Breaking: Basic deal on bailout reached; Update: House GOP not on board yet; Update: Deal blowing up?
posted at 1:51 pm on September 25, 2008 by Allahpundit
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Just a skeleton right now. They’ll spend the next few days adding muscle, including how the funds will be phased in and whether the feds will be merely purchasing debt or going the whole nine socialist yards and buying up failing companies themselves.
The group broadly agreed there was a need for:
1) a panel to conduct oversight of how the vast sums of taxpayer cash are spent;
2) taxpayer protections — a way for taxpayers to receive some equity, through warrants, in the companies receiving government aid;
3) limits on executive compensation for officers of the companies receiving government aid — regarding golden parachutes, bonuses based on erroneous earnings (or “clawback”), and tax deductions for bonuses;
4) but a source tells ABC News that there was a problem resolving the issue of how to help homeowners facing foreclosure. Democrats want to re-write bankruptcy laws to enable judges to re-negotiate mortgages; Republicans do not.
NBC says the bankruptcy proposal is all but dead, but fear not. The same moon-eyed moron who did so much to get us into this mess isn’t giving up that easily:
Democrats also want any potential proceeds the government reaps from the bailout to go to a fund designed to pay for housing for poor families. Many Republicans oppose the very existence of the fund, which they say is a backdoor means of funneling money to liberal political groups.
Democratic demands that Congress be given greater authority over the bailout and that the government be required to help homeowners renegotiate their mortgages so they have lower monthly payments already have been accepted in principle.
Under the bailout bill, which will let the government buy huge amounts of toxic mortgage-related assets, “we’re now the biggest mortgage holder in town, and we can do serious foreclosure avoidance,” [Barney] Frank said.
I know I speak for all of us in saying how gratified I am that Barney Frank and “Countrywide Chris” Dodd are the point men for this deal on the left. For your amusement while we wait for updates, including/especially a statement from McCain (the meeting with Bush and Obama is at 4 p.m.), here’s O’Reilly in full meltdown this afternoon over what a “fat toad” Frank is and how we shouldn’t be listening to certain cigar-chomping private-jet-owning right-wing talk radio superstars given to blaming the crisis on the Clinton administration. Click the image to watch.
Update: Republican voter Bill Clinton gives the bailout thumbs up, and sounds a note being heard more frequently now on both sides: It might ultimately make more money than it costs.
Update: Boehner warns that House Republicans haven’t signed off on anything yet, but he’s “encouraged” by what he’s seen thus far.
Update: Oh my. Boehner’s suddenly calling the deal a “non-starter” and Carl Cameron quotes the McCain campaign as saying it’s “all but dead.” Paulson also suddenly seems to think it’s on life support.
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He’s not wrong.
phronesis on September 25, 2008 at 8:07 PM
I’m a little confused. The last I heard the Democrats controlled both houses of congress, so why don’t they take the bailout bill they like move it to the floor of each house and vote on it. The Democrats vote in lockstep so it should pass in the house and in the senate. If it’s only the house Republicans that are balking that should not be a problem because there is no filibustering in the house. Now, if the senates Republicans filibuster that’s another story. Based on the Democrats failure to bring the bills up for a vote it also appears that there must be a serious problem with senate Republicans.
This whole thing is one gigantic jug screw and the world must be laughing at these sorry fools, which unfortunately includes my fellow citizens and me.
If these idiots persist, the president might be forced to declare martial law just to avoid chaos and fighting in the streets.
In my 70+ years on this earth I have never been more disgusted and ashamed of this government.
rplat on September 25, 2008 at 8:09 PM
Bill O’reilly! I beg of you:
SIT DOWN! Shut up and SIT DOWN!
anniekc on September 25, 2008 at 8:09 PM
Where the hell is McCain tonite? has he made a statement or been on any network shows?
anniekc on September 25, 2008 at 8:10 PM
God, I hope Hensarling gets to write this thing. He’s a freaking genius. The next Newt. He’s insisting on a capital-gains tax moratorium for 2 years and government guaranteed loans to all financial institutions that need them, just like we’re doing with the auto companies.. That would jump start the markets like nothing else and have investors cheering. If McCain gets behind it he wins the election tomorrow.
rockmom on September 25, 2008 at 8:10 PM
rockmom: Oh, trust me. He is.
Sakaki on September 25, 2008 at 8:11 PM
anniekc on September 25, 2008 at 8:10 PM
Nancy Pfotenouer (?) said he’s been on the phone with all of the house GOPs trying to get a compromise hammered out. That was on Shepard Smith’s show an hour ago, anyway.
tru2tx on September 25, 2008 at 8:13 PM
I believe they need a 2/3 majority.
HornetSting on September 25, 2008 at 8:13 PM
Comedy gold.
Weight of Glory on September 25, 2008 at 8:15 PM
He’s working. O!’s talking.
Y-not on September 25, 2008 at 8:17 PM
Great analysis Steve.
The “monkey wrench” in this deal came this afternoon when House Republicans (that are all up for re-elections) heard from the folks in their districts. I would bet a majority of them said “if you pass this socialist bill without total taxpayer protection, plan on finding another job”. These people are sick and tired of high gas prices that Pelosi and the Dems took a pass on, and then have to witness a bailout for the greedy “government sponsored” opportunist and they know the BILL will be passed onto their grandchildren. They’ve all seen this far too many times to believe the burden falls on anyone but the taxpayers and they’re (including me) arn’t going to take it in the ass anymore. Obama and his socialist pals don’t get it. Neither does the neanderthal media that thinks this is some political ploy to “right” McCains ship. The conservative voice is going to be heard even if no one likes it, understands it, or hates it.
Rovin on September 25, 2008 at 8:21 PM
So they were the only people trying to negotiate this? The White House, the House negotiators, and other Senators didn’t count for anything? Since when does Congress consist of two people, Shep?
Sheep Smith is misleadingly named. The real shepherds are doing the negotiating.
Steve Z on September 25, 2008 at 8:26 PM
Democrats don’t want to go alone. They want the Republicans on board so if the bailout is unpopular they won’t be standing their alone taking all the heat.
Mark1971 on September 25, 2008 at 8:38 PM
Damn, but my admiration for McCain grows, because he thinks like a commander and not a panty waist.
Jewel on September 25, 2008 at 8:42 PM
His name is Henry Paulson.
His name is Henry Paulson.
His name is Henry Paulson.
His name is Henry Paulson.
V15J on September 25, 2008 at 8:49 PM
In 1929 the young and inexperienced Federal Reserve Corp started contracting the supply of money.
This induced a nasty recession.
Shortly thereafter, congressional brain surgeons Smoot and Hawley figured out how to turn the recession into a world wide depression.
Today the Fed is a bit smarter, but Congress is as brain dead as evah.
esblowfeld on September 25, 2008 at 8:55 PM
Do you honestly think that the jr. Senator, Barack Obama’s presence or absence will make or break the economy…tomorrow?
I fully understand the gravity of the situation, but you’ll pardon me if I don’t think that the community organizer has much gravitas to lend to this situation.
Moreover, I could be wrong, but I’m quite certain that as long as people like Shep don’t get hysterical and panic, investors will hang in there for a few more days, knowing that a deal is being negotiated, and that ultimately something will be resolved.
Yep, and since when did complicated deals involving the House of Representative, the Senate, and the White House, and the Treasury get solved in one or two days.
We should only be so lucky. Heck, we could only hope they’d open up the country to drilling in such short order.
Buy Danish on September 25, 2008 at 8:58 PM
Oh yes! Kill it! Kill it! Kill it! Kill it!
Just like that nasty illegal alien amnesty!
paulsur on September 25, 2008 at 9:00 PM
Congressman on Hugh Hewitt–it was not a deal agreement beyond 6 men, only hyped by the media in order to try selling more Socialism by getting everyone on the DNC 6-men-agreement bandwagon.
maverick muse on September 25, 2008 at 9:14 PM
If this were a movie, Barney Frank would be the villain, John McCain the hero, and Barack Obama would be Student #4.
thedudesblog on September 25, 2008 at 9:24 PM
Am I the only one who thinks Shepard Smith is an emotional lightweight. I still remember him making a fool of himself during the Katrina news fiasco.
I have always expected better from Fox News, but when Sheppard Smith is on I just turn Fox News off. After watching Bret Hume’s show it is such a let down.
DVPTexFla on September 25, 2008 at 9:39 PM
DVPTexFla I agree Shepard Smith is a light weight.
Dasher on September 25, 2008 at 9:43 PM
The room was suddenly filled with cotton balls and a hint of methane.
AubieJon on September 25, 2008 at 9:49 PM
Can McCain politically take credit for killing it?! Heck he’s just won the conservative vote for sure if he did… but I don’t think that was his intention.
Skywise on September 25, 2008 at 9:49 PM
I’m alittle late getting in here so if someone else has hit on this…well…here it is again.
If the House Republicans are standing up for all the things that are right with America; Mom, Baseball, Apple Pie, and all like that…then where are they screaming to the high heavens what the problems are? Why isn’t Boehner, Shelby, DeMint, et al on every news program tonight making a bigger mess of it? I’m watching H&C on fox right now and we have Condi talking about everything that we already know with UN. If this thing is as big and nasty as everyone would have us believe then she should be bumped and the cross talk should reign!
I’m all for the failure of this thing unless some VERY. DRAMATIC. CHANGES. are introduced. I know Republicans will be blamed for the failure whether it happens or not. All I’m asking for a rowdy defense of the positions being defended by the Conservative Caucus of Congress.
Pilgrim on September 25, 2008 at 9:55 PM
This is going to turn out much better than anyone could have hoped.
Queen0fCups on September 25, 2008 at 9:56 PM
Maybe we all need to call our reprensentatives in Washington up and ask them to investigate “Toad” and side kick. Oh wait, if they get investigated, its likely to unearth corruption with a lot of other representatives too…..
Is our government any less corupt than the Iraqi gov’t, the Mexican gov’t?
paulsur on September 25, 2008 at 9:57 PM
Give me a break, since when were you concerned about a burden being passed onto your grandchildren? Bush has already given us $5 trillion in debt, and now you’re whining about another $700 billion?
It seems to be more about people who’s attitude is ‘give me mine, and give it to me now’ who are upset. It’s never been about protecting future generations from debt. That became clear when people decided that we didn’t need to pay for this war through additional taxes- the only way wars are funded unless there’s pillage of the enemy involved.
bayam on September 25, 2008 at 11:32 PM
I’m optimistic.
wise_man on September 25, 2008 at 11:43 PM
McCain seems to have stiffened the backs of the conservatives and may have made a supreme political sacrifice and saving our country from insolvency.
michaelo on September 26, 2008 at 12:30 AM
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