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September 25th, 2008
09:21 PM ET

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!


Filed under: Maureen Miller • The Buzz
soundoff (170 Responses)
  1. David Cavilla, Alberta Canada

    President Bush: could it be that the "markets are not working" because in the last 6 years your administration has spent some $800 billion in useless military action in Iraq, Afghanistan and elsewhere? Just a thought....

    September 25, 2008 at 11:31 pm |
  2. margaret j bell

    With all the news of the latest bank failure and the assurances that deposits under S100,000 would be covered by the F.D.I.C it makes me wonder if the F.D.I.C has the cash reserves to ensure that every bank customer in that category will receive their money.

    How are their insurance cash reserves held and how can the average tax payer find out where they are held? I hope not through A.I.G.

    Many thanks if you could shed some light on this subject.

    I admire your program.

    Thank you

    Margaret Bell.

    September 25, 2008 at 11:30 pm |
  3. David laslo

    I am glad they are taking there time working out this bailout. They are finally getting with it! As far as the CEO,s and executives of this mess they have created. No taxpayer dollars in there pockets. They don"t deserve a check!. They need to walk away broke. To buy up the bad debt, How in the world can we afford that?
    I am sure there are many people in the United States that has the funds to bail out some of these people. If the private sector wants to write these guys a blank check go for it!. I not for giving them are hard earned tax dollars so they can go sit under some palm tree and laugh.
    Look folks I am not no ecomist but I am smart enough to know a fool and his money are easily parted. Well folks the American taxpayer is no fool.

    September 25, 2008 at 11:30 pm |
  4. sam

    can some one explain why is it costing almost 1 trillion of our dollars to bailout when less than 3% of loans are defaulting. and when fannie mae and freddie mac put together are about 1 trillion dollars.

    September 25, 2008 at 11:29 pm |
  5. Mich

    I am ashamed of the Republicans at this moment, the country's economy is on the verge of falling off a cliff and they're more concerned about playing political games, I've never been a big fan of politicians, but it seemed like both sides were finally close to working out some sort of a deal, till McCain got it into his head that this would make for great political theater. Every econonmist I've followed (i.e. Jim Cramer) has said we have work out some sort of a plan or the results will be devastating on the values of our homes, 401Ks, jobs, etc.

    Hey McCain, will you and Senator Boehner let me come live in your homes when I can't pay my mortgage anymore?

    BTW, I was a registered a Republican, I'm becoming an independent after all this garbage.

    September 25, 2008 at 11:29 pm |
  6. Bruce H

    Financial Crisis*** the Bush administration is crying wolf for the last time and they know it, how can they say that there is a crisis if Washington Mutual failed and abra cadabra JPMorgan comes up with 132 or 162 Billion dollars to buy WMs assets. These institutions have money they just are not lending because of the sad state of affairs and cold feet, can't blame them myself, I believe they are waiting for the outcome of the election just like the rest of us, all a result of a lame (no pun intended) duck President.
    On a side note, my local Credit Union has no problem making loans, so what gives.

    September 25, 2008 at 11:28 pm |
  7. Preali

    It has just dawned to me what McCain is up to: [1] He goes to Washington just before a supposed financial deal has been agreed to by the Democrats and Republicans. McCain wants to seem relevant and a leader. [2] Secretly the Republicans have agreed to act as if they cannot agree to joint deal, but secretly have agreed to delay the agreement so that John McCain can look as having gotten the republicans to agree with the Democrats. [3] The Government is in crisis, John McCain comes in and talks to the republicans and they change their minds according to a prearranged plan by the republican national committee.
    [4] John McCain appears to have resolved the crisis. [5] The Republican party gets a boost for the McCain campaign and Barack Obama seems less effective than McCain. [6] McCain gets a big boost in the polls. Am I paranoid or does this sound like the usual misdirection of Carl Rove politics.

    September 25, 2008 at 11:27 pm |
  8. Sydney

    Lets not forget the reason behind the lack of restrictions on executive pay is to induce participation in the bidding process for the assets we the tax payers intend to buy.

    September 25, 2008 at 11:27 pm |
  9. Todd, NYC

    I hear some commentators trying to link all of this chaos to the subprime mortgage loans. Why isn't anyone talking about the home price collapse and its impact on mortgage paper. If home prices have come down more than 25% and mortgages were granted at more than 90% of the value of the home, wouldn't all of those recent home buyers be better off just turning in the keys to the bank rather than make their monthly payments. It seems to me that the problems stem from (1) banks borrowing too much on the anticipated cash flows of mortgages, (2) mortgages being written for too high a percentage of the home price and (3) rapid price deflation from the bursting housing bubble. It is wrong to put the blame on lending to "minority communities" who are high risk borrowers.

    September 25, 2008 at 11:27 pm |
  10. Enrico

    All I see is a RUSH for more money! Ever since Bush has been in office, it has been HIS top priority to spend more and more of the tax payers money and this bail out is his going out with a BANG!

    My question to all is ....why not 6 months ago? Why now? I don't believe anything Bush says anymore. His speeches are a joke and if we really want to make a move in the right direction, we should just do the opposite of anything he suggest.

    It is clear that the republicans moves are only political and not in the best interest of our nation. All we need now is for them to nail Bin Laden before the election. I am sure pres. Bush has that ace up his sleeve!

    September 25, 2008 at 11:26 pm |
  11. CJ Snyder

    At last the veil is lifted on Republicans and their allegiance to, not U.S. citizens, but to themselves and their God: money. It's so dire and happening so quickly, that the media is covering it relatively fairly and without spin (Fox excepted, of course). I find it maddening that the after having caused this mess, the Republicans are trying to dump their mess into the laps of the Democrats. So glad to hear that they refuse to clean up their poop without insisting they hold the pooper scooper. There will be no saving this economy folks, because the rats (Republican administration) are scurrying away from this sinking ship. What a mess they've left us for us and the new president. Some high government officials should be headed to the clinker.

    September 25, 2008 at 11:26 pm |
  12. Grimey Williams

    McCain took alot of the steam out of his campaign that they built after the Palin story took off. I think he really doesn't know what to do or say and is just waiting for congress and the House to do their thing before he desides what side he is on and what he wants to say

    September 25, 2008 at 11:25 pm |
  13. Denise Walker

    As a hard working american, I think that our government should bail out the hard working americans. Bail out the american who is going to lose their home, cant afford to pay for gas to drive back and forth to work, have lost their 401k retirement. Bail out corporate america?? Isnt our country for the people? Let us get back to basics....instead of spending billions in Iraq...why not improve education? why not take care of our homeless veterans? Homeless families? If you walk down the street in any city, town in this country...the average american person is worried. How many neighborhoods are now empty with bank owned properties? How many hard working men are losing their small businesses? losing their homes?
    I would like to see the american people get help!!! It is time.
    Rescue the people not the politicians, not the large corporations.
    America needs to take care of it's people instead of the people paying taxes and not being able to provide for their families.
    Who is going to help the families of america? Who is going to help homeowners who need help? Who is going to assist with cost of living increases? American needs to take care of it's people.....
    The people of america are going bankrupt but the government wants us to bail them out.
    Back to basics......CHANGE CHANGE CHANGE is needed NOW.

    September 25, 2008 at 11:25 pm |
  14. bill s

    It make one angry to see these Republican Congressmen who know so little compared with Secretary Paulson. They don't seem to have a true understanding about how dire this credit crisis is on Wall Street. This is a time for leadership. Unfortunately the republicans seem only know how to react and stop things. If this is a taste on the abilities of McCain as a leader... We must get this deal done.

    September 25, 2008 at 11:25 pm |
  15. Kathleen Sigdestad

    It appears that the conservative House Republicans are jumping on the bandwagon for political gain. They think they can take advantage of the unpopularity of this bailout and distrust of government to gain politically! So much for bipartisanship!! Is there any statesman left in Congress who put their country above politics??? That requires doing what is best for the country whether popular or not!!
    Kathy

    September 25, 2008 at 11:23 pm |
  16. sam

    I expect presidential candidates to be right in the middle of this negotion. Either one, will be inheriting this deal in few months. That person will have to be comfortable with the deal. I do not agree with your hosts's postion of hands off approach.

    September 25, 2008 at 11:22 pm |
  17. Doris Griffin

    There is an old saying, if someone pressures you to sign something in a hurry, then something is generally fishy. So no , they better take some time to examining this whole situation before giving our money away.

    September 25, 2008 at 11:19 pm |
  18. Jim - MA

    Maybe McCain has made a deal today with the house repulicans behind the scene and McCain alone knows that tomorrow he will come out and seemingly save the day and say that he has turned the house republicans towards a deal. This could be a set up for the house reblicans to help McCain. The house republicans like McCain better than Obama.

    September 25, 2008 at 11:18 pm |
  19. cindy

    We only get to have one president at a time. I did not vote for him, but he got the job. Now if he is saying we must do something or the consequences will be drastic, then let's do it. It's not like President Bush has been big on stepping up and being out front on unpopular initiatives. If he is saying something this drastic and politically unpopular must be done, then apparently something needs to be done. Fix the problem now and then let's do what is necessary to ensure this doesn't happen again.

    Somehow giving tax breaks, which basically take the cost off the books and drive up the nation's deficit seems a bit dishonest in light of the fact the problem is a credit problem caused in part by taking loans that should not have been given and doing it in such a way that the problem is hidden on the books.

    September 25, 2008 at 11:18 pm |
  20. Cruz

    There is no need for congress to pass a 700 biliion bailout of financial institutions. Why don't they transfer all of the bad mortgage-related debt from distressed Wall Street firms to Fannie Mae and Freddie Mac? This is a common practice in the mortgage industry.Federal banking laws and regulations permit financial institutions to sell mortgages or transfer the servicing rights to other institutions.

    The bigger question is what happen to the House Finance Service Subcommittee that oversees the activities of GSE's? Those members must also be held accountable.The bipartisan bill being negotiated, needs to strip Fannie Mae and Freddie Mac of their exemption from SEC registration, reporting and exemption from state and local taxes.

    What worries me even more is how many other GSE's are in financial trouble that we don't know about.

    September 25, 2008 at 11:18 pm |
  21. Jesse

    I only have 2 comments

    1) No one has seen the $700 Billion bailout plan

    2) The American people should be very careful and read the fine print... or $700 Billion could go up in flames!

    September 25, 2008 at 11:18 pm |
  22. Bill Treadwell

    Bail Out Firms CEO and Top Management Compensation

    Hello,
    Here is my suggestion for Federal Bail Out Agreement regarding CEO, other top executives, and all top management of firms that accept money (loans with interest) from the government: Stipulate a freeze on pay increases and perks and no golden parachute options executed as long as money from government remains owed. After fully repaying the government, firms may return to “free” market salaries and golden parachutes and any other awards they wish to embellish themselves. Of course this requires government oversight to execute.
    : ) Bill

    September 25, 2008 at 11:17 pm |
  23. Greg

    I would rather have someone do something like McCain has done than to have someone like Obama stand by the phone and wait for everyone else. Obama is really good at hedging his bets and waiting until something is done before he takes a side. Like has been said he can't vote present this time.

    September 25, 2008 at 11:16 pm |
  24. Steve

    We should just seize the assets of the persons responsible for this. Give them a shopping cart, a cardboard box and a trashbag then send them down the highway.

    September 25, 2008 at 11:16 pm |
  25. Marty

    Should one continue to pay on credit cards issued by Washington Mutual?

    September 25, 2008 at 11:14 pm |
  26. toby m, montana

    Here is the solution for the bailout to succeed. First, get the perks and compensation back from the CEO's while they were at the helm of the companies involved.

    Second, adjust all variable interest rates and interest rates over 6% on primary home loans to 6%. Also make sure that at leat 60% of the mortagage payment goest to the principle.

    Third, interest on credit cards and auto loans can not exceed 8% and that 50% of the monthly payment is applied to the principle.

    With these factors addressed most taxpayers would support the bailout. If the present system is not changed, then the next bail out will be for 2 tillion.

    September 25, 2008 at 11:13 pm |
  27. LJ

    I do not understand why our elected officials should come up with a plan. I find it hard to believe that any of them have the expertise that we see from many of the panalists on CNN or other news stations. Why don't they just have the republicans pick two and the democrats pick two real economic experts, who have no reason to posture themselves after every meeting! They can be put in a room until they hash out a solution that will have positive short & long term effects on the economy. Everyone agrees ahead of time to pass whatever comes out of the meeting and no one gets credit from either party, except that they did something truly non-partisan for our country!

    September 25, 2008 at 11:10 pm |
  28. KIm

    Prayers to Texas and Mayor Thomas needs an estimated 11 million for Galveston ! Paulson and his team needs to draw a pie and indicate the percentages on the slice divide of the 700 billion dollars ! No fear t-shirts selling and let's hear what the bail out deal is !

    September 25, 2008 at 11:08 pm |
  29. Gilby-HI

    I sent a e-mail to my Sen. (Sen. Akaka) to call for any Senators that have taken money from or that know that there was know irregularities in the books should resign.
    We have trusted the Senate and Congress to be the check and balence of the treasury. It is ok to watch Hollywood make up stories about our President , during a time of war, its free speech, but if our country is heading for finalcial failure, this is what Osama Ben Ladin promised ,which is treason.

    September 25, 2008 at 11:06 pm |
  30. David

    Don't Bail them out Let them spend some time in our shoes They will Learn.

    How are going to get to work today gastank is empty its tuesday payday is firday there's 40 dollars in the bank and we still have to live for the rest of the week.

    We doit all the time..Just have to get used to it and you will manage what you don't have you won't miss

    September 25, 2008 at 11:04 pm |
  31. Daniel

    Anderson,
    There is not going to be any debates. The whole point of this latest threat from the Whitehouse was for Bush and Mccain to drag their feet and subvert the authority of Barack Obama's growing authority and make him look bad for not sticking to the supposed "hard work" going on on Capitol Hill, while Barack Obama goes to the Ol Miss debates alone. Mccain will end up looking good in the end, which is the whole point. Bush helps Mccain. That's the end.

    September 25, 2008 at 11:03 pm |
  32. WD

    John McCain is a better actor than Ronald Reagan! And I think he'll make it to Hollywood and the Box Office long before he makes it to the White House! He has a real flare for Drama!

    September 25, 2008 at 11:03 pm |
  33. rebecca baker

    anderson,once again mccain has made a national disaster all about him.since we the peoples who wil lbe paying for this fiasccoand have yet to get to see what paulson's or the second plan says. now we will have a third plan that will not be made public.this is what i think as a taxpaying citizen.put on line a-paulsons plan b . second plan c. "mccains plan" d. none of the above. and let those of us who will finance this ,vote. it may gat as many votes american idol.

    September 25, 2008 at 11:02 pm |
  34. Michael Minor

    What no report on the jamed phone lines from grassroot activests, concerned citizens and those who really care?

    I call and left messages on Congressmand Zach Wamps phone and on Senator Bob Corkers phone. Senator Lamar Alexanders p[hone was already full. Later I tried to call again to find the switchboard flooded.

    September 25, 2008 at 11:01 pm |
  35. Robin From Arkansas

    My wife and I discused the housing market two years ago and decided that we needed to get our financing lined up. We was able to put back enough to pay our home off just in time; I was layed off my job three months ago and I decided to go ahead and clear our home. I think if we are stuck with this 700 billion dollar det we are a bunch of pushovers. Our kids and grandkids will be paying this for a long time. Don't take this wrong I am unemployed and my wife is disabled getting 400 dollars a month income so we are having it tough to . Good luck to all and best wishes in this disaster.

    September 25, 2008 at 11:00 pm |
  36. Paul Cronley

    If the the Federal Government goes into the mortgage business it should mandate Fanny Mae and Freddie Mac supply every homeowner in the United States with a re-finance option of a fixed 30 year motgage at 4% interest rate; for the value of their home only. Not allowing the addition of other debt to the mortgage. This would do several things. It would first and foremost lower monthly payments and free up dollars that could be either saved for retirement or spent to keep our economy stable. It would naturally keep these giant companies open for business. It would preserve and create jobs. And it would save us from paying almost one trillion dolars of our hard earned money to save greedy people who do not deserve to be bailed out.

    September 25, 2008 at 10:55 pm |
  37. Carla in Wa

    Maybe we should just stop looking at the politician's for the answers it's about time they got caught in something they can't cover up. The truth is nobody can be a politician and be honest. I can't imagine why anybody would want to be in the presidents seat at this time. Prophecy speaks of a time to come when all nations will fall. Maybe we should just get on our knee's and pray for that day so the honest people don't have to keep suffering. Really try being honest in this corrupted world.

    September 25, 2008 at 10:52 pm |
  38. Albert Huggins

    You can't even give them 100 million dollars with out some kind of plan. They should just give the market enough to get through the year and let the new president come up with a plan. Right now we are just going to stick the new president with this huge issue and it may not be the best plan for his style of politics.

    September 25, 2008 at 10:50 pm |
  39. TS

    I have to say that with all of the discuss regarding the urgency of coming to a conclusion on the bailout talks that I find it to be completely ridiculous that they have just recently signed out for the night (good for them for working late) but they won't be starting back up until 11:30 in the morning? where's the sense of urgency there- that's more at least 3 hours after the rest of America starts working! Do they really know how important this is or are they just playing along since many of them are up for re-election and they want the voters to think they are actually doing their jobs for a change?

    September 25, 2008 at 10:47 pm |
  40. Mary

    Im a middle class middle american, yup the one that got hit with this a few years ago. Im incredibly curious why the urgency...did someones golden parachute not open properly? We middle class union working backbones of america have been struggling with this greed for a long time now and like i said, why the urgency now? Where was the urgency when we, who are supporting this country, were getting thrown out of our houses because these arrogant jerks did what they did to the market. Why did the government not step in when 2 of the mills my corperation owns were just simply closed. No offer to sell, no offer of anything just "sorry, were shutting the doors and you 2000 + people are pretty much out in the cold. Its an incredibly sad america right now. Not the america i spent the last 26 years helping to build thru working hard at my job to make a quality product. And to hear Sara Palin (shes on your show now) makes me want to be deaf and blind...my god is she for real...my goodness i know 10 year olds that sound far more educated than this woman..omg and shes going to be our president..because lets face it..McCain is old and has had 2 seperate bouts with cancer and the only thing he seems to recall is that he was a pow..and nothing more it seems...god bless america..and god help us!!

    September 25, 2008 at 10:44 pm |
  41. yiayia

    If John McCain was consistent in his desire to put Country first by attending all crisis events (Gustav and now the financial crisis) where was he when Ike struck? Apparently there wasn't anything to be gained by showing up. McCain is a hypocrite and needs to understand that Americans are even sick of his only contribution to this country. There are plenty of American POW's still being punished and tortured. What is he doing for them?
    John McCain sat on a wall; John McCain had a great fall; All the kings horses and all the Palin's- couldn't put McCain and the country together again.
    Only Obama can do that! He is a God send.

    September 25, 2008 at 10:44 pm |
  42. Autumn

    I just got my power back in Houston and I have to agree with Amanda. What has happen to the priorities of this country? I wonder if others have an urge to vote for a third party after seeing the two parties butt heads on the issues of the bailout plan. A country divided cannot expect to solve anything especially the problem of the economic crisis? As if that is not enough, I just found out my bank just got bought out by JP Morgan. I think I was better off with my power remaining off.
    On a different note, I just want to give a shout out to all the great guys out there trying to get the power back on for us here in Texas. They were awesome.

    September 25, 2008 at 10:42 pm |
  43. Yolanda

    I believe the bailout discussions will go through the weekend. McCain will appear at the debate after once again drawing the attention to him. Whenever Obama's name is mentioned too often he finds a way (no matter how outlandish) to turn the talk to him. He is very manipulative.

    September 25, 2008 at 10:40 pm |
  44. Chad Norwood

    I am a democrat, but i'm ashamed of the rhetoric that is going on about Bush, especially with Anderson's guest tonight calling Bush a "high level moron". It shows Andersons failure to get guests with any degree of intelligence. All the negativity that Anderson promotes with this kind of talk is going to push me into voting for McCain.

    September 25, 2008 at 10:40 pm |
  45. Marcella Clark

    NO bailout. Why should the tax payers have to bail out the companies that made bad deals. I live below poverty, and trying to take of myself and my family, i dont want my tax money going to bail them out.

    September 25, 2008 at 10:38 pm |
  46. Claude Simpson

    I am a Democrat but I do not support bailing out Wall Street. Can everyone not see that this is another scare tactic of the administration to rush through uneccessary legislation on the country. Please note that the DOW is still greater than 10000 a beanch mark for progress. If a large company does not have the money to meet its pay roll this month then they were on the edge of bankruptcy anyway. So what WAMU got bought by another company, corporations are always looking for other and better partners so that they can offer other products to their clients. It is sad that the public permits themselves be dragged along with fear.

    September 25, 2008 at 10:38 pm |
  47. Linda Eppse

    I am voting for Obama because I don't see how this country can take 4 more years of republican ideas. However, I'm not too sure we should rush into this 700 Billion bail out. Only 2 weeks ago Bush and McCain said the economy was basically sound and now Bush wants 700 Billion or the whole country will fall apart. Weird??? One can't help remember a trillion dollars ago how Bush said Iraq had WMD and we were in grave danger. Besides the fact that I think we need to solve the problem as to why all of these people defaulted on loans. Maybe because wages are going down, jobs being outsourced and moved overseas. We need to grow better paying jobs in America. If you want to pass out money, Put it into developing cars powered by Natural gas and pumping stations to support them, solar energy, wind. This would create jobs and put us on the road to energy independence.
    Did you ever stop to think that 10's of thousands of people in America die every year simply because they don't have access to health care? And we worry about terrorists? Spend billions to fight terrorism. Hell we kill our own people. Disgusting. How can we criticize other countries when we don't take care of our own. We need to clean up our own backyard.

    September 25, 2008 at 10:35 pm |
  48. julie in mich

    We have been in financial mess for very long time, my feeling is let the crooks crumble..I am wondering how much of this $700billion of taxpayers money will be going to the foreign investors that may be propping up these companies.

    September 25, 2008 at 10:35 pm |
  49. Yolanda

    Gas prices are up, my union had to fight to get our 2% raises, my city council refused to fund the local school system (they withheld $65 million), my credit is going down the tubes. I was wondering can I get a bailout? I doubt my creditors will go for that. No instead this bailout will cause more unneeded debt for me.

    September 25, 2008 at 10:33 pm |
  50. nell

    There is a lot more to this than the president and the congress is wiling to tell us. Does anyone remember the North American Free Trade Agreement. Is this final push for one nation under Mexico, or is it all that money that we have borrowed for these other countries, they are asking to be paid back. We have pissed off the very countries that we have borrowed money from (Hello!). Now we are telling Russia what they can and cannot do. The hole thing about McCain wanting to Cancel the debates, it's the twit Palin, he does not want her to debates Joe Biden because he knows that Biden will make her look like a school girl.

    September 25, 2008 at 10:31 pm |
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