Congress, White House reach financial bailout deal

[vaberella]

Title as posted by AP on yahoo.com.

I'm disliking Repubs on a whole more and more. We got some of what we wanted. But damn it to hell the Repubs bailed out the bloody executives. We will get equity shares, but it seems to be a percentage because....damn it to hell...they're using that capital insurance plan bull crap from the Repubs. That private capital insurance thing is like a credit swap that could mess up in the long run. It's only a short run effective plan.

At the insistence of House Republicans, some money would be devoted to a program that would encourage holders of distressed mortgage-backed securities to keep them and buy government insurance to cover defaults.

The legislation would place "reasonable" limits on severance packages for executives of companies that benefit from the rescue plan, said a senior administration official who was authorized to speak only on background. It would affect fired executives of financial firms, and executives of firms that go bankrupt. Some of the provisions would be retroactive and some prospective, the official said.

Also, the government would receive stock warrants in return for the bailout relief, giving taxpayers a chance to share in financial companies' future profits.

To help struggling homeowners, the plan would require the government to try renegotiating the bad mortgages it acquires with the aim of lowering borrowers' monthly payments so they can keep their homes.

The measure's main elements were proposed a week ago by the Bush administration, with Paulson heading efforts to push it through the Democratic-controlled Congress. Democrats insisted on greater congressional oversight, more taxpayer protections, help for homeowners facing possible foreclosure, and restrictions on executives' compensation.

http://biz.yahoo.com/ap/080928/financial_meltdown.html

[BrklynLiberal]

1. This was a losing proposition from the getgo....

[vaberella]

4. Personally if following Obama's provisions and from what I heard

of the Dodd-Frank bill, the extreme revision of the Paulson/Bush admin bill, we would have been on top. McCain really fucked shit up. If the Dodd-Frank bill from what I understood of it, was to pass the taxpayers would come out more so beneficiaries. This doesn't make me very happy because the Repubs managed to give the CEOs some serious severance pays which shouldn't be the case---since we all know the severance pay is not a trickle down affect.

[sandnsea]

2. We'll have to see the wording on the severance package limits

The fact that there's something in there at all sets the precedent regarding these golden parachutes.

[vaberella]

3. True. I really want to read the bill right now.

I'm glad we have something. But I'm very unhappy by the postering to the Repubs over this which will hurt the long term initiatives Obama will put in place once President. Unless he pushes for changes and other bills.

[sandnsea]

6. Buying insurance isn't the most horrible idea

In theory, if it gave people confidence in an institution, like FDIC does, then it might be cheaper than a full bail out of varius institutions. The problem is, insurance isn't going to guarantee they change their banking practices, so it's just deferring the problems with the banks with insurance. But that's a Republican for ya, no imagination, no foresight. Can never imagine that their esteemed colleagues could be so stupid and corrupt, despite all evidence to the contrary.

[ContinentalOp]

Executives should be fired immediately with no severance, or else no bailout. -nt-

[LiberalAndProud]

5. We (the people) will soon own many bad mortgages.

Is this a good thing?

[ContinentalOp]

7. Well, if you listen to a lot of people here...

It's essential. There's no way around it. A mushroom cloud over the world economy, etc.

Either way, it's inevitable so I guess we should just lie back and relax.

[LiberalAndProud]

8. Stormy waters ahead, I fear.

Batten down the hatches.

[wundermaus]

9. It's all starting to make sense...

The suspension of Posse Comitatus by the fascists makes sense now. Kiss liberty, justice, and freedom good-bye. We are all now debtor slaves. Welcome to the NWO.

[KharmaTrain]

10. This Is Kicking The Can

Remember, this is 40 days before a big national election...not just President but House & Senate seats as well...the urgency of this "bail-out" was a ploy from the get-go by a regime and its big money backers to cash out before the party goes crashing at the polls in November. It was an indication that Gramps wasn't going to win and there was the urgent need for the rich to bail out now, not later. Paulsen put out the regime's wish list last week and tried to bully things through until he ran into opposition from his own party...he didn't expect it and then compromised with the Democrats to get something/anything...better to get the deal now than after Nov. 5. Then Gramps comes in and screws things up further...opening up a big rift within his own party.

The key thing to remember is that this is not a sell-out for the whole amount, but just a band-aid. It's a quick fix to calm the nerves, and address a few of the root causes, but the ticking home foreclosures and dying up credit remains. So does the question about liability...but in all honesty, this is a question that should be answered after the election. If this pushes this mess to the other side of Nov. 5th, that's fine...the point of how screwed up this economy is has been made very loud and clear.

[vaberella]

12. I realize this. I hope however, when Obama becomes Prez or

even before he's working on a proper bill that helps to deal with this situation and works more as a stitch to help the wound heal. The band aid is fine and all, but the wound could still be infected.

[DCBob]

11. Industry will pay if it doesn't work out.

From the WashPost:

"The administration also agreed to Democratic demands that the financial services industry should help pay for the program. Under the agreement, the president would be required to propose a fee on the industry if the government has not recovered its money through sales of the assets within five years."

http://www.washingtonpost.com/wp-dyn/content/article/2008/09/28/AR2008092800064.html
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This helps.