Monday, September 29, 2008

The House of Representatives today voted to reject a $700 billion dollar bailout of Wall Street criminals in the financial industry.

The vote on the bailout was 228 against to 205 in favor. Supporters, including House Speaker Nancy Pelosi and Democratic majority leader, Rep. Steny Hoyer vowed to try to bring the rescue package up for consideration again as soon as possible.

Meanwhile, stock markets plunged sharply at midday as it appeared that the measure would go down to defeat. The DOW closed today down more than 777 points

The bailout scheme was contentious from the start.

Supporters of the bill had argued that it was necessary to avoid a collapse of the economic system, a calamity that would drag down not just Wall Street investment houses but possibly the savings and portfolios of millions of Americans. Opponents said the bill was cobbled together in too much haste and might amount to throwing good money from taxpayers after bad investments from Wall Street gamblers.

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  1. Big Hank says:

    Didn’t John McCain knock everyone out of the way last week to come back to Washington DC to get the bailout through Congress?

    Looks like the old fuckwad has egg on his face today.

  2. Maybe McPain can suspend his election and fly back to Washington and solve it,if David Letterman don’t catch him on Katie Couric again that is.

  3. Rachel says:

    Did you hear McCoot blame Obama for this? I had to cover my mouth I laughed so hard. Is McCoot literally insane? While the House was working till 1:00AM Saturday night, McCoot was having dinner with Joe Lieberman. If McCoot was so worried, why wasn’t he on the job? But blame Obama? Please!

  4. VicoDANIEL says:

    I find this all very interesting.

    The GOP is against national healthcare saying it amounts to socialized medicine and antithetical to the our American ideals and principles.

    However, the rules are reversed when it concerns bailing out Wall Street in what amounts to nothing less than socializing the debt and the loses of corporate fat cats.

    This is inconsistent with the GOP’s talking points and rhetoric. If you truly believe in the free market and everything it stands for, then you have to take the good with the bad. The markets go up and the markets go down — they take care of themself, however painful the process may be.

    It just seems socialistic for us to save the markets.

  5. Peace Nick says:

    The CEO compensation provision of the bill just made no sense to me.

    As I understand the language, the provision dealt with salary but did nothing to cut back stock options.

    This sounds like Bush gibberish to me. I’m glad it failed.

  6. HelenWheels says:

    I’m glad it failed too. And I can’t figure out why it looks good on dems that they backed what is essentially the shrub’s plan to screw us yet again. It’s all so confusing to me. Why are the dems voting with the shrub? Why can’t they take time out to do this right? Shit.

  7. Maggie says:

    I’m surprised, for sure I thought they would ram this down our throats, and they still might.

  8. Jim says:

    I’m glad it failed too! The relentless push to “pass it now, this minute” by the Bush mob makes it highly suspect. Indeed, if we were about to plunge into a depression I would think that such an event would’ve been precipitous and already would’ve happened. Certainly the situation is serious, but I believe that FINALLY the democratic process is working. It’s refreshing to see this bill not just being rubber stamped as usual, but acutally going through a process, with much debate and disagreement.

  9. Mauigirl says:

    I’m glad it didn’t pass but hope something happens to prevent Wall Street from continuing to tumble…I wanted to retire in the next couple of years, LOL!

    Seriously, it should be something we don’t rush into and should be done properly. I know they did get some concessions (some oversight over how the money is given out and so on) but probably not enough to make up for the tremendous cost.

  10. Elvis Lives says:

    Poor George.

    Eight years. No capital. No credibility.


  11. I am a free market Republican and believe that there should be no bailout. The market will survive if we allow bad companies to go under. If they do not have enough liquid investments oh well. Sorry to sound harsh but the market will always fill a profitable void and lending is still the profitable market.

    And to be fair and sound just heartless, I think that if you in the eviction process due to one of these bad mortages you deserve it. That why you get an FRM.

  12. JollyRoger says:

    Christopher (R) has drunk too much of the “subprime” Kool-Aid. The fact of the matter is, a whole lot of people who were PRIME credit risks have also defaulted, over things like medical bills and layoffs. And since there was no justifiable economic reason for some of those ARM adjustments, there is no way in hell that people who saw thir payments triople in the space of a year ought to be held totally liable for the mess. The fact of the matter is, if the ARM adjustments had stopped at even 9 or 10%, a lot of those foreclosures would never have occurred AND the securities would still be worth some money.

    The SIV was created by the greedy, and designed to fleece both borrower and purchaser. The guys who came up with the SIV should be breaking rocks.

  13. Fran says:

    I am in favor of firing Paulson’s Ass.
    HE was supposed to be watching this situation & he comes forward with this *sky is falling, give me $700 million & total immunity* proposal.
    He was another one echoing the fundamentally sound concept. If he were a private financial advisor…. & this happened, his ass would have been canned already.
    If this is the huge catastrophic economic meltdown they say it is, then it should not be in the hands of one person overseeing the bailout- and certainly not one person who is a Wall Street insider.
    I feel like we are in some kind of maffia situation… Paulson making deals we can’t refuse.

    I’m fine with this issue in the headlines right into the election. The Bush admin did this, and it is their fuck up to own. I have more questions than answers. What of the FBI fraud investigations? I don’t believe Bush saying FDIC will insure all our bank funds (within restrictions), it’s never failed before because there had not been a major collapse of the banking industry, since the FDIC was created.

    This did not happen in one day, and we can’t fix it in a day either. I favor a panel of economic gurus- not politicians but those who know their stuff in economic realms to really craft a tight plan that is not shoddy and full of loopholes for these Wall Street Sharks to play with. The plan has to look at safeguards & loopholes, and have very tight restrictions on salaries & bonus/perks. These folks often get hundreds of thousands in bonus money. None of that stuff can be going on in the bailout.
    In order to take bailout money, they must agree to additional scrutiny & oversight in order to participate.

    I have to wonder what impact this bailout will have on Social Security?
    I don’t even care if the congressional critters are voting no to try to save their own asses for this upcoming election. Use the damned power of the purse already! They have been so spineless & have bowed down to Bush’s whims….. take the time to craft a decent plan.

  14. TOM339 says:

    I shouldn’t be stuck with bailing out Wall Street.

    Sorry, people are hurting but I didn’t create the problem (Bush & the GOP did) so leave me out of the clean up.

  15. libhomo says:

    Fran: At the very least, Paulson should be fired. He should be facing a criminal investigation for what he did at Goldman Sachs.

  16. Bill Perdue says:

    The bailout is a crock of shit, an admission of the utter failure of the corporate rich and the politicians who service them to manage the economy. And it’s older than you might think.

    Speaking about a similar bill before the Illinois Legislature in 1837 Lincoln said;

    “It is an old maxim and a very sound one, that he that dances should always pay the fiddler. Now, sir, in the present case, if any gentlemen, whose money is a burden to them, choose to lead off a dance, I am decidedly opposed to the people’s money being used to pay the fiddler…all this to settle a question in which the people have no interest, and about which they care nothing. These capitalists generally act harmoniously, and in concert, to fleece the people, and now, that they have got into a quarrel with themselves, we are called upon to appropriate the people’s money to settle the quarrel.”

    Abraham Lincoln, January 11, 1837 *

    The sum of $700 billion, which Bush’s Treasury Secretary Paulson pulled out of thin air trying to come up with a figure that would satisfy the greed of the corporate rich represents roughly 5% of our GDP. I say “our GDP” because as Lincoln also said:

    Labor is prior to and independent of capital. Capital is only the fruit of labor and could never have existed if labor had not first existed. Labor is the superior of capital…”

    Excerpt of Lincoln’s Speech on Free Labor vs. Slave Labor by Abraham Lincoln on September 30th, 1859. *

    That $700 billion, and the trillions involved in Fannie Mae, AIG and Freddie Mac, and the trillions spent on the genocide in the Middle East, and even piddling sums like the $25 billion Congress just voted to bailout GM, Ford and Chrysler are gifts to the rich. That money could pay for socialized medicine for decades, for scholarships for everyone, for decent housing and to fix all those levees and bridges.

    But that won’t happen; these enormous sums are going to be the straw that broke the camels back. Even with imposed austerity and an end to social programs the weight of that debt will bring down the economy. The dominoes are all lined up. No one’s quite sure when they’ll fall but fall they will.

    That’s why there’s such fear in DC of passing the bailout and the other programs. They’re damned if they do and damned if they don’t, and so are we. Neither the Congress nor the Treasury actually has $700 billion sitting around burning a hole in their collective pocket. They’re counting on us to pay for it.

    A better way to handle the financial crisis is to nationalize, without compensation, banks, insurance companies, mortgage companies and any financial or commercial institution that’s so badly mismanaged by the corporate rich that it can’t pay its debts. And of course we’d have to create democratically elected bodies of small farmers, working people and consumers to control those entities.

    Because of the economic crisis created by Carter, Reagan, the Bushes and especially Clinton, both parties are as extinct as the dinosaurs. They’re just too dumb to know it.

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