Senate prepares for bailout vote
Modified legislation expected to pass tonight
By Inman News, Wednesday, October 1, 2008.
The U.S. Senate is planning to vote today on a modified version of the $700 billion financial bailout plan that was struck down by the U.S. House of Representatives Monday in a 228-205 vote.
The Senate version of the legislation, which will require 60 votes to pass rather than a simple majority, proposes to raise the FDIC and National Credit Union Share Insurance Fund deposit insurance limits from $100,000 to $250,000 per depositor per bank. A vote is expected at about 7:30 p.m. Eastern Time today.
This provision was also pitched by a group of House Democrats in an alternative plan announced Tuesday (see Inman News).
In addition, the Senate version of the legislation would temporarily raise the borrowing limits at the Treasury for the FDIC and for the credit union insurance fund. Sheila Bair, FDIC chairwoman, has said she would support this temporary rise in coverage. And the Senate version adds some tax breaks for businesses and for renewable energy -- The Associated Press reports that the bill includes about $100 billion worth of tax breaks.
Officials in both parties are predicting passage of the massive measure, which will initially give the Treasury $250 billion to buy mortgages and other "toxic" assets that are contributing to the credit crunch from financial firms. The plan requires that the president certify additional sums of $100 billion and $350 billion -- Congress has disapproval authority for the latter.
Presidential candidates and U.S. Sens. John McCain, R-Ariz., and Barack Obama, D-Ill., have both announced support for the Senate legislation and are expected to be present for the vote. Vice presidential candidate Joe Biden, D-Del., is also expected to participate in the vote.
The National Association of Home Builders issued a statement today urging Congress to support the latest plan now "to avoid a complete meltdown in financial markets."
Sandy Dunn, NAHB chairman, said in a statement that the Senate vote and subsequent vote in the House may be "our last chance to save the global economy from a very deep and painful recession, or worse," citing sinking home prices and growing foreclosures.
"It's time to set aside politics, self-serving interests and ideology and unite as Americans in support of this legislation," Dunn stated.
The National Association of Realtors, too, has been lobbying in support of a congressional fix for the financial crisis.
"There will not be an economic recovery without a housing recovery, and we hope the Congress will move as expediently as possible to resolve their differences," said NAR President Richard F. Gaylord in a statement issued after the earlier plan failed in the House. "NAR will continue to advocate this legislation, which will benefit Main Street by restoring market liquidity to the financial markets."
Federal aid for financial firms has been a tough sell for the American public. According to a survey conducted from Sept. 27-29 by The Pew Research Center for the People and the Press, 45 percent of respondents said the government effort to invest billions of dollars to keep financial institutions and markets secure is "the right thing to do," while 38 percent said it is the wrong thing to do and 17 percent either didn't know or didn't respond.
That compares to a similar study conducted a week earlier, in which 57 percent of respondents said the government is doing the right thing versus 30 percent who said it is doing the wrong thing.
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Submitted by chis eliopoulos on October 1, 2008 - 12:48pm.
NO BAIL OUT
Submitted by Richard Brinegar on October 1, 2008 - 1:41pm.
Wow, the Federal Reserve (privately owned), banking lobbyists, politicians, and corporate media are all working overtime on convincing the American people that if we don't accept their bailout proposal we'll all experience "Weapons of Mass Economic Destruction".
It is amazing to see these powers come out so boldly and face to face against Americans. Be interested to see what they'll do tonight while we sleep.
Submitted by Dorothy Harrison, Associate Broker, CRS, SFR, ABR, e-Pro on October 1, 2008 - 2:14pm.
Check out this video clip. Does anyone have any more information on this?
http://market-ticker.denninger.net/
Submitted by jim aldrich on October 1, 2008 - 2:33pm.
When they bail out the banks they bail out us! Anyone who was aroung in the early 80's remembers 15-17% interest knows how difficult it is to survive in this business without available affordable credit. Hopefully we will learn a lesson from this mess, which could of been avoided with some foresight and a whole lot less greed. I am fundamentally opposed to big government, and government interference with business, and my biggest fear is that this bail out will bring so much baggage in the way of governmental regulations, that it will slow the process of purchasing a home even further. Damned if we do, Damned if we don't.
Submitted by chis eliopoulos on October 1, 2008 - 2:35pm.
To:Dorothy Harrison
Is this men a communist?He does not sound like a "good American" to me.He speaks badly about our emperor Bush and his secretary of thievery.He does not seem to be afraid either speaking the truth.How more anti American and an patriotic can that be?
Thanks for the video I hope many people see it and notice that we are taken for a right.
Submitted by John Peitler on October 1, 2008 - 4:26pm.
The Birk Economic Recovery Plan
Hi Pals,
I'm against the $85,000,000,000.00 bail out of AIG. Instead, I'm in favor of giving $85,000,000,000 to America in
a "We Deserve It Dividend".
To make the math simple, let's assume there are 200,000,000 bona fide U.S. Citizens 18+.
Our population is about 301,000,000 + counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up..So divide20200 million adults 18+ into $85 billion that equals $425,000.00.
My plan is to give $425,000 to every person 18+ as a "We Deserve It Dividend."
Of course, it would NOT be tax free.So let's assume a tax rate of 30%.
Every individual 18+ has to pay $127,500.00 in taxes.
That sends $25,500,000,000 right back to Uncle Sam.
But it means that every adult 18+ has $297,500.00 in their pocket.
A husband and wife has $595,000.00.
What would you do with $297,500.00 to $595,000.00 in your family?
Pay off your mortgage - housing crisis solved.
Repay college loans - what a great boost to new grads
Put away money for college - it'll be there
Save in a bank - create money to loan to entrepreneurs.
Buy a new car - create jobs
Invest in the market - capital drives growth
Pay for your parent's medical insurance - health care improves
Enable Dead beat Dads to come clean - or else
Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and ev ery other company that is cutting back. And of course, for those serving in our Armed Forces. If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ( "vote buy" ) economic incentive that is being proposed by one of our candidates for President.
If we're going to do an $85 billion bail out, let's bail out every adult U S Citizen 18+!
As for AIG - liquidate it. Sell off its parts.Let American General go back to being American General.
Sell off the real estate.
Let the private sector bargain hunters cut it up and clean it up.Here's my rationale. We deserve it and AIG doesn't.
Sure it's a crazy idea that can "never work." But can you imagine the Coast-To-Coast Block Party!
How do you spell Economic Boom?
I trust my fellow adult Americans to know how to use the $85 Billion
"We Deserve It Dividend" more than do the geniuses at AIG or in Washington DC.
And remember, The Birk plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.
Ahhh...I feel so much better getting that off my chest.
Kindest personal regards,
T. J. Birkenmeier, A Creative Guy & Citizen of the Republic
PS: Feel free to pass this along to your pals as it's either good for a laugh or a tear or a very sobering thought on how to best use $85 Billion!!
Submitted by RK Ruthman on October 1, 2008 - 4:39pm.
PAY ATTENTION PEOPLE:
http://www2.goldmansachs.com/our-firm/press/press-releases/current/bank-...
Goldman Sachs To Become The Fourth Largest Bank Holding Company
September 21, 2008
New York, September 21, 2008 -- The Goldman Sachs Group, Inc. (NYSE: GS) today announced that it will become the fourth largest Bank Holding Company
Henry Merritt "Hank" Paulson Jr. (born March 28, 1946) is the United States Treasury Secretary and member of the International Monetary Fund Board of Governors.
He previously served as the Chairman and Chief Executive Officer of Goldman Sachs.
http://thinkprogress.org/2008/09/22/paulson-goldman-bailout/
Conflict Of Interest? Report Says Goldman Sachs ‘Among Biggest Beneficiaries’ Of Paulson’s Bailout»
In making his push to administer the largest federal bailout of Wall Street in history, Treasury Secretary Henry Paulson is seeking unfettered authority. McClatchy poses the question today, “can you trust a Wall Street veteran with a Wall Street bailout?,” referring to Paulson, the former CEO of Goldman Sachs:
But the conflicts are also visible. Paulson has surrounded himself with former Goldman executives as he tries to navigate the domino-like collapse of several parts of the global financial market. And others have gone off to lead companies that could be among those that receive a bailout.
Submitted by Jason Lopez on October 1, 2008 - 5:05pm.
Do the math there John Peitler...80 million divided by 200 million is not $425,000...it's $425.00. Hardly enough to make a dent in my mortgage!
Submitted by Richard Brinegar on October 1, 2008 - 7:19pm.
Ron Paul called this crisis coming, and McBama is a puppet plans to further socialize America for the benefit of the elites and international bankers. Get use to it My Friends!
http://www.youtube.com/watch?v=cziN3gt-hic&feature=related