Any sense of a Democratic Party consensus yet? (re: bail-out)

[Kurt_and_Hunter]

Is everyone holding back? Not much news today.

I assume everyone (Dem elected officials) will keep away from microphones until there's some kind of game plan.

Paulson is scheduled to do 'the full Ginsberg" on the Sunday shows. (Doing all of them.)

If I were Obama I would have dropped all campaigning and rushed back to Washington to appear involved. (That would force McCain to return to Washington also, leaving that mad-woman to roam the country on her own.)

__________

Collecting some high profile Dem reaction in replies below...

[BlooInBloo]

1. Unfortunately, they're likely discussing how best they can wither and crumble....

like little cowards under the onslaught of the Very Serious Old White Men In Nice Suits' propaganda.

[Vincardog]

2. This Dem says "No Blank checks and no escaping responsibility" Executives must not profit

[Kurt_and_Hunter]

3. * * * Pelosi, Dodd, Reid (AP)

"It's a rather brief bill with a lot of money," said Sen. Chris Dodd, D-Conn., the Banking Committee chairman. "We understand the importance of the anticipation in the markets, but we also know that what we're doing is going to have consequences for decades to come. There's not a second act to this — we've got to get this right."

Lawmakers digesting the eye-popping cost and searching for specifics voiced concerns that the proposal offers no help for struggling homeowners or safeguards for taxpayers' money.

The government must bail out the financial system "because if we don't, it will have a tremendous impact on American consumers, homeowners, taxpayers and the rest," House Speaker Nancy Pelosi, D-Calif., said in San Francisco.

But, she added, "We cannot deal with this unless this bailout helps families stay in their homes."

Senate Majority Leader Harry Reid, D-Nev. said "we cannot allow ourselves to be in denial about the threat now facing the world economy. From all indications, that threat is real, and the consequences of inaction could be catastrophic. Every single American has a stake in preventing a global financial meltdown."

[mrJJ]

5. What are the DETAILS?

Pulson's BLANK CHECK

The man overseeing the bailout is the ex-CEO of Goldman Sachs, a Wall Street Company. He helped cause the crisis.
Paulson helped obtain the SEC exemption which allowed brokerages to increase leverage to 60:1 from 12:1.
The money is Paulson's to use for buying commercial and residential mortgages and mortgaged backed securities as he chooses. No one has any oversight over him, and he can pay any price he wants to, including face amount of the debt.
Courts cannot review his decisions, not can any regulators. He has to report to Congress once every six months.
He gets 700 Billion dollars to use as he sees fit, looking after the taxpayer is a "consideration" not a requirement.
Bet on that 700 Billion dollars being gone before January 20, 2009. Bet on Treasury asking for more.
That is $2,324 dollars per man, woman and child in America
There is no bailout for mortgage holders. Banks get bailed out, but not ordinary people.
Banks and brokerages made record profits these last eight years. Ordinary Americans barely broke even.
In 2007 Wall Street paid itself bonuses equal to the raises of 80 million Americans.
Banks bailed out by this plan need make no changes in how they do business.
Banks bailed out need not replace the management which drove them into insolvency.
Shareholders and bondholders of such banks do not lose a cent.
The securities which caused this crisis are still allowed.
Expect the 700 billion dollars to increase inflation, especially in oil.
Bush is asking you to trust his administration with 700 billion after spending 580 billion on the Iraq war. Do you trust him?

http://firedoglake.com/2008/09/20/paulsons-blank-check/#more-31853

[Kurt_and_Hunter]

4. * * * Paul Krugman:

I hate to say this, but looking at the plan as leaked, I have to say no deal. Not unless Treasury explains, very clearly, why this is supposed to work, other than through having taxpayers pay premium prices for lousy assets.

As I posted earlier today, it seems all too likely that a “fair price” for mortgage-related assets will still leave much of the financial sector in trouble. And there’s nothing at all in the draft that says what happens next; although I do notice that there’s nothing in the plan requiring Treasury to pay a fair market price. So is the plan to pay premium prices to the most troubled institutions? Or is the hope that restoring liquidity will magically make the problem go away?
Here’s the thing: historically, financial system rescues have involved seizing the troubled institutions and guaranteeing their debts; only after that did the government try to repackage and sell their assets. The feds took over S&Ls first, protecting their depositors, then transferred their bad assets to the RTC. The Swedes took over troubled banks, again protecting their depositors, before transferring their assets to their equivalent institutions.

The Treasury plan, by contrast, looks like an attempt to restore confidence in the financial system — that is, convince creditors of troubled institutions that everything’s OK — simply by buying assets off these institutions. This will only work if the prices Treasury pays are much higher than current market prices; that, in turn, can only be true either if this is mainly a liquidity problem — which seems doubtful — or if Treasury is going to be paying a huge premium, in effect throwing taxpayers’ money at the financial world.

And there’s no quid pro quo here — nothing that gives taxpayers a stake in the upside, nothing that ensures that the money is used to stabilize the system rather than reward the undeserving.

I hope I’m wrong about this. But let me say it again: Treasury needs to explain why this is supposed to work — not try to panic Congress into giving it a blank check. Otherwise, no deal.

[Kurt_and_Hunter]

6. * * * Obama Radio Address:

Good morning. This is Barack Obama.

This has been a difficult week for our economy. We are in the midst of the most serious economic challenge of our time. But we also know that the storm that's now shaking Wall Street didn't start there. It grew out of quiet storms you've been feeling in your own lives for years: ¬from all the mortgages you can't pay, from all the jobs that have been lost, and from the bills that keep piling up month after month after month.

And yet, earlier this week, at the moment a clear-eyed assessment of this crisis was needed, my opponent repeated a line that he's used again and again during this campaign ¬ quote ¬ "the fundamentals of our economy are strong." Not even George Bush's White House would agree with that statement when they were asked about it.

America, we cannot afford a President who's that out of touch. These are serious times and they demand serious leadership.

That's why yesterday, I laid out the principles for a plan that would establish a more stable and permanent solution to strengthen our financial system. And I fully support the efforts of Secretary Paulson and Federal Reserve Chairman Bernanke to find that solution. Those basic principles are clear.

First, it must be a plan not just for Wall Street, but for Main Street. We need to help people cope with rising gas and food prices, spark job creation by repairing our schools and our roads, help states avoid painful budget cuts and tax increases, and help homeowners stay in their homes. And we must also ensure that the solution we design doesn't reward particular companies, or irresponsible borrowers or lenders, or CEOs, some of whom helped cause this mess.

But if we're going to put our financial system on firmer footing, we're also going to have to take some additional steps to strengthen our economy from the bottom up.

Here's what I'll do: I'll stop giving tax breaks to corporations that ship jobs overseas, and I'll start giving them to companies that create good jobs right here in America. I'll cut taxes ¬cut taxes ¬ for 95% of all working families, and if you make less than $250,000 a year, you will not see your taxes increase one single dime.

And I will finally keep the promise of affordable, accessible health care for every single American. If you already have health care, my plan will lower your premiums. If you don't, you'll be able to get the same kind of coverage that members of Congress give themselves.

I'll create the jobs of the future by transforming our energy economy. I'll help our auto companies re-tool, so the fuel-efficient cars of the future are built right here in America. And I'll invest 150 billion dollars over the next decade in affordable, renewable sources of energy ¬spurring the creation of new industries and five million jobs that pay well and can't be outsourced

And now is the time to finally meet our moral obligation to provide every child a world-class education, because it will take nothing less to compete in the global economy. So I'll recruit an army of new teachers, pay them more and give them more support, even as we ask for more accountability. And if you commit to serving your community or your country, we will make sure you can afford a college education.

Times are hard. I won't pretend that the changes we need will come without a cost, though, I've proposed a way to make these changes in a fiscally responsible way. But I believe that if we're willing to overcome our doubts and divisions and the opposition of powerful special interests, we can truly reform our broken economy and advance opportunity for all Americans.

[Kurt_and_Hunter]

7. * * * Hillary Clinton Statement (from Thursday)

When the American people, facing a foreclosure crisis and struggling economy, turned to this administration for help, the answer was no. Now, the administration is turning to the American people for help, to rescue the credit markets and take on hundreds of billions in debt and financial obligations as a consequence of that same foreclosure crisis. The truth is, Main Street came to Washington and got little. Now Washington is coming to Main Street and asking for a lot. The American people deserve to know that this isn't a blank check. While the need to address the current crisis is clear, I will only support steps that will prevent a widening crisis, tackle the worst kinds of abuse tolerated for too long by the Bush administration, and address the root problems at work.

The proposed intervention outlined today by Treasury Secretary Henry Paulson would be a watershed moment for our economy. I believe that such an intervention demands that we fundamentally alter the priorities and policies of our nation under the Bush administration that allowed this crisis to take place and escalate. Corporations that will benefit must be held accountable not only to large shareholders but also to the American people. And American taxpayers deserve to know that their money will not allow for a continuation of the status quo: short-term profit at the expense of long-term viability; obscene bonuses and golden parachutes regardless of performance; reckless risk taking that have placed the markets in so much jeopardy; rewards for those who foreclose on middle-class families and sell mortgages designed to fail to turn a profit; and outsourcing of good jobs to serve short-term stock prices instead of America's long-term economic health. The prevailing dynamic of corporate America, where the sole priority was the dividend, the inflated bonus and the quarterly earnings report, must give way to a new respect for the long-term prosperity of the American worker and the well-being of the middle class.

After eight years of failed policies — and two years of an absentee administration — our only option left may be an unprecedented government intervention into the private markets. The markets must be stabilized to stave off wider turmoil. Nevertheless, the urgency of this crisis does not mean that we should offer a blank check to financial institutions or the privileged few. Nor can we simply allow the administration to use the taxpayers like a "reset button." We cannot allow Wall Street to act without oversight by a vigilant SEC and administration — and without regard for the American people, who will now have paid twice: in falling prey to a widening credit crisis, and in paying the bill to hopefully bring it to an end.

I will be examining the administration's proposal very closely to ensure that we do not approve a policy that may stabilize the markets in the short term without addressing the root problems facing middle-class families or the kinds of reckless gambling that was permitted for far too long by the administration. The Bush administration may have changed its tune once the crisis facing Main Street hit Wall Street. But we need to be sure that the American taxpayers — asked to shoulder yet more risk and responsibility — have a voice.

Statement by Hillary Clinton, September 18

[Kurt_and_Hunter]

8. * * * Robert Reich

http://robertreich.blogspot.com/

[Kurt_and_Hunter]

9. * * * Barney Frank:

Rep. Barney Frank (D-MA), chairman of the Financial Services Committee, agrees with Chris Dodd that mortgage relief must be offered to distressed homeowners whose debts are transferred to Treasury under the bailout plan.

He adds an additional demand: limits on executive compensation for companies dumping debt.

"You've got to address their compensation policies," Frank just told CSPAN, who suggested acceptance of federal help might be contingent on agreeing to salary, bonus and golden parachute limits.

http://www.politico.com/blogs/thecrypt/0908/Barney_ties_compensation_limits_to_bailout.html

[BeyondGeography]

10. Good article here on questions Paulson should be asked

http://www.forbes.com/home/2008/09/19/banking-bailout-paulson-biz-wall-cx_lm_0919questions.html

[Frank Booth]

11. dupe

[Frank Booth]

12. Who's going to pay for this?

The naive, responsible taxpayers. Nobody else.

The bastards who caused all this will still be driving their $200,000 cars and flipping their $10 million dollar houses. They should be serving heavy jail time.

The housing loans that wrecked our economy were fundamentally fraudulent to begin with, and everyone involved knew it. But these people are getting away completely clean.

Why is there no talk of punishment in any of this? It's all about saving the banks and the stock market. Where's the disincentive that will stop people from once again defrauding our economic framework for huge personal profit?

Americans should be FUCKING MAD about this, but nobody seems to care. The most corrupt, vile people in our country made a TON of money out of this, and they're getting away with it.

[BumRushDaShow]

13. From of all people... Carl Icahn

« We Pay So Much For So Little | Main
Corporate Waste Brings this Nation Closer to the Brink

Posted by Carl Icahn September 19, 2008 : 1:04 PM

Few things bother me more than the titanic government debt load this country carries from years of reckless government borrowing and spending. We really have no ability to repay this debt, other than by continually issuing new debt to pay the interest on the old debt.

The Peter G. Peterson Foundation calculates that we as a country have racked up a staggering $53 trillion in government obligations. That’s $455,000 per household and growing at the rate of $2 trillion to $3 trillion a year "on autopilot," the respected think tank says.

Just this week, we added another $85 billion to these obligations with the bailout of insurance giant AIG. Add that to the $200 billion in potential obligations to Fannie Mae and Freddie Mac, the $29 billion to back up Bear Stearns toxic credits, and $300 billion for the Federal Housing Authority and a possible $25 billion to $50 billion in low-interest loans for Detroit’s Big-3 automakers and we’re talking nearly $700 billion on top of this.

The debt and obligations we carry as a nation, combined with our miniscule savings rate and monster trade deficit, is truly frightening.

But what is even worse is the sheer amount of waste in corporate America that impedes our ability to generate revenue needed to finance these obligations. Already many infrastructure projects across the nation are suffering from declining tax revenue.

More.... http://www.icahnreport.com/report/2008/09/corporate-waste.html

You know it's bad when the billionaires are worrying (and we know what folks like Warren Buffet think).

[Kurt_and_Hunter]

14. * * * Pelosi and Kent Conrad (Senate Budget Cmtte)

WASHINGTON — Abandoning bipartisanship Thursday, Democrats launched withering blasts at President Bush , John McCain and Republicans for mismanaging the nation's financial meltdown.

"What we have now is a manmade disaster, a disaster that comes from the Bush failed policies, the failure of the Bush administration to steward our economy in a responsible way," House Speaker Nancy Pelosi told a news conference.

Pelosi's remarks, echoed throughout the day by Democratic presidential nominee Barack Obama and other Democrats in Congress , were extraordinary coming at a time when financial markets were trying to recover from a week of shocks...

Democrats dismissed the plans as too little, too late.

Pelosi criticized Tuesday's $85 billion Federal Reserve loan to failing insurer American International Group.

"Where is that money coming from?" she demanded. "What is its impact on our deficit?"

Senate Budget Committee Chairman Kent Conrad , a North Dakota Democrat, said there was no answer. "Who knows, and who knows how much it will cost," he said. "All we can do is pray."

Pelosi fired off other questions: "How does this work? I mean, a private company, can they just run wild again, anything goes?"

White House Press Secretary Dana Perino replied.

"I don't think that the reaction of finger-pointing from Democrats to the White House is anything new," she said. "I would ask you to go back and look and ask Speaker Pelosi or any of the other Democrats who are pointing fingers, what specific regulation did they want that we blocked? What specific regulation did we eliminate?"

http://news.yahoo.com/s/mcclatchy/20080918/pl_mcclatchy/3049128

[mrJJ]

15. Let the Wolf guard the chicken house?

Without any supervision or recourse? Someone better grow a pair. In actuality it is a very very cunning manuever. So close to an election... heh (had to sneak the conspiracy angle in). Dangerous as hell.. Split the baby in half? Feed the patient anti biotics until a few more Specialists can get their heads around this thing. Someone knew the problem existed; internal daily, weekly & monthly info had to have been transmitted to the Fed.

Keep the patient on anti biotics until a few Specialist can give a REAL; but most probably still very painful solution. They need time to build a mock up model to see what the treatments side effects could be. Don't be stampeded into making rash decisions.. err like Iraq.

What the heck do I know?. nada

The man overseeing the bailout is the ex-CEO of Goldman Sachs, a Wall Street Company. He helped cause the crisis.
Paulson helped obtain the SEC exemption which allowed brokerages to increase leverage to 60:1 from 12:1.

[BlueIdaho]

16. No free money - if they want the bailout they must accept real and strict regulation.

No golden parachutes, no business as usual, and no more Reganomics - PERIOD.