Myth vs Fact on bailout compromise

posted at 12:51 pm on September 28, 2008 by Ed Morrissey

A source close to House Republicans has put out a Myth vs Fact rundown of the bailout compromise, announced early this morning.  This may answer some questions that have come up in the comments over the last few days:

Myth:  Windfall for ACORN.

Fact:  The Frank-Dodd proposal created an affordable housing slush fund and directed 20 percent of net benefits from the program to be directed to ACORN-type organizations.  The proposed compromise does not include any affordable housing slush fund and directs all net benefits back to the Treasury to pay down the national debt.

Myth:  Tax increase on financial industry.

Fact:  The proposed compromise imposes NO tax on the financial services industry.  The proposed compromise simply requires a proposal from the Administration to recoup any losses after five years.

Fact:  The proposed compromise includes tax cuts for struggling community banks.

Myth:  Blank check for $700 billion with little accountability.

Fact:  In general, the Treasury Secretary is limited to purchasing up to $250 billion outstanding at any one time.  If the Treasury needs to use another $100 billion, the President must certify this action and report to Congress.  Further spending requires Congressional action.

Myth:  Treasury plan is the only option available.

Fact:  Treasury is given multiple options to deal with the current economic crisis, including insurance, public/private auctions, loan guarantees, and direct support to financial institutions.

Fact:  Further, Treasury is MANDATED to create an insurance program (Section 102) that protects the taxpayers and requires companies that wish to participate in this program to have some skin in the game by paying risk-based premiums.

Myth:  The taxpayer is not adequately protected.

Fact:  The proposed compromise includes strong taxpayer protections.  Treasury’s proposal had minimal oversight to protect taxpayer dollars.  The proposed compromise enhanced the oversight structure by creating a Financial Stability Oversight Board, a Special Inspector General, and a Congressional Oversight Panel.

All AIG-type deals require mandatory equity interest in order to provide taxpayers with potential future benefits.  All auctions require a percentage of equity interest based on participation in the program.

Requires the Secretary to develop regulations/guidelines necessary to prohibit or, in specific cases, manage any conflicts of interest with respect to contractors, advisors, and asset managers.

Myth:  The taxpayer does not benefit from Treasury bailouts.

Fact:  The proposed compromise (Section 113) requires mandatory equity interest in scenarios like AIG.  The proposed compromise also allows Treasury to take an equity interest in the program generally.

Myth:  Treasury will never use the insurance option.

Fact:  Treasury is mandated (Section 102) to establish an insurance program and set risk-based premiums.  This will protect taxpayers by requiring the beneficiaries of the insurance program to pay risk-based premiums.  Treasury further shall collect premiums  mandatory equity interest in scenarios like AIG.  The proposed compromise also allows Treasury to take an equity interest in the program generally.

Will this resolve all of the concerns conservatives have in this plan? No, but it does address some of the most contentious issues. It also shows how much influence that the House Republicans had on the final draft, and for that they can thank John McCain for his intervention.


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Thanks Ed.

d1carter on September 28, 2008 at 12:54 PM

Well, when we see the actual text, we’ll know if this is accurate or not.

db on September 28, 2008 at 12:56 PM

Will this resolve all of the concerns conservatives have in this plan? No, but it does address some of the most contentious issues. It also shows how much influence that the House Republicans had on the final draft, and for that they can thank John McCain for his intervention.

And not one word of this will go beyond the blogosphere and talk radio. The Drive-Bys will either ignore this fact sheet or trash it as part of their overall offensive to glorify Obama and the Dems as the saviors of the republic.

ManlyRash on September 28, 2008 at 12:56 PM

thanks for that

BobH on September 28, 2008 at 12:56 PM

Thanks for the up-date. I hope McCain gets credit for some of this, but bho will take all the credit. Thanks R’s for your effort.
L

letget on September 28, 2008 at 12:57 PM

Where are the investigations and indictments.

Tommy_G on September 28, 2008 at 12:58 PM

It also shows how much influence that the House Republicans had on the final draft, and for that they can thank John McCain for his intervention.

A point which John McCain, Sarah Palin and all Congressional GOP up for re-election must hammer home from now until the election. If they don’t, then they just cement their reputation as the ‘stupid party’ for allowing the Democrats to steal away the message, and take credit for solving a crisis for which they (Democrats) were very much responsible in the first place.

Michael in MI on September 28, 2008 at 12:58 PM

You’re the man Ed. This is why I love HotAir.

D0WNT0WN on September 28, 2008 at 12:58 PM

Will this resolve all of the concerns conservatives have in this plan? No

Barney Frank, Chris Dodd and their committees should be investigated by the Justice Department. Question, how did we get to this point in the first place? (I have a good idea why but this debacle needs a Watergate type investigation to clear the air).

Zorro on September 28, 2008 at 12:59 PM

I am not happy with this.

I won’t be happy with ANY plan until the people who cause this or who were asleep at the switch are removed, publicly humiliated, and (if appropriate) tried and convicted.

At a minimum, a condition of approval of this bailout should be the resignations of Barney Frank, Chris Dodd, Nancy Pelosi, Hank Paulson, and Ben Bernanke.

The idea that Barney Frank, Chris Dodd, and Nancy Pelosi will be cast as the “heroes who saved the the country from financial meltdown” is unacceptable.
__________

RJGatorEsq. on September 28, 2008 at 1:00 PM

Hell, BHO is already taking credit for it. All he actually did was blow up the White House meeting. I guess he gets credit for pissing off the House Republicans enough to give them a set so they could stand up and demand to be heard. It’s about time they grew a pair.

Webrider on September 28, 2008 at 1:01 PM

Thanks, Ed.

progressoverpeace on September 28, 2008 at 1:01 PM

I’d like Freddie, Fannie, Dodd and Franks fully investigated. I’d like to see the press do a real expose of what happened and why the dems are so smiley now (could it be the bailout prevents a true and thorough look at their roles in the chaos). I’d also like to win the lottery.

My chances are better with the lottery.

Screw the press

clnurnberg on September 28, 2008 at 1:02 PM

This really stinks! Why don’t the Feds seize the bank accounts of the CEO’S, until they find out what happened? All the money those greedy crooks made. They could pay back maybe a portion of what the bail out is. So much for the FBI investigation. Of course the GOP will be blamed once again.

sheebe on September 28, 2008 at 1:05 PM

It also shows how much influence that the House Republicans had on the final draft, and for that they can thank John McCain for his intervention.

A point which John McCain, Sarah Palin and all Congressional GOP up for re-election must hammer home from now until the election. If they don’t, then they just cement their reputation as the ’stupid party’ for allowing the Democrats to steal away the message, and take credit for solving a crisis for which they (Democrats) were very much responsible in the first place.

Will they? will they repetedely expose all the pork the Dems wanted to add?

neuquenguy on September 28, 2008 at 1:06 PM

Yeah, they told us that shamnesty wasn’t amnesty too. You see how that worked out. That bill had amnesty loopholes in it so big that you could drive a truck through them. I’m with db, I’ll believe it when we see the actual language in the bill.

Jim C

JimC99 on September 28, 2008 at 1:06 PM

The bailout is a burden on American taxpayers until proven otherwise. It assumes good faith from both Congress, the U.S. Treasury and Wall Street. That’s a fool’s dream. Keep on Mythin’ On, Ed.

Fletch54 on September 28, 2008 at 1:11 PM

I’d like Freddie, Fannie, Dodd and Franks fully investigated.
clnurnberg on September 28, 2008 at 1:02 PM

Well Fannie and Freddie are under investigation right now. Perhaps some poop will fly through that fan and stick to Frank and Dodd, hey, I can dream can’t I?

I am not happy with the bailout, I would have prefeered dropping the regulations and changes to regulations that caused this crap-storm to begin with.

conservnut on September 28, 2008 at 1:12 PM

I am not happy with this.

No rational American is.

I won’t be happy with ANY plan until the people who cause this or who were asleep at the switch are removed, publicly humiliated, and (if appropriate) tried and convicted.

Then prepare to remain miserable.

At a minimum, a condition of approval of this bailout should be the resignations of Barney Frank, Chris Dodd, Nancy Pelosi, Hank Paulson, and Ben Bernanke.

Not gonna happen.

The idea that Barney Frank, Chris Dodd, and Nancy Pelosi will be cast as the “heroes who saved the the country from financial meltdown” is unacceptable.

The Drive-By media disagrees.

ManlyRash on September 28, 2008 at 1:15 PM

Who is going to administer these bad loans?

Isn’t it expensive and time consuming to keep track of and enforce loans where the borrower is either unreliable or is flat-out just not paying? The loans will have to be individually restructured, or they will have to be enforced in some other way such as foreclosure. In which case the the lender is suddenly in the property ownership business as well.

Who’s going to do all this stuff?

forest on September 28, 2008 at 1:16 PM

Thank you, ED.

Weight of Glory on September 28, 2008 at 1:16 PM

Can anyone play the Myth/Fact game?

Myth: This bailout solves the problem.

Fact: All the legislation creating the problem still exists.

Myth: There is accountability.

Fact: The Fed, SEC, Fannie and Freddie, never come up for re-authorization on a regular basis and are left ‘as-is’ without any programmatic review by Congress and the Executive branch.

Oh, I do love the ‘Myth/Fact’ game! But they aren’t addressing some of their own Myths… just where are the Mythbusters when you need them?

ajacksonian on September 28, 2008 at 1:18 PM

Thank you for doing the leg work on this.

mindhacker on September 28, 2008 at 1:18 PM

On This Week today, McCain refused to take credit. He is too humble to boast, so Palin better do it at Thursday’s debate.

I would like to see a joint presser with McCain and the House GOP to demand reforms and a complete investigation — and the House members can brag on McCain all they want. Otherwise, the Dems will try to sweep this under the rug and take full credit for any success, God willing, the bailout may have.

Terrie on September 28, 2008 at 1:19 PM

What about Judicial Review? If this is in fact how the legislation is written then those House Republcas are owed a big applause. If the minions and staffies write the law with loop holes and tricky wording to allow what is announced as killed, then we still have a roblem. I would hope no vote occurs until everyone has had a LONG oportunity to read the bill.

JIMV on September 28, 2008 at 1:20 PM

Suuuure. Why not?

Weight of Glory on September 28, 2008 at 1:22 PM

At this juncture I have only one comment Ed — Links please!

Dr. Dog on September 28, 2008 at 1:22 PM

Good points ajacksonian. I’d have liked to have seen some points on CRA, FM/FM, sub-prime lawsuits etc addressed in the legislation. Assuming it is not, and admittedly it would be difficult to include every relevant point in a bill designed to create a fire-break, when will these points be addressed, if ever?

Left to their own devices, the Dems will never touch any of their sacred cows. How much muscle can the GOP exert, or McCain for that matter, and will they find the popular support to pursue it? I hope that Americans feel obligated to require an explanation from their representatives, but I’m not sufficiently naive as to assume that they will. The problem will be a disinterested press. I don’t know that the new media wields enough influence yet to force these issues onto the old guard.

Immolate on September 28, 2008 at 1:26 PM

Suuuure. Why not?

Weight of Glory on September 28, 2008 at 1:22 PM

Hey, as long as they are giving; my business could use an infusion of cash to become more “environmentally friendly” – when do I get my check?

lorien1973 on September 28, 2008 at 1:30 PM

Thanks for the up-date. I hope McCain gets credit for some of this, but bho will take all the credit. Thanks R’s for your effort.
L

letget on September 28, 2008 at 12:57 PM

The Chosen One all ready has, I believe the article was on Fox or Drudge this morning.

N4646W on September 28, 2008 at 1:30 PM

Thanks for sharing this, Ed.

I want the Feds to do something to avert or at least soften what seems a likely significant downturn in the financial sector and broader markets. Our country’s 2 largest mortgage lenders & largest bank have collapsed, and I worry that collapses will continue to cascade through our economy unless something is done.

I thought the plan proposed by Bush was bad and the “deal” concocted by Democrats was worse. This “compromise” seems better than Bush’s original or the Democrat’s nightmarish proposals.

However, it still doesn’t terminate or significantly alter the federal laws & regulations that promoted the bad lending practices in the first place. This is a major disappointment.

So, I am still left wanting a better bailout plan. But, if this is the best that Republicans can get, then I prefer this to no bailout at all.

Loxodonta on September 28, 2008 at 1:31 PM

Bill Burton is on right now saying he may not vote for this bill if his vote is not needed to place it over the top! HOLY COW! He claims McCain was not working on the bill but out on a double date! Brett is asking him about the Pelosi “unpatriotic” smear on the House GOP members. He says Obama thinks they are pond scum. I AM GOING TO GO THROUGH THE TV! I need some football, I cannot take this crap!

I saw a clip of McCain saying he WAS NOT responsible for bringing the House members to the table. UGH! Would the McCain campaign mind, just a little tincy bit, going out there AND TELLING US WHAT THE HELL HE DID DO! Obama is pushing a bill that almost 70% of the American people do not want. Could we please attach this to THE ONE? Could we please go on the attack? Could someone in the McCain campaign please answer the red phone?

We are screwed ’08!

freeus on September 28, 2008 at 1:32 PM

Can Hot Air do more reporting on the specifics of John McCain’s involvement over the last couple of weeks / days? I think his engagement in this issue is critically important to understanding his priorities. It is not being talked about, and only a brief short statement at the end of this post.

EyesOpen on September 28, 2008 at 1:32 PM

Thanks Ed!

It also shows how much influence that the House Republicans had on the final draft, and for that they can thank John McCain for his intervention.

Every time I heard some Democrat on TV complaining that all was going just fine until JOHN McCAIN showed up and stalled the Paulson Plan.. I shout back… YEAH!

Paulson needs to speak up or at the very least someone needs to do it in his stead because he’s being painted as the author of what was the Democrat Plan.

Texas Gal on September 28, 2008 at 1:34 PM

This is all nonsense.

I saw Kerry on Fox Sunday and he said Barry flew in and saved the day after McCain blew up the deal.

All Hail the Obamessiah!

TheCulturalist on September 28, 2008 at 1:34 PM

Hey, as long as they are giving; my business could use an infusion of cash to become more “environmentally friendly” – when do I get my check?

lorien1973 on September 28, 2008 at 1:30 PM

No kidding. My plan: I’m just going to stop paying my mortgage.

Weight of Glory on September 28, 2008 at 1:34 PM

OMG – you will never BELIEVE what Obambi’s spokesman just said on fox: the One might not show up to vote on the bailout!!!!!!

OBAMA IS A YELLOW BELLIED COWARD

I hope his dumba$$ doesn’t show up. DISGUSTING, SHAMEFUL, COWARDICE ON DISPLAY FOR ALL TO SEE.

JustTruth101 on September 28, 2008 at 1:36 PM

clarification: i clicked quote instead of bold – obama’s spokemsman did not call him a coward – I am…so for full clarification:

OBAMA IS A YELLOW BELLIED COWARD

JustTruth101 on September 28, 2008 at 1:37 PM

As I said here before…this seems to have been a choice between stepping off a ledge of unknown – but perhaps considerable – height, and stepping in a big, steaming pile of crap.

It’ll be unpleasant as all hell, but we’ll (hopefully) eventually get the crap washed off.

flipflop on September 28, 2008 at 1:37 PM

Thanks Ed!

Some of the structure that caused this is being looked at. I saw where they are taking a long look at derivitives to see how this made the problem or made the problem even worse.
The only way revenge will be extracted is if these people are voted out of office. Kit Bond is the Republican senator from Missouri and I am willing to vote for someone running against him in a primary. If you get rid of them all, you must work to get a good conservative willing to go to DC and put up with the crap, and be able to avoid the temptations.
We have to hold them responsible. We need to work harder.

Vince on September 28, 2008 at 1:37 PM

I saw a clip of McCain saying he WAS NOT responsible for bringing the House members to the table.

If true, then we can be assured that McCain will get trounced in the next debate, as it is unlikely tha he will go on the attack.

If that happens, his campaign for the presidency is cooked.

I’d stock up on ammo if I were you.

ManlyRash on September 28, 2008 at 1:38 PM

JustTruth101 on September 28, 2008 at 1:37 PM

Coward is right. The sh*tweasel doesn’t want to go on record one way or the other in case it all goes sideways.

flipflop on September 28, 2008 at 1:39 PM

Ed, do you have a link for this? From what I’m reading, there still seems to be a lot of confusion surrounding the “myths” that have supposedly been cleared up. Are they just not aware of the info you shared here? Or is this more fluid than what you source is letting on?

Weight of Glory on September 28, 2008 at 1:41 PM

This legislation changes nothing and fixes nothing. To borrow a phrase – it’s lipstick on a pig. A lot of lipstick on a very big very ugly pig.

This is just propping up a dysfunctional system while doing nothing to fix the underlying problem. Of course the first step toward solving the problem is acknowledging there is one. I’m not going to hold my breath waiting for Congress to do that.

Stephen Macklin on September 28, 2008 at 1:41 PM

It seems to me the House Republicans have done an amazing job with the deck stacked against them. I’m afraid if they walk, we will end up with the pork laden bill.

But I am worried about what will stimulate the economy and get job creation fired up. At best, this bill will preserve the status quo – but without some kind of stimulus, like lower taxes or fast tracking energy (nuclear and offshore drilling), I believe that the economy will continue to slowly deteriorate for many years.

McCain has a chance to be a leader on this and so far is falling short!

huckleberryfriend on September 28, 2008 at 1:41 PM

Fact: Anyone who has a rudimentary understanding of the Constitution must oppose the mere idea of this bill on principle.

Weren’t all the previous bailouts this year supposed to stabilize the markets? Hundreds of billions down the drain already. Why would you believe Paulson and Bernake now?

Not surprisingly, the same people buying into this crap believe we will “secure the borders first”.

Valiant on September 28, 2008 at 1:42 PM

McCain has had a chance to be a leader on this and so far is falling fell short!

huckleberryfriend on September 28, 2008 at 1:41 PM

FIFY.

lorien1973 on September 28, 2008 at 1:42 PM

“Congressional Oversight Panel”

Would that be akin to the oversight of FM/FM by Congress? Yeah, I’m gonna trust those Congressional crooks. How about a civilian oversight panel?

Tom

marinetbryant on September 28, 2008 at 1:43 PM

Could someone give me an assurance that the next Treasury Secretary won’t treat this a piggy bank for his friends and favorite elected officials?

Cindy Munford on September 28, 2008 at 1:43 PM

Could someone give me an assurance that the next Treasury Secretary won’t treat this a piggy bank for his friends and favorite elected officials?

Nope.

Stephen Macklin on September 28, 2008 at 1:45 PM

Watch this wonderful piece of great conservative logic from Rep. Thaddeus McCotter:

http://www.youtube.com/watch?v=AbkjIfBIWK4

TexasJew on September 28, 2008 at 1:46 PM

EyesOpen on September 28, 2008 at 1:32 PM

He didn’t seem to want to talk about his impact on the final bill when he was on This Week, this morning.

Cindy Munford on September 28, 2008 at 1:47 PM

Stephen Macklin on September 28, 2008 at 1:45 PM

That’s what I thought.

Cindy Munford on September 28, 2008 at 1:47 PM

I don’t know anyone who thinks that McCain will secure the borders first. I’ll tag that remark a straw man.

Immolate on September 28, 2008 at 1:48 PM

The House Rerpublicans have demonstrated a great deal of fortitude on this and on drilling. Kudos. If only they had been this aggressive in looking out for Americans’ best interests when they had the majority of both houses of Congress. All this crap was brewing back then and everyone knew it. I’ll reserve judgment, though. The House R’s may have been giving it their all and it was the Senate tearing everything down, like they did every single year with ANWR. The House would pass drilling in ANWR, and the RINOs in the Senate would shoot it down every time. Year after year after year. So perhaps the House R’s are not to blame for not getting stuff done. But it is suspicious that they’re able to win fights as the minority of a minority party when they couldn’t do it as the majority party. Doesn’t make sense to me, but I’ll take it.

aero on September 28, 2008 at 1:49 PM

ManlyRash on September 28, 2008 at 12:56 PM

And not one word of this will go beyond the blogosphere and talk radio.

So why don’t you do something about it.

Call a local paper and try to find a reporter who will publish it. Call the local tv station and find a way to get it on air. Unfortunately, I’m in Canada but I’m a member of the Conservative party and my daughter has been doing volunteer work for local candidates since she was 17.

gh on September 28, 2008 at 1:51 PM

So why don’t you do something about it. – gh on September 28, 2008 at 1:51 PM

What makes you think I am not?

ManlyRash on September 28, 2008 at 1:52 PM

To all the folks out there that are unhappy about this plan I couldn’t agree more in principle, that anything further removed from a free market solution is a bad solution. I argued as such from the being.

However we all new this, as long as there are politicians and influence peddlers, there was going to be a plan/bailout. I knew it and you knew. Put your depression aside and be thankful we raised enough hell that the original plan, with all the Dem secret loopholes etc, was shot down. Had McCain not returned to DC we would only now finding out those provisions.

McCain returned to DC primarily because of sites like this that pounded the table and yelled slow down a’holes we want to take a look at this.

Rest assured that any malfeasance that exists, excluding politicians of course, will be found and prosecuted. Why do I know this? Because as certain as the sun comes up attorneys will be sniffing this pile and filing class action suits until your grand kids are attorneys themselves!

One sour note—the problems are not over.

patrick neid on September 28, 2008 at 1:53 PM

Will those ‘complex financial derivatives’ which are currently not regulated become a regulated financial instrument in the same way that futures contracts are regulated? Will those Credit Default Swaps (CDS) and Collateralized Debt Obligations (CDO) be traded in an open market the same way as other futures contracts are traded?

Will the companies selling CDS be required to carry provisions for losses on balance sheets the same way that insurance companies are required to prepare for possible obligations to pay when the underlying debt goes into default? In other words will sellers of CDS be regulated like insurance companies, specifically in respect to leveraged debt, and will those CDS be treated as assets or liabilities?

Will the problems that brought the global economy to the bring of collapse be fixed or ignored?

Oh silly me, congress, the news media, and the general public doesn’t even know what the problem is.

The democrats have pulled off yet another coup, and yet again the republican party seems somewhat confused at the turn of events.

rockhauler on September 28, 2008 at 1:55 PM

It seems as though Obama supporters are rallying around the idea that this crisis is due to the “eight years of Republican rule,” George Bush and the push against “regulation.”

At the same time, McCain supporters are saying it started under Carter, with the Community Reinvestment Act and continued through multiple administrations supporting poor risk mortgage loans.

I think the TRUTH will decide who wins in November. If the Republicans can spell out the argument convincingly, they need to start doing it, immediately!

In the debate, McCain did not directly respond when Obama blamed Bush and McCain for the financial crisis. Not responding was a major blunder. McCain must make the case NOW, that it is the Democratic actions that caused the crisis and that Obama will just take us deeper into the socialist money pit.

Star20 on September 28, 2008 at 1:55 PM

Thanks for the summary, Ed, and it seems like the House Republicans did their job and held their ground.

McCain might not want to “take credit” for it now, just in case something might go wrong at the last minute.

As for Obama saying that he’ll come back to vote “if his vote his needed’, Senate Republicans could call his bluff by all voting against it. With the Senate at 51 D, 49 R, both Obama and Biden’s votes would be needed to pass it. Otherwise, if it’s a tie, Cheney would get the credit!

Steve Z on September 28, 2008 at 1:56 PM

Right … and I’m supposed to believe the politicians when they say what is a rushed, secretive, and blatantly unconstitutional bailout.

corona on September 28, 2008 at 1:59 PM

fact: This plan still uses taxpayer funded money as collateral instead of private enterprise resources. As a result it will cost taxpayers billions.

fact: this plan still leaves intact Freddie Mac and Fannie Mae, intitutions designed to guarantee bad loans from people who can not afford mortgages.

fact: This compromise legislation does nothing to remove the problems with how we got here in the first place, and insures that we will revisit this problem in the future when it is much bigger, and wil be more disasterous.

paulsur on September 28, 2008 at 2:03 PM

don’t know anyone who thinks that McCain will secure the borders first. I’ll tag that remark a straw man.
Immolate on September 28, 2008 at 1:48 PM

There’s lots of McCain supporters here who believe him on the border. wise_man, terrye, squid shark, jet boy, funky chicken, and probably the author of this blog entry.

Valiant on September 28, 2008 at 2:04 PM

Thanks for the summary, Ed, and it seems like the House Republicans did their job and held their ground.

They sold us out. The problem still exists.

paulsur on September 28, 2008 at 2:04 PM

At the same time, McCain supporters are saying it started under Carter, with the Community Reinvestment Act and continued through multiple administrations supporting poor risk mortgage loans.

This is why this bill needs to be defeated.
We must demand that congress and the federal government get completely out of the Mortgage manipulation business.

paulsur on September 28, 2008 at 2:06 PM

Wanna fix it?

Cut up your credit cards. Keep that car three more years. Start a savings fund for your kids school when they are born. No, you don’t need to go to a bank for that boat loan.
We can’t fix this problem from the top down.

Thanks Ed for the recap, but I’m still asking the same question I asked days ago;

Can anyone point me to a government auction of government assets where the assets are sold at a profit? Anyone? No, that damn cricket in the back of the room doesn’t count as a response.

Limerick on September 28, 2008 at 2:07 PM

We must hold our ground. We all must call our legislators tomorrow and tell them not to support this bill. For them to vote yes on this bill will guarantee we vote against them on November 4th.

paulsur on September 28, 2008 at 2:09 PM

If the government does “make money” on this deal, who believes it will not go in the general fund and be spent like everything else in history?

Valiant on September 28, 2008 at 2:10 PM

There’s lots of McCain supporters here who believe him on the border. wise_man, terrye, squid shark, jet boy, funky chicken, and probably the author of this blog entry.

Valiant on September 28, 2008 at 2:04 PM

Any of the accused care to shed some “naunce” on that charge? Ed?

Immolate on September 28, 2008 at 2:10 PM

Oh, I do love the ‘Myth/Fact’ game! But they aren’t addressing some of their own Myths… just where are the Mythbusters when you need them?

ajacksonian on September 28, 2008 at 1:18 PM
—–
As much as I’d *love* to see Mythbusters take on Congress (both parties) I think they’re a little out-gunned.

Now, if we can detach the USMC and loan *them* to the Mythbusters as support troops (erm, rigorous cast members?) then we may be onto something.

The sad part is, there is an organization or group of organizations that are supposed to provide the type of “Mythbusting” you’d like to see.

They’re called the Free Press.

How far they’ve drifted from such noble roots, our Fourth Estate….the Main Sewer Media…

Mew

acat on September 28, 2008 at 2:12 PM

Drudge has a pic of Pelosi praying. As a catholic I find that so offensive, especially after she called Republicans unpatriotic, not very Christian of her.

ctmom on September 28, 2008 at 2:14 PM

after reading these I feel a lot better… not great but a lot better.

Kaptain Amerika on September 28, 2008 at 2:14 PM

“Congressional Oversight Panel”

Would that be akin to the oversight of FM/FM by Congress? Yeah, I’m gonna trust those Congressional crooks. How about a civilian oversight panel?

Tom

marinetbryant on September 28, 2008 at 1:43 PM
——

Tom,

There is such a panel, they’re just not doing the job the Founding Fathers intended. They’re called the Main Stream Media, or the Free Press.

Get *them* back to work, digging up the skeletons, shining the sunlight of openness on all of DC instead of just the folks who won’t “play along”, and we’d get somewhere.

This is where Hot Air et al come in… Since the MSM won’t do their job, Captain Ed will just have to do it for ‘em.

Mew

acat on September 28, 2008 at 2:16 PM

Any of the accused care to shed some “naunce” on that charge? Ed?
Immolate on September 28, 2008 at 2:10 PM

I don’t want to hijack this thread, but this is from Ed:

McCain never pledged to give up comprehensive immigration reform. He pledged to secure the borders first, but even in the extensive quotes that John has in his post, he never promised to stop seeking a comprehensive solution for illegal immigration afterwards. Even in this sequence, he talks about border security first. I don’t see this as “breaking his security pledge”, as John puts it.

Valiant on September 28, 2008 at 2:16 PM

The way it looks to me, Obama-Pelosi-Reid are allowed to say whatever they damn well please, no matter how preposterous, knowing MSM will cover for them… so that eventually all the brazen lies, repeated often enough, will be believed. Under cover of MSM, Obama-Pelosi-Reid will continue to engineer the fall of capitalism, just as they did with CRA and F/F, by overloading the government bureaucracy with a flood of impossible demands, thus pushing society into crisis and economic collapse.

The media (and the educational bureaucracy) are on a mission to destroy conservatism. The way it looks to me, they’re on the verge of irrevocable success, unless their power over us can somehow soon be broken.

It looks like MSM is going to win this election for Obama, a feat he alone could never accomplish. And if MSM can win this election, they’ll continue to win them as far forward as my eye can see. Meanwhile, our leftist rulers morph us from capitalism to socialism, from limited Constitutional government to intolerant authoritarian statism, from individual liberty/responsibility to group identity and communtarianism, from free speech to political correctness, and from traditional family values to secular progressivism.

Ugh!

petefrt on September 28, 2008 at 2:17 PM

So,it sounds like the hen house still isn’t
going to be safe from the little greedy fox’s,
me thinks!!!

canopfor on September 28, 2008 at 2:25 PM

On This Week today, McCain refused to take credit. He is too humble to boast, so Palin better do it at Thursday’s debate.

I would like to see a joint presser with McCain and the House GOP to demand reforms and a complete investigation — and the House members can brag on McCain all they want. Otherwise, the Dems will try to sweep this under the rug and take full credit for any success, God willing, the bailout may have.

Terrie on September 28, 2008 at 1:19 PM

No she should not. Palin does not believe in BIG government and she needs to DISTANCE herself from this. If she stays on the ticket with McCain, she now sides with Pelosi, Reid, Bush, Franks, Dodd.

She must differentiate herself and beliefs from the people who created this, then bailed it, and put nothing in to prevent it. This is how you set yourself up for future political gain. And side with the taxpayer.

This bailout will only work short-term and then we will get right back into the same problems of bad loans being pushed by government.

Sapwolf on September 28, 2008 at 2:26 PM

I don’t want to hijack this thread, but this is from Ed:

McCain never pledged to give up comprehensive immigration reform. He pledged to secure the borders first, but even in the extensive quotes that John has in his post, he never promised to stop seeking a comprehensive solution for illegal immigration afterwards. Even in this sequence, he talks about border security first. I don’t see this as “breaking his security pledge”, as John puts it.

Valiant on September 28, 2008 at 2:16 PM

Clearly, but from four months past. A lot of (Rio Grande) water has passed under that bridge since then. I’ll venture to guess that Ed doesn’t hold the same beliefs now that he held then.

But your point is clear. He (and possibly the others mentioned) were ready to believe in the Mav when he said it, which argues to good faith badly-placed. Point -> Valiant.

Immolate on September 28, 2008 at 2:26 PM

One thing I don’t think has been emphasized enough is the absolutely disgraceful behavior of many Republican senators during this mess. Some were willing to curl up and play possum while the country got screwed. But a few decided to actively support the rape — chief among them, Bob Corker (R-TN). That jerk had the nerve to intimate during a Fox interview that Republican House members were acting irresponsibly by questioning the ACORN slush fund, the lack of oversight, etc. He was horrified that those guys wouldn’t agree to just get ‘er done with no questions asked.

It’s pretty humiliating to have Fred Thompson’s legacy usurped by a RINO… Looking on the bright side, though, this probably will make it possible for Marsha Blackburn to get a nice little promotion next go ’round.

grits on September 28, 2008 at 2:28 PM

It looks like MSM is going to win this election for Obama, a feat he alone could never accomplish. And if MSM can win this election, they’ll continue to win them as far forward as my eye can see.

I refuse to believe the MSM will win this election for Obambi. His wide-eyed and brain-dead supporters love and adore him, but I do not and I will not and I do not believe he will win. Not all, but most americans can add. Bambi is on the stump right now (i can hear it on fox) just lying his a$$ off…he makes me so sick, I’m going to have to turn it off…

JustTruth101 on September 28, 2008 at 2:29 PM

John Gray: Outside the US, most people have long accepted that the development of the new economies that goes with globalisation will undermine America’s central position in the world. They imagined that this would be a change in America’s comparative standing, taking place incrementally over several decades or generations. Today, that looks an increasingly unrealistic assumption.

Having created the conditions that produced history’s biggest bubble, America’s political leaders appear unable to grasp the magnitude of the dangers the country now faces. Mired in their rancorous culture wars and squabbling among themselves, they seem oblivious to the fact that American global leadership is fast ebbing away. A new world is coming into being almost unnoticed, where America is only one of several great powers, facing an uncertain future it can no longer shape.

KentAllard on September 28, 2008 at 2:31 PM

Bambi is on the stump right now (i can hear it on fox) just lying his a$$ off…he makes me so sick, I’m going to have to turn it off…

JustTruth101 on September 28, 2008 at 2:29 PM

He’s lying nowadays almost as much as Pelosi and Reid. And his “in-your-face” style is making me hope he gets not just defeated, but crushed.

I wish I felt your optimism. To me it’s starting to look pretty grim. I’m hoping for better times soon, a big win with Palin on Thursday, for openers.

petefrt on September 28, 2008 at 2:36 PM

Merci Ed, Merci Republicans.

Cardiganfox on September 28, 2008 at 2:38 PM

A source close to House Republicans has put out a Myth vs Fact rundown of the bailout compromise, announced early this morning.

Link, or it didn’t happen.
Also, where is the supposed promised copy of this deal scam on the net?

DannoJyd on September 28, 2008 at 2:43 PM

Honestly, is there anyone better at being on top of everything than KLo at NRO? Other than Ed and AP, of course.

Newt: yes
Pence: no

Weight of Glory on September 28, 2008 at 2:49 PM

I would like to know what we, as taxpayers, can do to stop this bill?

I cannot find a single person wanting this to happen and they are calling, emailing, their Rep/ Senator to have this stopped. These morons wont listen to us and they are paid to represent us!

I am so pissed! grrrrr

becki51758 on September 28, 2008 at 2:49 PM

No she should not. Palin does not believe in BIG government and she needs to DISTANCE herself from this. If she stays on the ticket with McCain, she now sides with Pelosi, Reid, Bush, Franks, Dodd. – Sapwolf on September 28, 2008 at 2:26 PM

She has no choice, as she is shackled to McCain. If he sinks, he pulls her down with him.

ManlyRash on September 28, 2008 at 2:50 PM

Hell, BHO is already taking credit for it. All he actually did was blow up the White House meeting. I guess he gets credit for pissing off the House Republicans enough to give them a set so they could stand up and demand to be heard. It’s about time they grew a pair.

Webrider on September 28, 2008 at 1:01 PM

So what you’re saying is that bho “participation” is the equivalent of Gonad Growth Hormone.

If McCain is clever enough, he’ll thank bho (at the next debate) for providing the House Repubs with “juice.” He should admit publicly that he couldn’t have gotten the job done without bho’s “help” (verbal flatulence) at the White House meeting.

Now that is a debate I’d like to see. /smarmy grin/

platypus on September 28, 2008 at 2:51 PM

Also, where is the supposed promised copy of this deal scam on the net?

DannoJyd on September 28, 2008 at 2:43 PM

You’ll get that with your check, plus interest, from this great govt. investment plan.

Weight of Glory on September 28, 2008 at 2:51 PM

So the GOP does have some spine after all. GOOD!

Until I first read the bill, I’m going to withhold being tough on them.

byteshredder on September 28, 2008 at 2:51 PM

petefrt on September 28, 2008 at 2:17 PM

After this election you will see the red states become redder and the blue states become bluer as the rift between the two grows wider. Eventually – perhaps within the next 10 years several – if not all – of the red states will hold a Second Continental Congress and draft a resolution declaring their independence from the United States.

I, for one, would be honored to be present at that congress.

ManlyRash on September 28, 2008 at 2:54 PM

Rockhauler

Will those ‘complex financial derivatives’ which are currently not regulated become a regulated financial instrument in the same way that futures contracts are regulated? Will those Credit Default Swaps (CDS) and Collateralized Debt Obligations (CDO) be traded in an open market the same way as other futures contracts are traded?

Will the companies selling CDS be required to carry provisions for losses on balance sheets the same way that insurance companies are required to prepare for possible obligations to pay when the underlying debt goes into default? In other words will sellers of CDS be regulated like insurance companies, specifically in respect to leveraged debt, and will those CDS be treated as assets or liabilities?

Will the problems that brought the global economy to the bring of collapse be fixed or ignored?

Those instruments will be regulated out of existence. That you can be sure of.

patrick neid on September 28, 2008 at 2:58 PM

“Valiant” spent several months here on Hotair spreading the Ted Sampley/Jerry Kiley trash about how McCain was in a fancy hotel with hookers instead of being mistreated in the Hanoi Hilton, etc.

Just so you all know what you’re dealing with here….

funky chicken on September 28, 2008 at 3:04 PM

I have come to beleave that a full 65% of the american people are so dumb they don,t even know what country they live in.All the polls say that 55 to60% of the people do not want this bailout which is good but those same polls say that 50% of the people will vote for Obama who will tax & send much more that this bailout.This is crazy on one hand you people say you don,t want congress to spend this much money and then turn right around a say vote Obama and let him spend 2 times as much.This is got to be a bad dream!!

thmcbb on September 28, 2008 at 3:05 PM

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