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September 19th, 2008
08:59 PM ET

Evening Buzz: Bank Bailout

Maureen Miller
AC360° Writer
 
No envy here. It's going to be a tense working weekend for the big wigs who are trying to fix the U.S financial crisis. We're talking about a massive bailout for banks faced with losses from the mortgage meltdown. The cost: hundreds of billions of dollars. That's on top of the more than $800 billion dollars (of your tax dollars and mine) already spent on other bailouts and programs to try to fix the shaky economy

 

The Bush administration and Congress are working to hammer out a final plan. The big question: Will it work? What do you think?

On the campaign trail, both John McCain and Barack Obama have been talking up their own economic plans. Tonight, we check the facts. Will they work?

Also tonight, the female vote. It's a crucial vote block this year. So, who has the edge?  Erica Hill breaks it down for us.

All that and more tonight on 360.
Hope you can join us.

And, have a great weekend!


Filed under: Maureen Miller • The Buzz
soundoff (121 Responses)
  1. robin

    I am sending this question to every talk show host I can think of because, for the life of me, I can't figure this one out. I heard a comment from a member of congress, who happened to be a republican, regarding the Bush administration's decision to bail out private corporations and whether or not there should be limits on the compensation packages of CEOs for these failed companies. His position was that a private company's board of directors should set the CEO's compensation, not the federal government. Are you kidding me??? In the commentary before and after his statement, it was estimated that the cost to taxpayers for these bailouts will easily top the 1 trillion dollar mark... If the government and its citizens are good enough to foot the bill for the bailout, it seems to me that a limit could be set on how that money is spent, ESPECIALLY if their decision-making ran the company into the ground in the first place. Here's a better idea, why not have the Board of Directors foot the bill for the bailout... maybe then they'll give the CEO's the sendoff they deserve.

    September 22, 2008 at 8:51 am |
  2. Mary

    GREED GREED GREED !!!
    I'M SICK OF THE CORPORATE GREED AND AND I'M SICK OF PAYING FOR IT. 700 BILLION!? SURE MAKES OUR 600 DOLLAR 'ECONOMIC STIMULUS' CHECK LOOK LAUGHABLE. OTHER COUNTRIES MUST THINK WE'RE A JOKE.

    September 22, 2008 at 8:36 am |
  3. Natalie from Atlanta

    What if, instead of having tax payers pay this off... we cash in on all of the money we've loaned other countries over the years? Seems these countries are in far better shape than we are. I'd bet if we tallied those loaned dollars up, we could get out of this crisis in a jiff. Who's with me?!

    September 22, 2008 at 7:06 am |
  4. John

    Why is it better to print 700 Bi of paper than just let the banks work out the problem they created?

    The government does not have any money, only an official printing press.

    Why bail out foreign banks that bought mortgage rights for profit? Isn't there always risk involved in potential profit?

    Why listen to the Secretary of the Treasury now when he sat back and allowed all this to happen?

    The argument that as soon as banks can clean up their balance sheets they'll start loaning again and that will be good for business and middle America is so lame I won't even comment...

    September 22, 2008 at 4:16 am |
  5. Don, WA

    I'm not brilliant – but if I were president I'd regulate wallstreet (because I understand greed) – and I would'nt allow loans to those who could'nt pay them back – is that so hard? Where's Bush? Where in the heck is Haliburton Cheney? Disgusting.

    September 22, 2008 at 2:20 am |
  6. Maggie B

    Beginning with Reagan's administration, Congress has failed to do its job of protecting the interests of the American people. This bailout is just another handout to the rich. Taxpayers are being told that we have to take over the bad debt of greedy private investment companies because our financial system is in jeopardy. If we are on the verge of a meltdown, (1) why aren't the officers of these companies being mandated to return the millions (perhaps billions) they walked away with, and (2) why aren't profitable corporations (especially Halliburton and other oil companies) contributing to this rescue fund? Everyone should be working toward closing the ($ unknown) financial gap - not just the overburdened taxpayers who are now the only people paying the consequences of deregulation.

    September 22, 2008 at 12:36 am |
  7. Janice

    You guys are missing the point when it comes to Fannie Mae/Freddie Mac. I don't think that is is so much as they gave loans that didn't qualify as much as ppl are losing their jobs because of the economy. That is the problem. It is the ripple effect to everything, walls street, banks, mortgage co. I think the Government is so dum. They are blaming the banks/mortgage companies for defaults on lows, but they as well as the customers can't help that GWBUSH has done nothing to increase jobs. High Gas prices was the first to cause small businesses to go out of business and therefore ppl lost their jobs. So the fact is the banks/mortgage co. nor their customers are to blame. It is the government for not increasing jobs for more ppl in the U.S. than ever and not only not increasing the jobs but literally losing jobs. Don't blame freddie mac/fannie mae. I know we had a fannie mae mortgage once and we had to meet quite the criteria to get it. MOre than any FHA mortgage so put the blame where it belongs on the economy; job loss. Failing economy thanks to Bush putting us so far in debt. Bush knew nothing of how to deal with the economy and unforunately we may have another president elected "Mccain" who knows as little as Bush.

    September 21, 2008 at 11:49 pm |
  8. Gerriw

    Can you please explain why we are bailing out the financial market when according to the British press it has been confirmed by Barclays that the employees of Leman brothers will share a 2.5 billion dollar bonus?????? I guess I'm stupid. How is it a failed banks employees get a 2.5 Billion dollar bonus????????? And we are bailing the financial market out for whose benefit??? Defiantly not the average person. I'm a nurse, if I fail at my job I certainly don't get a bonus, may be a law suit, but defiantly not a bonus. My vote goes to the Democrats. Get the fricking Republicans out of office. Eight years and they have destroyed not only the country but the world. If this isn't a spark to light the war of the classes I don't know what would be.

    September 21, 2008 at 11:45 pm |
  9. t

    What ever the Bush administration wants to do DON'T DO IT!!!!!

    September 21, 2008 at 11:38 pm |
  10. KS

    STOP IT, STOP IT, first it started with P. Graham starting a bill to stop the difference and regluation regarding commercial and investment banks and B. Clinton signing that bill in 1999.....Then as usual the people who are supposed to represent the people start on their selfserving journey enriching themselves.....at others expense... these highly educated con men and women, they all should be kicked out, NOW GOLDMAN & MORGAN CAN BE OPEN COMMERICAL BANKS FOR OUR DEPOSITS, I DON'T THINK SO................

    September 21, 2008 at 11:15 pm |
  11. aware

    Even if it works the next president will have to deal with the necessary reforms! That is no job for Obama! 😦

    Party first for Obama! Ah-ah-ah-ah – what should I say now he equivocates and the dems tell him! 😦

    More words that Obama can't deliver on!
    He is a follower and not a leader.

    Also, Obama has been feeding at the trough of Freddie and Fannie and is just part of the problem! 😦

    And, Governor Palin drew a crowd of 60,000 in little Lady Lake, Florida while Obama drew a crowd of 20,000 where he was stumping! 🙂

    Palin knows how to talk to people and has an intuitive gift of taking their pulse! 🙂

    Americans need Senator McCain and Sarah Palin to deliver the reforms they need! They have the experience and the proven record of doing just that!

    McCain/Palin 08! Country first! 🙂

    September 21, 2008 at 11:15 pm |
  12. Gilby-HI

    Back in the good old 90's we had LMI Investment Outreach Workshops.. Does anyone recall. (Low and Moderate Income loans,
    Federally Insured,
    Thank Baba for today bailout needs

    September 21, 2008 at 10:35 pm |
  13. Annette Guess

    Am

    Am I the only one to notice Mccain cannot make a speech or go befor a crowd without his wife. Is she his cruch?

    September 21, 2008 at 10:25 pm |
  14. Glenn T. Cressy

    Regulation is needed first and foremost in the Credit Reporting Industry. There are no rules that they operate under. I had a "negative" removed from my credit report and when it dropped off my credit score went down two points. Hmmm? The banks control these three credit reporting agencies...Experian, Equifax and Trans Union. They use these agencies to increase the interest rates for loans. This misuse of power needs to have Federal oversight. I also believe that ALL upcoming real estate mortgages need to be at one interest rate. It can be at 5% or 6% or whatever. But, the rich, the poor and everyone in between need to have the same FAIR rate! That would be a big step in correcting what is wrong with the banking industry.

    September 21, 2008 at 10:22 pm |
  15. Michael

    It's unbelieveable that the leaders of our nation didn't take a simple econ class throughout their educations. To spend 700 billion dollars to bail out bad debts of real estate speculators is completely insane. Why dont they just print a couple of trillion dollars and give it away. I can't belive what I am hearing.
    Michael- VA

    September 21, 2008 at 10:19 pm |
  16. WA

    Yeah Bush/Republicans had to do it now Because they had no other choice. Because they waited till the last gun was fired as if there had been another choice they wouldn't have done it now! And why shouldn't they have done something to try to fix the economic disaster? After all they're the gang that caused the economic disaster. All that has been on their agenda in the past eight years was IRAQ and still is! And then there's McCain – Country First with two foreign cars out of the 13 he owns!!!! And said he owned two! Guess like the eight houses he owns he also forgot he had that many cars! And he claims Obama with one care and one house is an ELITIST!!! Ahemmmmmmmmm McCain's a Professional Liar and that's been proven!

    September 21, 2008 at 10:18 pm |
  17. Jason

    The bailout is a scam. The vast majority of the loans written in the last 5 years included mortgage insurance with them. This is paid for by the homeowner but required by the lender for loan to values of more than 80% of the property value.

    This insurance is used to pay THE LENDER in the event the home goes into foreclosure. Thus the lender will always be made whole in the event of a foreclosure.

    This is another example of the media and the general public again being duped. Please contact your Senator and House Rep and tell them to vote against this bill.

    September 21, 2008 at 9:55 pm |
  18. linda from South Dakota

    this is totally nonsense,,,, our governemts gone wild,,,, along with bush,, this will all fall back on americans per taxes etc,,,,,,when will someone stop this crap?? who bails innocent people that have lost their homes and jobs????its time we elect a president whose goin to bring this counrty together gain,, and its not goin to be mccain/palin,,, they have no idea what they are doing,,, they are a joke and embarrassment to americans

    September 21, 2008 at 9:09 pm |
  19. steve t. economics

    The politicians are acting like they have to fix a problem that the free market has created. In fact GOVERNMENT REGULATION IS THE CAUSE of the problem. Heres why. Since the early 90's the government has pushed home ownership as if it were some god given right. The governments push (numerous regulations and laws that made financing home ownership too easy to obtain) has caused lending institutions to give everyone financing.. even those that do not deserve it. Now, the Governments Bubble has burst and they are blaming the financial institutions. The government regulated the financial institutions to give away loans to those that would not have qualified for a mortgage in the past . For a hundred years banks made loans based on careful analysis of individual situations and finances. Large down payments were required and guess what? the free market worked. These old mortgages were safe investments for the banks and everyone involved (including homeowners) that are now being burnt by the governments actions. The governments intentions were good but once again the ill consequences of regulation are unavoidable. Simple economics will always prevail.

    September 21, 2008 at 8:59 pm |
  20. lindam

    Tonight 60 minutes interviwed Mc Cain and Obama. McCain is very stubborn and doesn't think what he saying and he came off so insincere and very much a lier he only cares about the rich. Obama was sincere he is for the people and raise taxes on the rich help our healthcare mess and the energy crissis. Bidden has gone on 84 interviews and Palin has gone on 2. They asked McCain if he thinks she will make a good President and he said "absoletly yes. I quess so because he won't be here to see the mess she will put this county in , she knows nothing about being a president or a vice pesident. Please I beg you to wake up people. The McCain ticket is a joke.

    September 21, 2008 at 8:53 pm |
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