Running for cover
[cnn-photo-caption image=http://i2.cdn.turner.com/cnn/2008/images/09/26/art.pelosi.jpg]
Amy Holmes | Bio
CNN Political Analyst
The current Democratic spin is that House Republicans are stalling the bailout plan. Just one problem. House rules let the majority party, and that would be the Democrats, rule the roost. If Nancy Pelosi wanted to roll over the minority’s objections and pass this bill, she could.
Me thinks Pelosi is playing this out for as long as she can.
Yesterday, Congresswoman Melissa Bean, D-Illinois and self described “Obama Mama,” told me that the bailout is deeply opposed by the folks back home. Constituents are outraged that Congress is giving away $700 billion taxpayer dollars to greedy and incompetent Wall Street fat cats (okay, she didn’t actually use the term “fat cats”.) She told me in no uncertain terms that she believes that the banking system is genuinely on the brink, and legislators have no choice but to pass the bill and face an angry public and explain their vote. And it ain’t gonna be pretty.
One can reasonably presume that Pelosi knows all of this. She wants it both ways. And for at least the next six hours, she’ll get it. Duck the blame on a massively unpopular bill by running for cover under the objections of the Republican minority. Claim frustration that her party’s noble and principled efforts to do the necessary and difficult thing are being thwarted by small-minded Republicans. Don’t let Democrats get the blame for an unpopular bill, or suffer voter backlash for irresponsible inaction. Get Republicans on the hook, one way or another, squirming right alongside Democrats..
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Filed under: Amy Holmes • Raw Politics |
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Hello Amy, I do have conspiracy theory for you.We all know that we have problems. Now -what would you say when all that circus is set -up by Bush and Mc Cain?Keep in mind-Bush is with Democratic party to develop rescue plan.Now republican-and Mc Cain like to have other plan without using government money ....as a result Obama by backing Bush plan will be looser what was in intention since all circus starts
I have a idea, why don't we make every politician on the state and national level who has a campaign fund account to give 33% of the account towards the bail out. It usually is funded by the large business and CEO's of America. That means the money is coming from the people who screwed up the economy to the point we are at now. Plus it is disposable money anyway, its not earmark for anything to help the American People. I think there would be over half of the needed money for this bailout from these accounts.
Hi Amy
Do you blame Pelosi in wanting the GOP to twist in the wind along with the Democrats? This disaster happened on their watch (GOP); they should share some of the discomfort from it.
I don't want to do the bailout either but I'm afraid that the consequences of not doing it are worse. One thing that puzzles me – if these mortgages and mortgage derivatives are so bad then why did the SEC not put a stop to it at the beginning? Where was their oversight and due diligence?
Annie Kate
Birmingham AL
Here is the crux of things as they stand. The overseers of the kingdom are in a quandary as to how to deal with the dragon that is killing all that falls in its path. Everyone wants to be the knight that slayed the mighty dragon. However, no one wants to be found guilty of only wounding it. If the dragon continues to live after the battle, then the kingdom and nearly its entire village people will pay the ultimate price. The knight will have to face not only the fury of the dragons return but that of the kingdom and village people as well.
If all of the potential dragon slayers can band together as a team, then the likelihood of greater success might be had. The greed and the fear are running rampant amongst all whom are involved. Some have more fear and some have more greed than others. Fingers are waving and swords are rattling.
If the truth be told, the dragon can not be killed by one and only one but must be slain by the bulk of the masses assigned. Let no one posture his or her self to claim the victory if success is achieved. End this scrambling for the top and kill the damn dragon. Let no one individual claim victory, but rather, let all share in the victory or in the defeat as the battle is fought in unification.
The lack of imagination is amazing. With 700 billion $ capitalization, Washington is one of the biggest banks around. Why not directly give good (and cheaper) loans to businesses than to buy up bad ones? I am sure, Wall Street would not let the Fed take away their good business without a fight - they will have to lend money out cheaper. If not, the taxpayer might really turn a good buck! So how about oiling the gears?
Sincerely,
MS
Does not anyone see that this 700BN bailout is nothing more than the seeds being sewn for the United Socialist States of America ? We are on our own in the greatest financial storm in 65 years. And it’s my humble opinion that the thing to do isn’t simply to put our hopes in the presidential candidates or our lame duck president. Firm pressure at local levels need to be applied on our local politicians so they can take the good American taxpayers voice to the steps of Capitol Hill.
Pelosi and the Democratic party sure likes to blame McCain and the Republican party for very little thing.....I guess it takes the attention away from their own incompetence. They really need to step up and take some responsibility in this mess.
Amy of all people you should know that this is a Bush created issue and dems, being the patriots, set aside partisan hats and tried to put a deal together. They are not obliged to clean up Bush's mess, but they are trying to do just that, keeping the partisanship aside. You should know that Dems want the repubs, else they are not going to go alone on this. They are just being a patriots.
I think that the Democrats understand that without an appearance of bi-partisanship with this bill, the psychological effects on Wall Street will not be felt. That is one of the reasons the Democrats will not put it up to a vote without a very strong majority of votes from both parties. I think that maybe its a little conspiratorial to think that Speaker Pelosi is not putting the bill up for vote for political gains/cover.
Amy I disagree wholeheartedly with your take on the Democratic Strategy regarding the present Bill. The Democrats aren't holding out for any other reason other than the one they gave. And that is – they want more inclusions in the bill to support the tax payers, Health Care Programs from going under, small businesses, etc. I believe they are the ones that are putting Country and Citizens First albeit that is McCain's Slogan! It is apparent to me the Republicans are only interested in one solution – Bailing out the hands that have been feeding them ie the Institutions going under, whilst totally ignoring their citizens and their responsibility to the same!
Good to see you back on the scene, Amy! This current shenanigans is going to be a tough one, because those making these decisions are damned if they go along with the bailout, and damned if they don't.
Nancy Pelosi can't run from this.She's trying to blame the republicians, and everyone knows the dems. controll congress. She's afraid this will hurt them in the election. they don't want to pass the bail out, and if it doesn't work the dems. gets the blame. There should be no bail out. Paulson is painting a picture of glume. Let's just wait and see what happens, and then act. 700 billion dollars is a lot of money to give Paulson, with no other oversite, I don't trust him, He's a crook just like the rest.
If the bill gets passed looks like the democrates get the credit, for such a stupid move. The taxpayers can't bail out everybody, Let the fat cat's get what they deserve. Swim or drown. In time the market will stablize it self, and nobody knows if the bail out would work anyway. F.D.I.C. secures our money, and 401's, so I say NOOOOOOOOOO BAIL OUT.
Seeing members of the House bickering over what to do is a bit like seeing people squabbling at a party over the best way to call the fire department after the house has burned down.
Our nation resembles one big post-party with endless cups strewn about the yard, dry kegs, cops on the way, parents turning into the driveway and the house a smoldering ruin.
Regardless of the outcome on how best to spend the $700 billion needed to account for our leaders mistakes, I'm confident that our politicians will all rest comfortably in one of their homes provided for by taxpayers.
It is time to rise above the grandstanding and to get a credit fix. The basic ideas that Paulson and Bernanke presented are correct:
1. Money is stuck, and financial institutions are not lending to eachother or to consumers.
2. There is about $14 trillion in outstanding mortgages. $700 billion is a 5 % reserve for bad debts.
3. Not all the loans purchased in reverse auctions will be bad if someone can hold them to maturity (many private holders cannot, needing liquidity, and this makes potentially good mortgage-backed securities "toxic").
All that said, Paulson's three-page outline was meant to be added to. Lay on the provision to limit executive compensation. Lay on the provision to provide the taxpayers with equity. Do all of those things, but get it done!
The morbid grandstanding of John McCain and House Republicans is one of the sickest things of government irresponsibility in my lifetime!
Amen, Amy! The House Republicans are supposed to provide "cover" for the Democrats in case their version of the bill doesn't work? How chicken is that? If the bill was sound, kept the taxpayer liability low, and helped Wall Street, then why wouldn't the Democrats just pass it and take all the bows? Could it be that the House Republicans have a better plan and are actually listening to the American Taxpayer? Hmmmm . . . Me thinks that while the Dems are pointing a finger at Bush, McCain, and the Republicans as a whole . . . three fingers are pointing back at themselves!!!
Woe unto both parties- If Your an incumbant- Kiss your policital career GOODBYE come November- in the words of Donald Trump- YOUR FIRED!!!!!!!!!!
Republicans got us into this mess and as usual are waiting for the Dems to get them out. No one wants this bill, not even the democrats but those sly Repubs are holding out hoping Pelosi will indeed over rule it and then they can blame the whole mess on the Dems when it doesn't work and our economy stays in a backslide which I am sure it will regardless of what bill passes! It is time for the Republicans to grow a pair and face the fallout like every one else is having to do now.
In the same way Governor Crisp caused problems for the Democrats in the primaries, by illegally moving up their vote; the Republican Administration and Republican Houses have played the Dems like a fiddle on this Republican caused 'issue'. The timing of backing the Dems into a corner on this bail out is BRILLIANT.
AMY HOLMES;;; WHERE DOES MCCAIN STAND ON THE RESCUE PLAN? Will he tell the truth to BOTH sides tonight? (watch the wording!)
He WILL support 'saving the day' and he WILL support the House republicans and the 66% of Americans who do NOT want BUSH'S Bail Out package. (watch the words!!!) (if you can can your ear that low to the ground)
BTW – In the debate he should be asked why he wanted his wife, Cindy, to put on a bikini and suck on a pickle in front some fat, ugly. old men in smelly clothes?
I've had tremendous respect for Warren Buffet...however, his "Heaven help us" ....if congress fails to pass this bailout... headline posted on Yahoo is self serving. A man of his stature can move markets...and politicians. Of course he would want the secure government backing especially given his recent substantial investment in Goldman Sachs.
I think those pampered politicians of both the House and the Senate need to remember who they represent. I cannot believe they say this is so urgent yet they are using it to win political gain. Big news to both parties I and many other citizens are fed up with your games.
This is a mess done by the rich and they should be responsible and take control of it, meaning they have to invest from their own money, the same way they invest when they start the company. Or invest from the tax break they took from this administration, those CEO's earn between $1-4 Million dollar. I'm not saying no help but not with tax payers money "$700 billion" , if its $200-300 Billion i understand that.
We are facing some difficult days ahead, because of mistakes, greed, and misrepresentation from past decisions, but now is not the time to point fingers, for we will all suffer the consequences if Republicans fail to lay aside the political show casing for McCain. This is not about Democrats nor Republicans, nor is it about who will be the next President; its about coming together as one body, working for the good of all people.
In my opinion, now is not the time for McCain to take advantage of the emotional mindset of the people, to try and promote himself into a more favorable position.
What a show of desperation; to try to stage an act of power, to deceive the voters. Gambling with his own personal affairs, is one thing, but to gamble with the affairs of the people, for his own personal political gain, is not leadership; but it shows that he is willing to risk the well-being of his Country, to satisfy his uncontrollable desire to become the next President of the United States. Being motivated by the fact that this will be his last opportunity, to occupy the White House, he is more focus on fulfilling his own need than the need of the people. Which is why we see a woman, he only met briefly, on his ticket. And don't be surprised should you see him change VP's.
Is this how he would run the Country, on sper of the moment decisions,or could we awake to find that the entire Country have been lost on a gamble? The Oval Office is not the place for a gambler.
The problem is all of the mortgages that are being foreclosed are the problem. These mortgages were brought and sold and now that millions of Americans are on the verge of foreclosure the value of the mortgages brought and sold have fallen considerably and the companies do not have the asset values any longer to continue doing business and asset values to get credit.
Rather then giving the 700 billion to the corporations why not take the 700 billion have HUD, Freddie and Fay renegotiate the mortgages with those in trouble offering longer terms and lower interest rates and help millions of Americans keep their homes.
Would this not allow the mortgages brought and sold to retain their value therefore saving the financial industry and banks.
The citizens taxes should be used to help the citizen and not the corporations.
Now the Conservative Republicans in the house want to pass their own plan that provides tax cuts to wealthy investors. What is going on here is that the Republican are using a national crisis to help their political donors and the wealthy.
My fellow Americans now we know why we can not have a Republican President or a Republican majority
Totally right, this IS a bill written on behalf of the sitting republican president. There is and should be NO WAY the dems should take the blame for this supposed 'crisis'. They cooperate or let it go down in flames.
I'd have no problem with democrats and republicans if they all went home and let wall street sort out their poor managment decisions.
oh, give me a break, Amy. It's clear what the GOP is trying to do – stick the majority with the 'blame' for something both sides agree needs doing.
Yes, a lot of people – hell, MOST people – hate the thought of bailing out the greedheads that got us into this mess. But If nothing is done and everyone's retirement plans dwindle to zero? 25% unemployment? bread lines and starvation in the US??
The electorate is acting like a kid that resists treatment for an infected cut on his arm. Do you listen to the kid and respect his wishes? or recognize that he'll be a lot worse off if you do nothing?
Honestly, the GOP is playing political games with one of the biggest problems in my lifetime. But after they exploited 9/11 for their own political purposes, I suppose we shouldn't be surprised at anything.
This right wing republican alternative plan seems to be nothing more than a attempt to get more rich guy tax breaks and de-regulation passed. The tax breaks still come out of our pocket and the de-regulation will only lead to much bigger problems later. I hate to say it but their ploy is pretty smart, either they get the tax breaks & more de-regulation or the democrats and regular republicans will have to pass it without a large number of republicans voting for the bill, linking the ones who pass it to Bush.
The Speaker of the House is a "Horrific Failure",she has squndered the two precious years of democratic leadership bringing only," her personal agenda's ",to the floor, (Tip O'Neil must be rolling in his grave) none of which have benefitted the general public, we'll perhaps her husband's? If people had heeded Rep.Barney Franks proposals months ago,and put aside their ego's ,we could have perhaps nipped this in the bud. But, no, these Dutchess's,Duke's,Earle"s,Prince'and Princess's running this Monarchy have the good of the country ,way on the back of the list of their personal priorities.It truly is time for the people to put "Term Limit" on the stove!!!
Thank goodness........someone finally has spoken the truth!!! Great article!
Give me a break Amy. With due respect you are not trying to put the blame on Democrats , are you?
Have you been sleeping? It is your GOP friends who cannot get along anymore. The McCain supporters see that Bush dasy are over and want to pick a fight with him. Wish they had done it 4 years earlier!!
Dems are trying to work this out FOR THE SAKE OF THE COUNTRY.
The Drama queen here is McCain,not Obama, have you not been listening to the news?
What planet are the GOP supporters living on....?
You guys think people are Stupid and will take your comments for facts
Reasons for no rushed bail out:
Most companies took under consideration credi crunch and they they a credit line until the end of 2009
Outsourcing how can you bail out wall street with jobs shipped overseas
Where is the 700 Billion going to failed banks it is not like we have millions saved.
I think the 700 billion should be used to create jobs.
It feels like Bush is trying to cash out before he leaves
I do not get how the treasury studid a complex world economy
and came out with 700 billion with no pennies in two days
I just do not understand how bold can u be when u ask for money
I will pay for bailout if they address outsourcing and the devaluation of dollar
Anderson, This bailout is the biggest scam in U.S. history. The privately owned, non-governmental federal reserve bank, in league with former Wall St. CEO Sec. Paulson, are scamming the American govenment in order to line the pockets of private stock holders of the Fed and Paulson's buddies on wall street. Paulson along with Bernanke are asking the government to BORROW up to 700B dollars FROM THE FEDERAL RESERVE, and anyone else who will buy the newly issued treasury bonds. Tax payers will pay interest on the borrowed money, most if not all of which will go to the private stock holders of the Fed.
The Fed, like any other bank, is in business to make a profit. This is the classic bakning scam of allowing the principle on a loan to become so large that the borrower (the U.S. Gov.) can only afford to pay the interest on the loan, unable to pay anything on the principle.
The Fed is asking the american government to do what it or any other bank won't; GIVE money to banks with worthless morgage back securities , WITH NO INTREST, in exchange for these worthless securities. The banks get free money, and the U.S. Gov gets worthless debt.
If the Feds prime directive is to maintain financial stability, then why don't they print money out of thin air, like they do when they buy U.S. treasuries, and buy these morgage back securities them selves?
Because it wouldn't be profitable, and they can't charge intereset on money they give to the banks for securities. If this bailout deal doesn't go through, the fed will be force to purchase these securities themselves, which would expose the scam; or the would let the financial markets fail, and face abolishment due to failure to accomplish it's prime directive, which is to maintain financial stabiltiy. If the bill doesn't pass, either way the Fed is toast. They are bluffing on an "all in" poker game.
Is Alan Greenspan alive? if yes, what is his opinion about financial crisis and bailout!
There are many better solutions for americans than $700 b bailout!
My question and comment is simple but I think it hits home for the majority of American households. As the PEOPLE of this country we are the rightful decision makers. The PEOPLE for so long have been on the back burner and the buisness men and women of this country have taken the ulitmate front seat. Why do I have to struggle to feed my kids and pay my bills. Why can't they? I say give the PEOPLE the money let us make the economic decissions. For so long the we have fought and died for this country and what have we recieved in return? Nothing but a country in debt up to it's ears and a government more concerned about Wall St statistics then people's health care.
WAMU CEO of 3 weeks could walk away with $18M after his company failed. Criminal! If Congress passes a bill that doesn't restrict executive pay and prosecute those who ran their companies into failure for profit, they are abetting the criminals. How many times has the Bush cabinet lied to America? Politics of fear. Few members of Congress have seen through the lies. Vote the rest out in November.
Why are we suprised that we set here in another crises, created by BOTH parties doing nothing, and both parties are still doing nothng!! More Kindergarten playgroung antics and nothing getting done. Then there is the big political grandstand play my the canidates coming back to Washington when neither of them have the authority or positons to do anything. That bunch back there, still do NOT understand, that the American people are not stupid and are sick of the whole bunch!! They better start doing what they are getting paid for or they're all going to be going down the road and the sooner the better.
The gravity and unpopularity of the economic bill is why this has to be a bipartisan decision. The presidential candidates going to Washington yesterday was a distraction to both parties. I appreciate Mr. Obama's judgment, however, to keep politics limited to other ways of communicating such as e-mails and telephone calls.
As to the House of Republicans, they were simply not prepared and are making excuses. Now they have a better presentation of their thoughts than yesterday, and are ready to negotiate. (They did not even have a leader as of yesterday.) The Senate (Democratic and Republic) and the Democratic House would have been happy to hear the various components, if they were prepared. They were not and should have asked for a time out and not a walk out, until today.
Washington is out of control. Americans need to take note of the House Republicans holding out and vote them out first chance. This is a Republican Administration working on a bailout and its own party affiliation is working against it. Lets spend more money by dragging your feet. House Republicans propose a plan to make Wall Street/Banks pay for their mistakes by purchasing insurance instead of the tax payers footing the bill. Be real. This is semantics. We all know that even the purchase of insurance will be a pass through charge to the American People. Wise up America. We are going to pay for it one way or another. Pass the bill and back the President you put in charge that helped take down our nation. Big lesson here, be careful what you wish for. Looks like the oversight committees had tunnel vision.
Amy,
You are so right! The dems are doing all that they can to stall this bill so that they don't look like they want it so it won't hurt their chances on getting re-elected. Like you said, the dems control congress!! So therefore they can pass this bill without the reps approval.
The dems are doing exactly what they claim McCain is doing. They are using this for their own political gain.
Cindy..Ga.
Who bails out the common person when they get over extended & can't pay their bills ? No one. When these big companies outsource or pack up & move overseas, or sell the company to foreign investors, we loose our jobs & become part of the unemployment figures. We then loose our homes, & our credit gets ruined, your life gets put on hold for the next 10 years. If you do find another job in this jobless country, it will be for about half of what you were making, while the fat-cats, that screwed up the economy in the first place, get bailed out by , guess who, "We The People" that are already suffering because of them. Let's just take the bail out money & send it to WE The People directly, & bail them out. Give them back their house (John McCain has 12), their car, their job, their credit, & their lives that were taken from them by these "Fat-Cat's" & the politicians that backed them. What happened to Equal Protection.
Amy ,
" Me thinks Pelosi's playing this out as long as she can" ME thinks your right.. Pelosi is a power tripping game player,, one example the drill for oil vote needed when she bailed and along with wobbly Harry Reid and the rest of the democratic congress HAD to go on vacation, this time around is no different , Harry had to get his jabs at McCain this AM in the media, these so called leaders in congress declared thay had come close to agreement right before McCain showed up" the fact was later it proved they lied . That's progress ,my hope is that they don't agree on something over the weekend and then keep Americans in the dark after it's too late for approval by the people that will bear the consequences.
Maritza
Just get it done so Mcclame can lose this election, Mcclame is the one stahling now he DOESNT want to debate?
He's starting took like a coward.
ARIZONA RON FROM TUCSON
Are you kidding, this GOP is no closer to unite than oil and water. I would say neither side will come to an agreement until the “debate” is done and over to side with the popular vote on how each candidate made their case. The bottom line will be the American public who are the real vote will be left in the dust and pull the load once again.
So now, after 8 years of Hell, the GOP suddenly CARES about the struggling mainstream America? Perhaps Pelosi and the other legislators recognize the importance of uniting America with this decision. I think that Pelosi really needs to explain how serious the consequences will be if this bill is not passed. Obviously too many people, GOP and Democrats do not understand how it will affect them PERSONALLY. I hate the idea of spending my tax money on this too. But the writing is clearly written on the wall here. For those who don't believe it, why don't you ask your employers if they ever borrow money to meet payroll and bills? Why do you think all of those credit card and personal loan applicans abruptly stopped coming in the mail to you four months ago? There is no money to loan.
THANK YOU!!!!!!!!
Now would you please send this little bit of overlooked information (that the Dems can pass this bailout with out the Republicans) to Anderson Cooper and that it is really the DEMS wo are playing politics.
This really is about ideology, some want to move us into socialism and some of us want to stay as a free market, or what is left of a free market.
I believe the crisis is due to a bill putting more government oversight on Freddie mac an Fannie Mae dies due to the democrats in 2005 or 2006. To me, it is the Democrats fault that we are in this crisis. Now I hear ii is the John Mc Cain's fault as stated by who Rush Limbaugh calls Dingy Harry Reid. He was trying to put in a plug for Barack Hussein Obama. I am not a economist. I believe there shouldn't be in that much of a hurry. I believe 90% of the American people would agree with me.