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September 30th, 2008
09:02 PM ET

Evening Buzz: Senate to the Rescue?

U.S. Senate to vote on bank rescue plan Wednesday.

U.S. Senate to vote on bank rescue plan Wednesday.

Maureen Miller
AC360° Writer
 
Bailout Battle: Take Two. We've just learned that tomorrow night the Senate will vote on the $700 billion bank rescue plan, two days after the House failed to pass.

The Senate plan is different. It would rise the federal deposit insurance limits to $250,000 from $100,000. There are other changes, as well. We'll get into the specific tonight on 360.

The bill will be attached to an existing revenue bill the House also rejected Monday. For all you Senate rule buffs (Come on, admit it. You're one of those, right?) the move would allow the Senate to vote before the House to approve the bailout bill. Those sneaky, senators.

GOP presidential nominee John McCain and Democratic nominee Barack Obama and his running mate Joe Biden say they will be on Capitol Hill for the vote.

Get out your crystal ball. Do you think this Senate version will pass tomorrow?

There was a bit of a rebound on Wall Street today. The Dow added 485 points, a day after blue chips sank a record 778-points after the House rejected the bailout bill.

We'll have the the raw numbers and the raw politics tonight on 360 at 10pm ET.
Hope you can join us!


Filed under: Maureen Miller • The Buzz
soundoff (41 Responses)
  1. Maggie from PA

    I am confused to hear the media refer to the house vote on 9/29 as a "failure." I think perhaps for the first time, Reps were finally listening to their constituents and not their party expectations. The American public got involved. They asked their congress to listen- and they did! I hope the Senate will do the same. Do not bail out Wall Street. Some lessons are better learned the hard way. Free markets will survive. God help us!

    September 30, 2008 at 11:13 pm |
  2. Banker Nancy

    I find it appalling that bankers will work 24/7 to ensure that their systems are all operational / no impacts to our customers. Yet the Washington fat cats – the majority being non-Jewish even – decided to leave town for 2 days at a time such as this. Like turning their backs on Main Street constituants. Absolutely unacceptable. Course they probably needed the time today with no interruptions as they were involved in buying up those bargain-basement stocks that tanked yesterday and thus the reason why the market came back as it did today. No surprise what happened today on Wall St.. Meanwhile the rest of us are being led to believe that if Congress doesn't get what they want (the Bailout), then it's doomsday for us. And our candidates are not offering solutions/they are just following their fellow Senator friends. Frankly neither one gives me a warm & fuzzy feeling for leadership.

    September 30, 2008 at 11:11 pm |
  3. Kristen M

    Even if they vote on a bailout plan how is this really helping those who are about to loose their homes? I feel like we are putting on this very expensive band-aid over an oozing wound. It may keep it for a little while but eventually it will give. I don't think we are too little to late and I think before the government hands over so much money a concrete and concise plan is needed. Why not put all the mortgages in default or headed that way into a high risk pool of last resort – work out payments based on a 50 year loan and lower interest rates along with other restrictions that would protect our interest in this large bail out. After all it is our money the government will be using to bail out these lending institutions.
    I know it can not be that simple but I do know that if a lot of these surplus lines/high risk loans were moved from the banks that it could help with stabilizing the marketplace. Furthermore – I strongly believe any high risk loans that have been given by lending agencies should not be allowed or should have stricter oversight – to say that you could not see this coming I believe is just cover up for greedy lies.

    September 30, 2008 at 11:06 pm |
  4. Missouri Mark

    It seems as though everyone has become more concerned with passing the existing plan, pointing fingers of blame and posturing for their party more so than looking at this plan to see if it is the best thing to be doing. Sure, something needs to be done (or should the dust be given a chance to settle?) but are we looking at the right thing?

    September 30, 2008 at 11:01 pm |
  5. Werner Gorshe

    This "BAIL-OUT",or so called "Rescue Plan", has been brought about because of a serious American problem. It's time to put politics aside. I understand why the Dems voted the way they did. 140 votes were delivered to keep the country solvent and 93 voted against as a matter of principle. All in all 60% said your point is well taken but as a nation we must move on. The Repubs on the other hand delivered 33% for solvency, and 66% for........? Principles? The principles of deregulation, less oversight, and the Republican theory of the rich get richer and the rest get poorer. Dems have had their share of the responsibility also, but what? Now they should take the responsibility of fixing the problem themselves? Either way the Dems should take the ball and run with it, show the leadership! They have the numbers, pass the plan. Once the economy gets rolling again the Repubs can scratch their heads ,if they can reach that far up, and wonder if maybe they should have put America first, instead playing like a bunch kids. It's an American Problem, Lets all be Americans. Give the Dems 45%, and the other 55% can claim principle, but "WE" move on.

    September 30, 2008 at 10:57 pm |
  6. Michael Taplah

    The bailout is not the solution to this crisis, since the situation is a breakdown of the mortgage sector that is still taking place. Lou Dobbs and the American congress campaign to deport illegal aliens, who own homes and businesses without economic precautions is the main reason why there is a high rate of foreclosures, causing banks to lose on Hugh loans. No amount of money can fix this trouble as long as people are still in jail on deportation or been deported. How many people who have had homes and businesses have been deported or in jail due to the Illegal aliens campaign?

    September 30, 2008 at 10:54 pm |
  7. Greg

    Since when did a religious holiday take precedence over the economical needs of this scope. The Congress should be paying more attention to what this country needs rather than finding ways to duck out on its responsibilities.

    September 30, 2008 at 10:54 pm |
  8. curious gayle

    To be perfectly honest, I am worried as to where this subject stands and where it is going to end ultimately. First, as presented by Paulson...the '$700 billion Wall Street bailout'–no oversight, no rules or regulations, no questions–was hands down a reason to flat out refuse to go along. But I have a problem with understanding how the House members that refused to go along w/the vote on the House Bill–due to numerous calls from their constituents to vote against the 'bailout of Wall Street'. My question is how much info do their constituents have about the bill that they were basing this decision on-if any. Did any of the House Members explain the particulars of the bill to their voters? Are their voters merely going by gut instinct – have they read the actual bill? Personally I have heard many different 'talking head Opinions' today that ranged from 'see, it was a good thing the vote failed because look how good the stock market jumped today, it was false warning' to 'this is truly a crisis in the making if a decision is not made in the next day or two' and all 'opinions' on tv/talk radio/newsprint/online in between. Many everyday 'Joes' are under the impression that this is a rich man problem and nothing to worry about in 'Polk County, USA. They are just relying on what the talk show guys are telling them. How much responsibility are media-type personalities swaying the public opinion with opinion, rather than factual info and what might the consequences be?

    September 30, 2008 at 10:50 pm |
  9. Joy in Seattle

    No bailout!

    The problem is that we cannot trust the people in Washington. They got us into this mess. They rushed us into war. They wouldn't allow in 2002 there to be oversight on Fannie/Freddie. They passed legislature and worked with the black caucus to get people into homes they couldn't afford in the name of helping. The Fed has been lowering interest rates and screwing up my retirement fund for months, devaluing the dollar, and making things worse.

    No to the bailout because we do not trust the people in Washington, not the President or executive branch and certainly not the congress. We don't trust them to get it right this time either.

    No trust = no bailout

    September 30, 2008 at 10:33 pm |
  10. jonna

    Why can't the government make loans directly to the institutions that need it, bypassing the Wall St fat cats. The interest paid could be a great and needed source of revenue.

    September 30, 2008 at 10:29 pm |
  11. jeff

    Show me the ones that vote no to this bill, they are HERO's!!!

    September 30, 2008 at 10:29 pm |
  12. Ricardo

    No, I don't think it will pass. If they are adding things to the bill that necessarily don't address items that people in the house (more-so the GOP members) had issues with, I dont see how it could pass 1 day, 1 week, or 1 month later. Many Republicans just have an issue with this type of a bailout unless it is absolutely last resort. Those who voted against it don't believe it is necessary to pass a bill of this magnitude at this point and believe that there are other options out there right now.

    September 30, 2008 at 10:27 pm |
  13. Brett Huttman

    I am dead-set against this bailout measure. We need to make those responsible for this disaster to step up to the plate and take responsibility. Is the government going to bail my failed business out? Who's going to pay my bills? Why do we allow these businesses to pay their workers on credit for payroll, when the CEO's are taking the cash and lining their pockets with it? The only people who lose in this deal are the average American workers!

    September 30, 2008 at 10:19 pm |
  14. California Kim

    I hope they don't pass the bail out. I wasn't for pt. 1 and I am not for pt. 2. This crisis needs to work itself out. They were to liberal with their credit – no money down, no income, no asset verification. From houses to cars to credit cards. I expect the money to tighten up for a while – kind of like a pendulum it swung to far one way, now we are panicking because it is swinging to far the other way......but it will level out.

    September 30, 2008 at 10:09 pm |
  15. FedUp

    Here is the truth on the “bailout”: This $700 billion will be simply used to keep the people who could not afford the homes they are in, in those same homes. How? Because once these mortgages are “sold” (given) to the government, they will be “forgiven”. All these people will simply get their homes for free, while I get to pay for my own mortgage, as well as the mortgage for these people who should have never been given a loan in the first place.

    The only reason these politicians want this bill is because it is filled with money for themselves, for their friends, for special interests, for special groups, etc. etc. etc. Can you spell “ear mark”? Can you spell “pork”? Get the idea?

    WE DO NOT TRUST THESE POLITICIANS!

    Why would a sane person give the people who caused this problem in the first place money to fix the problem?

    September 30, 2008 at 10:09 pm |
  16. Kelli

    I agree with Larry, it is good to finally here someone talk about the regulation changes that created this mess to occur. Let's bailout the mess and move forward so our retirements funds have enough time to recover. The people that have been hit the hardest and will not recover are those that have made responsible financial decisions but will retire in the next few years. Those of us that have many years to play out the market before retirement will happily pay for the mistake now assuming that regulation occurs that unwinds the ridiculous regulation changes to allow people to own homes that cannot afford them. So now we have paid for thier house and if the democrats win we will be paying for their health care – do we live in France? What happen to the real American Dream that was earned versus bought with credit?

    September 30, 2008 at 10:09 pm |
  17. Billy

    Why should the Democrats who control the US congress be re-elected when their approval rating is currently less than 9%, the lowest in US History?

    What have they done in the past couple of years that has actually helped Americans and our economy?

    September 30, 2008 at 10:04 pm |
  18. Renee

    I think they need to bail out Americans and not these Wall Street fat cats and banks. There are only 280 million Americans in the US. Give everybody one million dollars to bail everybody out! It's cheaper than 700 billion.

    I think that unfortunately they will pass the bill.

    September 30, 2008 at 9:59 pm |
  19. Amy

    In watching the coverage on the $700 billion bailout for the economic crisis, I've found myself wondering why the entire House & Senate electorate have NOT offered to forego their 2008-2009 salary pay raises and allocate that money toward the bailout. I'm appreciative that House Republicans are trying to ensure we, the taxpayers, are not the ones entirely responsible for this bailout. I think we should absolutely do more to make sure the corrupt CEO's on Wall Street and the corrupt lobbyists pay their fair share as well. I think it would go a long way toward fostering good will to those of us on "Main Street" -those of us in the middle class who are finding it harder and harder to get from paycheck to paycheck with ever-rising fuel & food bills and to make the ends meet month after month without dipping into our retirement and other savings accounts.

    September 30, 2008 at 9:57 pm |
  20. Christopher Mannino

    Interesting how the media has gone from calling this the "Bailout Plan" to calling it the "Rescue Plan". Does the media fail to realize just how much they influence public perception, or is it that they tend to realize it too late?

    Call it what you like. It's a plan that interferes with the free market. Let it correct itself. Yes, it will be more painful. But in the end, it will be more efficient. Let's hope they don't pass this bill.

    September 30, 2008 at 9:57 pm |
  21. Elizabeth Harper

    Why isn’t the administration seeking a large equity share in the failed businesses in the bailout plan? Wouldn’t this be more to the taxpayer’s advantage?

    September 30, 2008 at 9:56 pm |
  22. Muammar Reed

    I predict the bill in the Senate will pass tomorrow, why? It's because only 1/3 of the Senate is up for re-election anytime soon and it is much more difficult to win against an incumbent Senator than a House Rep. Many House Reps(Republicans and Democrats) do not want to bite the bullet and are much more interested in appeasing their economically uneducated constituents who will be losing their pensions, retirement funds, and most importantly their jobs. They will lose their ability to earn a living!!! By waiting, Congress is turning what can be an extremely rough landing into a nosedive. I wonder if I will be able to get that school loan for my final year of law school next year?

    September 30, 2008 at 9:55 pm |
  23. Nay

    The government is under scrutiny for good reason. They have failed and the banks have failed. This is a sure sign this it is time to tear down and rebuild. America was once a poor country. We built it to what it is today. It's not the best we can do. We must continue trying. With that said small business are at the brink of becoming incorporated so let them step and knock out the homerun.

    September 30, 2008 at 9:55 pm |
  24. Tommy Medeiros

    I belive the Senate will come to an agreement on this Economic disaster. The individuals responsable for this mess should be prosecuted to the fullest extent of the law. This country is going to hell in a hand bag. We need change in Washington and the United States,
    fast, quick, and a hurry?

    Sincerely: Tommy Medeiros

    From: New Bedford Massachusetts

    September 30, 2008 at 9:55 pm |
  25. A.D.

    But of course, they will have another vote, and maybe even pass it. Here is the bigger question that NO ONE is asking. WHO BENEFITS BY STALLING THE BAILOUT?

    Just wondering, it seems awefully convenient that a significant majority of those voted against it just happen to be running for re-election. coincidence? HMMMMM

    September 30, 2008 at 9:54 pm |
  26. James Thorne

    I think we owe a great deal to those courageous Representatives and Senators, both Democrats and Republicans, who have stood up against the extreme foisting and pushing of the Paulson plan by the Bush administration, Secretary Paulson, Fed Chairman Bernanke, and many Congressmen, and both presidential candidates. This plan is so remarkable flawed in its obviously unfair administration by one man who has shown that he is more concerned with Wallstreet than Mainstreet. He has said that he supports a strong dollar while everything he has done has lowered the value of the dollar. It has only been since the plan failed on monday that the dollar gained value against the EURO but the dollar is worth about half what it was worth when Bush took office against the EURO. This plan has been opposed by over 400 prominent economists. We should oass a bill that gives guaranteed loans to troubled businesses and guarantees lines of credit. We should not have the Taxpayers buying Toxic assets from firms that want the government to stay out of their way when things are going well and want socialism when their house of cards falls down.

    September 30, 2008 at 9:54 pm |
  27. jeff

    Can we the public impeach these politicians for lack of representation?

    September 30, 2008 at 9:52 pm |
  28. Annie Kate

    I think the Senate will pass it – at least I sure hope they do. Maybe there should be a website that posts each Senator and Congressman and how they voted for everyone to see. That way we know who to fire.

    Annie Kate
    Birmingham AL

    September 30, 2008 at 9:51 pm |
  29. jeff

    Why with all the public outrage does so many of our politicians vote for it?
    Did we not vote for them to represent us?

    September 30, 2008 at 9:51 pm |
  30. Arran Greenleaf (Boerne TX)

    IMPORTANT PLEASE READ SOLUTION TO $700,000,000,000 BAIL OUT!

    $700,000,000,000 (Bail Out Money) ÷ 138,000,000 (Number of Tax Payers in the US) = $5072.46 Each

    Create a list of US institution, take in to consideration Out Sourcing, & create a Bail Out Voucher for $5072.46 with the name of the Tax Payer printed on it that is only redeemable by those institutions.

    Do not allow the Bail Out Voucher to be used for any new purchases unless they have no outstanding debt.

    If you lied on you loan application you are not eligible for the Bail Out Voucher ((optional) sounds difficult but very easy I can explain).

    September 30, 2008 at 9:50 pm |
  31. Jim in Atlanta

    Why do I feel like our government is broken when house representatives vote on one of the most important financial bills in our history to get re-elected, and don't vote to really help our country. Why don't they vote for what will really help the entire country including "main street"?

    September 30, 2008 at 9:48 pm |
  32. barry c

    we need to clean house come election day...
    we need a psycho test and analytical test for all candidates
    all candidates need to publish their GPA and SAT scores...
    the lowest and dumbest are running this country.
    Bush, Cheney, Palosi, & Reid....can someone tell me their SAT scores or GPA at college...We need to raise the bar and only allow the best and the brightest or those that have accomplished great things...
    and I am affaid with our new choice we get smart with Obama but he does not connect w people and with McCain you get a C student who does connect...we need to go on all out...Hillary 2012.
    JUst think dems what could have been.

    September 30, 2008 at 9:45 pm |
  33. James Thorne

    This Paulson Plan is a deception. This plan would allow the Bank of China, of Saudi Arabia, of Russia, etc., any bank with a U.S. subsidiary, to sell their "toxic" assets that were never owned by an American, to the US Treasury without any contribution to help solve this problem. I wonder what Paulson and Bush were paid, and how, for insisting on having that wording in the bill. Representative Sherman said that Bush said he would veto the bill if that wording were removed. That tells you that it's more important to Bush that Paulson be able to buy foreign Toxic assets than for the bill to be passed that he has said he believes would save our economy. Could it be that Bush just thinks that the Congress and the American People are impossible to underestimate. I just can't see how, after Paulson and Bernanke have been wrong at every turn, all these congressmen both democratic and republican, and the media, would believe that they have a monopoly on arriving at a viable, financially responsible plan. I think this plan will just bail out alot of Bush's and Paulson's friends and we would find out in a year or so how wrong everyone was to believe him. Sort of like ater the Weapon's of Mass Destruction deception.

    September 30, 2008 at 9:42 pm |
  34. Katelnny

    I think that Sen Byron Dorgan, knows what is happening. He's on it. We don't need to take any thing that Paulson has to offer. He has the nerve to even keep his job, he needs to get out of town.The people in america, may not be very smart, but you know we are not stupid either. the congress needs to get their act. to gether and not pass a bill that is not for the people.because we are watching c-span, and let me tell you i get fighting mad when i listen to the speechs some of them come up with,like Sen Byron Dorgan and Rep David Driver, i could go on, but i am to upset over the things that the greedy people did to us.I would fire then and i hope they all go to jail. Maybe congress needs to go to school. i think they never made it out of 1st grade. don't pass this bill!!!!!!!!!!! thank you

    September 30, 2008 at 9:39 pm |
  35. Jean S Shelton, Ct.

    "Those sneaky, senators."

    The proper s words are scared, sweating, and scattered for holiday while USA economy slips away.

    September 30, 2008 at 9:39 pm |
  36. Mary E. Yates

    We should make it clear to our "representatives and senators"- not really sure they "represent" us.
    You vote FOR the bailout- we vote YOU out.
    And to our Presidential canidates- both senators + Joe Biden–
    the American People are "fed up and we're not going to take it anymore."
    We need to understand the problem- not have a "knee jerk" reaction.
    Look how easily that type of thinking got us into Iraq.
    Since 9/11- we have been encouraged to spend.
    Well, we did and look where we are now.
    With all the polls– has anyone asked-
    Obama/McCain/– Neither one????????
    And the last thing we need is the President going on TV and telling the American people, ala "Chicken Little"- The Sky is falling.

    Fortunately, with little credibility – the American people are, at last, no longer listening to him.

    September 30, 2008 at 9:39 pm |
  37. Gabrielle

    Wouldn't it be easier for the economy instead of the $700 billion bailout to wall street. To accutally give the bail out to the American people?
    Wouldn't it be cheaper to give every American one million dollars? What would they do with it? They would pay off thier debts, mortgages, and open businesses, buy cars.... exactly what people want them to do in the first place. It wouldn't have to be 700 billion. This is a heck of a lot cheaper on the tax payer than that of congress at the moment.
    It would help Wall Street too.

    September 30, 2008 at 9:34 pm |
  38. Debbie

    MUST READ !!!!
    Given it is we taxpayers who will be footing the $700B bill, why not take the $700B, divide it by the # of U.S. taxpayers and then issue each taxpayer that amount in a REAL stimulus $check.
    Many would pay off their mortgages, others would purchase goods and services, pay off credit cards etc...
    The current bill takes money from taxpayers and gives to the banks. Why not give the money directly to the taxpayers and let us give it to the banks?

    September 30, 2008 at 9:27 pm |
  39. SensibleSani

    Sure the Senate will pass Save the Economy version 2. The House will probably defeat it since most of them think like Politicians instead of Americans. I'm thinking almost everyone in Washington should be fired, and soon!

    September 30, 2008 at 9:18 pm |
  40. Bret Peters

    I'm interested in hearing more about the DeFazio plan. I have done some research today on other similar successes, as well as our 1980's solution. Looks good with risk but not to the tax payer. But with the world economy as well as our own credit freeze depending on confidence of immediate action by Thurs. I feel we have run out of time to try it. Also in future hind site, we will all feel like fools buying into the fear and hype feed to us by the powers that be. Fools rush in but we were all left little time to come to a solution, even though they knew of the crisis forming months earlier. One of the many reasons I'm voting Obama. Fool us once(Iraq), shame on you. Fool us twice, shame on us. "A house divided will fall" If we all go down with this we should all go down together, then pick each other up. Not fare but we are left with little options, as always with this administration.

    September 30, 2008 at 9:15 pm |
  41. larry

    Finally, it was good to see Glenn Beck talk about how all this finacial fiasco originated. He talked about how in 1999, even printed in the New York Times, that Illinois State Sen. Barack Obama, ACORN, and the POTUS at the time Bill Clinton; got Fanny Mae to give mortgages to people they would normally reject, due to being unable to meet the mortgage payments with the threat of being called 'racists'.

    Even today ACORN is embraced by Sen. Obama & Barney Frank and many of the organizers in the Obama camp were taught by Obama to be 'community organizers'

    September 30, 2008 at 9:12 pm |