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February 6th, 2009
02:33 PM ET

Wait till you see next bailout

[cnn-photo-caption image=http://i2.cdn.turner.com/cnn/2009/POLITICS/02/05/obama.stimulus/art.obama.speech.gi.jpg]

David Smick
Special to CNN

This week, the Obama administration launched an angry campaign (and rightly so) targeting the greed of the financial services industry.

The big bank executives - with their French private aircraft purchases, Las Vegas boondoggles and multibillion-dollar bonuses (despite having just received taxpayer bailout funding) - appear politically tone deaf. Now the Treasury Department is proposing a $500,000 salary cap on senior executives of banks receiving taxpayer funding.

Read more...


Filed under: Bailout Turmoil • Barack Obama • Raw Politics
soundoff (31 Responses)
  1. Gary Tugwell

    the jobs, this stimulas supposed to get to work on roads, highways and construction areas, is it the true Americans? or companies that support non-American workers(illegal aliens, green card holders) going to be the ones that gets these JOBS. We need to get our citizens(legal natural born first, not aliens) to get these jobs before any others. Can this question be asked to our Congress. One Concerned American, Gary Tugwell

    February 8, 2009 at 9:29 am |
  2. Kim

    We shouldn't give any more money to the banks...a better way to use the rest of the TARP funds and any future bailout money is to give one hundred to three hundred thousand dollars to each and every tax payer in the United States, to use in paying off their mortgages or in buying a home. The banks would get the money they seek, the mortgage crises would be solved and we wouldn't have to trust the crooked bankers to pay us back. Oh...but this borders on Socialism...we can't have that ...I for one am tired of working harder for less, while the rich get richer and the middle class cease to exist...if that means adopting socialist policies, then so be it...It really is time
    for a change.

    February 7, 2009 at 9:56 pm |
  3. Joe Fraser

    I am against all the bailouts. When a company goes bankrupt. It is a firing mechanism. It is a very brutal firing mechanism, but the CEO and the board does get fired. Now the people who were irresponsible in the first place are not fired.

    February 7, 2009 at 9:23 pm |
  4. Mark, Renfrew, Canada

    Ground-rule No. One:
    when you go bankrupt.or you got yourself into trouble and need to get bailed out .....
    – the first thing is to stop taking money out (exec. pay and bonus)
    – the second step is to fire those who caused the dilemma.
    – the third step is to watch that your bail-out money is spent as
    intended.

    In the first bail-out, none of the above were observed. Do not spend another dime unless you know that it is employed as intended and check on it.
    Mark

    February 7, 2009 at 8:29 pm |
  5. Erna Becker

    The President and all his buddies could stop all of the rangeling by giving every legal citizen of the United States over 18, the proceeds of the first "bail out". It would be about $100,000 to everyone. Believe me, you would see the economy zoom,

    Many people could pay off their bill, buy new cars, pay the mortgages; that would stop the foreclosures, and pay down their credit cards.

    Has anyone ever suggested giving the money back to the people it belongs to?

    February 7, 2009 at 6:16 pm |
  6. Karen

    It seems McCain is still getting it wrong. I was listening to him today still contradicting himself once again. Someone should tell him it's time to retire! And take some of his buddies with him.

    February 6, 2009 at 9:34 pm |
  7. Sean Murphy

    I was sorry to hear that Obama's "Stimulus Package" is going to get signed soon. After hearing Obama go off the teleprompter and claim that spending is stimulus, I actually starting to feel sorry for the guy, who is suppose to tell him how things actually work so he doesn't look stupid or reactionary. Someone should tell him that spending is only stimulus when a private citizen does it with their own money not when the government borrows it and then wastes billions.

    February 6, 2009 at 9:05 pm |
  8. hermancain

    CNN why can’t I get any answers—What is President Obama going to do for people that have been forced to retire because their job was shut down–their pension have been cut by 60%–and their health care has been terminated–their physical condition and age prevents them from getting another job–are we just going to be left for dead–I will not go to Dr.–Because, I have health insurance now that is not very good and will not pay anything for prexhisting conditions for 6 months– and am afraid if anything is found they will say is prexhisting and they will not pay anything–I had heart bypass surgery and the health insurance I had at that time authorized hospital to do surgery — then refused to pay– saying prexhisting conditions leaving me with a bill of over 85 thousand dollars

    February 6, 2009 at 9:01 pm |
  9. sherry, northern Calif.

    I Commend Sen. Collins and the other three Senators that came forward to try and make a compromise with these same old need to be retired Rep, Senators. I liked everything she said. No one knows what will work for our economy. So let us try. Let us get something done NOW!

    You know where Wall St. Banks, Ceo's the SEC so-called watchdogs, the Madoffs, all the pukers that took corporate $$ and paid for sex are going???? It is not a very cool place.

    This is part of the solution. The enept people that WE TRUSTED with our hard earned, saved and invested money need to be fired, punished, thrown in jail and replaced.

    They say we will borrow from our children for their future? What children? If we cannot get things done to save Mother Earth there will be no more children and no more Mother Earth.

    People are hurting. These die-hard nay sayers in Congress need to retire. They will never change. We voted for change so let it begin. It was okay for Rep. to spend money and get us into this mess. Most of the so called "Pork" the Rep. supported and fought hard for in previous years are in this "Stimulis"bill. The Republicans are still not happy.

    They are out numbered for a "Change". Change always comes with a collision . Main Street needs this bill NOW! Not next week!

    February 6, 2009 at 8:57 pm |
  10. Theo

    Jack Welch has GOT to be kidding! Parties are a "part of doing business"? My god, NOT in this environment. When do these top feeders get it–the days of "doing business" like that are OVER! It's time for a whole new paradigm when it comes to acceptable business practices. This is just further proof that these people REALLY believe they are in a separate class all by themselves!

    February 6, 2009 at 8:37 pm |
  11. Charles Harris

    The Fairtax is a means to fix the country's economic situation, yet, no one is talking about it. Everyone in the economic field know what has to be done. The fairtax will be the best thing to happen since the begining of this country. It will address the Bailouts and Stimulus that this economy needs. WAKE UP PEOPLE!!!

    Charles Harris(Joe Blow)

    February 6, 2009 at 8:33 pm |
  12. Debbie

    We need a bailout or something to help us. We the people may not all agree on everything -but this: we all have went broke together. Now as to the president why shouldn't this president take airforce one/ or do any of the other things a president does? We have forgotten that he inherited this mess- he is just attempting to fix it. it is amazing how no one says anything about how the stars live in luxuary because we spend our money on their products- but let the president do something and it's all wrong. we are so off focus. What are we the people going to do when we hit "depression" because somebody didn't get what they wanted/ I have found that those with jobs are the ones really barking. those without jobs would be greatful for your job. it is not this administrations fault that the first stimulas bill to the banks got blown-get real people. but let this be a lesson to all of us-whenever and however we get out of this mess-maybe we will read the fine print, maybe we won't have to have something just because ,my neighbor has it etc.. Maybe we can just say "no." it is amazing that drugs will destroy a person and their famil, greed, coveting, jealousy, and lascivious living destroys a country. something to think about.

    February 6, 2009 at 8:29 pm |
  13. Debbie

    Why don't we take all the rep. jobs away and the dem. who don't want to pass the bill let them lose their homes, cars etc.. let them stand in food lines, clothes lines , and whatever other line their is for help, then let them come back and see if they still want to slow the process down. Everyone is talking about the kids of the future paying for this bill- right now those millions of people who are doing without are thinking about their kids today!!! futher more get off Pres. obama, if he sneezes to loud the national news is all over it. I do believe that all the national news people are in the wrong business-they are to report the news but they all seem to know how to fix the economy. So maybe they should update their resume real quick and go fix this mess, so millions can go to work. !!!

    February 6, 2009 at 8:19 pm |
  14. Annie Kate

    If I'm not mistaken Congress wrote this stimulus bill after Obama said what he wanted – with Congress writing the bill its no wonder it has a lot of pork in it. That seems to be all the Congress can concentrate on anyway. Legislation comes out of the Congress – Obama can veto it or pass it. IF he were to be given line item veto he could get rid of some of the boondoggles in the bill before he signs it into law. The Congress probably would'nt like that but it would stem the tide of money going to worthless projects that don't stimulate or create jobs.

    February 6, 2009 at 7:36 pm |
  15. nate

    Rather than focusing on this bailout plan, whatever happened to the Consumer Credit Card Bill of Rigths? Right now it is still stuck in the Senate Banking Committee. This will have a more positive immediate effect on household income that any bailout plan.

    February 6, 2009 at 7:09 pm |
  16. Regina

    Have the people who support this bill and the media really paid attention to the ridiculous things in this bill that the President is trying to push through. I mean ridiculous spending, new government buildings, new furniture, increased lighting for cemetaries, since when does the dead need more light! It goes on and on, what about these things creat new jobs. It's a joke the the american people are falling for it.

    February 6, 2009 at 7:07 pm |
  17. xtina, chicago IL

    you're not doing your homework CNN readers. 90 per cent of the bill is pork and 10 percent is job creation. What a "change" from "hope and change".

    February 6, 2009 at 6:16 pm |
  18. Chris

    It's amazing how caught up the gov't can get in exessive loans with other peoples money.

    February 6, 2009 at 5:40 pm |
  19. David Redden

    You can't keep filling up a leaking gas tank, and calling it a repair.

    Niether can you expect to keep borrowing from your competitors to fill our money tank.

    The leaks have to be admitted, indentified, and repaired, THEN you fill the tank.

    But it is obvious that our money leaks, is also our foriegn creditors and competition's INCOME!

    To fix our money leaks, we risk war with our foriegn friends.

    Not to mention the people who have allowed us to get in this mess, and have benefited from it will have to admit what they have done.

    If we do actually fix the leaks and strengthen our economy, we risk being invaded by illegal aliens again.

    We have a dire future.

    February 6, 2009 at 5:38 pm |
  20. Rose-Ann Gaskin

    Mr. President,

    I too, am sick of tired of the rich getting richer. The poor and tired obtaining assistant from the government and the rest of us the middle class have to struggle. It doesn't pay to be forthcoming and to pay bills on time. There are no opportunities (as far as I am aware) available to help those of us who pay our bills on time i.e mortgage.

    I am disturbed about the amount of money given to the banks with no direct relief for the rest of us and thousands of honest hard working Americans getting laid off monthly.

    Every day people are losing their jobs. Everyday athletes are offered millions of dollar a year. While school teachers (who play a major role in our children's future thereby the future of American are paid less than $50,000. depending on the state yearly. Does this makes sense?

    What is this world coming too?

    I am therefore proposing for the next stimulus package, you consider the home owners. Recognizing the value of most houses have dropped, I propose you pay the mortgage companies the difference between the present mortgage and the present value of the houses. e.g. if a homeowner is paying 175,000. for a mortgage and that house is now worth 125,000. pay the banks that $50,000. and allow the homeowner to refinance at the new rate $125,000. The banks have not lost and the homeowner is still responsible for their mortgage, in addition they have more money available to spend and help the economy

    February 6, 2009 at 5:34 pm |
  21. Peter Boettcher

    Here is what’s happening.
    Our current financial system is broke; it is at its end.
    If you pump money into a broken system what do you achieve – nothing, it is complete nonsense to bail the banks out.
    The banks should be paying their debt back without one cent from the tax payer, it will take them 30 + years just as long as it takes to pay a mortgage of a house.

    We have to correct and fix the system or even better replace it with a different one. Globalization is over; free exchange rate system is over.
    This problem was created with help of Alan Greenspan and the free trade policies.
    From the no good British came the hedge funds and the derivative speculation bubbles (casino gambling with money created out of thin air).
    The people who are in charge and who are responsible for this have to be held accountable to the very last cent.

    February 6, 2009 at 5:06 pm |
  22. Q.

    I was blind now I can see; if middle class America cannot see now they should. Mayors in cities have planned to create new jobs with the Obama stimulus plan. How many times I have to tell you the GOP dose not care about the middle class America. Over night McCain became an economic expert. The GOP has made there changes and still do not want to help the middle class. I hope America understands when it comes to helping the middle class the GOP does not what to help. Remember middle class America does not have any lobbyist. I hope middle class America understand how the rich got rich and the poor stayed poor because of the GOP. If you do not know; now you do. Take from the middle class and give to the rich (Bush stimulus plan; GOP was on board with that). GOP does not care about middle class America (spending for main street is a problem for the GOP;but spending for Wall Street is good for the GOP).

    February 6, 2009 at 5:05 pm |
  23. jim Fallbrook CA

    We don't need a bailout. The first one failed. This will also fail. You have to remember there were no bailouts when the worst president in history Jimmy Carter left office. Ronald Reagan got the economy back on track with a tax cuts. My liberal friends called it trickle down economics. Regardless of their criticism, it worked. My suggestion to our Socialist president is to have mortgages at 3% interest. That would solve the housing crisis and would be much cheaper than his 925 Billion dollar stimulus package.

    February 6, 2009 at 5:05 pm |
  24. Luis

    Yea for for inflation. I'm sticking to gold. You fools can hold on to the dollar. You think gas was expensive back in mid 2008. You haven't seen nothing yet.

    DEFICIT, DEFICIT, DEFICITS, DEFICITS.

    Article I, Section 10:
    Make Any Thing But Gold And Silver Coin A Tender in Payment Of Debts.

    Sure these bailouts and stimulus is going to clear debts and payments, but it comes at a cost. Bush tried it and now Obama is trying to spend are way out of this.But since it's Obama doing it, i guess it's OK with CNN.

    February 6, 2009 at 4:23 pm |
  25. earle,florida

    I firmly agree with most of your atricle, but just to mention a few of the," Out of Wack" normalities the government,and Wall Street brought upon themselves? When Hank Paulson accepted the job of "Secretary of the Treasury" in 2006 while having worked for "Goldman Sachs" ,(GS/NYSE) he sold his shares/option/etc.,for a total of $485mn, and the "Capital Gains Tax" by the Bush Administration were waived! I disagree with you about off-balance sheets carrying so much debt, although de-leveraging was a factor,but not detrimental! The Credit Default Swaps (CDS) did have a great deal to do with the "Melt-Down" of our Financial Industry,but that's passe'? Once the government (allocated) threw the bulk of the "TARP" money at AIG (underwriters/market-makers) the problem was solved. Finally,I can remember the 80's as if it were yesterday with the implimentation of the,"Resolution Trust Corp." (RTC),and how the public was saddled with the $200bn debt it finally cost the taxpayers. In my humble opinion, it fixed the problem of the,"Crises De'Jour of the Day". It was a hard pill to swollow for the taxpayers,but we got thru it, after-all ,as a homogenous society that we live in ,it's inevitable that we all share in the rewards,and sacrifices! Great Read ,Thanks(:

    February 6, 2009 at 4:17 pm |
  26. anonymous

    I think the bailout shoud be directed towards more banks. There was a bank in California that issued low intrest personal loans to people and did great. Kinda like to 'payday loan' places now that are terrible. I thnk the government should encourage banks to do low intrest personal loans small business loans etc, and should banish the 'payday loan' companies.

    February 6, 2009 at 4:05 pm |
  27. Lisa in CA

    Maybe, rather than lambasting the financial sector for their extravaganzas, the presiden would be better served to start with the politicians in Washington? They have never seen a raise they didn't like while doing so little and spending so much money; they haven't seen a program they didn't like and yet they have the audacity to show outrage to the CEOs?! Talk about the pot calling the kettle black!

    So again, why is not viable to mandate to the financial institutions that they lower interest rates on all loans for a set period of time? Because, what, we don't want to cut into their profit margin? Too bad. We're already using our tax payer dollars to bail them out and yet they don't want to help us (who are funding them) get turned around. Yeah, it's going to hurt for a while but it's only short-term. I would think that for once thinking about the long-term would be a good thing to do.

    February 6, 2009 at 3:47 pm |
  28. Linda B., Ga.

    Cut all the BS about the next bailout....we need this one and need it NOW!!!

    February 6, 2009 at 3:43 pm |
  29. Mike, Syracuse NY

    What about Obama taking Air Force One to address the Democrats at their annual retreat at a resort last night? He used a 747 to go 150 miles. Hey, I know for security reasons he can't just hop in a Chevy, but get real. This is well within the range of the Marine One helicopters. I guess he wanted to show off his new toy. Then he has the nerve to complain about corporate perks.

    February 6, 2009 at 3:28 pm |
  30. Cindy

    So the cap on the execs salaries was all just a smoke screen huh to fool all of us? Because in reality the bank execs will get their money because the stock that they own will go back to being worth something when Obama and them sets the value of their assets at a higher level than it is actually worth. Nice to see that they once again are doing business as usual and trying to lie to us to appease it. Where is the change!? I mean really!?

    I've been thinking all along that it wasn't just Bush and his 8 years that caused this problem. The whole world is in an economic mess and we sure didn't cause that!

    I think we need more people like David to step up and tell us the truth and we may actually understand this mess and get out of it with the proper help. Maybe Obama needs to hire him! Just sayin...

    Cindy..Ga.

    February 6, 2009 at 3:16 pm |
  31. JC- Los Angeles

    I can't wait to hear about the bailout that will be required to address all the universal healthcare fraud that will transpire over the next eight years.

    While Wall Street and countless mortgage banks laughed all the way to the bank with each Greenspan rate cut, they will now set their sights on universal healthcare fraud.

    I can just hear the legacy hacks now: "if it's universal healthcare, then that means it's universal and everyone will have it, therefore, everyone is a potential victim, right?"

    February 6, 2009 at 3:02 pm |