Congress, White House reach financial bailout deal »

Posted By STONERS 9 months, 2 weeks ago in Business & Finance

Congressional leaders and the Bush administration have reached a tentative deal on a bailout of imperiled financial markets that could cost taxpayers hundreds of billions of dollars.

Read Full Story at news.yahoo.com »

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Comments So Far: 95 (view all)
  • 88%
    STONERS9 months, 2 weeks ago

    "The plan would spend up to $700 billion, most of it on buying deeply devalued mortgages from the housing market's collapse and other bad loans held by tottering banks and other investors."

    "The aim is to prevent credit from drying up and causing a meltdown of the U.S. economy."

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  • 70%
    berkeley9 months, 2 weeks ago

    looks like congress caved-in. too bad.

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  • 69%
    Goppy9 months, 2 weeks ago

    Sometimes I wonder if this national collapse isn't all part of GeeDubs overall plan.

    I mean ... look ... he campaigned on a platform that Government is bad. He sacked perfectly run government agencies and stuffed them with cronies and contributors (remember 'heck of a job Brownie?")

    I simply cannot believe that this consistent level of incompetence and failure is by accident.

    This consistency of failure defies the odds!

    ..

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  • 75%
    miklkit9 months, 2 weeks ago

    Look at this chart. Where did all of the money suddenly go? This is not a natural thing. Someone caused it. Who and why?

    http://research.stlouisfed.org/fred2/series/BOGNON...

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  • 67%
    cowboygrandpa9 months, 2 weeks ago

    Again the tax payers are the losers.

    The hard working middle class who have to shoulder another freaking disaster of the Bush administration. We need to impeach this guy!!!!!

    We also need to seize the assets of the clowns who profited from the nightmare. The CEO's who drove up values with no real liquid assets to back them. The speculators who will walk away not nearly as hurt as the ones who lose it all.

    This is not free market, this is cronyism and fascism at work.

    Bush is not worried about the cost as long as he and his buddies get theirs.

    I say lets take the private assets of those CEO's and the ones who allowed this financial boondoggle. It won't cover it all, but it will sure hurt them worse than allowing them to continue to live in luxury while so many lose everything.

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  • 100%
    danielistical9 months, 2 weeks ago

    let them go down in flames and take the bush administration with them they are the ones who crated this let them enjoy it bush is just trieing to get his hands in our pockets one more time be fore he goes out the door and good riddence to him the destruction of this country is now complete bush has worked hard for eight years to do so

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    • 67%
      mdaok9 months, 2 weeks ago

      In 2003, the Bush Administration recommended what the NY Times called "the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago." This change was to move governmental supervision of two of the primary agents guaranteeing subprime loans, Fannie Mae and Freddie Mac under a new agency created within the Department of the Treasury. However, it did not alter the implicit guarantee that Washington will bail the companies out if they run into financial difficulty; that perception enabled them to issue debt at significantly lower rates than their competitors. The changes were generally opposed along Party lines and eventually failed to happen. Representative Barney Frank (D-MA) claimed of the thrifts "These two entitied Fannie Mae and Freddie Mae are not facing any kind of financial crisis, the more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing." Representative Mel Watt (D-NC) added "I don't see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing."

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    • 20%
      sprytling9 months, 2 weeks ago

      I believe what has happened here is that the dem/lib/socialists/communists have just taken over our financial economy. They have always wanted input into corporations and they created legislation that no corporation could possibly make money with. There has been such classism and such jealousy of anyone who had earned their own homes or were able to run their own businesses and actually make money, that slowly but surely, dem/lib/socialist/communists used those jealousies to create entitlements. Fannie Mae and Freddie Mac were created to find ways to get mortgages for people who never would have been permitted to purchase a home under the financial corporations of the United States. That was why our economy stayed strong.

      Fannie Mae and Freddie Mac sought legislation to FORCE the financial institutions to make loans to minorities, citing what they said were prejudices preventing minorities from buying homes. Never mind that these people didn't have the money to pay the loans. In addition, Fannie Mae and Freddie Mac began spreading money throughout the Senate and the House. Lobbyists were sending thousands of dollars to Congress to get them to turn a blind eye.

      Legislation was passed to force financial institutions to loan a percentage of money to all minorities so that they could buy houses. Never mind that there was nothing to back those loans. Congress made it LAW that those financial insitutions to make the loans anyway.

      In return Wall Street tried to bundle those loans with others in order to lessen the losses. And that is how we ended up with the failures that we have now. Too many banks bought the bad paper, by law, and the amounts of the mortgages were carried on the books as assets, but the houses were not getting paid for...which meant that the assets were now liabilities.

      This bail out was entirely created by Fannie Mae and Freddie Mac with the backing of Congress...and I'm not saying everyone in Congress, but enough that this crisis has happened. There has been talk from some of the Republicans, including John McCain, to reform Fannie Mae and Freddie Mac, as early as 4 years ago. But their voices were lost in the greed of the Congress and in the Dem/Lib/socialist/communist party in bribing their constituents with housing they could never have afforded

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    • 67%
      Tcaros9 months, 2 weeks ago

      Folks, the federal government is being bilked by a bunch of accomplices around the world. This was no accident- it reaks of treason.

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      • 100%
        jaern9 months, 2 weeks ago

        The rescue would only be open to companies who deny their executives "golden parachutes" and limit their pay packages. Firms that got the most help through the program — $300 million or more — would face steep taxes on any compensation for their top people over $500,000.

        The CEO of failed Washington Mutual Inc., on the job only a few weeks before the nation's largest thrift was seized by the government and sold to JPMorgan Chase & Co., is entitled to more than $13 million in severance and bonus pay.
        Kerry Killinger the former CEO severance package is around $22mil reward for driving WaMu into the ground.
        He should have been fired and applied for unemployment.

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      • 50%
        hefaa19 months, 2 weeks ago

        This is a set-up perpetrated by the Bush Administration. Bushy's one last parting swindle. However, according to the article, Democrats and Republicans have to work together to pass it. This in all likelyhood will never happen and the bill still has a shot at failure. Good!

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      • 100%
        CHAM9 months, 2 weeks ago

        Thanks Stoner for posting this. At least there is some information to assess.

        What I see in this Bailout is a gigantic rip-off of the taxpayer. Seems those Companies who raked in obscene profits from the malfeasance that led to the crunch get to keep those ill gotten profits. And where they made bad investments that could potentially cost them in the future, they won't have to worry about that because the Government is going to buy those trash instruments and assume the liabilities that the Financial Industry could have lost on. What a sweetheart deal for the Financial Industry.

        The plan should have required ownership of the firms by the taxpayers, and the taxpayers should be given a redeemable share whenever a payback is agreed to. Thats when the taxpayer should get a check from the rescued firm for the taxpayer money used to bail out wall street.

        Instead we common worker taxpayers share in investments with the crooks. The shares break down like this: They get the mine, we get the shaft.

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        • 100%
          chayanat9 months, 2 weeks ago

          Hope this is not the end of the world but starting of the new ordered economy .

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          • 100%
            Bopi3659 months, 2 weeks ago

            I love it . Republicons trying to shift the blame The Mccain bill s.190-109th that would have averted the Freddie/Fannie mac crisis. As John flies in with his cape and red underwear.

            That little piece has been making all the right wing blogs in the hopes of rescuing Mccains campaign.

            The facts :

            1 Mccain signed on to the bill (s.190) after it was already stillborn in committee.
            2 The dems did not fillibuster it.
            3 It was a republican congress
            4.It provided for a seperate agency to be set up to oversee Freddie and fannie but with less oversight than had been currently alotted.
            5 George Bush was against the senate version (of s.190) hr1416

            from georges desk himself:
            H.R. 1461 fails to include key elements that are essential to protect the safety and soundness of the housing finance system and the broader financial system at large. As a result, the Administration opposes the bill.

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            • 100%
              Bopi3659 months, 2 weeks ago

              and my personal favorite...

              The Bush cut taxes/grow the economy plan showed only slight hope of success through revenue derived from the housing boom. That boom was fueled by sub-prime loans.

              I hear george is going to ask for the stimulus checks back to help pay for this mess.

              Trickle down.

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              • 100%
                Mutainia9 months, 2 weeks ago

                We are screwed.

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