The day began with an agreement that Washington hoped would end the financial crisis that has gripped the nation. It dissolved into a verbal brawl in the Cabinet Room of the White House, urgent warnings from the president and pleas from a Treasury secretary who knelt before the House speaker and appealed for her support.
“If money isn’t loosened up, this sucker could go down,” President Bush declared Thursday as he watched the $700 billion bailout package fall apart before his eyes, according to one person in the room.
It was an implosion that spilled out from behind closed doors into public view in a way rarely seen in Washington.
By 10:30 p.m., after another round of talks, Congressional negotiators gave up for the night and said they would try again on Friday. Left uncertain was the fate of the bailout, which the White House says is urgently needed to fix broken financial and credit markets, as well as whether the first presidential debate would go forward as planned Friday night in Mississippi.
The talks broke up in angry recriminations…
In the Roosevelt Room after the session, the Treasury secretary, Henry M. Paulson Jr., literally bent down on one knee as he pleaded with Nancy Pelosi, the House Speaker, not to “blow it up” by withdrawing her party’s support for the package over what Ms. Pelosi derided as a Republican betrayal.
“I didn’t know you were Catholic,” Ms. Pelosi said, a wry reference to Mr. Paulson’s kneeling, according to someone who observed the exchange. She went on: “It’s not me blowing this up, it’s the Republicans.”
Mr. Paulson sighed. “I know. I know.”
What a fracking soap opera!
Read the details. Enjoy it over your morning coffee.
Anyone taking bets on the election actually happening on schedule … or at all? Disgusting.
“But a top aide to Mr. Boehner said it was Democrats who had done the political posturing. The aide, Kevin Smith, said Republicans revolted, in part, because they were chafing at what they saw as an attempt by Democrats to jam through an agreement on the bailout early Thursday and deny Mr. McCain an opportunity to participate in the agreement.”
Let me get this straight… Republicans shot down the deal because it was going to get done before McCain could come in and grab some credit? Jesus H. Christ on a pogo stick! Talk about PARTISAN POLITICAL MANEUVERING!
“‘I didn’t know you were Catholic,’ Ms. Pelosi said, a wry reference to Mr. Paulson’s kneeling, according to someone who observed the exchange. She went on: ‘It’s not me blowing this up, it’s the Republicans.’
Mr. Paulson sighed. ‘I know. I know.‘”
So even Paulson admits it’s the Republicans screwing things up.
“If money isn’t loosened up, this sucker could go down,” President Bush declared ….
I can certainly imaging Treasury secretary, Paulson bent down on one knee working House Speaker Ms. Pelosi’s strapon as ordered.
I am no economics guru, but why not let the companys go down, and auction off what they have and their assets to other companies? Isn’t that how it works with every other company? Why must this company(s) survive. Please explain to this nitwit. TY
In my personal opinion, I would just as soon NOT have this bailout. Yet, I do have to defer to those with much more expertise and inside knowledge than I.
If the plan is to succeed in Congress, there must be conditions attached, such as the Executive pay and responsibility, taxpayer security, regulation, etc. We can’t fix the problem by just throwing money at it, we need to fix the whole system.
To the best of my knowledge, NO ONE here at DU is in a position to correctly judge the extent of the problem or offer the best solution simply because most of the information is secret. Sometimes you just have to trust those who know more.
#1 “Anyone taking bets on the election actually happening on schedule … or at all?”
It’ll happen unless between now and then, there is a Constitutional amend.
#5 “In my personal opinion, I would just as soon NOT have this bailout. Yet, I do have to defer to those with much more expertise and inside knowledge than I.”
Mr. Fusion. My gut is saying the same but like you I don’t know nearly enough about this huge mess. I hate having to trust pols & money grubbing Wall Street types.
I wish there was more info and more than one plan to consider.
#5 The reason for the bailout is to support the bonds sold to large foreign interests by the domestic institutions who needed the money to then make loans to us. By doing this bailout, the bond-holders will apparently agree to lend us more money in the future.
If you had been reading The Economist magazine, you would have understood what is going on.
Again, only a new war can save us now…
Google your Senators and representatives and EMAIL THEM to show them we won’t go for this corporate welfare bailout plan!!!! We need to stop this NOW!!!!! Companies and CEO’s need to be help responsible for their actions and reap what they sow!!!! Would you or I get bailed out by the gov’t if we decided to just not pay the mortgage or car payment???? Of course not. So why should we give our money to people who are making millions on our backs!!!!! OUTRAGE!!!!! WE NEED TO WAKE UP AND RISE PEOPLE!!!!!! I’M SICK OF THIS CRAP AND I’M NOT GONNA TAKE IT ANYMORE!!!!!
#10 “Google your Senators and representatives and EMAIL THEM to show them we won’t go for this corporate welfare bailout plan”
Did this yesterday.
I could have sworn that my initial take on it was that this was a Bush bailout, and the Dems were opposed. Now, They’re for it, along with Bush, and the evil Republicans are against it. I don’t get it…
In the great American political tradition, the House Republicans announced, this morning, they WILL NOT participate in any negotiations.
BTW, is anyone really worried that McBush will skip a chance for a free nationwide audience, tonight?
I got to say, as political theater I need to see the program.
Is McCain for it or against it? He won’t debate until their is a agreement, yet House Republicans are saying that there is no rush for a bill. Not to mention, the Republican’s “solution” to this plan is less taxes and less regulation?
So, is Obama better off not having waded into this mess? At this point, as Jon Stewart said the only thing that McCain seem to have accomplish was is to blow up the agreement. I wonder if he’s regretting the whole suspending the campaign yet?
Drudge is running the “kneeing” headline too– which is a bit disingenuous (go figure, from Drudge?) because it ain’t the Democrats holding this plan up.
I see a possibly brilliant multi-faceted chess move underway. If it works, someday they will call it the McCain Gambit.
Stay tuned, things need time to unfold
By the by:
John McCain 2005 on the Floor of the US Senate (easily google-able):
I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.
I urge my colleagues to support swift action on this GSE reform legislation.
——————–
In case you think so, this issue does not ultimately inure to the Democrats benefit.
Are you starting to see the bigger picture?
I’m thinking the politicians aren’t interested in saving the wall street ceo’s and investors or the american people. What they really want to do is protect their own investments.
Especially the bush administration and their handlers with all of the money they’ve siphoned off from the iraq war…
#10 We need to stop this NOW!!!!! Companies and CEO’s need to be help responsible for their actions and reap what they sow!!!! Would you or I get bailed out by the gov’t if we decided to just not pay the mortgage or car payment???? Of course not. So why should we give our money to people who are making millions on our backs!!!!! OUTRAGE!!!!!
Do you really think that letting those banks/companies go under will hurt those CEOs in any personal way (criminal charges, if any, aside)? If true recession comes, it will be you and I who will be hurting the most. Those CEOs already have millions in their banks (most likely not to their names in case of some charges), to them making more money is a matter of “sport” and not necessity at this point…
The number for the senate switchboard is 202-224-3121 ask for the office of your senators (you have 2 – contact both) don’t swear, don’t get angry, just state your point simply, something to the effect if the honorable senator votes for this bailout package in any way, shape or form, don’t bother returning to his home state, he is no longer wanted. Or to make it short and sweet ” he’ll lose his job just like I lost mine.” or a simple “no bailout, hell no.”
If you don’t know who your congressman or senator is try.
http://www.congress.org
you can also send an email from here or link to the appropriate representives website or the congressional website from this page.
This bill stinks, it is crooked as hell, and the false sense of urgency reeks of the patriot acts 1 & 2 and the Telco immunity deal. If its good for america it should be done right, not fast, and if it aint good for america it shouldn’t be done.
Wall Street has proven it can’t manage its own money, how will it manage the tax payers? This is a blatant attempt at financial blackmail by holding a gun to the taxpayer and congress with the threat of a financial meltdown. There is no certainty that this bailout will work, and looks for all intents and purpose like a last minute attempt to loot the treasury by a lame duck administration and its cronies. This bailout is toxic and we are fools if we do not oppose it with all our strength.
Together we are powerful and can change the world for the better, if we fail, this bailout will be followed by more until the country is looted and we are Argentina, we are a 3rd world country, we are broke.
Don’t let this happen, don’t let them steal everything that has built up over 200 hundred years.
They belong in jail not in charge of our money.
The Democrats own the House and the Senate, and the President said he’ll sign it. Therefore, there must be a significant number of Democrats unwilling to sign on as well. If the Democrats would get their own people in line, all of this would irrelevant.
Congress is so much is dissaray its pitiful to watch. So political it makes a person wish for a dictatorship just so we could eliminate all the bickering. My personally feeling is let the markets and banks correct this on their own. If we truly believe in a free enterprise we must take the good with the bad. Bailing out mistakes will not teach anyone anything.
Sure, it will make loans harder to get, but who needs to be barrowing money right now??
Too much bad credit out their already. What is the government going to do if 6 months from now we need another 700 billion or more. The defaults are still gojng on. More financial failures are coming.
#20 “Therefore, there must be a significant number of Democrats unwilling to sign on as well. If the Democrats would get their own people in line, all of this would irrelevant.”
True, since the Pres won’t veto the dems are in total control. Why are they pointing fingers at the powerless minority party?
What they don’t seem to be getting is that yes, if forced, the US public will suck it up and do what is needed. BUT, if forced too, then there has to be someone’s head cut off (not literally… that would be cool though). To date no one has said that the CEOs who ran their firms aground are going to be thrown to the lions. On the contrary, they seem to be getting away with the perfect crime.
It is simple. We want blood.
It’s amazing the number of people who, just before they declare bankruptcy, think that the solution to their problems is one more credit card.
#21Sure, it will make loans harder to get, but who needs to be barrowing money right now??
Your payroll maybe???
#23 “It is simple. We want blood.”
To an extent, the Democrats plan was going to have retribution. It limited CEO’s pay, have an equity stake in the company and oversight. I don’t think the republican alternative has any of those.
If this is a McCain byzantine political play, even if it works, he’s falling into a narrative of a politician who likes gimmicks and trick plays rather then “straight talk.”
#25 “Your payroll maybe???”
I’ve never worked or or run a company that had to borrow to meet payroll. If that is the case, the business is SO badly run that it will fail anyway. Why should taxpayers loan money to poorly run companies?
I think, if you look closely, McCain just made President Bush leader of the Democrat party.
How about a hearty Nelson style hah hah!
This is great soap opera. Especially the angry liberals being confused as to which talking points they should follow.
# 27 I’ve never worked or or run a company that had to borrow to meet payroll
You’ve never worked for a company that used “revolver” to run its operations?
Well, all I can say is your statements says a lot about your knowledge in that matter….