Lorain/Elyria, OH
Bailout plan stalls in D.C.
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WASHINGTON — A Republican rebellion stalled government efforts Thursday to avoid economic meltdown, a chaotic turnaround that disrupted the choreography of an extraordinary White House meeting meant to show joint resolve from the president, the political parties and the presidential candidates. Instead, the summit broke up so bitterly that Treasury Secretary Henry Paulson got down on one knee before Democratic leaders in a theatrical attempt to salvage talks.
After six days of bare-knuckled negotiations on the $700 billion financial industry bailout proposed by the Bush administration, with Wall Street tottering and presidential politics intruding six weeks before the election, there was far more confusion than clarity.
An apparent breakthrough was announced with fanfare at midday by key members of Congress from both parties — but not top leaders. Wall Street cautiously showed its pleasure, with the Dow Jones industrials closing 196 points higher.
But the good news and the market close were followed by a rash of less-positive developments.
Washington Mutual Inc. was seized by the Federal Deposit Insurance Corp. in the largest failure ever of a U.S. bank, after which JPMorgan Chase & Co. Inc. came to its rescue by buying the thrift’s banking assets.
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| AP |
| Secretary of the Treasury Henry Paulson talks on his cell phone as he enters the Capitol for a late night meeting with members of Congress on Thursday. |
And the late-afternoon White House gathering of President Bush, presidential contenders John McCain and Barack Obama, and top congressional leaders turned into what one person in the room described as “a full-throated discussion” and McCain’s campaign called “a contentious shouting match.”
Conservatives were in revolt over the astonishing price tag of the proposal and the governmental incursion into private markets.
Sen. Richard Shelby of Alabama, the top Republican on the Senate Banking Committee, emerged from the White House meeting to say the announced agreement “is, obviously, no agreement.” McCain’s campaign issued a statement saying, “the plan that has been put forth by the administration does not enjoy the confidence of the American people as it will not protect the taxpayers and will sacrifice Main Street in favor of Wall Street.” The White House, too, acknowledged there was no deal, only progress.
Meanwhile a group of House GOP lawmakers circulated an alternative that would put much less focus on a government takeover of failing institutions’ sour assets. This proposal would have the government provide insurance to companies that agree to hold frozen assets, rather than have the U.S. purchase the assets.
Inside the White House session, House Republican leader John Boehner of Ohio announced his concerns about the emerging plan and asked that the conservatives’ alternative be considered, said people from both parties who were briefed on the exchange.
Financial Services Chairman Barney Frank, the feisty Democrat who has been leading negotiations with Paulson, reacted angrily, saying Republicans had waited until the last moment to present their proposal.
McCain, who dramatically announced Wednesday that he was suspending his campaign to deal with the economic crisis, stayed silent for most of the session and spoke only briefly to voice general principles for a rescue plan.
After the session, Paulson, hoping to prevent any chance for agreement from being torpedoed, pleaded with Democratic leaders not to publicly disclose how poorly the session had gone, said three people familiar with the episode.
Weary congressional negotiators gave up after 10 p.m., more than an hour after the lone House Republican involved, Rep. Spencer Bachus of Alabama, left the room.
Talks were to resume this morning.
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It sounds like the more-conservative Republican legislators oppose the proposed bailout, and that seems to comport well with public opinion, and mine, but I bet the liberals and Democrats will villify conservatives now for destroying the economy. Come on folks, it’s an election year, so politics will trump logic, patriotism, and reason at every turn; that’s the American way - from both sides. There is lots of posturing, but seldom any progress. That’s one reason why sailors used to call Department of Defense civiliam employees, sand crabs - lots of motion, but all lateral or in reverse, seldom any progress.
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Last I heard this was a Republican administration. I guess they didn’t check with their party before pushing the panic button.
Bush has now announced to the world that American business will “crater” unless his plan is passed. In an industry where what people think will happen often becomes REAL this is dangerous. He presents the official Republican fix. The Democrats respond by working on a compromise bill, reaching agreement in five days, with all the parties in the room and are ready to sign. Forward motion TH, progress.
Then the House Republicans, no doubt reading the polls this election year, pull an 11th hour stunt to torpedo the whole deal. That’s what you get for trying to work with them.
The Republican President has gone out and announced.
CRISES! WE NEED TO ACT NOW! UTTER DESTRUCTION LIES AHEAD!
So much for calm, assured leadership. As Barney Frank said, ” I don’t think it was at that stage then, but it sure is now.”
The, I guess, Republican leadership yells fire in the theater and presents a evacuation plan.
The Democrats take the plan and try to quickly improve, fix, limit the damage, whatever…because people are starting to run for the exits.
The other Republicans, watching the polls of course, cry “Stop, we know it’s smokey in here, but our principals do not allow us to cooperate or negotiate with others. We need to grandstand and obstruct otherwise we might have to take responsibility for the pain that will inevitably follow a real fix to this problem.”.
Overall, I’m afraid, Republicans 1 America 0.
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Why not call this Wall Street Bailout what it is—EXTORTION!
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True, a deal has to get done “now”, but “now” didn’t necessarily mean on Thursday. It’s relative.
I’d rather wait an extra couple of days to get a good bill passed than to rush into a terrible bill, which is exactly what we would have had. I believe the House Republicans will come to a compromise with the rest of House & Senate.
Personally, as a taxpaying citizen I’m in favor of a “WORK-OUT” rather than a “BAIL-OUT”, and I think you’ll see that’s what the House Republicans wil push for.
There’s no reason we (the taxpayers) should have to bail these companies out. If they want out, they can work their way out if it themselves. There are plenty of ways to accomplish that and still get the money flowing through the credit markets again.
If we bail these companies out, what happens when XYZ Company needs help 10 months from now? Do it again?
Bailouts set bad precedents and require little accountability on the part of the corporations. Let’s “lend” them money for a change - instead of just “giving” it to them!
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“I bet the liberals and Democrats will villify conservatives now for destroying the economy.”
Do you even listen to the news?
The vast majority of the COUNTRY *IS* vilifying the Republicans and their decades of deregulation, letting corporations run the country, for this economy!
THIS economy that less than two months ago Bush was bragging about!
THIS economy that Paulson gave NO hints could fail in such a spectacular manner!
I gotta say though…
…the timing couldn’t be better for Obama!!!
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“Bush has now announced to the world that American business will “crater†unless his plan is passed.”
Who pays attention to Bush these days…
Seriously, if he tells us to do one thing to avoid total catastrophe…
…I’d be strongly inclined to do the exact opposite, or nothing at all.
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True, Dan - the timing couldn’t be better for Obama.
Unfortunately he’s passively dropping the ball, and in effect voting “present” again.
A complete lack of leadership.
Actually he’d have to vote “not present” this time, wouldn’t he?
I can see it now…
HOMELAND SECURITY DIRECTOR: President Obama, we have a situation. It seems that Israel is considering a strike on Iran. We need to determine as quickly as possible how we want to handle this situation before it escalates out of our control. We need you back in Washington ASAP, sir.
PRESIDENT OBAMA: Uh, yeah. Um…This is obviously an extremely dangerous situation and demands our immediate attention to preserve the safety of the American people. Unlike the Republicans in Congress, I’m committed to doing that, but I’m up here in Kenya right now. You know, at a family reunion. I’m really kind of busy playing camelshoes and drinking goats blood, but I can multi-task, as all good Presidents can. Here’s what we’ll do. Tell Congress to get on the issue as quickly as possible. I’ll stay here and enjoy the party for right now, because they’re about to carve the wildebeast. We’ll stay in close contact and I’ll monitor the situation from here. You can always call me if I’m really needed, OK?
(click)
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Cute story, fairy tale, but cute…
How about another story, long long ago about a famous Republican’t who was reading to the wee, children, when some evil ogre whispered into his ear. “Sir, we’re under attack, and need you NOW!”
Now, that stupid prince on his tiny chair was so enthralled in the story, he couldn’t leave until he found out if that tiny train could make it over the mountain, so, he put that other pesky matter out of his mind and sat right there, until the pee-pee in his pants had a chance to dry.
Once his pants dried, he ran away, into a closet in the sky and flew in circles, hiding… hiding… hiding… from the evil bearded man on the magic flying carpet.
Since then, the stupid prince has had all his best scientists building a magic carpet as pretty as the evil one’s.
But alas, they can’t build the carpet for they ran out of money and their credit is no good, and the they can’t find the bearded one to buy his carpet from him.
So now the prince sits alone yelling, “The Sky is Falling!”, “HELP WOLF!” and “Save ME JEBUS!” but no one listens, especially Jebus, and not even those who pretended to be his friends, because they are cowards too and only stuck around to feast from the idiot’s table scraps. Now all they can think about is how to save their own worthless hides when it comes time to pick new leaders of the land!
Even the wicked crack smoking witch, Rush Nonuts, is having the most difficult time putting a good spin on this one, and is considering pulling a Liberman.
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*The response I’d love to see from Obama…*
“HOMELAND SECURITY DIRECTOR: President Obama, we have a situation. It seems that Israel is considering a strike on Iran. We need to determine as quickly as possible how we want to handle this situation before it escalates out of our control.”
OBAMA: *BEFORE* it escalates out of our control?!
YOU’RE FIRED!!! anyone stupid enough to believe that we have any control over what they do in the Middle East is delusional!
They’re gonna do what they want to do, only, if we keep pumping money into the area, they’ll at least kiss us after they *blank* us in the *blank* then tell us MORE LIES!
If that little tough guy Israel wants to start attacking it’s neighbors doors in, let them have at it!
But don’t come crying to us, about everyone in the world hating them and wanting to see them wiped out, just because they treat everyone around them, like second class citizens.
Hell they don’t even treat their own citizens like second class citizens! If they aren’t Jewish, they treat them like American Blacks in the 1920’s, can’t even get on the BACK of the bus. Hell, we didn’t steal the Black man’s land back then on the scale that Israel is doing to others, in the name of their GOD and Peace?!
OK, If Israel wants to start scrapping with it’s neighbors, let GOD sort it out, and call me when the nuclear dust settles, so we’ll know who’s in charge and selling the oil.
We call those a** holes our friends, but they sure as *blank* aren’t doing us any favors when it comes to Oil…
OIL, right, that stupid freaking idiot Bush, said Iraq’s OIL was going to pay for this war…
Wake up my black a** when that check clears! And maybe I’ll send our troops back into that little bit of hell on Earth…
…No just kidding, I’M NEVER SENDING OUR TROOPS INTO THAT INSANE PART OF THE WORLD, WHERE PEOPLE BELIEVE THEIR GOD IS GOING TO KICK OUR GOD’S A**, and the insane religious right wants to take ‘em up on the offer, cuz, OUR GOD TOLD US TO GO THERE?!
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I agree Dan, most people don’t take Bush seriously, yet business people take Paulson and Bernanke seriously.
Bush is still the President of the United States, when he toddles out he has the full weight of the American government behind him.
He may (may?) be a moron but he’s the most powerful moron in the world and if he reads a speech people know it was written by some of the smartest, most ruthless guys around.
There is a war going on in Iraq after all.
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I don’t believe I ever said Bush wasn’t a dangerous moron.
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It is always easy to be the monday morning quarter back
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Glad you liked the story, Dan. I enjoyed yours as well.
I do have a couple of corrections for you, however…
- in regards to the “Jebus” remarks,, please see the JFK Inaugural Address as I encouraged you to do earlier…WWJFK do and what did JFK believe?
- in regards to the “let Israel deal with it themselves” and “let GOD sort it out” remarks, again please see the JFK Inaugural…WWJFK do and what did JFK believe?
- in regards to the prince on the tiny chair with wet pants, first of all it was the KING - the King of the free world - and secondly, you have no concrete proof that he ever really wet his pants
- in regarding the wicked crack smoking witch, Rush Nonuts, I’m in complete agreement with you. See, not all Republicans are blowhard dittoheads…it’s unfortunate that he’s dominating the Republican message on the airwaves. IMHO, he falls into the “no congruency” category as so many people in your party do.
ALLRIGHT DEMOCRATS - FALL IN LINE….EVERYBODY TAKE ONE STEP TO THE LEFT!
NOW ANOTHER…
AND ANOTHER…
ONE MORE TIME!
STEP, STEP, STEP!
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“ALLRIGHT DEMOCRATS - FALL IN LINE….EVERYBODY TAKE ONE STEP TO THE LEFT!
NOW ANOTHER…
AND ANOTHER…
ONE MORE TIME!
STEP, STEP, STEP!”
Why am I visualizing you, looking through the viewfinder of a camera, on the top edge of the Grand Canyon?
OK, Democrats may not be lemmings but they are pretty good at snatching defeat from the jaws of victory.
Despite McCain’s performance in the debate, and the near depression economy, Obama can still blow it.
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Dan,
I must say that I honestly enjoy out banter on these forums.
Hopefully you are right and Obama will find a way to blow it
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Uh, that was supposed to read “our banter”.
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“I must say that I honestly enjoy out banter on these forums.”
The feeling is mutual!
What’s the point in ridiculing the precious hopes and dreams another holds of the future, unless you can have some fun in the process!
As far as hoping Obama blows it…
A small part of me (the vandal part), would like to see that happen too.
I’m kind of curious to see how bad things will get before an actual shooting civil war breaks out.
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Our next president will inherit this problem. There is a distinct difference in the two platforms between our candidates John McCain and Barack Obama. What I saw during the first debate was McCain believes in using our military to fix America. Obama believes restoring middle class will fix America.
As we have learned during the Bush administration, the military route has not improved anything. We are still dependent on foreign oil. Americans are losing their jobs then in turn losing their homes. Unemployment is climbing. Soldiers are dieing daily. Healthcare has not been addressed.
We in Ohio are longing for a glimmer of hope. We need a leader with a broader vision for a better America for our children and our grand children. We need a President that will lead us back to our American Dream with innovation, technology and education. I don’t see that in McCain. All I saw in McCain is we must win the war.
Exactly what does winning a war mean? We have lost thousands of soldiers, we did not get the oil rights, and we have spent billions of dollars. How will McCain’s theory of winning a war actually improve anything here in the USA here in Ohio? Can someone please explain this to me?
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