Archive for Friday, September 26, 2008

Bailout proposal breaks down

September 26, 2008

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— A Republican rebellion stalled government efforts Thursday to avoid economic meltdown, a chaotic turnaround that disrupted the choreography of an extraordinary White House meeting meant to show joint resolve from the president, the political parties and the presidential candidates.

After six days of intensive talks on the $700 billion financial industry bailout proposed by the Bush administration, there was more confusion than clarity.

An apparent breakthrough was announced with fanfare at midday by key members of Congress from both parties - but not top leaders. Wall Street cautiously showed its pleasure, with the Dow Jones industrials closing 196 points higher.

But the good news and the market close were followed by a rash of less-positive developments.

Washington Mutual Inc. was seized by the Federal Deposit Insurance Corp. in the largest failure ever of a U.S. bank, after which JPMorgan Chase & Co. Inc. came to its rescue by buying the thrift's banking assets.

And a late-afternoon White House summit bringing together President Bush, presidential contenders John McCain and Barack Obama, and top congressional leaders, described as "a full-throated discussion" by one person in the room and "a contentious shouting match" by McCain's campaign, broke up with conflicts in plain view.

Meanwhile a group of House GOP lawmakers circulated an alternative that would put much less focus on a government takeover of failing institutions' sour assets.

Comments

bondmen 6 years, 7 months ago

Dear Senator/Congressional LeaderThe Paulson plan is not workable. It is a sellout to corporate America at taxpayer expense.Mad Rush To Financial JudgmentToday President Bush and Treasury Secretary Paulson are preaching the same story. * There can be no delay. * Sweeping new Powers for the Fed are needed. * The Treasury needs $700 billion dollars. * There is no time to study alternatives.Senators, in your heart you know all of the above are lies. It was the very same mad rush to judgment that started the Iraq War. We do not need and cannot afford a financial mad rush to judgment.Thee odds of failure on the Paulson plan are 100%. The Paulson plan will not create any jobs or help homeowners pay their bills. Instead it diverts $700 billion of taxpayer funds to failed banks that took excessive risks. The sheer size of the bailout will cause interest rates to rise, further adding to taxpayer woes.Long term interest rates are already up a half point on news of this bill. They will rise more if it passes. How is that supposed to help homeowners?Robbing taxpayers to pay failed banks cannot possibly work!Printing money and giving it away cannot work either. If it did work, Zimbabwe would be the most prosperous nation in the world.190+ Economists Slam BailoutOver 190 top economists in the country have slammed this bailout on grounds of fairness, ambiguity, and long term effects.http://faculty.chicagogsb.edu/john.cochrane/research/Papers/mortgage_protest.htmWhat is it that Paulson knows that 190+ economists don't? After all Paulson was telling us all how safe the US Banking system was just a few weeks ago.Paul Oneil Is Against The PlanFormer Treasury Secretary Paul O'Neill said today that our nation's leaders -- especially President Bush -- are "in a panic" and haven't thought through the $700 billion bailout plan in a rush to pass it by the end of the week."I don't think he understands or knows much about any of this and it shows. It is possible to re-liquefy the credit system without 'We the People' owning $700 billion worth of homes," he said.BB&T Corp. Chief Executive Officer John Allison critiques the planTreasury "is totally dominated by Wall Street investment bankers" and "cannot be relied on to objectively assess" the impact of government policy on the financial industry, Allison wrote in a Sept. 23 letter to Congress.The letter was verified by Bob Denham, a spokesman for BB&T, North Carolina's third-largest bank.Our prayers are with you that you have the courage to stand up do what you know you must do: Block This Bill.I cannot and will not vote for any member of Congress who votes for this bill in its current form or anything remotely close to the current form.It is time to scrap the Paulson Plan and start all over.Your NameYour Phone Numberhttp://globaleconomicanalysis.blogspot.com/2008/09/take-back-america.html

gr 6 years, 7 months ago

"* There can be no delay."Kind of reminds you of the global warming scam.Act, then think.

gr 6 years, 7 months ago

Just wondering if there is a possibility of the government taking over house ownership. That way, no one owns houses and the government controls who lives in which houses. Because, owning property is bad. Mother government protects the people and provides for them "fairly" by taking from those who achieve more than they should.Ha!

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