Frank, Dodd Seek Changes to Paulson's Plan to Buy Bad Assets

[Nambe]

Source: Bloomberg

Sept. 22 (Bloomberg) -- Congressional Democrats are pushing for independent auditors to monitor the Bush administration's $700 billion plan to buy bad investments from financial institutions, without threatening to block a measure they say must pass soon to avoid economic disaster.

``We cannot just turn over $700 billion in taxpayer money and not insist that that taxpayer is going to be protected in this,'' Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat, told reporters yesterday following a conference call with Senate Democratic leaders.

Democrats, led by Dodd and House Financial Services Committee Chairman Barney Frank, also called for restraints on the compensation of executives at the companies benefiting from the administration plan and an increase in mortgage relief for struggling borrowers.

Party leaders say their demands won't slow down approval of the measure. House Speaker Nancy Pelosi said Congress will take action on the proposal this week. Both Treasury Secretary Henry Paulson and Democrats signaled a willingness to compromise. ...

Read more: http://www.bloomberg.com/apps/news?pid=20601070&sid=aOFdV82CwpL0&refer=politics

[pfitz59]

1. No bailout!

Let the ship go down!

[willing dwarf]

2. Are you ready for complete chaos?

I'm not in agreement with giving a blank check, but when I paused to consider the nightmare scenario that we were on the verge of seeing unleashed last week -- was it last Wednesday--I felt real relief when I heard that some effort to pull back from the edge was being given.

[magellan]

3. Sorry to break it to you, but even with this bailout

...we're screwed.

[IsItJustMe]

5. Fear is not the way out of this. Remember the fear we had when this administration said that Iraq

had wmd. Good decisions are not made under the presure of fear. I think we need to take a couple of steps backward and take a deep breath and good look at this before acting. Just saying, if we don't, this fix could be worse than the problem itself.

[SmallTimeFarmer]

6. PROVE IT

How do you know there would be complete chaos if the bailout doesn't go thru? Have you seen proof? I've seen nothing convincing...The only people that are going to benefit from this plan are the super wealthy corporations - you know, the ones that don't want any govt interference or regulation of their business(unless of course it is a $1000 Billion dollar handout handout of your tax money)...let them all die(the companies) and the employees can roam the streets looking for food for all I care.

These are the same people that told us that we needed to invade and occupy Iraq or else we were doomed from the WMD's they were hiding....why should we believe them this time?

Let it all collapse, and then pickup the pieces.

[willing dwarf]

7. Katrina as prelude

We all saw how quick things got ugly there. I don't think it would be too long before Bush etc would do a police action and call in martial law. They'd use the opportunity that the crisis would create.

And look, I'm not a gloom and doom person, and I don't have lots of money tied up in mutual funds etc but I know how interconnected the financial markets are to everything in America anymore. We don't produce that much stuff anymore, we produce debt and securities. If that system breaks down, international trade will stop. If trade stops, everything becomes localized. Do you pay for your utilities? Do you put gas in a car? Do you buy food in a grocery store? Because it all requires credit and banking to keep money flowing,ultimately, the fluidity of the financial system lubricates the engine of commerce. Stop the flow and the engine will seize up.

We all saw how if happened in Louisianna. That could be anywhere. Everywhere.

I'm not saying I like Paulson's plan, and I'm darned glad that there's some effort to improve on it. Nor am I saying I necessarily like being so tied to the grid. I live on a farm and try to do as much as I can off grid. But even if my family can live off the garden, off the chickens eggs, goat's milk and well water, heat our house with fire wood we collected all summer, there's just not enough to make it without the off farm jobs, without the financial system and without the public utilites and oil that we all use to power our cars.

Years ago I lived in Africa. I know if I was still living there, the impact of a real financial meltdown wouldn't hit me too hard. But most Americans, and myself among them, are pretty dependent on the wheels of commerce to keep turning.

[Democat]

4. No oversight allowed!

Just write the $700 billion check directly to the McCain 2008 Election Campaign - that's where some of it will end up anyways!

[KakistocracyHater]

8. SECRET HOLD

now or never-heads up!