Evening Buzz: Bailout Deal? Think again.
Maureen Miller
AC360° Writer
Oh, how I wonder what's going on at the Treasury and on Captiol Hill right now. The bailout battle is still in full force tonight, eventhough there seemed to be some progress at mid-day. A couple hours later, President Bush met with congressional leaders and presidential candidates John McCain and Barack Obama today at the White House hoping to clinch an agreement on the proposed $700 billion bailout for America's financial firms. It didn't work out that way.
"It will not solve problems, it will create more problems, we're rushing to judgment, that we do have stress in our market, but this is not the best way, we ought to look at alternatives," said Sen. Richard Shelby, the ranking Republican on the Senate Banking Committee
There are other Republicans speaking out against the proposal. "I'm not on board yet. I want to see this thing," Sen. Jeff Sessions, R-Alabama, said. "What I don't like about this - and I'm very, very worried about it - I think this is probably the greatest concession of legislative power in the history of the republic, almost."
Democrats aren't praising the meeting either.
"There was a distraction this afternoon for two or three hours. I don't know how to describe it any other way than that. It had no productive value to the process we've been involved in," said Sen. Chris Dodd, D- Connecticut.
We've got all the raw politics tonight on 360, starting at 10pm ET.
And, we'd love to hear from you: Do you think the bailout deal will get done before tomorrow's scheduled debate? Or will McCain go through with his promise and skip the face-off because of the economic crisis?
We'd love to hear from you!
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Filed under: Maureen Miller • The Buzz |
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I would like to add my 2 cents about the bailout We probably need this however, Congerss should give a smaller amount to these robbers until a new president is sitting then perhaps a new look will give a better picture of what is really happening in the US enconomy I feel if this passes there should be no reward for bad behavior actually they should be in prison as many others are that tried to earn a quick buck.. As far as the homeowners are concerned yes freeze their interest rate. and write down their mortgage amount but put a lien on the property so when it is sold they can reimbuse the people if United States. Of course the American people should realize this will be just another fiasco because it is Federal Government handling what Cities and towns should be doing to get property back on their books.
President Bush figured by inviting McCain to the table would make him look like a leader but all it did was prove to the world that he and the republicans are a joke and they could not fix their own tie,i think they should make these ceo's that started this mess pay for some of it with their profit from exploiting the poor
it is really a shame that such an expensive garland is been handed to people who should be ashamed of their abuse of worldwide trust, beside it proves that it is only the poor that losses on a permanent basis. the rich in Wall street, after failing not just Americans but the world, has now gotten one of their own, President Bush to confuse the public into writing off their losses.
Surprised that the connection between the FDIC's seizure of WAMU and the flagging "bailout" proposal has not been made. WAMU's has been "financially braindead" for some time, but it is not coincidental that the FDIC stepped in at the exact moment that the executive branch's proposed $700billion plan needed some event to punctuate its necessity.
Also, has anyone looked into whether Kerry Killinger received any type of huge payout when he was let go two weeks ago? Suggest that someone investigate that matter since it's highly likely that he did.
If so, the question to ask Secretary Paulson is "Will Mr. Killinger be required to return his multimillion golden parachute?"
Get McCain & Bush out of the Bailout Talks...they showed up and the
House Republicans who do not like Bush or MCCain decided they didn't like it and now they are not going to participate in the talks.
McCain needs to get to Ms. TODAY as part of his run for President we the PEOPLE are entitled to hear these debates from each candidate
before we vote....what a cop out this is by McCain...incase he is not aware there is what is called video telea conference , its done all the time to save air fare by corporations where he can attend and give his say on the bailout by video .
As to to the House Republicans...this has now become Political for them, they are ELECTED OFFICALS incase they forgot ,and need to work for the GOOD OF THE COUNTRY...and get this Bailout settled once and for all...stop working as a Republican and work as an American...what do we pay you for anyway......I am so beyond sick of this goverment not working TOGETHER. Iran, Iraq,Korea they ARE just loving this,,you are all fools.
Why is there not a 100% vote??? We elect people to make decisions for us and they don't show up and vote? Why should any bill pass without 100% of the people we elected to protect our interests voting.
Why are we paying Obama and McCain for services they have not rendered? If they want to run for a different political position they should have to resign their position or show up for the vote. I am not paid unless I show up at work!!!! Can you impeach elected officials that don't show up and vote? What about the people who vote in opposition to what their place of representation say they want?
$700,000,000,000 cut the pie and give each US citizen an equal share $2293.12.
$700,000,000,000 cut the pie and give each citizen 65 and over an equal share of the pie 18,821.76
Give it to companies that drove themselves into the ground, sounds like a sound investment for the US dollars??? Return on our investment????
I have a great idea. If the government is willing to purchase $700 billion of worthless stock in bankrupt financial companies, why not purchase an equivalent amount of stock in Exxon? That way in addition to owning a bunch of debt, the taxpayers will own oil, and we'll finally get to benefit from rising oil prices! We can even earn enough profit in a few short years to pay off our $11,000,000,000,000 debt! Hugo Chavez can come up and advise Congress and the next President on how to run a socialist government! I am outraged that Congress is willing to blur the line between government and private corporations. There has to be another solution, and if Congress would just take some time to figure out another solution, we would all be better off.
Wouldn't 700 billion dollars go a long way in rescuing Social Security and Medicare (many doctors won't accept Medicare). Wouldn't this amount of money help most Americans rather those who made mistakes in their financial decisions. I may agree that many Americans may lose their jobs but how much help did Bush and others do every time their was a corporate downsizing and tens of thousands lost their jobs? How much did Bush and others to help many Americans who have lost their jobs that went to other countries?
My question is this: Has anyone wonder how much money President Bush and VP Chaney have of their own in the housing market and is the crisis every ones or just theirs?
I am not an economist or an expert in the financial arena but I do feel that the plan must include oversight, judicial review, ownership interest, and a reasonable interest rate charged. If the government decides to grant Wall Street $750 billion, oversight and judicial review is so important to generation to come. With out this, there will be an insufficient and incomplete accounting/history for later generations to review if a similar issue or incident happens in the future. I also don't think that the money should be given to companies that have already proven that their management, business model and culture is to toxic and risky to our economy. If the money is granted to Wall Street, it should be given to some of the smaller companies that have the cleanest books, the strongest profile and a management team that has proven to runs it's company above boards. Allow the larger companies to fail and help finance the better, small companies (2nd and 3rd tier companies) to move up to fill that void. I would open up the market for investors to start investing in these stronger companies. A badly run company is not going to get better with more money – it will still be a badly run company. I don't think the focus should be on saving companies. Instead it should be focused on saving the market.
Why haven't anyone discussed what the impact was when F.H.A. secured loan homeowners lost their homes when they should have been offered help to rework the F.H.A. secured mortgages through the provisions spelled out in the guidelines. It seems that the focus is partially presented. Mortgage companies used the low qualifying standards to put people in the homes but offered or even recognized the type of mortgage loan and the provisions such loans provided for the borrower and not only a security blanket for the mortgage companies. Borrowers even pay a premium in the mortgage note. It seems the mortgage companies rushed to get their money from the government instead of abiding by the agreement they made with the government to offer F.H.A. loans and assist the homeowners when their financial status changes in their household. When the government allowed the mortgage companies to foreclose on homeowners "American Dream" without oversight into the rules and regulations being followed this is what happens. Total failure and massive finger pointing. As a whole, homeowners only know they have a F.H.A. secured loan that has a low interest rate that allowed them to qualify on a bigger house. They have no knowledge of their rights under the provisions. It should be mandatory that mortgage companies provide seminars for every F.H.A. mortgage loan holder before the final closing takes place. It is that simple. I speak from experience through the entire experience of having a home then losing a home that my three minor kids began their lives in but never having the chance to move out because of their time to be responsible adult citizens. No one person will ever buy a home with the intent to lose their home. It's too much at stake.
Adrian J.
Memphis, TN
this isn't about bailing out the big-wigs on Wall St...its about opening up the credit lines again, banks are NOT lending money, you can't even get credit to buy a car right now...its essential that the bailout goes ahead.
as for McCain laying a trap...no chance, Pelosi won't take it to the floor unless its got bipartisan support and McCain supports the bill too.
I cannot believe what I'm hearing today, "this is not a bailout of Wall Street, it is a measure to save Main Street". What? I want to know what the hardworking American Citizen Taxpayer did to cause the financial mess. When will we hear from banks or financial institutions that this was caused by their insatiable greed? My neighbor and I did not lose depositors' and investors' funds, the employees of these institutions did. Do our respresentatives in DC hear us? We haven't forgotton what happened with Bear Stearns, the statement made by an officer of the Company on CNBC the Wednesday before their collapse telling us that the company was stable and over the weekend a deal was made behind doors behind the backs of their shareholders, and by the following Monday a share was now worth $2! Please Mr. Secretary, we all know where you worked before and we know you are now helping out your pals. Thanks John J for your comments; yeah, let's give these guys a great interest rate for the $700 Billion just like the credit card companies and banks gave us! Greed, yes indeed, they were borrowing money at 2.5% but they couldn't lower our rates. Hey, they were trying to recoup their losses from their investment blunders and we, the credit cardholders, were their best source of income. And, of course, we must not forget to thank Alan Greenspan for bursting the real estate bubble by raising interest rates. Thanks Mr. Greenspan!
I am totally against the bail out...there are other options. Why not give these institutions a loan from the federal government with interest?
Why do our legislators prey on our fears without the facts and why is everything a must do now? Our legislators are there to be proactive and not reactive? Is this the only the only way our parties can work together is by being reactive?
NO BAIL OUT AND NO PAID TO THE CEOs
I'm sure that Congress is busy selling us out to the banks and mortgage companies this evening. They always say that whoever contols the money controls the business. After the government buys all of that bad paper from the banks and mortgage companies who is going to manage all of those underlying foreclosed assets (houses) that have been setting empty for months? I hope Congress has a good maintenance crew because some of those houses are in pretty bad shape. Also, who exactly are they going to sell those empty houses to when the banks and mortgage companies have ruined the credit of so many Americans? They need to have thier lending practices regulated if the government is going to give them any money.
I have sat here in my home and wondered what is to become of our nation, our way of living, our future. The proposed bail out of 700 billion dollars that is from the hard working American people who pay their taxes. Instead of looking at this as a bad thing for me and my family, I have to wonder if it’s our money that is needed to save our country from economic failure then ownership of these companies being taken over by the federal government belongs to the people of the United States. What can we do as Americans to save our country and yet benefit from this? How about American ownership, Fannie Mae and Freddie Mac is now owned by us the people as I see it. So front the 700 billion but as a investment to all “Tax Paying Americans”. Helping to stabilize the housing market and our ecomony. We the people now own how many homes? These are real assets people! If that is the case return the investment back to the tax payers, return the money and pay all American tax payers Dividends in quarterly or annual/semi annual payments back for our investment to save our housing market and economy. Put the power back to us! I received a Permanent Fund Dividend (PFD) for every member of my family as an Alaskan for the oil revenues and interest on the oil being drilled from Alaska. Why not apply the same kind of theory on this issue. Consider it a loan with payment back to the investors, Us the tax payers.
I have sat here in my home and wondered what is to become of our nation, our way of living, our future. The proposed bail out of 700 billion dollars that is from the hard working American people who pay their taxes. Instead of looking at this as a bad thing for me and my family, I have to wonder if it's our money that is needed to save our country from economic failure then ownership of these companies being taken over by the federal government belongs to the people of the United States. What can we do as Americans to save our country and yet benefit from this? How about American ownership, Fannie Mae and Freddie Mac is now owned by us the people as I see it. So front the 700 billion but as a investment to all "Tax Paying Americans". Helping to stabilize the housing market and our ecomony. We the people now own how many homes? These are real assets people! If that is the case return the investment back to the tax payers, return the money and pay all American tax payers Dividends in quarterly or annual/semi annual payments back for our investment to save our housing market and economy. Put the power back to us! I received a Permanent Fund Dividend (PFD) for every member of my family as an Alaskan for the oil revenues and interest on the oil being drilled from Alaska. Why not apply the same kind of theory on this issue. Consider it a loan with payment back to the investors, Us the tax payers.
THAT $700 BILLION for the bailout? This government has never paid back all it has taken, stole or what ever you want to call it , from the Social Security Fund and led everyone to believe they were so concerned about it some time back. How about they pay even just a 10th of the intrest on thAT BACK TO US. Social Security would be fine beyong the year 10,000..........
This bailout will not get support nor should it until some of the money is directed to hurt on Main street by attacking and stopping further foreclosures and re-adjusting interest rates on so called ARM's.
If you are going to give money to wall street (actually) only part of it any plan will not sell in the current situation unless
a) The money earns a return and
b) There is some form of security shares or stock or Priority securitised loan on corporate assets and a repayment schedule
These basics were in the outline plan proposed except the main street element.
So, no it will not pass within this week and McCain politicking is sickening.
Regards,
Hodgson.