillion dollars each.
That is the back up plan we need to smash like a baby cockroach.)
We are going to rape you little by little so it doesn’t hurt.
We are at war. Time for a Green CounterRevolution, Green like Money.
lets remember the words of a real man and American........
Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves.’’ .......I intend to rout you out and by the Eternal God I will rout you out. If the people only understood the rank injustice of our money and banking system, there would be a revolution before morning.” —Andrew Jackson,,
I say beat them to the punch.
We must Run ON THE BANKS
This is not a depression. Look at how strong the Market is. We are at 11000! We’ve come down 24 percent from the alltime high.
After 911 we were down 36 percent from the high, and down to 7700.
A) When they stop the bailouts we stop our run.
B) When they put folks in jail, like they did Milken, then we start to reinvest.
C) They start bailouts again, OFF TO THE RACES AGAIN.
D) GO TO STEP A
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.