Gingrich: Kill the Paulson bailout plan; Update: Reid to GOP: Vote with us or we won’t pass it; Update: 57% support bailout, says Pew
posted at 3:30 pm on September 23, 2008 by Allahpundit
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Like Ross Douthat, I’m wholly unqualified to comment intelligently on this subject so I humbly offer a few links to those of you who are. Here’s the report of Newt’s presser this morning stressing that the sky is not, in fact, falling and that Paulson’s plan will be seen as such a loser in six weeks that McCain should come out hard against it now and pin it to Obama. There’s some logic in that — the public is notably cool to it — but needless to say, if the plan doesn’t pass and the market crashes, that’ll put Maverick (among others) in a bit of a spot. Any reason to believe that a crash is really possible? Yes indeed if you believe Paulson and Bernanke, who spent last week putting the fear of God into congressional Democrats and this morning doing the same to House Republicans. Newt offered his own plan over the weekend at the Corner, but I’d recommend reading these two posts by Megan McArdle before jumping boots first into the ideologically pure “let ‘em fail” position. In a strange way, this reminds me of the Iraq debate in reverse: We’re faced with what may or may not be a looming threat of mass destruction, except this time conservatives are willing to chance it rather than take costly, aggressive preemptive action. Maybe they’re right; as I say, my ignorance on this leaves me unable to judge. But here’s your exit quotation from McArdle, emphasizing that we’re looking at a nuclear scenario if they’re wrong: “There is no benefit from a ‘tough love’ strategy for anyone that even begins to approach the catastrophic consequences, for everyone, of a massive and rapid contraction.”
Update: Democrats worry that McCain will take Newt’s advice:
Senior Democrats on the Hill are worried that Sen. McCain will “demagogue” the bill, continue to voice opposition to it, use it to run against both Wall Street and Congress as well as to distance himself from the Bush White House. Democrats worry McCain will not only vote against the bill, he will provide cover for other Republicans to do so, leaving Democrats holding the bag for the Bush administration’s deeply unpopular proposal.
A Democratic congressional leadership source says that Treasury Secretary Henry Paulson went so far as to assure Democratic leaders that McCain “won’t be a problem” — in other words that McCain will vote for the proposal.
Update: Further to the last update, Reid’s not going to let the left take the rap the Bush administration’s foray into socialism:
“This is a Republican proposal, and we need some Republican votes,” to help it pass. “At this stage we [Democrats] are working with ourselves.”
Reid is essentially calling the Republican bluff on a political gambit. There’s a growing chorus of Republicans in both chambers _ especially House conservatives _ who would love to yell about the bailout and vote against it knowing it will pass. In this strategy, Republicans will be able to hit the campaign trail and boast about how they’ve voted against the Bush administration and Democratic Congress while protecting Main Street.
But Democrats aren’t going to let that strategy fly.
House Minority Whip James Clyburn says his leaders are not going to push through a bill that only passes with Democratic votes either…
“We now need Republicans to stand up,” Reid said. “We need the Republican nominee for president to say what he’s for.”
Update: The Democrats are refining their position further to protect Obama from being outflanked: McCain has to vote with them or else the bill’s dead.
Update: Good luck squaring this with the Rasmussen poll I linked above, but Pew has no less than 57 percent of the public onboard with the Paulson plan. And guess which party’s membership is most gung ho.
If McCain and House Republicans needed an extra little prod to sign on with Paulson and Reid, there it is. Although from what Richard Shelby and Jim Bunning — and Sherrod Brown — told Paulson and Bernanke today, I wouldn’t expect passage by an overwhelming majority.
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This bailout is inflated with earmarks for Democrat’s pockets and their corporation buddies. it needs to be removed, transparent, and open to scrutiny.
Enoxo on September 23, 2008 at 5:16 PM
No. You’re not paying attention. I’m offering a incentive-buy solution that in AIG terms, keeps the market solvent without giving a failed management team another shot at defeat.
Where’s the end? When do we stop saying “No”? Who’s the next corporation that’s going to run aground with the knowlege that there’s a safety net underneath them?
I’m OK (heartburn included) with bailing out Freddy and Fannie. They hold interest in 70% of U.S. mortgages. We have to keep them alive. But AIG? You must be kidding.
natesnake on September 23, 2008 at 5:16 PM
Limbaugh coming up on Fox
Enoxo on September 23, 2008 at 5:17 PM
Tubby:
So what does that mean, that we only consider a small percentage of the people to be Americans? You know something? If this thing is as bad as some analysts say it is, the taxpayers will be on the hook anyway because a lot of them will end up with no income to pay taxes out of. If you get my meaning.
Terrye on September 23, 2008 at 5:18 PM
Too much work and sweat.
Biodesiel.
natesnake on September 23, 2008 at 5:18 PM
You’ll love this from a union pressure group called SChange to Win, with seven partner unions: International Brotherhood of Teamsters, Laborers’ International Union of North America, Service Employees International Union, UNITE HERE, United Brotherhood of Carpenters and Joiners of America, United Farm Workers of America, and United Food and Commercial Workers International Union.
Quote:
This bailout should not be used as yet another excuse not to make critical investments in our future. A major public investment — in developing new energy and conservation, rebuilding schools and infrastructure, extending unemployment and food stamps, and helping states avoid crippling cuts in police and health services — is vital to get the real economy moving and put people back to work. There should be no bailout without an agreement to pass a stimulus package before adjournment.
Unquote
RushBaby on September 23, 2008 at 5:19 PM
Tic-toc, tic toc,
(que eerie music)
(Rod Serling appears on the screen……….)
Limerick on September 23, 2008 at 5:20 PM
AIG is a major insurer. If they go out, they take a lot of people with them.
Terrye on September 23, 2008 at 5:20 PM
WASHINGTON (MarketWatch) – The quiet unassuming professor of economics appeared just in time at the crest of the hill and rode to the rescue of the savvy Wall Street tycoon who had his wagons circled in the valley below desperately trying to hold off the opposition.
Such was the story line of the extraordinary Senate hearing Tuesday examining the historic $700 billion bailout of financial firms proposed by Treasury Secretary Henry Paulson.
Many Congressional hearings are carefully scripted, with both sides prepared well in advance and with the conclusion never in doubt.
But other hearings, like this one, contain real drama.
The hearing began with Federal Reserve Chairman Ben Bernanke and Paulson forced to listen in stony silence for an hour of withering criticism of the proposal by members of both Republicans and Democrats on the Senate Banking panel.
“I haven’t had a single phone call in favor of this proposal,” announced Sen. Sherrod Brown, Democrat of Ohio.
When Sen. Mike Enzi, Republican of Wyoming, vowed that the Paulson proposal would not pass, applause broke out in the audience. Sen. Jim Bunning, Republican of Kentucky, followed up by calling the plan “un-American.”
When it was the turn for the government officials to speak, Paulson fought back with a tough, take-no-prisoner statement that brought to mind the “the Hammer’ nickname that he was given by his colleagues at Goldman Sachs.
It didn’t play very well with the senators and clearly there was a sense in the room that the plan might be in deeper trouble than expected.
But then, Bernanke took the microphone, set aside his prepare remarks, and calmly laid out the benefits of the Paulson proposal in such a way that took the starch out of the opposition.
A key point of the critics was that under the plan Treasury must pay more than the market value for the mortgage assets.
But Bernanke explained that the mortgage securities have two prices – a “fire-sale price” if the mortgage asset was sold quickly today and a “hold-to-maturity” price if the mortgages were held to maturity.
Banks have been paralyzed by this fire-sale price because their precious capital would evaporate overnight.
The key to the plan, Bernanke said, was that if Treasury was able to buy the mortgages, it will be able to hold them to maturity. As a result, the fire-sale price could be avoided.
This would remove uncertainty, return liquidity, and credit markets should be able to unfreeze, Bernanke said.
“This is not an expenditure of $700 billion. This is a purchase of assets. If auctions are done properly…the American taxpayer will get a good value for his or her money and as the economy recovers, most, all, or perhaps more than all, of the value will be recovered over time,” Bernanke said.
Bernanke warned that the plan was a “pre-condition” for an economic recovery. He said there would be a severe economic downturn with no action.
“I believe that if the credit markets are not functioning that jobs will be lost, the unemployment rate will rise, more houses will be foreclosed upon, GDP will contract, and the economy will not recover in a healthy way,” he said.
He said his background is as a college professor, not someone from Wall Street, so he does not have “those interests” in mind.
In an instant, the momentum of opponents had reached its zenith and began to recede.
In boxing parlance, the critics kept swinging for almost four more hours but never laid a glove on the plan.
At the end of the hearing, it seemed apparent that while the Paulson plan might not sail though by the weekend, it remained on track.
The fight is by no means over. Thorny issues still need to be worked out about oversight and help for homeowners facing foreclosure.
Many Senators still want to add a mechanism that would give the government some profit from the investment.
But Paulson should buy Bernanke a cup of coffee if the plan survives.
Shirotayama on September 23, 2008 at 5:21 PM
WOW, Rod sure does look like Reid!
upinak on September 23, 2008 at 5:22 PM
natesnake:
No, because money will cease to have value. You will have to barter, it will be hard to barter diesel unless you can find someone who makes it themselves. And the tractor is not cheap either and it will become almost impossible to get parts.
Terrye on September 23, 2008 at 5:22 PM
Upinak:
I don’t think bigtime unemployment is the first outcome of this, although it would certainly come if nothing is done. Best advice. Worry about first things first. And that means having something put aside for a rainy day. From what I’ve seen of Alaska gals, you’re not the ones who succumb. :)
JiangxiDad on September 23, 2008 at 5:23 PM
Good thing I know how to hunt.
Speaking of which… moose season in full swing and caribou not that far away.. a couple weeks.
upinak on September 23, 2008 at 5:24 PM
Or, in simpler words:
“WHERE’S OUR PIECE???”
MadisonConservative on September 23, 2008 at 5:24 PM
Spreading panic, an American tradition!
Heh…..I’m just Joe Public. There is nothing I can do to bend an ear in Congress. This won’t last until the election, so my vote in null and void. Whatever is going to happen, happy days or dust bowl, is completely out of my peon control.
Limerick on September 23, 2008 at 5:24 PM
There are millions of retirees and near retirees whose life savings will disappear if the markets collapse. Millions more will lose there jobs as liquidity evaporates from the country.
I know of only one politician in the country who can speak to the nation, explain the situation, discuss the need for a bailout, and get a majority of Americans to believe he is speaking honestly, has our best interests at heart, and can stop this panic before it is too late.
Bush can’t. His appointees can’t. Reid & Pelosi can’t. Obama can’t.
McCain can. Please do so.
Loxodonta on September 23, 2008 at 5:24 PM
Hmmm that could be taken so many different ways.
upinak on September 23, 2008 at 5:25 PM
That’s if they go down fighting. If they go down selling their insurance portfolios at a reduced rate (think fire sale) with Congress kicking in some incentive money for the legitimate buyers, then the market stays solvent while while keeping existing customers insured.
natesnake on September 23, 2008 at 5:25 PM
If McCain takes Newt’s advice, McCain wins hands down and Newt will be Secretary of the ______ (take your pick). If McCain votes for it, Nobama will blame Bush, McCain, Palin’s daughter, and anyone else for creating the mess and mortgaging the next hundred years.
sbynyc on September 23, 2008 at 5:25 PM
In your case, Janos, I should have said buy lots of booze. Or maybe you are already doing that. I have my suspicions. If you are already doing that then don’t buy any at all. Whichever you are now doing, do the oposite.
MB4 on September 23, 2008 at 5:27 PM
Basically it is one big screw job either way.
Mr. Joe on September 23, 2008 at 5:28 PM
Shiro:
I bet they are not hearing from the people who support a plan. They just expect the government to clean up the mess so to speak…the people who will call will be the people pissed off about spending money. I think this is a case where the silent majority may well support some sort of intervention.
Terrye on September 23, 2008 at 5:28 PM
Mr. Joe:
Pretty much.
Terrye on September 23, 2008 at 5:31 PM
Why does the Treasury holding mortgages, instead of the banks, make them viable assets in the long run? Does this have to do with mark-to-market? What role does Bernanke place on credit default swaps? What happens to them?
JiangxiDad on September 23, 2008 at 5:31 PM
There is no way any of this money should go to citizens that made ASININE CHOICES when deciding how much house they could afford. And the institutions who bought the contracts and insured them should take in the ass along with previous mentioned IDIOTIC citizens!
Hell, give me a quarter million and I’ll create some jobs and my employees will go buy these foreclosed homes at fire sale prices and take the excess and invest it.
It’s time for the good old boys who manipulated the markets to accept responsibility for their poor judgment and greed and let the market create a new batch of movers and shakers!
csdeven on September 23, 2008 at 5:31 PM
I’d listen to him, Flounder. He’s in pre-Med.
– John “Bluto” Blutarsky, Delta Tau Chi Fraternity, Faber College Chapter
VastRightWingConspirator on September 23, 2008 at 5:32 PM
NOT! And people trying to scare old folks need to be hung!
Chakra Hammer on September 23, 2008 at 5:32 PM
sbynyc:
I think you are wrong. In fact I think the opposite might well be true.
And it will not mortgage the next hundred years either.
Terrye on September 23, 2008 at 5:33 PM
My brother makes biodiesel in his garage.
You can buy a 28 horse diesel tractor (with age) for $3000.
Diesel engines run dirty, are dependable, and easy to diagnose and fix.
I should also point out that the family has 440 acres, 5 running tractors, 2 non-running tractors, and a garage full of parts.
natesnake on September 23, 2008 at 5:33 PM
64% over Democrats 56%!?! Independents are the reasonable ones? Oh, I don’t believe that for a minute. Those are Independents that are Republicans who left because they can’t support socialism. We’re done for now. Socialism here we come. If Obama gets elected Maxine Waters may very well get her wish.
Sultry Beauty on September 23, 2008 at 5:34 PM
And the Democrats – who caused the whole mess – will not only stay in office, but will be lavished with praise for saving the nation after they politically hang one or two token Republicans. The Drive-Bys will cheer and then go back to investigating the results of Sarah’s latest Pap Smear.
Breaks the heart it does.
ManlyRash on September 23, 2008 at 5:35 PM
Chakra:
Oh please. We need to be realistic. If the markets collapse and pension funds are decimated and the economy goes into the kind of steep decline Bernacke is talking about there could very well be people losing their life savings.
I don’t know what will happen or if it is that dire, but I have to say I don’t feel comfortable just blowing off a guy like Bernacke. Chances are he knows a lot more about this than I do. Or you do.
Terrye on September 23, 2008 at 5:36 PM
The market’s behavior is scaring people.
Who do you trust to explain this and come up with a solution that will stabilize the markets?
Loxodonta on September 23, 2008 at 5:36 PM
Manly Rush:
It was not just the Democrats. It was all sorts of people, in out of government on both sides of the aisle over a long period of time.
Terrye on September 23, 2008 at 5:37 PM
PS: I’m old and the market behavior is scaring me.
Loxodonta on September 23, 2008 at 5:38 PM
This is one of those moments in politics where we separate the men from the boys. Who has real principles and who doesn’t. People who base their decision on today’s polls are likely to get this one wrong and pay dearly by Nov.
MargaretMN on September 23, 2008 at 5:39 PM
I certainly don’t have the knowledge to feel comfortable with recommending either up or down on the bailout. I merely found it interesting that those with the most to lose – any way this works out – COULD comprise less than 30% of those in favor of passage. I think it would be very interesting to see the numbers broken out by tax bracket. Which way do the various players in our economy break?
TubbyHubby on September 23, 2008 at 5:39 PM
I’d like to hear what Mitt Romney has to say. But I’d have to agree with the other commenter who doesn’t think McCain would be the go-to guy on this. He’d need good advice, and then he very well may have the political acumen to sell it though.
JiangxiDad on September 23, 2008 at 5:39 PM
You know I hate to say this but we cannot let the markets go down the tubes. I don’t own any stock or holdings but I do have a small retirement account with a state governmental agency.
Letting it go down the tubes will IMHO to massive bank failures the likes of which we’ve never seen. Nor do I want to see them.
Is it socialism? Yes, of a sort, however we have to protect this economy; but do not let the folks who did this go off scott-free and build in pay backs to the Fed from the ones we bail out.
skatz51 on September 23, 2008 at 5:40 PM
lead to massive failures, sorry left that out
skatz51 on September 23, 2008 at 5:41 PM
I like that idea a lot.
Loxodonta on September 23, 2008 at 5:41 PM
Simpleton Texan plan…
FORCE the recession by suspending markets for two weeks. Let the 20th floor windows open for the fast elevator to ground level. Pooch the 401ks and the 527s. Gold? LOL. The most artifical market besides diamonds. A gallon of gas, a pound of flour, or a bag of ice will be the currency of the day.
Limerick is the devil. Spreading panic one shiver at a time.
I’m one of those old folks with no 401k, no options, no equity, no business, no brains, no heart. Taking everyone to my level by pointing out what Eeyores you all are is my coup de grace. Bawhahahahahahahahahahahahahaha, to the meat packing plant with the lot of you.
Limerick on September 23, 2008 at 5:41 PM
I got a feeling we should listen to Gingrich on this one.
Maxx on September 23, 2008 at 5:42 PM
Well Mr. GrumpyPants/Stalker just for instance there was a moral in
MB4 on September 23, 2008 at 4:09 PM
and in
MB4 on September 23, 2008 at 4:13 PM
and in
MB4 on September 23, 2008 at 4:20 PM
and in
MB4 on September 23, 2008 at 4:42 PM
I think that most could see them even if you could not.
Besides if I do longer dissertations or quotes or links to more straight forward things you just get upset about that.
So why don’t you just “get a life” and buzz off.
MB4 on September 23, 2008 at 5:42 PM
McC wins if the economy tanks? I have to assume Newt is only against the bailout in its current form – he has to understand the underlying financial and economic fundamentals.
McC can take complete control of this historic moment by demonstrating leadership. He merely needs to:
1. express confidence & support for a transparent method of slowly deflating the bubble (Bernanke’s ‘hold to maturity’ argument) via creation of an RTC 2.0; and
2. propose establishing a oversight regime that attacks ‘crony capitalism’, including regulating CDS, prosecuting Fannie execs, etc
FDR & Reagan, whether you loved ‘em or hated them, both stood tall when someone needed to stand up and say “let’s go this way”.
kuhio on September 23, 2008 at 5:42 PM
This financial stuff is very esoteric and tricky. Normal people don’t get into the minutiae of it all. Even our elected officials who are not involved in oversight of the financial system of gov’t ought to get something of a pass.
So let’s start with the banking committee, and the Fed, and the SEC, and any other government agency with financial oversight responsibility, AND GO AFTER THESE PEOPLE FOR CORRUPTION AND MALFEASANCE!
JiangxiDad on September 23, 2008 at 5:43 PM
That sounds like the broad framework we need.
JiangxiDad on September 23, 2008 at 5:45 PM
Hey Drudge has a link to a story where the CEO of a company in India was just pummeled to death by a mob of workers he just fired from his company. That’s what we need to see over here. One or two of those incidents here and those profligate severance pay packages won’t mean bupkus.
sbynyc on September 23, 2008 at 5:45 PM
This from Obama:
Both McCain and Obama have expressed apprehension about this plan. But it’s ok if Obama doesn’t take a position unless he absolutely has to, but McCain has to or it’s dead in the water?
This seems like such a setup to me. I can see it going down like this: McCain votes yes, the rest of the Republicans follow his lead. The Democrats vote it down. Cue ads: McCain supported Bush $700 corporation welfare. McCain voting on partisan lines. McCain badbadbad.
Or the other way around: McCain votes no. Republicans vote no. Democrats vote yes. Plan goes through. Cue ads: In a time of crisis McCain and the Republicans refused to help. While you were losing your homes, McCain did nothing. McCain badbadbad.
Doesn’t this put him in a very very bad spot no matter which way he goes?
covel on September 23, 2008 at 5:45 PM
Poll was misleading…
Billions of dollars to bail out? No problem….
Hundreds of Billions…. Problem….
TRILLIONS???? Major bad Mojo….
Romeo13 on September 23, 2008 at 5:47 PM
covel:
I don’t think it will work like that. If the deal fails and the economy really does tank, that is all people will care about.
Terrye on September 23, 2008 at 5:47 PM
PEW POLL: it’s all in how you ask the question… did you hear that we could secure the economy with a few billion?
Well of course people will say yes, they hear Congress spread billions around everyday. But Rasmussen asked a much more pointed and accurate question: do you support $700 billion bailout? Do you think the bailout will help the economy?
Those are much more realistic questions. A few billion, no problem. $700 billion? Are you crazy?
thankful on September 23, 2008 at 5:48 PM
Atlas Shrugged (unabridged) is on sale for $4.95 at Audible
RushBaby on September 23, 2008 at 5:50 PM
McCain has shown he has the savvy to make a visionary choice (Sarah). Now he has to show that he has the cajones to vote no for the drunken sailor’s (Bush’s) socialist bailout and establish himself as the maverick he says he is. It’s make it or break it because for reasons that defy explanation the Independents seem to think that Nobama has the one-up on economic issues.
sbynyc on September 23, 2008 at 5:51 PM
JhiangX:
Yes, it is esoteric and complicated and a lot of it is guess work.
But the thing that annoys me about guys like Newt who stand on some sort of principle now that he is out of there and has no real responsibility..is that when he was in Washington and certain changes were being made in the credit markets, he did not stop it. He did not raise hell about it. Just like with immigration, he ignored the issue when he was Speaker of the House, only to stand on high and boss everyone else around after he left office. It just annoys me.
Terrye on September 23, 2008 at 5:51 PM
Note to Janos Hunyadi – skip this post as you seem to be very upset already.
1. The current “Ponzi Pyramid of Death” fiat/fractional reserve/central banking/securitization/derivatives is crumbling. “Fiat/fractional just means that there WAS a system in place and it resembled an inverted pyramid/Ponzi scheme).
2. Right now, virtually every single large bank, medium-sized bank, hedge fund, pension fund, mutual fund, money market fund, stock broker and insurance company has been vaporized. All the phony paper they have been trading back and forth is virtually worthless.
3. Somewhere between $10-$20 TRILLION (estimates are hard to make due to the opaque nature of the derivatives markets) in debt and derivatives “value” has been wiped off the books of the above-mentioned players.
4. The players are falling over left-and-tight. ALL of the biggest, oldest Wall Street banks, plus the largest insurance company plus the two largest mortgage companies (Fannie and Freddie), plus the entire money market, failed in the span of two weeks. The rest of the thousands of institutions worldwide that are mortally wounded will be toppling over soon.
5. Governments and central banks worldwide have already pumped approximately $5 trillion collectively to date to fight this systemic, synchronized, worldwide, complete, utter collapse. So far, their efforts have failed.
6. At this point, the fight will continue to the death. During these next few weeks, months and even years the “economic convulsions” between the “Ponzi Pyramid” debt collapse destruction-deflation and government and central bank reflation/monetization/nationalization efforts will rage, with the back-and-forth battles getting wilder and wilder, until:
7. The entire world is plunged into financial demise, with the people of all the nations suffering mightily. “Great Depression II” will ensue for the next five to ten years.
8. During this time, if the world doesn’t blow itself up in all the wars that will surely follow, tens of millions of people in the U.S. are gonna learn to fear debt and living beyond their means. This is a good thing.
9.Eventually, hopefully, the U.S. pulls through in one piece, the people’s stock, bond, and housing assets are decimated, many have lost their jobs, but we all learn discipline and our national character grows.
10. We come through chastened and humble. Exactly what we need.
KentAllard on September 23, 2008 at 5:53 PM
sbynyc:
Bush is not a drunken sailor. He would not be doing this if he did not think it was necessary.
Terrye on September 23, 2008 at 5:53 PM
And this coming crash does what for the privatized social security game? The Dems will pound us into the ground over it. America needs to wake the hell up and get back to looking out for yourself. Only one truth in all this clap-trap thread, personal responsibility will rule the day. Once the market goes belly up the socialists will hold the wooden stake over Americas heart. All those attention-deficit-disorder kids better learn a job skill real quick like.
Limerick on September 23, 2008 at 5:55 PM
Warren Buffet just pumped $5 BILLION into Goldman….
TheBigOldDog on September 23, 2008 at 5:55 PM
McCain HAS to step up and TAKE CHARGE. He should bring Palin, Romney, and Gingrich with him. He should magnanimously invite Obama, Reid and Dodd to attend the meeting (with Bush/Bernake/Paulson) where they figure out the best plan and put accountability in place, while repealing Sarbanes-Oxley, lifting all drilling bans including ANWR, and cutting off all funding to countries that don’t like us.
If the dem’s don’t go along with it, THE BLAME IS THEIRS. They are too scared to say no, he has to lead…the time is NOW.
JustTruth101 on September 23, 2008 at 5:55 PM
Wow, I think we should all start re-reading Matthew 24 and Revelation. That’s some serious stuff there.
sbynyc on September 23, 2008 at 5:56 PM
Gingrich, you’re not all that.
silverfox on September 23, 2008 at 5:58 PM
Please. He didn’t veto one spending bill in how many years? He spent like a drunken neo-con sailor. This Wall Street mess isn’t his fault but the bailout is his one last stop at Happy Hour before getting back to port. The ship’s already sailed, baby.
sbynyc on September 23, 2008 at 5:59 PM
And do you know what the scariest part of all is?
I actually half way believe it myself.
KentAllard on September 23, 2008 at 5:59 PM
How about the government deny a bailout to every single greedy bastard who had a part in this, and give you $250,000 for you to invest in a business or other worthwhile venture? Get a dozen of your responsible friends together and purchase some fire sale stock in one of these failed companies? Then hire a wise manager who was kept out of the loop because he wasn’t politically connected. Then we kill two birds with one stone. Money is infused back into the market and the greedy asswipes who created this mess can go pan handle outside the exchange.
Does anyone else relish the image of downtrodden elitists ala “Trading Places”?
csdeven on September 23, 2008 at 6:00 PM
re:Romney
He was on Fox yesterday and I was hoping to hear his view. He said he and his team, iirc, were going to meet with McCain on this issue. But he didn’t give much away in terms of what he thought should be done – I expect in order to give McCain plenty of room to define his position, just like the classy guy he is.
Spirit of 1776 on September 23, 2008 at 6:00 PM
That would be impressive if you actually knew what you were talking about. You and MB4 should start touring as a comedy duo: “Dumb & Dumber” ?
Clueless & More Clueless-er?
Janos Hunyadi on September 23, 2008 at 6:01 PM
If I was McCain, before signing any bill, I would ask for the heads of Cox, Franks, Dodd, demand they resign in shame.
Demand that the finance committees share the chairmanships equally with the Republicans.
right2bright on September 23, 2008 at 6:02 PM
Hey, believe me, Faith is convicting. I ain’t the slightest bit worried about this bailoyt mess (although it makes for good theater) because I’m just passing through. Quite a ride, I’ll admit.
sbynyc on September 23, 2008 at 6:02 PM
Then, the deal is done. Just a lot of politicking now. Empty rhetoric and then the sell-out…I mean bailout.
genso on September 23, 2008 at 6:03 PM
I should have said: Gingrich, you’re not all that and a bag of chips. You’re just a bag of chips.
silverfox on September 23, 2008 at 6:04 PM
Classic. But which one is which?
right2bright on September 23, 2008 at 6:04 PM
A Groucho Marx quote and a few vague unfocused insults: very, very typical
Janos Hunyadi on September 23, 2008 at 6:04 PM
I add to my post.
After accepting the resignations of Cox, Dodd, and Franks, put Romney in as a special cabinet member to oversee the economic turn around.
right2bright on September 23, 2008 at 6:05 PM
Can Hot Air please stop using that picture of Newt? There might be pregnant women reading!
Speedwagon82 on September 23, 2008 at 6:06 PM
Yep. Demand they resign first. Clearly they are not qualified for their posts. Put Biden in charge.
lorien1973 on September 23, 2008 at 6:07 PM
Fifty-seven percent back the Paulsen bailout plan?
Just curious, did that interview provide a question to verify that the respondent had the first freakin’ idea what the plan WAS???
When speaking about complex economic matters, polling of this sort means absolutely nothing. That 57% figure just means that many people feel as though we have to do something.
philwynk on September 23, 2008 at 6:07 PM
with just over 30% paying taxes in 2006 I wonder why… everyone who isn’t paying taxes doesn’t mind.
Kaptain Amerika on September 23, 2008 at 6:08 PM
HR folks across the country will be overwhelmed with the number of 401k opt-out forms tomorrow.
Limerick on September 23, 2008 at 6:09 PM
I hereby crown you the Hotair Whiner Queen. Whine, whine, whine and then you whine some more. You need to get out in the sun more.
KentAllard on September 23, 2008 at 6:12 PM
Uh, Repubs were in power for HOW long and did nothing about this fundamental problem?
BOTH parties are equaly to blame in this meltdown, just as BOTH parties are equaly guilty for the Energy Crises we find ourselves in.
Why we should trust these guys now, I have no idea.
Romeo13 on September 23, 2008 at 6:12 PM
It’s already happening.
CNN Poll (naturally): Voters Blame GOP For Financial Upheavals
Republicans have to do a better job of explaining the causes of the problem and the best solution.
If we are viewed as opposing a measure to prevent a further economic downturn, then the public think may end up thinking that we not only caused the problem, but also tried to stop the solution.
What shall we do?
Loxodonta on September 23, 2008 at 6:13 PM
I hope McCain stops blaming Wall Street Greed, and put the blame squarely where it belongs: Dodd, Frank and Obama.
Take down as many Dems as possible, and the RINOs, too!
Make a stand and clean house!
Queen0fCups on September 23, 2008 at 6:13 PM
Kill the bail out, printing more money will make our dollar weaker, driving the Oil futures higher, thus not only making US pay for the $700 Billion but also making us pay for inflated Oil prices and everything that goes along with that.. higher gas prices, higher food prices, everything you buy at the stores, everything in our economy is tied to Oil.. and Oil is tied to the strength of the US Dollar.
So, what we need to do, Kill or extremely limit the bail out at least cut it into or 1/3 or 1/4 of the size it is now.. 175 Billion maybe.. let the markets work
Then, We need to Totally Ramp UP ALL Oil(Including ANWR, and all the natural gas),Oil shale, Clean Coal, and More New Nuclear Power plants Here in the United States, More Refineries, more wind, solar, new technologies, conservation ALL OF IT.. the ALL OF THE ABOVE PLAN.
Lower Corporate Tax dramatically and drastically(that will increase investment from home and abroad, create new business and create more jobs)
Lower the Capital Gains Tax again that will increase investments and create more revenues..
Increasing the Energy sector and new development will create Lots of new jobs, and new investment, people will start to invest in raw materials(because things need to be built), this would be be a huge boom industry and would get us off of foreign energy and would held our markets all at the same time..
————
How to stop if from happening again, what to do now…
Get rid, of the NINJA(No Income No Asset) Loans, That’s not compassionate it’s irresponsible, and predatory. (It should be a crime)
Chakra Hammer on September 23, 2008 at 6:13 PM
Maybe this has been stated, (maybe many times- too many posts to go through everything) but why did McCain have to sound so ill pre-pared, so unsure of what he was saying? I got no sense of confidence from him at all during his presser- I hate it when he’s always looking down at his notes. Where are all his big time advisers? (Romney?, Rove? Newt?)
anniekc on September 23, 2008 at 6:13 PM
That was already occuring if you take a look at the statistics on flight to Money Market funds. It has railed all sorts of cash/equity models to crap, causing many to keep excessive cash on-hand… Oh wait, they don’t have any cash on-hand… Hence the problem.
SkinnerVic on September 23, 2008 at 6:13 PM
…appears to be a discount to get you to sign up and become a member…
…and then, you’ll have to put up with a monthly audiobook selection mess, as with “History Book Club”, “Book of the Month Club”, “Readers Digest Book Club”, etc. ad nauseum…good book, though…good price…audiobooks are very, very handy…tempting…possibly a good “club”…don’t know…
…better to know beforehand….
Puritan1648 on September 23, 2008 at 6:16 PM
And what percentage of the 57% just want another stimulus check?
anniekc on September 23, 2008 at 6:17 PM
I just heard Senator Obama’s plan… the one he couldn’t tell us at the beginning of the week.
It’s ah, er, umm, what he (John McCain) said plus the addition of a few goodies my Democrat buddies asked for.
CC
CapedConservative on September 23, 2008 at 6:17 PM
The character of the people leading is what matters. Knowing all the answers upfront isn’t even necessary. The problem here is that the people in Washington aren’t trusted. This financial situation is revealing the real problem.
JiangxiDad on September 23, 2008 at 6:18 PM
Also, the RAW materials like STEEL used for the New Oil Rigs, and New Nuclear Power plants, and Wind Turbines could be a way to reopen the Steel Mills( or more could be built/upgraded) across the midwest that have recently shut down.. (thus more jobs)
things need to be built, Oil Rigs for off and onshore(US Steel, US Mining), Nuclear Power Plants(US Steel, US Mining), Wind Turbines(US Steel, US Mining) US Engineering..
AND ALSO CUT GOVERNMENT WASTEFUL SPENDING
Chakra Hammer on September 23, 2008 at 6:19 PM
You’re on the ball…
TheBigOldDog on September 23, 2008 at 6:19 PM
Terrye and all you out there worried about this bailout, it’s pretty much assured that it will happen.
Reaction in afterhour trading: Goldman up 9.44%
I wonder if Buffett has information we don’t have?
genso on September 23, 2008 at 6:19 PM
Yep. No guts. No smarts. No hope.
This crisis is because America was too busy teaching touchy-feely instead of roll-up-your-sleeves. I don’t want the system to crash, but by Zeus, if it does, it is Joe Public’s own frakking fault. You get what you pay for, and in this case America has been paying for Mordecai Jones to run it’s finances.
Limerick on September 23, 2008 at 6:20 PM
About a year, if memory serves. The warnings came in 1999 – NYT had a story about the potential problems. Bush took power in 2000. Then Jumping Jim left and gave control of the senate to the democrats, remember? So when Bush tried, in 2003 to do something, he couldn’t. So apparently Bush saw it coming. Democrats blocked it.
I find it simply amazing that people forget about Jumping Jim jumped ship in 2001, giving the majority to the democrats. And then turn around and blame republicans. Bullcrap.
The republicans were impotent to do anything with the democrats going along. Bush warned people in 2003. McCain did in 2005, as well.
I agree that both parties are responsible for this; but given the ignorance of reality by democrats (Dodd, Franks, etal), they need to resign. They were the head of these committees during the whole period of time and did nothing.
lorien1973 on September 23, 2008 at 6:20 PM
…excellent…specific…correct…and, in the overheated times we live, doomed….
…too many people — in the Democratic Party, in the media, investment sharks, etc. — are invested not in the market, but in decline….
Puritan1648 on September 23, 2008 at 6:20 PM
Kill the bail out, printing more money will make our dollar weaker, driving the Oil futures higher, thus not only making US pay for the $700 Billion but also making us pay for inflated Oil prices and everything that goes along with that.. higher gas prices, higher food prices, everything you buy at the stores, everything in our economy is tied to Oil.. and Oil is tied to the strength of the US Dollar.
So, what we need to do, Kill or extremely limit the bail out at least cut it into or 1/3 or 1/4 of the size it is now.. 175 Billion maybe.. let the markets work
Then, We need to Totally Ramp UP ALL Oil(Including ANWR, and all the natural gas),Oil shale, Clean Coal, and More New Nuclear Power plants Here in the United States, More Refineries, more wind, solar, new technologies, conservation ALL OF IT.. the ALL OF THE ABOVE PLAN.
Lower Corporate Tax dramatically and drastically(that will increase investment from home and abroad, create new business and create more jobs)
Lower the Capital Gains Tax again that will increase investments and create more revenues..
Increasing the Energy sector and new development will create Lots of new jobs, and new investment, people will start to invest in raw materials(because things need to be built), this would be be a huge boom industry and would get us off of foreign energy and would held our markets all at the same time..
Also, the RAW materials like STEEL used for the New Oil Rigs, and New Nuclear Power plants, and Wind Turbines could be a way to reopen the Steel Mills( or more could be built/upgraded) across the midwest that have recently shut down.. (thus more jobs)
things need to be built, Oil Rigs for off and onshore(US Steel, US Mining), Nuclear Power Plants(US Steel, US Mining), Wind Turbines(US Steel, US Mining) US Engineering..
AND ALSO CUT GOVERNMENT WASTEFUL SPENDING
————
How to stop if from happening again, what to do now…
Get rid, of the NINJA(No Income No Asset) Loans, That’s not compassionate it’s irresponsible, and predatory. (It should be a crime)
Chakra Hammer on September 23, 2008 at 6:21 PM
I think any taxpayer should be leery of anyone in Washington wanting to “rush” through anything. I mean, half these bozos can hardly tie their own shoes! What are we thinking?
jbh45 on September 23, 2008 at 6:21 PM
I linked to that CNN poll last night. Fortunately for me Not-too-tightly-wrapped Janos didn’t see it evidently or he would have probably $itched about that.
MB4 on September 23, 2008 at 6:22 PM
Thats my Plan above
NO $700 Billion Bail out!
Only $175-200 Billion MAX.
Chakra Hammer on September 23, 2008 at 6:22 PM
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