Washington to Wall Street: Drop Dead

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  • Posted By: cuppa jo @ 09/30/2008 10:34:34 AM

    Yeah, the Democrats have no responsibility on this? Another biased article by Newsweek.

    • Posted By: cuppa jo @ 09/30/2008 10:37:25 AM

      And by the way, The Democrats are the MAJORITY party. If this was such a great bill, they should have passed it instead of passing the buck as usual.

      • Posted By: dsqard @ 09/30/2008 10:39:59 AM

        The MAJORITY of "yeas" was Democrat. A problem this big must be "bipartisan".

        • Posted By: cuppa jo @ 09/30/2008 10:44:17 AM

          Says who? The Democrats who had their hands in the proverbial cookie jar with Fannie and Freddie? Pelosi not only gave an outrageous speech, she also gave permission to 16 democrats in tight races to vote no. She also allowed the committee members to vote no. She needs to be thrown out on her as* as does Harry Reid.

          • Posted By: dsqard @ 09/30/2008 10:51:57 AM

            If grown men and women can not take some name calling (by the way the Republicans have done quite a bit of that themselves) then they need to go home and cry to momma. This problem wasn't created by strictly Republicans or Democrats. It has been evolving over many years. It needs to be solved by both sides, which was happening until McCain came back to town.

            • Posted By: kephirra @ 09/30/2008 11:29:28 AM

              Pelosi cannot "give permission" to any member of Congress to vote one way or the other. Their constituents are the ones who "give permission." The American people spoke, and members of congress listened. We do not want to hand that kind of power to one person. We do not want Wall Street bailed out without an ownership stake in the companies receiving taxpayer dollars. Kudos to those who had the testicular fortitude to vote "no."

  • Posted By: sieg6529 @ 09/30/2008 11:25:35 AM

    I've never been more proud to vote Democrat.

  • Posted By: kephirra @ 09/30/2008 11:23:52 AM

    This bailout was being rammed down America's throat, despite the fact that it did nothing for the real problem: subprime lending, and the fact that passing it would have begun the first dictatorship in U.S. history.The very idea of one man holding so much power is anathema. No judicial oversight? Paulson overseeing his own program? No ownership stake in bailed companies for taxpayers? No way.

  • Posted By: divanse @ 09/30/2008 11:15:21 AM

    With the market rebounding slightly this morning, it makes me wonder if the general public is finding some weird comfort in the fact that Congress is still Congress. Even with all the petty bickering, at least that is the evil we know. Global economics is too confusing - just give us good old-fashioned partisan politics to lull us into feeling a return of normalcy. Violins on the Titanic, anyone?

  • Posted By: bmd12345 @ 09/30/2008 10:41:44 AM

    This is hogwash. The democrats could have passed it themselves WITHOUT the republicans. You are just a biased - a bunch of marxists. I guarantee you one this. keep depending on the government and you will destroy your family.

    • Posted By: dsqard @ 09/30/2008 10:47:58 AM

      And had they done that I guess McCain could have claimed that he got them to vote that way. Funny how the Repbulicans want to take credit for the good things and put blame on everyone else for the bad things. If John McCain loses the election, I guess it would be the Democrats fault too? Or would it be the "elite, gotcha media"? Who is the blame going to go to then?

  • Posted By: MoJabar @ 09/30/2008 10:46:52 AM

    Is it not ironic that the Republican Congress and President passed bankruptcy legislation in 2005 that prevents individuals from having the debt discharged without a means test when the banks who paid for the legislation were selling sub-prime loans that were certain loosers to morons? Coincidence? And Joe Biden was not innocent either. He was under MBNA's spell. The same MBNA who employed his son for 250K/yr.

  • Posted By: dsqard @ 09/30/2008 10:31:50 AM

    Why is it OK to have warrantless wiretapping but it is "anti-American" to have regulations on Wall Street? Isn't that what got us in this mess today? I would rather have "bread than freedom" if it means that this could happen again. I think the Republicans just don't want any "rules" put on their RICH, LOBBYING buddies. Shame on them for thinking of politics first and country second.

  • Posted By: riddelup @ 09/30/2008 10:24:19 AM

    Where were these so called congressmen when the banks were raping the taxpayer with arbitrary interest rates, exclusion from bankruptcy laws, and setting their own deposit reserve to loan ratios. Lets repeal some of these regulations and deregulations and then maybe we will look into the banks' self imposed liquidity problems.

  • Posted By: getzel @ 09/30/2008 10:18:58 AM

    A better plan to fix liquidity for less than $700 Billion : 1)Moratorium all mortgage payments on all residential real estate for 5 years or until the houses are sold. This is cheaper and guaranteed to jump start the economy. 2) raise the FDIC insurance to $1 million on bank accounts; this will get money out of treasuries and into bank deposits: liquidity. 3) Means test all new home loans on 29% and 33% debt ratios and minimum down payments from 10% to 33% depending on the home cost. 4) Home equity loans should be for home improvements only.

    5) Credit cards should be on net 30 basis only; if you can not afford it do not buy it. 6) special finance arrangements should be available for longer term purchases like cars, but not toasters and certainly not soap.

  • Posted By: resikrup @ 09/30/2008 8:59:43 AM

    Idiot Newsweek writer. You say there are only two reasons why the deal fell thru- incompetance or malice. How about the will of the people? Remember them? Maybe you heard about the e-mails, phone calls, and protests? We would be buying the worst of the annuities. We do not want to buy a 1967 Ford Pinto for $10,000. NO. NO. NO.

  • Posted By: Duck Soup @ 09/30/2008 8:49:26 AM

    America is getting ready to toss out the Republicans. Obama is the only candidate who is handling the economic crisis is a manner Americans approve. http://www.gallup.com/poll/110782/US-Leaders-Not-Getting-High-Marks-Crisis.aspx

    The smart conservatives see this coming and are revolting against the stupidity and incompetence that infests their party. We saw conservative columnist Kathleen Parker call for Palin to step down. http://article.nationalreview.com/?q=MDZiMDhjYTU1NmI5Y2MwZjg2MWNiMWMyYTUxZDkwNTE=

    Even conservative columnist David Brooks had a moment of clarity in his column today, entitled "The Revolt of the Nihilists" regarding Republican responsibility for the failure to do anything to address our economic crisis:

    "House Republicans led the way and will get most of the blame. It has been interesting to watch them on their single-minded mission to destroy the Republican Party. Not long ago, they led an anti-immigration crusade that drove away Hispanic support. Then, too, they listened to the loudest and angriest voices in their party, oblivious to the complicated anxieties that lurk in most American minds.

    Now they have once again confused talk radio with reality. If this economy slides, they will go down in history as the Smoot-Hawleys of the 21st century. With this vote, they???ve taken responsibility for this economy, and they will be held accountable. The short-term blows will fall on John McCain, the long-term stress on the existence of the G.O.P. as we know it.

    I???ve spoken with several House Republicans over the past few days and most admirably believe in free-market principles. What???s sad is that they still think it???s 1984. They still think the biggest threat comes from socialism and Walter Mondale liberalism. They seem not to have noticed how global capital flows have transformed our political economy."

    http://www.nytimes.com/2008/09/30/opinion/30brooks.html?_r=1&hp&oref=slogin (much more in link)

    If things continue on their current trajectory and the Democrats are able to brush aside the typical Republican dirty tricks and distractions, Obama will win in a landslide. He will be able to reform our government. Obama will redirect its power to support the American public, as opposed to a small minority. He will get us out of the endless war in Iraq and redirect our efforts at tracking down bin Ladin and al Qaeda, the people who really attacked us on 9/11 as opposed to the country that had no WMD or ties to al Qaeda. Obama will restore our standing in the world.

    • Posted By: pearsoncrz @ 09/30/2008 9:34:58 AM

      In 2005, for the first time in history, a serious Fannie and Freddie reform bill, S. 190, was passed by the Senate Banking Committee. The bill gave a regulator power to crack down, and would have required the companies to eliminate their investments in risky assets. If that bill had become law, then the world today would be different. But the bill didn't become law, for a simple reason: Democrats opposed it on a party-line vote in the committee, signaling that this would be a partisan issue. Republicans, tied in knots by the tight Democratic opposition, couldn't even get the Senate to vote on the matter.

      http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aSKSoiNbnQY0



      In support of S 190, also known as the Federal Housing Enterprise Regulatory Reform Act of 2005, John McCain said: "For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac--known as Government-sponsored entities or GSEs--and the sheer magnitude of these companies and the role they play in the housing market. OFHEO's report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO's report solidifies my view that the GSEs need to be reformed without delay."

      http://www.govtrack.us/congress/record.xpd?id=109-s20060525-16

      Federal Housing Enterprise Regulatory Reform Act of 2005 would have Amended the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 to establish: (1) in lieu of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development (HUD), an independent Federal Housing Enterprise Regulatory Agency which shall have authority over the Federal Home Loan Bank Finance Corporation, the Federal Home Loan Banks, the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac); and (2) the Federal Housing Enterprise Board.
      Most importantly with regard to the CDS situation, S. 190 set forth operating, administrative, and regulatory provisions respecting: (1) assessment authority; (2) authority to limit nonmission-related assets; (3) minimum and critical capital levels; (4) risk-based capital test; (5) capital classifications and undercapitalized enterprises; (6) enforcement actions and penalties; (7) golden parachutes; and (8) reporting. Adoption of these regulatory provisions would have undoubtably affected the way CDSs were dealt with in "private" enterprises.
      The bill would have also amended the Federal Home Loan Bank Act to establish the Federal Home Loan Bank Finance Corporation., and transfered the functions of the Office of Finance of the Federal Home Loan Banks to such Corporation. If this had been in place three years ago, this whole situation might have been averted.

      http://www.govtrack.us/congress/bill.xpd?bill=s109-190&tab=summary

  • Posted By: Aleksej @ 09/29/2008 8:54:53 PM

    *
    SAVE AMERICA
    OPEN THE DOORS
    AMERICA IS A COUNTRY OF IMMIGRANTS
    IMMIGRANTS WILL SAVE AMERICA
    GIVE CITIZENSHIP FOR EVERYBODY WHO BUY A HOUSE BY CASH

  • Posted By: C. MacLean @ 09/30/2008 9:08:11 AM

    "There are weapons of mass destruction in Iraq."
    "Brownie's doing a heck of a job."
    "Mission accomplished."
    "The troubled economy is depending on decisive action on the part of our government."

    Anybody else see a pattern here?

    Bush has no credibility, and he has insisted Congress pass legislation in "crisis mode" one too many times. This is how we ended up in Iraq, how we ended up with the redundant and inefficient Department of Homeland Security, and how we ended up with some of the post 9/11 legislation that has allowed torture and unlawful search and seizure in direct opposition to the principles in our Constitution and the Bill of Rights..

    How many more times will we let this liar demand that Congress pass legislation in haste so we can regret it later?

    Congress may need to do something about the economy; things sound pretty bad. But there is enough bipartisan NON-support for this bill - and high time - to tell us that this time, they need to take enough time, and get it right.

  • Posted By: quasqueton @ 09/30/2008 8:55:43 AM

    As always, JoObama, you seem so smooth, and exactly what should be done. How about your daddy, and how is he going to get it done? Smooth talking is not going to get anything done. Well, of course, he is a lawyer, and his wife, also. Nothing wrong with that - most are in Washington - thank God for the change! You and I both know that Barrack is just another politician - so please stop the charade.

  • Posted By: vstillwell @ 09/30/2008 8:55:23 AM

    Would somebody show the ghost of Ronald Reagan to the door please.

  • Posted By: bob_hall27 @ 09/29/2008 10:49:24 PM

    get rid of the federal reserve go back to a solid money and keep the government out of the private sector market you won't have the problems that the democratic majority have created in the last two years

    • Posted By: Character Counts @ 09/29/2008 10:58:26 PM

      Sorry, I thought the problem was created by the Republican majority during the last eight years. Wow, I must have missed something.

      • Posted By: bob_hall27 @ 09/29/2008 11:05:50 PM

        apparently you did because the last two years have been democratic majority in both houses with a moron that doesn't understand the economy as president

        • Posted By: Character Counts @ 09/29/2008 11:14:16 PM

          Your arrogance is appalling. You are asking people to believe that the long-term systemic problem brought on by tears of Republican deregulation and deficit mania are really the fault of Democrats who were only recently able to regain majorities in Congress.

          • Posted By: bob_hall27 @ 09/29/2008 11:20:17 PM

            yes

            • Posted By: Character Counts @ 09/29/2008 11:32:07 PM

              I appreciate your honesty. So, let???s vote those Republicans out of office. We need change.

              • Posted By: bob_hall27 @ 09/29/2008 11:38:13 PM

                the change you you are calling for is socialism which is just another form of communism or marxism or an oligarchy and I hope America isn't really ready for that if you think you as a lowly citizen have it bad now just wait till everything is socialized which is what your asking for when you ask the government to do something it has no authority to do.

                • Posted By: Character Counts @ 09/29/2008 11:49:44 PM

                  Silly you, socialism, communism, Marxism, etc.! I just want to make sure that our economy does not collapse.

                  • Posted By: bob_hall27 @ 09/29/2008 11:55:46 PM

                    look credit is debt so by helping banks is to increase the debt on the American people spend within your means and this won't be a problem If they were to help the actual producers of our country this would help the economy more than anything producers create wealth banks create debt you can only help debt by creating wealth and to bailout the banks you are only prolonging the agony and making it worse in the long run without increasing the production of energy and goods to stimulate the economy. If you do one the other will follow if you do the other they both go into ruin

                    • Posted By: Character Counts @ 09/30/2008 12:32:00 AM

                      I agree that unfettered greed at all levels has brought us to this crisis. That is probably not the whole story, but it was a major factor. Right now, credit has dried up and production will slow down the longer this continues. Our economy can not function without the availability of credit. Inaction to resolve this problem will seriously impact all levels of our economy and have a potentially devastating world wide effect. Those who contributed most to creating this problem will probably be fine. I???m worried about the negative effect on all others. In my view, it would be irresponsible to not intervene expeditiously. The initial intervention is only the beginning. We must also act to restructure our financial system to prevent future reoccurrences. Please remember, we live in a very different world from that of the founders, or even from the world of the Depression era. One of the tasks of government is to limit misery. There is nothing in our Constitution to prevent government from acting on a measure that meets constitutional criteria.

                      • Posted By: honeybbuzz @ 09/30/2008 8:53:57 AM

                        Thank you, Character Counts, for your reasoned and logical explanation of the situation....seems to me that if our leaders would explain - instead of blame - we'd all be able to better understand and support this "bailout". bob_hall27 sounds like my aging neighbor who continues to compare this to "socialism" and the depression (and I've noticed a lot of old folks doing this). The world has changed since "your day" so get a seat on the clue train and ride into the 21st century

  • Posted By: quasqueton @ 09/30/2008 8:38:17 AM

    Well, Mr JoObama - as per usual, you are just a critic, so what will the new messiah do????

  • Posted By: quasqueton @ 09/30/2008 8:33:42 AM

    Okay, JoObama - when did this crisis start? When "everybody has to have a house" whether they can pay for it or not. Subprime is the name of that game. Gee whiz, don't you think greed set in at the very start? "We know these people can't pay their loan when the balloon comes - and we'll just have alot of real estate to sell at a better price. Well, it worked for awhile. It was the social model of the Democrats that put this in place - everyone has a house, (two cars and chicken in the oven). Well, my friend, it just doesn't work that way. If you wan't socialism, fine with me. Just be truthful about your beliefs, and don't defend one party over the other. Plague on both their houses (and senates).

  • Posted By: getzel @ 09/30/2008 7:25:03 AM

    A better plan to fix liquidity for less than $700 Billion : 1)Moratorium all mortgage payments on all residential real estate for 5 years or until the houses are sold. This is cheaper and guaranteed to jump start the economy. 2) raise the FDIC insurance to $1 million on bank accounts; this will get money out of treasuries and into bank deposits: liquidity. 3) Means test all new home loans on 29% and 33% debt ratios and minimum down payments from 10% to 33% depending on the home cost. 4) Home equity loans should be for home improvements only.
    5) Credit cards should be on net 30 basis only; if you can not afford it do not buy it. 6) special finance arrangements should be available for longer term purchases like cars, but not toasters and certainly not soap.

    • Posted By: joe_mama @ 09/30/2008 7:59:36 AM

      Not bad ideas, actually, except #1. Removing that much cash from the banking system would kill the credit markets just as quickly as if the mortgages failed. A 1 year moratorium while mortgages are refinanced would probably be better. For $700 Billion, you could provide $35,000 for 20 million homeowners, which would be the equivalent of 1 year of mortgage payments at about $3,000 per month. Banks that renegotiate mortgages (firsts only, no 2nds or HELOCS) would only have to pay back $25,000 per mortgage. Those that don't would pay back the full amount plus interest.

      All told, we'd be looking at a price tag of about $150 Billion....about the cost of a year in Iraq.

      JM

  • Posted By: RDuteau @ 09/30/2008 7:38:18 AM

    Don't through billions of dollars to Wall Street cut throats. Between creating dangerous vehicles such as credit default swaps and merging companies while trashing thousands of jobs in the process, they will find a way to manipulate the handouts to their advantage.

    Polticians are no better. They do everything they can to make the perception there are campaign controls etc. but they are just as devious and efficient as Wall Street about getting around any regulations or controls.

    Look at how many people and how much money became available with the complete relaxation of second mortgages. Homeowners full of greed joined the inflated propety values frenzy.

    Let the Fed's ensure that U.S. based businesses have access to low cost credit and the individuals can pay the higher access rates. Maybe then people will learn to use it more wisely.

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