Video: Newt gives a reluctant “yes” to bailout

posted at 3:32 pm on September 28, 2008 by Ed Morrissey

Newt Gingrich appeared this morning on ABC’s This Week with George Stephanopolous, and gave a very reluctant endorsement of the bailout package as described in reports this morning:

STEPHANOPOULOS: “Speaker Gingrich, there’s also, I think, a recognition, at least in some of the polls I’ve seen, that something has to be done.”

SPEAKER NEWT GINGRICH: “Sure, look, something has to be done. … I suspect were I still in Congress, in the end George [Will] is right, and I probably would end up voting reluctantly yes, because I think when you’re given no choice …”

I’ll try to get more of Gingrich’s remarks. He makes a good point in the comments here that we’re buying years of bureaucracy for a short-term problem, but the problem will be a lot longer than just two weeks if government doesn’t act to support the prices on the mortgage-backed securities (MBS) that it insisted Fannie Mae and Freddie Mac issue on boatloads of bad loans. Without action, the collapse would probably take place in two weeks, leaving us years to pick up the pieces — and that would cost more than what’s being proposed.

Will Gingrich’s reluctant, watered-down endorsement make conservatives more willing to accept this solution?

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ThackerAgency on September 28, 2008 at 9:38 PM

Oil will never get above $150/barrel and stay there…simple matter of supply and demand and there is no demand for that. And OPEC needs the US to buy their oil.

As for the dollar and the housing market…you may be onto something

LordMaximus on September 28, 2008 at 9:46 PM

Oil will never get above $80 $90 $100 $110 $120 $130 $140 $150/barrel and stay there…simple matter of supply.

MB4 on September 28, 2008 at 9:49 PM

Drill, baby, drill!

Steve Z on September 28, 2008 at 9:51 PM

An electric car in every garage and a nuclear power plant in every county!

MB4 on September 28, 2008 at 9:58 PM

A lot like saying you’ll dance lively and smile broadly at the opening show for the Beijing Olympics when a firing squad at dawn is one’s only alternative.

viking01 on September 28, 2008 at 10:01 PM

There are nasty snakes in the DFW area. We’ve lived in a northern suburb for three months and I’ve already seen three very small copperheads on a local paved trail through the woods. But I don’t think I’ll need the boots.

jim m on September 28, 2008 at 10:38 PM

I’ll try to get more of Gingrich’s remarks. He makes a good point in the comments here that we’re buying years of bureaucracy for a short-term problem, but the problem will be a lot longer than just two weeks if government doesn’t act to support the prices on the mortgage-backed securities (MBS) that it insisted Fannie Mae and Freddie Mac issue on boatloads of bad loans. Without action, the collapse would probably take place in two weeks, leaving us years to pick up the pieces — and that would cost more than what’s being proposed.

What you forget is that the issue is more than financial. While not doing this would perhaps cost a fortne and take years to recover from, the solution vastly grows government and ushers in decades of Socialism, a disease far worse than economic hard times as once initiated t never goes away.

JIMV on September 28, 2008 at 10:45 PM

Hang in there, folks. Keep plenty of liquor on hand, because this is gonna be a knuckle biter from now till Wednesday.

Don’t expect much out of Mac during this time: he’s either holding his fire and keeping his powder dry OR he’s contemplating defeat.

If it’s the former, then he will likely win this election.

If the latter, we are indisputably fucked.

Sleep tight.

ManlyRash on September 28, 2008 at 11:00 PM

“Twenty years of bureaucracy” — ugh, we are gonna be stuck with this thing aren’t we?

CP on September 28, 2008 at 11:00 PM

Time and time again in our nation’s history we have been told that we could not win, or would certainly be defeated. George Washington lost numerous battles, and by all accounts should have never succeeded, but he did. As our nation grew we were thought to be easy targets by the French, and by the Mexicans. I too have been to the Alamo, and yes it is moving. It is moving because so few believed they could win or at least hold out. In each case the men fighting these battles knew, that while outnumbered and facing certain death, they were dying for something far greater than anything they had ever known.

And on our nation grew. We had exercised manifest destiny, and yet lost our way because we forgot about those that had almost caused this nation not to be formed. Slavery was a largely discussed, and most passionate topic for our Founders despite what most would tell you. As the years passed, not enough was done to correct the error, and we embarked on one of the greatest sins this nation has ever committed and to this very day haunts every corner of every state. If you have studied the condition of this nation after the Civil War you would marvel at the miracle of our managing to come out the other side, and staying these United State of America.

WWI came and we had so many die due to just the flu. We had towns almost completely wiped out due to so many deaths, and yet we remained intact. Through the Depression and so many other catastrophes this nation survived. People in the Dust Bowl area actually ate dirt just to survive. That happened here, not in China, but here in our country people were starving. WWII came, and we had such a small military force. What was in Pearl Harbor was destroyed by the Japanese bombs, or kamikazees. We faced then a monumental challenge that most thought we would surely lose. And yet, we pulled our rations together, went to the factories to work and won a two front war.

We as many have said have placed men on the moon, and achieved many a technological feat. I still am amazed at the video games today because I remember when Pong was a big deal. LOL! We have cured some diseases and are manufacturing drugs now that are extending our lives far beyond what most would have thought possible.

But each time this nation was counted out or toast, we managed to pull it together and press on to succeed. I know many might say that this time is different because so many Americans have lost their pride in America, and think so negatively of her. That is no doubt true, but we have not totally lost our way either because there were men in Washington fighting for us, and where there is one there is hope. I am not ready to wave the white flag of surrender. I do not think all is lost because at least 51% or more Americans did not like this bill. Who knew that many paid attention? Who knew that many were not afraid to raise hell to let their Congressional representatives know they hated this bill? Anytime that many of us can find common ground, I believe there is hope.

We are not quitters. We are not losers. We are fighters. I think the best way to think of this is like that Battle of the Bulge story where the commander told the Germans, “GO TO HELL!” and they kept moving that one tank around to make the German believe they had plenty of tanks to aim at them. If those guys did not quit, we sure as hell had better not quit either!

freeus on September 28, 2008 at 11:01 PM

freeus on September 28, 2008 at 11:01 PM

Hear, hear!

ManlyRash on September 28, 2008 at 11:03 PM

freeus on September 28, 2008 at 11:01 PM

Thanks; I needed that. :)

pannw on September 28, 2008 at 11:10 PM

I posted this in the headlines Boehner thread, but I think it’s important enough to post here:

I know it was posted somewhere here on HA earlier today, but if you haven’t read this American Thinker piece, you really need to.

You know how Jesus has all those missing years between 12 and 33? Well our Obambimessiah has some missing years too, it seems.

We finally found out some of his actual accomplishments and they all seem to tie directly back to ACORN.

It’s damned interesting reading:
http://www.americanthinker.com/2008/09/barack_obama_and_the_strategy.html

techno_barbarian on September 28, 2008 at 11:17 PM

The Asian markets are heading south. Not going to be a good Monday.

cjs1943 on September 28, 2008 at 11:17 PM

If those guys did not quit, we sure as hell had better not quit either!

freeus on September 28, 2008 at 11:01 PM

And thanks, freeus! Excellent post.

techno_barbarian on September 28, 2008 at 11:18 PM

Newt has zero credibility. When he was the speaker of the house…he blew the opportunity….showing himself to be a hyprocrite. Now that he is a pundit, he thinks he is above the fray.

On Friday, the WSJ had a good laugh about him in their lead editorial. The man is a buffoon that nobody takes seriously.

And what is up with Fox News? Geraldo, Newt, and now Huckabee?? WTF?!?! And besides that, we have Billo getting more and more embarrassing. They need an overhaul.

Roger Waters on September 28, 2008 at 11:19 PM

And what is up with Fox News? Geraldo, Newt, and now Huckabee?? WTF?!?! And besides that, we have Billo getting more and more embarrassing. They need an overhaul.

Roger Waters on September 28, 2008 at 11:19 PM

Nope. They need to lose your viewership, just like they’ve lost mine.

techno_barbarian on September 28, 2008 at 11:25 PM

The Asian markets are heading south. Not going to be a good Monday.

cjs1943 on September 28, 2008 at 11:17 PM

Asian Markets Plus

MB4 on September 28, 2008 at 11:26 PM

“Don’t expect much out of Mac during this time: he’s either holding his fire and keeping his powder dry OR he’s contemplating defeat.

If it’s the former, then he will likely win this election.

If the latter, we are indisputably fucked.

Sleep tight.

ManlyRash”

McCain may be dumb enough to do as you suggest. But, I think that all the smarter people will convince him of the need to support the purchase of the real estate backed assets from the banks. Its really a no-brainer which is why only philosophical purists who have no responsibility or sense of the real world can oppose.

Can you imagine if the founding fathers were like the people like womanlyRush on this forum. No, No, I dont want to hear about the compromise, states rights only, I wont compromise…only MY way is right, your way is wrong..uh uh, then the hell with the country blah blah blah.

Fortunately, in our history, there have been enough adults in charge to keep the country relatively safe.

Roger Waters on September 28, 2008 at 11:26 PM

“Nope. They need to lose your viewership, just like they’ve lost mine.

techno_barbarian ”

True. But the others are even worse. ha ha

Roger Waters on September 28, 2008 at 11:27 PM

Asian Markets Plus

MB4 on September 28, 2008 at 11:26 PM

Plus not as in up, but as in that web site has more than just Asian Markets.

MB4 on September 28, 2008 at 11:29 PM

On 9 and 10 News,Michigan,news talkin head
mentioned how some were saying,the Republicans
should be blamed!

How about, part of the deal,include an
investigation at least,to find out who
created this mess!

If the Liberals had no hand in it,they would
be screaming for investigations,and would
be calling for people to step down!

The only thing I’m hearing from the news
is “The Bailout for Wall Street”!

And for the first time in awhile,I water
boarded myself for 5 minutes(that a joke,
btw to any Liberals)watching our biased CBC!

And the idiot NDP Party put the blame of bail-
out of “Wall Street” on President Bush!

Typically Canadian,and typical of the New
Democrat Party,and no different than the
Canadian Liberals!!

canopfor on September 28, 2008 at 11:30 PM

Roger Waters on September 28, 2008 at 11:19 PM

*YAWN*

ManlyRash on September 28, 2008 at 11:30 PM

sniff sniff

ugh troll breath

Roger Waters on September 28, 2008 at 11:31 PM

Roger Waters on September 28, 2008 at 11:26 PM

LOL. Autofellatio appears to be your strong suit.

ManlyRash on September 28, 2008 at 11:32 PM

only when I am the peformee not the peformer. ha ha

Roger Waters on September 28, 2008 at 11:34 PM

True. But the others are even worse. ha ha

Roger Waters on September 28, 2008 at 11:27 PM

I don’t watch those either, ha ha.

techno_barbarian on September 28, 2008 at 11:34 PM

freeus on September 28, 2008 at 11:01 PM

Thank you, thank you, thank you! I really needed something uplifting and positive. I will never stop fighting for what is right!

mrsmwp on September 28, 2008 at 11:50 PM

It’s damned interesting reading:
http://www.americanthinker.com/2008/09/barack_obama_and_the_strategy.html

techno_barbarian on September 28, 2008 at 11:17 PM

I don’t want to stomp on the 1st ammendment but those f*ckers need to be thrown out of this country or hung for treason.

mrsmwp on September 28, 2008 at 11:51 PM

Yal are sooo welcome! I owe you all one. I cannot tell you the number of times I was down and out and you guys cheered me up, or at least informed me as to what the skinny really was. HotAirers are stupendous!

As a daughter of a Marine, we never go down without somebody bleeding, and a serious fight! You should see my girls on the soccer fields! LOL!

freeus on September 28, 2008 at 11:53 PM

Ad I’ve said before, on a couple of other threads…

This whole bail out is a true game changer for America.

The Covnenent between the Government, and the public, has changed.

In the past, the Gov was the Referee… they enforced a set of rules that were supposed to be fair… and did NOT choose winners and loosers.

Now, not only will the government choose winners and loosers, with who they will bail out (and those they bail will have the credit to buy out everyone else), but they will now have equity in those same companies.

Government, is no longer the Ref, but is now both a Player, and the Judge.

They are now the East German Judge in Gymnasitcs in the Olympics… they will judge based on their own best interests, not what is fair.

Romeo13 on September 28, 2008 at 11:55 PM

I don’t want to stomp on the 1st ammendment but those f*ckers need to be thrown out of this country or hung for treason.

mrsmwp on September 28, 2008 at 11:51 PM

Yup. From the details of that article, treason for attempting too overthrow the government of the USA is exactly the long-term (and very nearly realized) goal of these radicals.

They. Must. Be. Stopped.

techno_barbarian on September 28, 2008 at 11:58 PM

“Now, not only will the government choose winners and loosers, with who they will bail out (and those they bail will have the credit to buy out everyone else), but they will now have equity in those same companies.

Government, is no longer the Ref, but is now both a Player, and the Judge.

They are now the East German Judge in Gymnasitcs in the Olympics… they will judge based on their own best interests, not what is fair.

Romeo13 ”

oh bullcrap. the govt is going to buy some assets and sell them, probably for a profit, to clean up some ugly balance sheets. Then, assuming enough right-minded people are in congress, they can fix the incentives to make and sell bad loans.

The govt bailed out all the states under Alexander Hamilton after the revolution. The gov bailed out the S & L crisis. The gov (Ronald Reagan) bailed out Chrysler. The gov bailed out Mexico. those were ALL good financial decisions.

Most importantly, please understand this: Only losers think the way to spell losers is “loosers”. If you learn nothing else today with your empty thoughts on govt. bailouts, please remember that. Repeat after me, only LOSERS spell the word LOSERS as LOOSERS.

You’re welcome

Roger Waters on September 29, 2008 at 12:07 AM

Roger Waters on September 29, 2008 at 12:07 AM

Feel free to bury your head in the sand.

The Government has already forcibly transfered 307 BILLION in assets from WaMu to JP… when they could have floated them a loan.

The government gets EQUITY in the companies… you may want to educate yourself on what is in this bill.

All prior bail outs except the S&L bailout were LOANS to companies… guarenteed by the Gov, but not forced by the Gov. We now have the Gov SEIZING companies and forcing them to sell their assets to other companies.

Paulson has already stated that the bailout money will go to a VERY limited number of companies. They will then have the clean balance sheets needed to get Loans from other countries/entitys… and will then buy up those companies who CANNOT get loans, becaue Paulson will not choose to bail them out.

THESE ARE NOT LOANS! The Gov is buying assets, and will have close to a Monopoly on all outstanding Mortgages (they already have way over half, with their seizure of Fannie and Freddie).

So, before you say “bullcrap”, you may want to read the stinkin bill, and think on the consequences a bit.

And I’m sorry if my spelling does not meet your so stringent requirements… but the sign of someone with limited intellect is when they complain not about the messege, but how the messege is delivered.

And, save your condescending attitude, for you, are NOT welcome.

Romeo13 on September 29, 2008 at 12:19 AM

Romeo13 on September 29, 2008 at 12:19 AM

It is scary–the US government getting equity in these companies. When Chavez pulls this crap, we scream that he’s forcibly nationalizing companies a la communism/socialism. How is this any different?

Can you imagine what kind of government interference in business we will have to live with should Obamessiah win with a Democrat majority House and Senate? The New Deal and the Great Society will look like warm up rounds for what’s coming.

BryanS on September 29, 2008 at 12:34 AM

Goodbye, America. It was fun. I hope you do o.k.

P.S. Don’t call me, I’ll call you.

VolMagic on September 29, 2008 at 12:48 AM

When Chavez pulls this crap, we scream that he’s forcibly nationalizing companies a la communism/socialism. How is this any different?

BryanS on September 29, 2008 at 12:34 AM

Ekam sat vipra bahuda vadanti.

Tav on September 29, 2008 at 12:49 AM

Can you imagine what kind of government interference in business we will have to live with should Obamessiah win with a Democrat majority House and Senate?

BryanS on September 29, 2008 at 12:34 AM

If the country does not change direction, it may end up where it is heading.

Tav on September 29, 2008 at 12:53 AM

A bit O/T! NBC’s David Gregory’s wife worked for
Fannie Mae,and has resigned!

From Pam’s site,Atlas Shrugs blog!

No wonder the media wants to put the Blame on the Right!

NBC’s David Gregory’s wife,Beth Wilkinson was Fannie Mae’s
Executive Vice President general counsel and corporate
secretary,and resigned in September!

Me thinks, the plot thickens,very interesting!!

canopfor on September 29, 2008 at 12:57 AM

“The Government has already forcibly transfered 307 BILLION in assets from WaMu to JP… when they could have floated them a loan.”

Uh, that was to prevent a bank run and, thus, a bank failure, and thus save you and me (well, at least me, I am unconvinced that you actually pay taxes) a bundle of money with the FDIC insurance that would have to kick in on all those deposits that could not be paid due to a bank run due to the fact that WaMu was undercapitalized.

And what is all this panic over equity in companies?? The govt is buying assets and paying more than they are worth…if the gov doesnt take an equity position, the bank gets away with murder and doesnt have to pay with a market oriented loan which would include equity warrants.

Dude, dont worry about me getting educated. I have an mba and I work in banking…and I knew how to spell the word “loser” since 7th grade. So, I am educated. However, you sound like an uneducated hick crying that the sky is falling and too dumb to understand that the gov just saved us all from a recession. I dont know if you are raising children or if you are supporting a family or if you are just a dumb kid or whatever but for those of us with reponsibilities, we appreciate not going into a deep recession.

Real life: where silly conspiracy theories and gutless theoretical purists dont live.

Roger Waters on September 29, 2008 at 1:40 AM

I couldn’t be more angry/depressed over this. :(

Marsh on September 29, 2008 at 1:47 AM

the gov just saved us all from a recession.

Roger Waters on September 29, 2008 at 1:40 AM

For $700 billion and counting and a boatload of socialism they had better damn well have saved us from a depression. Or being hit by an asteroid. Something more than a damn recession anyway.

KentAllard on September 29, 2008 at 1:47 AM

I couldn’t be more angry/depressed over this. :(

Marsh on September 29, 2008 at 1:47 AM

Cheer up, the worst is yet to come.

Murphy9 on September 29, 2008 at 1:50 AM

“For $700 billion and counting and a boatload of socialism they had better damn well have saved us from a depression. Or being hit by an asteroid. Something more than a damn recession anyway.

KentAllard ”

$700 billion isnt the price tag…that is the cost of the loans that are covered by real estate. The gov will likely make a profit…not cost the taxpayers $700 billion…just like the S&L bailout.

But, if you prefer to babble on about asteroids and such…have at it.

Roger Waters on September 29, 2008 at 1:53 AM

The gov will likely make a profit

Roger Waters on September 29, 2008 at 1:53 AM

Like the saying goes, ‘I may have been born at night, but it wasn’t last night.’

Murphy9 on September 29, 2008 at 1:58 AM

I posted this on a different thread but this one needs a pep talk too so here goes:

I don’t know about all of you but I spent the first part of the day watching Green Bay/Tampa, the middle part of the day watching my Redskins beat the evil Cowboys and the last part of the day watching the Amazing Race and Desperate Housewives (I’m married).

I checked in on hotair some, but not nearly as much as usual. My guess is the vast majority of the American public did the same. I watched some clips of the evening news stories about the deal, curious to see how it was covered. I didn’t see Pelosi say a word, the only politician I saw talking was Paulson.

Most people aren’t newsjunkies like we are here. Most people were probably watching football and enjoying the last few weekends of nice weather.

The democrats are absolutely playing with fire trying to sneak in la raza/ACORN stuff. Boehner already put something about ACORN on his web site. There’s so much ammo on the table for the GOP to fire at Obama and the crats that I refuse to believe they’re going to just bend over and take it in the public relations war.

Remember that scene in Braveheart when the Scots were standing there waiting as the English charged? Then once the Brits got danger close, the Scots acted and the result was absolutely devastating. Stay calm folks, the counterattack is coming. McCain has been able to control this race and force Barry on the defensive repeatedly. I have no reason to believe that will change now.

Fight with me! Nothing is inevitable!

hump1201 on September 29, 2008 at 1:59 AM

An asteroid hitting the earth – chances are slim.

The government (and the same fools that allowed this to happen) making a profit (for the taxpayers anyway) – You have got to be kidding me.

Murphy9 on September 29, 2008 at 2:02 AM

Roger Waters on September 29, 2008 at 1:53 AM

Well, the current language of the proposed bill allows Paulson to define in almost any way he wishes what is a “distressed” security and then go buy it with government money. He’ll have to report back to Congress to get more than the first allotment of money, but still this thing could get out of control rather easily.

The bill also gives the SEC authority to do away with mark-to-market accounting. A sort of wave of a magic wand that says–”No really, our company now has billions more in assets than we did 30 seconds ago. Trust us”. Mark-to-market certainly has taken out the good with the bad, but it’s intent was to force companies to reckon with having paid more for an investment than it currently is worth.

BryanS on September 29, 2008 at 2:03 AM

Naked Cap Notes

Weeks to get this monstrosity up and running so where’s the Giant Must Do It Now Crisis.

Spectacle.

KentAllard on September 29, 2008 at 2:17 AM

I don’t wanna eat a Crap Sandwich!

Kill this Bailout, until that Sandwich tastes better!

At least make it taste like Braunschweiger..(Which I actually kinda like, since I’m poor and its cheap)

Chakra Hammer on September 29, 2008 at 3:35 AM

$700 billion isnt the price tag…that is the cost of the loans that are covered by real estate. The gov will likely make a profit…not cost the taxpayers $700 billion…just like the S&L bailout.

Roger Waters on September 29, 2008 at 1:53 AM

I don’t fully understand the nuances of the bailout nor exactly what the future holds in store, but considering that stratospheric real-estate values are based on the credit bubble, unless we maintain that bubble it seems inevitable that real-estate will continue to fall. Therefor, assuming we halt the credit bubble to fix the underlying cause, unless the government will be buying at a steep discount they will be losing money when they sell them later in a down market.

That is, unless they continue encouraging the credit bubble, in which case real-estate may stabilize or even rebound in the near-term, in which case there will come a reckoning when we will right back in this mess, only much deeper than we are now.

The credit addiction is killing our economy, and if we quit cold-turkey there will still be a price to pay. I don’t see how anybody can expect the government to turn a profit from this, (though I doubt anybody can know for sure), and government being in the business of making a profit is itself troubling and will likely lead to further problems.

FloatingRock on September 29, 2008 at 3:38 AM

Quit selling expensive adjustable interest rate loans to extremely poor people that have No Income No Job No Assets..

It’s not rocket science..

Damn Democrats praying on the poor to keep them poor this F*CKING disgusting.

Chakra Hammer on September 29, 2008 at 3:46 AM

unless the government will be buying at a steep discount they will be losing money when they sell them later in a down market.

And if they do sell into a down market they will increase the downward pressure on the market while losing money in the process.

If they cut off the free credit supply then eventually housing costs will reach a level of equilibrium, lower than at present, but the volatility will be reduced and it could be, should be, a generation before it finally attains new highs.

Is the government going to hold onto their newly acquired assets for a generation? If so, by that time we will have yet another entrenched monster of a socialist program that may never end.

FloatingRock on September 29, 2008 at 4:06 AM

Well…………….. today should be an interesting day.

………. somewhere the sun is still rising.

Seven Percent Solution on September 29, 2008 at 4:09 AM

Good morning! What a miserable weekend, I am considering taking to drink. I just heard that Britain is getting ready to buy a bank also. To add to my confusion the state reason is falling property values. Chin up everyone.

Cindy Munford on September 29, 2008 at 5:46 AM

canopfor on September 29, 2008 at 12:57 AM

That’s very very interesting. I have always thought that an investigation of the “investigators” would be a really good idea. They are too incestious with the left, but professional courtesy keeps that from happening. Just like Rathergate it would be great if the blogosphere could jump into action. I know I would love to play Holmes but I have no skill.

Cindy Munford on September 29, 2008 at 5:52 AM

freeus on September 28, 2008 at 11:01 PM

another manifesto…

hump1201 on September 29, 2008 at 1:59 AM

And this has to do with Newt how?

Hear, hear!

ManlyRash on September 28, 2008 at 11:03 PM

I needs me a revolution… I’ll be the General

Newt is a goofball. Why do we need his blessing for the bailout. He was in power when the CRA issue could have been addressed yet chose to ignore it.

Bradky on September 29, 2008 at 6:41 AM

Newt tells Paulson he should have resigned in shame for being such a damned failure.

maverick muse on September 29, 2008 at 6:52 AM

I got up this morning and checked the markets at Bloomberg. It seems that Kristol was not wrong about Fortis. It has been bailed out by three European governments. The euro is in free fall and the UK nationalized one of its largest banks. Not good. I hope this thing works, or everyone might be in for a bad time.

Terrye on September 29, 2008 at 6:53 AM

maverick:

I am tired of hearing Newt go on about how everybody else failed. We all know that a lot of people were part of this for a long time. In fact Newt himself was among them. If he was half as omniscient as he thinks he is, why didn’t he try to put a stop to a lot of these lending practices back when they were first getting started?

I don’t know very many people who would want Paulson’s job right now and I doubt very much if Newt himself is qualified to do it. He is a history Professor. I am not defending the man, but people need to realize that this thing is a lot bigger than Paulson. Congress had as much to do with it as he did.

Terrye on September 29, 2008 at 6:57 AM

What a great comment thread…

My worry – buying US assets at bargain prices may convince the government to do it more often. Politicians – they can’t help themselves.

Yes, it has helped us, and unfortunately it was necessary. But another worry I have: a leftist cheerleading media, to convey to all of the sheep that this maybe should continue.

I’m expecting things to get even more rife with corruption.

beatcanvas on September 29, 2008 at 6:59 AM

Bradky:

It is not a lot different from listening to a Democrat bitch about how Bush has not found Osama Bin Laden. If Clinton had killed the bastard when he had the chance the world would be a better place today. But he didn’t. And Newt did not do a damn thing about changes in home lending rules. In truth too many people like Newt were too focused on going after Bill Clinton to think about much else.

Terrye on September 29, 2008 at 7:03 AM

Bradky:

It is not a lot different from listening to a Democrat b*tch about how Bush has not found Osama Bin Laden. If Clinton had killed the bastard when he had the chance the world would be a better place today. But he didn’t. And Newt did not do a damn thing about changes in home lending rules. In truth too many people like Newt were too focused on going after Bill Clinton to think about much else.

Terrye on September 29, 2008 at 7:04 AM

beatcanvas:

I don’t think so. For one thing, there is no way of knowing for sure how it will work in the long run. For another it is not that politically popular.

Terrye on September 29, 2008 at 7:06 AM

George Will, on the same panel that Newt was on, said it best; “The refusal to defer gratification is a fundamental attribute of childishness”

Lots of people want to talk about how conservative they are but how in the heck can they say that when they have thousands in credit card debt and almost no savings to speak of???

Bradky on September 29, 2008 at 7:08 AM

Terrye,
Good point. I’ve never been a fan of Newt – he is in this for one person and that is himself.

Bradky on September 29, 2008 at 7:10 AM

All you need to know, straight from ACORN:

On Sunday, Sept. 28, ACORN National President Maude Hurd released the following statement after Congressional leaders announced a $700 bailout plan for Wall Street:

“Members of Congress worked tirelessly over the weekend to rid Wall Street of its toxic assets, which are responsible for the worst financial crisis since the 1930s. Unfortunately, families who fell victim to Wall’s Street’s toxic lending practices and now risk losing their homes were largely left out.

ACORN members are extremely disappointed that the bailout package does little to assist these homeowners, such as providing them relief through the bankruptcy courts. Although weak, there is language in the bailout package authorizing Treasury Secretary Henry Paulson to facilitate more loan modifications. ACORN members plan to hold Secretary Paulson accountable and ensure he uses this authority to make streamlined loan modifications a priority for struggling American families.”

Does this woman understand why those assets became “toxic”? Does she understand how “toxic lending practices” were forced by the point of the litigation gun by her own organization? Did she have any qualms when the banks already made “loan modifications” to those of her constituency who already paid no money down and who offered no securities? Do those who rely on ACORN not know how to read nor understand the idea of choice and consequence?

onlineanalyst on September 29, 2008 at 7:23 AM

This is a big loser for Republicans. They have been telling conservatives that the “got the message” from the ’06 elections, yet they’re prepared to jump into bed with the liberals and increase the mortgage they’ve put on our grandchildren up to $12trillion.

They’re trying to convince us that our entire economy hinges on 5% of the total mortgages in this country. They really do think that we’re stupid. The only collapse coming is that of the Republican Party. If they are complicit in passing this election year socialism of a segment of our economy, they’ll be dead as a party.

orlandocajun on September 29, 2008 at 7:51 AM

Do those who rely on ACORN not know how to read nor understand the idea of choice and consequence?

They have learned how to shift all of their failed responsibilities off their own back. They have mastered the idea of choice and consequence via Cloward-Piven.

Barack Obama, the Cloward-Piven candidate, no matter how he describes himself, has been a radical activist for most of his political career. That activism has been in support of organizations and initiatives that at their heart seek to tear the pillars of this nation asunder in order to replace them with their demented socialist vision. Their influence has spread so far and so wide that despite their blatant culpability in the current financial crisis, they are able to manipulate Capital Hill politicians to cut them into $140 billion of the bailout pie!

God grant those few responsible yet remaining in Washington, DC the strength to prevent this massive fraud from occurring. God grant them the courage to stand up in the face of this Marxist tidal wave.

Jim Simpson is a former White House staff economist and budget analyst.

Now how do we regain our own stamina and security? We have collectively allowed the avalanche upon us. The trick is surviving. After the last Great Depression safeguards were legislated, and dismantled. Any current bail-out “safeguards” that the GOP require in this bill agreement are no more real than a wish.

What good really comes from this and what bad results, and why are the corrupt obtaining ANY reward whatsoever in this? That the reasons for this catastrophe are not addressed means that the ‘cure’ is not legitimate.

maverick muse on September 29, 2008 at 8:24 AM

I am unconvinced that you actually pay taxes) a bundle of money with the FDIC insurance that would have to kick in on all those deposits that could not be paid due to a bank run due to the fact that WaMu was undercapitalized.

And what is all this panic over equity in companies?? The govt is buying assets and paying more than they are worth…if the gov doesnt take an equity position, the bank gets away with murder and doesnt have to pay with a market oriented loan which would include equity warrants.

Dude, dont worry about me getting educated. I have an mba and I work in banking…and I knew how to spell the word “loser” since 7th grade. So, I am educated. However, you sound like an uneducated hick crying that the sky is falling and too dumb to understand that the gov just saved us all from a recession. I dont know if you are raising children or if you are supporting a family or if you are just a dumb kid or whatever but for those of us with reponsibilities, we appreciate not going into a deep recession.

Real life: where silly conspiracy theories and gutless theoretical purists dont live.

Roger Waters on September 29, 2008 at 1:40 AM

Hmmm lets see.. Kids? Yes, business OWNER Yes, retired Vet, yes, paid taxes last year? Both business and Personal…

Interesting that you make baseless accusations against me PERSONALY, instead of countering the points I’ve made.

And I see you and my MOTHER have one thing in common, you both b1tch about my spelling…

Intersting, over a week ago I called the WaMu “failure” and forced sale.

4 days ago I predicted the Wachovia “failure” and sale.

Education does not make up for the ability to NOT think criticly.

Romeo13 on September 29, 2008 at 12:12 PM

There is not much more to be said except call your congressman, again, and again and again.

Mcguyver on September 29, 2008 at 1:02 PM

For lack of a bill that won’t end up costing us much when all is said and done, Americans lost over $1 trillion dollars in stock valuation. A trillion dollars gone. And we STILL haven’t fixed the problem. Delay is more expensive than just getting it overwith. The Democrats WANT to create an economic crisis right now, I can’t understand how some Republicans are playing right into their hands.

crosspatch on September 30, 2008 at 3:39 AM

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