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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. James Cole

    Perhaps it sounds a little too simplistic, but has anyone considered doing a CTRL>ALT>DEL and starting all over! What if everyone keeps what they have and we do a world wide Bankruptcy. What you got you got, and we start all over? It could not be any worse than what is coming down the pike. Plus it gets everything over quickly and we can move on.

    September 19, 2008 at 11:14 pm |
  2. Norm

    I wish I could say that it would, but, the past history of the Bush Administration says otherwise. After all, it is this administrration that got us into this mess through his cronyism with the oil industry and the Saudis. Should I say more?

    September 19, 2008 at 11:10 pm |
  3. Concerned Virginian

    As optimistic as I would like to be about the financial bailout, we've got to be concerned about the long term effects and what this means to the working class and increased taxes. How about the longevity and stability of the stock market, our investments, and in general- the value of the dollar. Why are we printing money in excess of the several trillion dollar deficit and how will we dig ourselves out of this hole?! Although we're on the downward slope, we're not nearly as close to the recession of the 1920's (thankfully), but we've got a ways to go to resolve this economic crisis! Certainly, the American people have the predatory lending practices, rising inflation, and lack of personal accountability to blame for the mess we're in. Those businesses brought it upon themselves, and if they fail, they fail. As my parents instilled in me, 1) read the fine print, no one is doing you any favors and 2) if you can't afford it, don't buy it- live within the means of your budget.

    As for the female vote, I believe Michelle Obama and Jill Biden will have more influence than Sarah Palin. Quite honestly, we still have no clue who Palin is (outside of her Alaskan scandals). While I can respect her feistiness, she appears to be the type of person who's not above cutting the legs from underneath you- just call it female intuition.

    September 19, 2008 at 11:08 pm |
  4. AaronP

    My wonder is two thoughts. First, are the same executives remaining with these banks or are they out as a part of this deal? Second, As part of this deal, are the executives giving up their salaries and the rights to there golden parachutes?

    September 19, 2008 at 11:07 pm |
  5. Caroleen Wilkes

    I hope the final plan by the Bush administration and Congress will work but we've been counting on them for 8 years and this group is full of disappointment.

    My hope for the McCain vs. Obama plan is that their plans are clear previews of what they'll do before we elect them as the next president.

    Regarding the majority women's vote for president I think it is or should I say should be Obama. His campaign is prochoice and he will improve job opportunities for not only men but women.

    September 19, 2008 at 11:06 pm |
  6. Keith

    Doesn't matter what obama will do when he's in the oval office. Just getting him elected is all that really matters.

    September 19, 2008 at 11:06 pm |
  7. Jim Crawford

    Wake up America! Why don't news anchors, democrats, republicans, bankers, mortgage companies, real estate companies, and others tell the truth.

    The healthiest of of all funds in the United States is Social Security. Yet the powers that be want you to believe different. Presidents of both parties have for decades borrowed TRILLIONS of dollars for our Social Security Surplus to pay for the Iraq war, highway projects, and so many other projects that if Social Security were to call the loans due the United States would be bankrupt. President Clinton borrow among the least and both Bush presidents have been the worst.

    If we allow the tyrants to follow through with the trillion dollar bailout of the banking/financial etities there will be no Social Security retirement for any American regardless of we continue to pay into the fund.

    September 19, 2008 at 11:05 pm |
  8. Joe Chalotay

    9 Trillion Dollars National dept ? Divided by the population of US, 350
    million. Equals nearly 26 thousand dollars per person !!! I hope, my calculation is correct ! This is the amount of cash every american person have to pay !! This includes babies, students, grandpa, grandma, homeless, disabled and sick as well. Will this dept ever going to be paid ?? The answer is : NO !! So, what is the solution ? Mr. Peter Schiff is 100 % correct ! TODAY, NOW, go to the bank and buy a piece of GOLD bullion, before it's too late. Why, because the US dollar is worth nothing ! A BIG ZERO ! I am certain, soon, the gold purchase will be disallowed. This is just the beginning of the collaps. I bet, this will not be posted on the net. The truth will hurt too many people. Best regards, Joe

    September 19, 2008 at 11:03 pm |
  9. Tim

    why are we letting the gov just give are money away, Give it back to us, NOT BIG COMPANYS, They will not help the people just there pockets. Give 1tril dollars to the people so they can pay there house payments .

    September 19, 2008 at 10:58 pm |
  10. Mary Ellen

    Should I cash out my stocks and put my money somewhere else on Monday?
    It won't matter who gets elected. A mess is what we have, and NO ONE anywhere has a quick fix.

    September 19, 2008 at 10:55 pm |
  11. T. Grissom, Michigan

    It's clear that Obama is leading now, with this economic crisis while McCain appears to be flailing about. McCain has other issues to worry about right now because obviously his running mate is trying to push him out of the limelight.

    September 19, 2008 at 10:54 pm |
  12. T from Louisiana

    Just because the Republicans put an unqualified woman on the ticket it does not mean that I will automatically vote for her. I find this insulting and risky on McCain's part.

    September 19, 2008 at 10:50 pm |
  13. Donald, Mississippi

    We all need to pray for America. This the worst economic shape this country has ever been in. A lot of it comes from lackluster controls from the government. With the Republicans having control of the government 12 out of the last 14 years and control of the White House the last 8 years, it's no wonder we're spending billions for bail outs, billions on a war with no end, record profits for oil companies, and the average American continues to suffer. We all need to say a prayer for America!

    September 19, 2008 at 10:50 pm |
  14. Erica - El Cajon CA

    You asked if Palin's star has fallen.......As far as I am concerned it never rose! I am so tired of hearing that she is being unfairly attacked. As they say you wanna run with the boys....then you should take what is dished out. She needs to stop whining and her campaign people really need to stop whining for her. If she is such a strong woman then she should be standing up to the people that is trying to make her a victim of politics and tell them she didn't get as far as she did by being a sissy......after all she hunts moose and is a lifetime member of the NRA and she can see Russia from her house!!!! hahahaha

    She just does not appeal to me at all and the more I find out about her the less I like her.

    September 19, 2008 at 10:45 pm |
  15. Frank Toddy

    If the Goverment can bail out the Banks and morgage companies and AIG loan company why can't the goverment help me with my overbearing morgage? I must not default on my morgage because if I do the morgage company will forclose on me. I think the goverment should have done something before it headed for the ultimate train wreck

    September 19, 2008 at 10:44 pm |
  16. vince paulino

    Im on the fence about this bail out plan. Yes the government may be able to sell off the hard assets of some of these companies going bankrupt but, what about the liquid assets? what happens to the numbers on paper? Honestly with as much "oversight" the government does why didnt Uncle Sam foresee this war on the American economy? WIth jobs leaving, prices rising, and foreclosers up its not enough AMERICAN MADE products during a war time this is a band aid for a sore economy but it may not help the infection

    September 19, 2008 at 10:43 pm |
  17. JJ Pittsburgh

    It is amazing that Palin calls herself a christian and deeply religious when she violates all christian values and principals that christians believe and support. She was pregnant when she got married meaning sex before marriage, her teenage daughter is pregnant, she had an affair while she was married, she lied about supporting the bridge to nowhere and didn't answer the question in the latest interview, she lied about selling the plane on ebay It didn't sell on ebay and in fact was sold for a loss. Now she is breaking the law with not cooperating with the investigation against her and she is conducting business or hiding business on her personal email account which got broken into. I am a christian and certainly not sinless but my christian values include truth. I don't understand why she tried to hide her latest pregnancy.

    September 19, 2008 at 10:41 pm |
  18. Kristine

    Wake up America. If you don't have the money for it don't buy it!!!
    This goes for government too.
    Americans have got to face this crisis.....we've spent too much.

    September 19, 2008 at 10:36 pm |
  19. Lee from Canada

    I, like most Americans, am appalled and disgusted that corporate fat cats are being bailed out after squandering and losing billions of dollars that wasn't theirs to being with; however, the bailout itself is nothing more than the much lesser of two evils.

    Open message to Wall Street: We're saving your hides, so you had better believe that there will be massive legislation coming down the pipe to keep this from happening again - and I don't want to hear a single whine, peep, or comment about government interference and/or oversight. You brought it on yourselves!

    Open message to Washington: If you don't draft – and unanimously pass – the massive legislation required to prevent future credit crunches such as this – you don't deserve to be there!

    It seems that it will be a Merry Christmas 2008 for everyone but the taxpayers.

    September 19, 2008 at 10:35 pm |
  20. Carol A.

    It's too bad that the feds didn't heed the warning that Obama sent them more than a year ago. Laissez-faire deregulation, fought for by Phil Gramm and blessed by smaller government/less regulation Republicans, caused this Wall Street disaster. Safety measures that had been in place since the Great Depression were removed, and greed took over. McCain has been part of the Washington sphere of influence and greed for 26 years! Now, even with dozens of lobbyists heading up his campaign, McCain promises to rout out greed and corruption. How dumb does he think American voters are? Enough! It's time for the Republicans to go!

    September 19, 2008 at 10:33 pm |
  21. Robben Salyers

    At this point and time I'm not very hopeful; I think the central banks and global banks are deeply in trouble... Without change this bailout is only a short term fix.

    As we have all witnessed over the last few days, the United States Treasury has put 185 billion into the money markets. This action in and of itself reveals to us how deeply the central banks operational frameworks are under stress .

    The clever use of credit swaps, derivatives, and the use of off-balance sheet accounting have pretty much put a knife in the U.S. and the world economy.

    As I see it, there needs to be greater oversight of capital, liquidity and risk management. We need to enhance transparency and valuation. We need to change the role of credit ratings. The credit rating agencies in respect of structured credit products have failed in their mission. We have weakenesses in disclosure, feedback effects between valuation and risk-taking. We have weaknesses in the regulatory frameworks and other polices.

    A full pledged effort needs to be made to enhance transparency and valuation. We need to strengthen disclosure requirements. Particular attention needs to be paid to transparency in structured products, as market participants and securities regulator expand the information provided about securitised products and their underlying assets.

    September 19, 2008 at 10:31 pm |
  22. Tom Guise

    Millions for this Wall Street Firm and Billions for this Insurance Co. Oh, and yes, Millions or Billions for Freddie/Fannie.
    Billions for the war, Billions for our overseas Friends, even those who really cant stand us.

    And now, due to Fraud, Greed and outright theivery, Approximately 1 TRILLION to bail out the banks, wall street firms and other "financial institutions" who have taken advantage of the "average american" at every turn they could.

    NO! I reject this!

    I don't trust any of them, nor do I trust the government. If it means the bottom falls out, then so be it. If it means that all of the large prestine companies who had it all, fall flat on their face, so be it!

    The greater majority of "US" American Average consumers are scrimping and juggleing and praying that we survive until next month when the next round of bills show up. And those who have funds (legal, stolen or otherwise) will "now" reinvest because the US (Average Citizen) are going to back them up through our elected elite.

    By the way, what would "actually happen" if the govt does not bail them out? More foreclosures? More jobs transferred overseas? More layoffs? More enrons?

    I guess I would continue to reinvest, if I had some fools willing to back up my next round of craps.

    September 19, 2008 at 10:29 pm |
  23. Elise Young

    McCain blames Obama because of his connection to Fannie Mae? How about McCain's connection to Phil Gramm? Isn't he the one that slipped in a last minute provision into the Commodities Futures Modernization Act of 2000 – that protects financial institutions from over-regulation? According to Gramm, the bill provides "legal certainty for the $60 billion market in swaps". The Act deregulated the derivatives market despite concerns from the White House.

    If you think Palin was a poor choice, how about "a bunch of whiners" Phil Gramm as Treasury secretary in a McCain administration?

    September 19, 2008 at 10:28 pm |
  24. James,MS,US

    Its just simple, to cut a little of the giant debt and bank buyout is to end the war in Iraq that we spending like 12 Billion dollars a month!!!

    September 19, 2008 at 10:27 pm |
  25. JOE N. PIGOTT

    We are so fortunate that Social Security was not privatized and our funds deposited in stock of Enron, World Com, A.I.G and several other large corporations.

    September 19, 2008 at 10:26 pm |
  26. Erica

    Sara Palin has lied on so many issues why hasn't that mattered to some of these women voters?

    September 19, 2008 at 10:26 pm |
  27. Aaron Felman

    Do i smell more dissolution of the middle class with this? I think so...hard working American people suffering even more, we are the backbone of this country and our country, our economy, our political structure is not geared towards protecting US! This is entirely backwards....

    September 19, 2008 at 10:23 pm |
  28. Lou L

    It's simple. Here's the analogy:
    The economy is like a person.
    The Republicans looking the other way for 7 years with no regulation or oversight of predatorial activity is like cutting the arm off the person (economy).
    If nothing is done (which generally speaking capitalism and the republicans dictate), the person will spout out blood for 5 minutes and die.
    Someone has to apply the tournaquet (even if that is a Republican).
    Once the person (economy) is brought to the hospital and surgery is done, then the Democrats and Republicans can get together and implement a Capitalistic society once again but this has to have some Government oversight-minimal oversight to keep people transparent/intelligent/fair/ and accountable.
    Why is this so hard to understand?

    September 19, 2008 at 10:21 pm |
  29. Sean

    As the financial markets self destruct and the US Government rushes in with more of our money to prop it up, I don't hear one word about holding anyone accountable. Are the CEOs and multimillionaires in these companies walking away with fortunes while we clean up their mess? I don't like it but I understand the need to keep these institutions standing, but please tell me the leaders of these companies are facing some penalty

    September 19, 2008 at 10:21 pm |
  30. vic nashville,Tn

    Many small business owners are panic and nerves now

    Small business mean 5 to 10 employees working there( gas stations , Motel, car dealers and restaurants )

    Due to current economy and Obama tax raise

    Till today Obama plans are not clear ( Economy, Education and Immigration)

    My prediction is these are voters will decide this election

    May be now Obama can enjoy the situation but long term it will hurt him

    September 19, 2008 at 10:20 pm |
  31. JJ

    America' is for sale and has been. I am angry that Taxpayers are paying for the poor performance of CEO"S who are making millions per year and have millions for severance packages which they receive even when the companies go under or bankrupt e.g. countrywide mortgage. The republican administration knows that our country lacks liquity. We are trillions in the hole with the iraq war and thiis will cost trillions which we do not have. Any foreign investors will control American policies and government in the future. I do believe that the bailout of Bear Sterns, Fannie and Freddie Mae, and AIG were necessary but this could have been avoided way before it happened. Everyone knew there was a real estate boom and it would fall like the internet company boom in the 2000s but this country promotes debt, credit and not savings. The american people are used to buying on credit and now with layoffs, home foreclosures, and no emergency savings. Bush, John McCain, ceos and investors have robbed the american people.

    September 19, 2008 at 10:16 pm |
  32. Aaron Felman

    What kind of ramifications will this have for my generation? I am 23 years old, Iraqi veteran and have saved thousands from my deployment into an IRA and mutual funds. If inflation is going to skyrocket, what are the ramifications for 10 years down the line? It's a scary notion to think about that the money i save now will be worth less 5 or 10 years from now...I don't know what to do but after hearing what all the analyst are saying, it sounds like short term help will likely lead to long term problems that I guess the American people will have to endure because we will have no choice...what a mess.

    September 19, 2008 at 10:16 pm |
  33. Wayne

    I am waiting for the term "blank check" to emerge. No one including the Fed or the Treasury have any idea how deep the credit swap and mortgage backed securities hole is. This is big.

    September 19, 2008 at 10:16 pm |
  34. ron

    BLAME THE REPUBLICANS FOR THIS MESS

    September 19, 2008 at 10:15 pm |
  35. Kevin

    The female vote- vote-4 Hillary-Why did'nt Obama treat Hillary Clinton fairly and select her as his VP?? Biden is very old and cuts on Ohio people about kicking their A__ in football?? HuH!! What is this man talking about?? THe blue hens beating the Buckeyes?? Anyway this man is either worn out on the campaign trail or drinking too much! Way to many slips of the lipstick- Needs to stick to the issues at hand- female voters are outraged by this man. I know I work with 45 females each day!! Most would have voted for Hillary- now WHo has the edge??

    September 19, 2008 at 10:10 pm |
  36. Mike/Atlanta

    What is up with Palin referring to the Palin/McCain ticket not the McCain/Palin ticket. Also Palin referring to McCain as her running mate. Just wondering who is at the top of this ticket?

    September 19, 2008 at 10:09 pm |
  37. ann

    On the question of female vote,american women will not be fooled by the beauty queen from alaska...she is fading as we speak!!!!

    September 19, 2008 at 10:08 pm |
  38. lynn

    McCain did the same thing he did in the Georgia crisis. He tried to play president then without the facts and he is doing the same thing now. No One knows the fallout or what the final deal will be so it is best to say what you will propose once you see what Congress and the White House pass. McCain continues making this political attacking any lying about Obama. First he said Obama didn't have enough experience in Washington and now he is blaming him for everything that has happened and calling him an insider. What a mixed up mess he and his candidate are!!

    Obama is waiting to see what the plan is and to get a briefing of what exactly went on in the closed door meetings. He is backing the bipartisan efforts and recognize, until Jan when he is president (I hope) he needs to be a Senator and a candidate.

    I also think the people Obama attracys as advisors like his financial team are far superior to McCain's a few of which are lobbyist and people who wrote the laws and practices that created the mess in the first place.
    McCain is taking many of Obama's messages and coming out of his mouth with his resume, they sound phony.

    September 19, 2008 at 10:01 pm |
  39. Charlotte Mike

    This week we’ve witnessed some remarkable events. The financial crisis and candidate McCain changing from a financial-sector deregulator to a regulator. What shouldn’t surprise anyone of advanced years is that once again, the government is stepping in to hand out more welfare to the rich and corporations. What is surprising is how quickly our Republican friends change economic positions. If ever there was an indication of how serious the financial crisis is, their colossal flip-flop is it. What disturbs me most is how the average, middle class, taxpayer gets crushed in these transactions. Would allowing AIG to fail have grave implications for the average American? How could the government have played out the crisis differently and still spend the same $1 trillion in a way that would directly give every American a financial break? That $1 trillion could have wiped out every outstanding student loan debt; meant every American man, woman and child got a check for $3600 to spend at will; or, chopped $15,000 off every homeowner’s mortgage. The first item would have given this middle class voter an extra $367 a month for 20 years to spend or invest. The final insult is that the Republicans insist the middle class won’t be taxed if they are elected. Who do they think is going to pay for these bail-outs? Who is going to pay for the wars; the crumbling infrastructure; the failing schools? Maybe when the oil we get from offshore drilling hits the world market and is bought up by the highest bidder, the oil companies will use some of their profits to help bail us out?

    September 19, 2008 at 9:32 pm |
  40. Peter Downing

    According to financial reports, U SA, currently owes approx 8 "TRILLION", dollars. So stupid me asks, if we bail out banks, finanacial institutions, or whatever, who will gain even if they do sell at a pofit? The USA or China?

    September 19, 2008 at 9:31 pm |
  41. Bruce B

    Maybe we should ask the oil companies to bail out Wall Street, Fannie and Freddie, AIG, and the Treasury. They are still gouging us with $3.80 gas that should be about $3.00 based on the price of oil. President Bush said on National TV that he would go after all Companies that gouge the American public.

    It's time to put up or shut up.

    September 19, 2008 at 9:30 pm |
  42. Adam Gross

    It all seems to add up to a 8 year corporate raid of the American people's money and security. First a war based on"bad" intel. With most of the money going to the contractors. And now with all of the corporate bail outs. Who is going to bail the rest of us out? I am wondering if the people in power are just trying to avoid a recession and take us straight into a depression.......

    September 19, 2008 at 9:29 pm |
  43. Greg Lantz

    Rescuing millionaires, Sarah Palin's drop in the ratings. Why aren't we hearing about the gasoline shortage in the South. Over 85% of gas stations in Metro Nashville are tapped out. Working Americans are facing everyday difficulties and NOBODY is coming to our rescue.

    Let AIG, Lehman Brothers and the others fail. They brought it upon themselves. Help the hard working US taxpayers!

    September 19, 2008 at 9:27 pm |
  44. Greg

    I hope the plan Congress and Bush works. I'm sure they will throw more money than they already have and create even larger deficits than we have now.

    Barrack's plan will be changed once he get's into office. You would have to live in Fantacy Land to believe we could pay for everything. He will raise all of our Capital Gain taxes and the evil rich's income taxes.
    I can't figure out what McCains plan is and whatever it is has no chance for success with a Democratic Congress

    Female vote-not sure who will win. The females I know have not changed their mind.

    September 19, 2008 at 9:25 pm |
  45. janie villarreal

    My son lost his house two months ago to fannie mae in a foreclosure. fannie mae would not help him by restructioning his loan. He had two boys and was left on the streets literally. Now that fannie mae needed help we the people steped in and bailed them out. How can this happen in America. Now that fannie mae owes us the tax payers can my son have his house back , I don't think so. Outraged in the Rio Grande Valley in Texas. I like the girl from The Dixie Chics am ashamed that Bush is from Texas. I am disabled and on a fixed income now and am worried about my income and retirement.

    September 19, 2008 at 9:23 pm |
  46. Annie Kate

    I'd like to see at least one of the candidates be honest and tell folks that cutting taxes and doing heath care, etc. are going to be incompatible unless we want an even larger deficit than we already have. So voters really need to choose between the two – we can't have both.

    On the plan of Bush and Congress for this financial crisis – I hope it works. America is going to be in really bad shape financially if it doesn't – more in debt and still no relief. I also hope it works for Bush's sake – a lot of his policies have not helped this situation and now is the time for him to redeem himself. It would be nice for him to go out on a high note instead of looking like the most inept President we have ever had.

    Annie Kate
    Birmingham AL

    September 19, 2008 at 9:11 pm |
  47. Rose Webb

    Do you think we will be borrowing all of, some of, or none of the bailout money from China? Is there really any way to find out? Thanks for your good work!!!

    Rose

    :>)

    September 19, 2008 at 9:10 pm |
  48. Rose From San Bernardino, Calif

    Let's talk REGULATION! And maybe the final plan might work.

    September 19, 2008 at 9:09 pm |
  49. Keith

    Obama has an economic advisory team of about 20 folk; so its hardly his economic plan, more like economics by committee. McCain has no economic advisory team, doesn't know any marxists.

    No matter who the republicans would have presented as a candidate, the democratic campaign would not have been any different; I'm just surprised that obama is not like about 40 points ahead in the polls.

    September 19, 2008 at 9:08 pm |
  50. Heather,Ca,US

    They had to do it. We are in a financial disaster. The mess is so big and complicated touching so many areas not to mention countries that they did what needed to be done.

    September 19, 2008 at 9:03 pm |
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