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Obama vs. McCain -- 38 days to go. Economic Bailout Deal Approved. (526 hits)

The final product appears to be a genuine compromise stitched together from competing ideas, with House Republicans getting some - but not all - of their insurance-based proposals, which had nearly knocked talks off course, into the deal. Senate Banking Committee Chairman Chris Dodd (D-Conn.) and Budget Committee Chairman Kent Conrad (D-N.D.) said all major issues among the competing sides in the talks have been resolved.

- The $700 billion total would be broken into stages, with an immediate $250 billion made available to Wall Street, followed by an additional $100 billion released anytime at the request of the president, followed by a remaining $350 billion made available by Congress.

- Congress could disapprove the last $350 billion, but only through a disapproval resolution that would be subject to a presidential veto. There is no timetable for the remaining $350 billion, meaning that the entire $700 billion could be made available quickly and simultaneously.

- House Republicans' idea for an insurance pool to protect mortgage-backed securities = expanded to include other troubled assets - and funded by premiums on financial institutions is in the plan, supervised by Treasury officials who will set premiums. The program would be voluntary for companies.

- Taxpayer equity in the companies, intended to let taxpayers recover their investment as the companies recover.

- Executive pay limits intended to prevent "golden parachute" scenarios for the executives of failed companies.

- An oversight board would be established, with seats for the Treasury Department secretary, Securities and Exchange Commission chairman, Commerce Department secretary and Federal Reserve chairman.

- Bankruptcy provisions for which Democrats had fought hard are not in the plan. Known as "cram-downs," the provisions would have allowed bankruptcy judges authority to revise the terms of mortgages.

The proposed legislation is scheduled for a vote on Monday in the House. A vote in the Senate could take place as soon as Wednesday.

There is no indication that either Presidential candidate can claim real leadership on this measure. It may be that this is the last hoorah for President Bush, who sent a 3 page proposal to congress which resulted in a 110 page piece of legislation with key elements from both parties. Can anyone say bi-partisan? In the end, the political objective was to get everyone in the boat so that no one could claim credit nor cast blame for success or failure.

Posted By: Roger E Madison Jr
Monday, September 29th 2008 at 12:34AM
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Irma, your concern is closer to reality. This isn't a pretty picture, and there are few winners in the outcome of this mess. Worse, the biggest culprits are likely to get off without missing a beat. Sadly, a lot of well-meaning fokls are discovering what happens when "the market" is over lubricated with credit and paints a false picture of prosperity for the world.

The suffering at the bottom will get worse before it gets better. The real answer to this crisis will come 4 or 5 years from now, as you suggest. Then we will see how the recovery is structured to realign the global economy. This is our first experience in the "post-industrial economy" where consumption is the driver of all things economic. Credit is required to fuel that consumption. The question is, "What is going to replace good old fashioned labor and hard work?" This is not just an American problem. However, at this moment in history, the world is looking to America to come up with the solution. Only time will tell the complete story.

Monday, September 29th 2008 at 8:57AM
Roger E Madison Jr

Mozell,
Your concern is absolutely on the money (no pun intended). The old adage "the devil is in the details" applies here. What started out as a 3 page proposal is now a 110 page bill. The unfortunate issue for common folks is that there is a rush to pass this by Wednesday, and it will take a considerable effort by voters to read and comment in a meaningful way prior to the congressional action. One of the published points of agreement seems to indicate a taxpayer return. How that return will be manifest isn't clear. I don't suppose we will get a check in the mail.

The messages about the Great Depression bailout, and the S&L Bailout claim that the taxpayers ended up with a "profit." I suspect that there won't be any "windfall" from this legislation. The best they will be able to do is to establish a floor under the freefall that is taking place. Just last night, CitiGroup bought the banking operations of Wachovia Bank. The Global Financial Markets are nervous, and Wall Street isn't showing any signs of encouragement about the news. It will be a while before anyone sees daylight out of this darkness. The best we can hope for in the short term is to keep the wheels of the economy turning -- slowly, insted of grinding to a halt.

Anyone who doesn't lose their job should be grateful in the short run.

Monday, September 29th 2008 at 11:05AM
Roger E Madison Jr

Well, the vote today partially answered the question for us. We have two days to let our representatives know what we think. There should be a copy of the bill at
http://www.publicmarkup.org/bill/emergency... You can read the bill and post your comments here.

Monday, September 29th 2008 at 8:08PM
Roger E Madison Jr

Roger, I will repeat what I said on another blog related to this bail out.I put no trust in the "might', "maybe" when it comes to how the taxpayers will benefit in this deal. I have even less confidence in nothing but the bail out will happen until five years from now and then it will be up to "President______"!

There is not going to be any difference in our economy's self-greed distruction if the truck drivers can still not afford to put gas in their trucks! If the big car makers can not sell cars, new/ used! The loss of a job is just as lost if it is outsourced or lost in America. England just took over one of their banks. Only China has money and they will be getting oil from Iraq if our troops remain there to protect the oil fieldsfor their new contract just signed with the Iraqi government.

PLEASE, the fall of the American empire is lost and only delayed the stock market crash; remember those credit cards that are being used to run those cars of the homeless who lost their jobs and home will be coming in for help sooner than later! Wake UP....to the real world that can not nor could ever afford to buy stocks now can not even afford to buy bread at Wal-Mart...is the American economy's main stay or was...
Thursday, April 10th 2014 at 6:47PM
ROBINSON IRMA

Let us try it from this poiint of view.The medcines my grandmother used when I was a child is only different today as it is now a chemical with perservatives (causing major side affects, etc.)in them. We can not afford to go to a doctor and if we can they have nothing for the super bugs. The "poor" people already know about these safe and cures -things and must now go back to the old ways?

Those of us who plant flowers will now plant healthy vegetables leading to less packaged foods being fed to our childrens. Less, sugarladen, dry cerals and may be back to those good old healthy hot breakfasts?

Are we going back to a simple better life or what?
Thursday, April 10th 2014 at 6:47PM
ROBINSON IRMA