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$700 billion bailout bill fails in House.

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    Posted: September 29 2008 at 11:18am
reaking News
$700 billion bailout bill fails in House. Dow down by nearly 600 points.Get Breaking News by e-mail
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Albert Quote  Post ReplyReply Direct Link To This Post Posted: September 29 2008 at 12:06pm
I don't know how they can ever pass a bill like this either way.   Apparently part of the bill is about how the government is not going to foreclose on their loans, so people would be able to keep their houses even if they don't pay.   That is not too fair to the people who don't have Federal loans and who have to make their mtg payment on time. Even if they lower interest rates on all of their loans to decrease the monthly payment for the home owners, that is still not too fair for anyone who has a regular loan payment to make.  This is still a Bailout for the CEOs and for the home owners who cheated the system and who put themselves in this spot.
 
What the government needs to do is to create a bill that makes available emergency "loan" packages to Wall Street, and let the CEO's "borrow" the money for their Bailout and to stay afloat.  Why buy the receivables when we can just loan them the money instead?  Keep the government out, and then the economy can fix itself.  If the problem with the economy is about the huge credit decrease in lending money, then the government should start giving "loans" itself.   How tough can this be?
 
 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Evergreen Quote  Post ReplyReply Direct Link To This Post Posted: September 29 2008 at 12:33pm
Yippee. For once I agree with the R's. I spent the whole weekend watching House session on CSPAN to hear the debates and press conferences. (beats the heck out of listening to a newscaster putting their own spin on what i'm hearing) Anyway, this issue should not be done over a weekend, in the dead of night with NO access to "JoE public" about what the discussions are. As a matter of fact, to even further prevent "leaks", Blackberries were collected from staff, so (God forbid) we might actually know what is being said and by whom. This issue should be totally transparent and take time to deliberate the enormity of the proposal. With over 80% of Americans weighing in AGAINST this action, what kind of audacity does it take for the House to proceed. Executive compensation is still on the table. D
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NOTE: SEE PARAGRAPH 9 ABOUT EXECUTIVE GOLDEN PARASHUTES. D

FACTBOX: Key elements of Congress' bailout plan
Mon Sep 29, 2008 2:33pm EDT

(Reuters) - Leaders in the Congress have agreed to the underpinnings of a deal that will allow the Treasury Department to buy up to $700 billion in troubled securities to soothe global credit markets.

Congressional negotiators amended the Treasury Department's original proposal to add new oversight powers and conditions that would protect taxpayers.

The full House of Representatives and Senate must both approve the legislation, with a vote expected in the House on Monday. Key elements of the plan follow:

- The $700 billion in buying power would be doled out by Congress in stages. After the first $250 billion is authorized, the President could request another $100 billion. The final $350 billion could be cleared by a further act of Congress.

- Eligible assets include residential or commercial mortgages and related instruments which were originated or issued on or before March 14, 2008. Other financial instruments can be included in consultation with the Federal Reserve if Congress is notified.

- Treasury secretary given broad discretion to determine the methods for buying assets.

- Foreign central banks, or institutions owned by a foreign government, cannot take part.

- The government will take a stake in companies that tap federal aid so that taxpayers can share in the profits if those companies get back on their feet. An exception applies to financial firms that offload less than $100 million of soured investments.

- If a company receives aid but fails, the government will be one of the last investors to see a loss.

- A new congressional panel would have oversight power and the Treasury secretary would report regularly to lawmakers in two elements of a multi-level oversight apparatus.

- If the Treasury takes a stake in a company, the top five executives would be subject to limits on their compensation.

- Executives hired after a financial company offloads more than $300 million in assets via auction to the government will not be eligible for "golden parachutes."

- Would permit the Federal Reserve to begin paying interest on bank reserves from October 1, giving it another tool for easing credit strains.

- Mandates a study on the impact of mark-to-market accounting standards, that critics blame for a downward spiral in the valuation of assets on corporate balance sheets.

- The federal government may stall foreclosure proceedings on home loans purchased under the plan.

- Alongside the plan to buy securities outright, the Treasury Department will conceive an alternative insurance program that would underwrite troubled loans and would be paid for by participating companies.

- If the government has taken losses five years into the program, the Treasury Department will draft a plan to tax the companies that took part to recoup taxpayer losses.

(Reporting by Patrick Rucker; Editing by Tim Dobbyn)


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Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Albert Quote  Post ReplyReply Direct Link To This Post Posted: September 30 2008 at 7:19am
People know that President Bush has a history of taking care of the wealthy.  Now that he wants to rush through another 700 billion for Wall Street exec's, no wonder congress is torn on the issue.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote quietprepr Quote  Post ReplyReply Direct Link To This Post Posted: September 30 2008 at 7:23am
The market drop scared them though...I hope that doesnt make them push it through today.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Albert Quote  Post ReplyReply Direct Link To This Post Posted: October 01 2008 at 8:06pm
I'm not sure I'm buying into the whole Bailout idea, and there could be a lot of backlash from it when it goes through.   The reason why the Senate wants to Bailout Wall Street with so much urgency is because ALL of them were probably playing the market (and heavily vested in it) and they're tired of losing. I'm sure many members of the Senate have lost a lot of money by "gambling" on the DOW, which is most likely the real reason why they want it fixed.  I'm not sure I even buy into  Bush's big "Credit Freeze" scare as well.  
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Post Options Post Options   Thanks (0) Thanks(0)   Quote LaRo Quote  Post ReplyReply Direct Link To This Post Posted: October 01 2008 at 9:06pm
I don't believe any of it.  This is a nightmare, such a waste of money and , watch it, it'll all be gone in a week.  then no one will know what happened and they need more.
r we there yet?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote MelodyAtHome Quote  Post ReplyReply Direct Link To This Post Posted: October 01 2008 at 10:38pm
LaRo that is what I'm afraid of...this will pass and we still are in trouble and they will want MORE $$$....then what?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote ParanoidMom Quote  Post ReplyReply Direct Link To This Post Posted: October 02 2008 at 4:58am
I can't remember where I read it, but the writer believed that even if this bill passes it will only buy 4-6 weeks before it starts all over.  I can believe it too.  Six weeks ago Fanny Mae was doing just fine as far as anyone knew.  If you look over how fast all of this is happening it makes you wonder what isn't being published until the bill passes.  I think it's a huge waste of money for a very small amount of gain.  And the only ones gaining anything are the ones that caused the problem in the first place. 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote coyote Quote  Post ReplyReply Direct Link To This Post Posted: October 02 2008 at 5:12am
So the $700 billion measure is shot down by the House last Friday,
but an even more expensive ($800 billion) will pass the House this
Friday? I wonder how many weeks it will take to get the money
into the hands of the institutions that need it? By then, this
bill may be too little too late.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Albert Quote  Post ReplyReply Direct Link To This Post Posted: October 02 2008 at 6:41am
This whole thing is rather sickening.  Did you know that Paulson used to be the CEO of Goldman Sachs, which is the primary Beneficiary of the 700 Billion?  
 
 
Bailing out the DOW is like the rich Bailing out their favorite casino.  Like I said , the DOW is nothing but a gambling hall.  Fixing the DOW will do nothing to help anyone. 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote coyote Quote  Post ReplyReply Direct Link To This Post Posted: October 02 2008 at 6:51am
Exactly! What a mess.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote LaRo Quote  Post ReplyReply Direct Link To This Post Posted: October 02 2008 at 7:59am
This money will never reach the credit markets that need it.  It will all be absorbed by wall street.  Look for Bailout #2, coming to a congress near you.
r we there yet?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Albert Quote  Post ReplyReply Direct Link To This Post Posted: October 02 2008 at 8:57am
Bailing out these failing sub prime mtg lenders is a mistake altogether.  These mtg companies are in financial trouble because ater they foreclose on a property, if they don't get at least 70% to 80% of the value during the auction, then the banks are choosing not to sell the properties at all.  This is clogging the system because the banks are keeping the housing market over-inflated and are not budging on their prices. Comes down to more bad business decisions if you ask me.    The mtg lenders, don't need a bailout, they either need to become more flexible on the selling of their foreclosures (to get their cash flow moving), or they need to fold-up because they are just plain too greedy. 
 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote DANNYKELLEY Quote  Post ReplyReply Direct Link To This Post Posted: October 02 2008 at 4:00pm
AGREED!!!!!!!!!!!!!!!!!!!!!!
WHAT TO DO????
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Albert Quote  Post ReplyReply Direct Link To This Post Posted: October 02 2008 at 5:07pm
What I personally don't like is that if "The People" are against this Bailout, and if the Bill passes anyway, that would mean that the Senate & House are acting on their own independently and they would be no longer truly representing their respective states.  
This Bill could  be a big blow to people's trust in the government.  
 
 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Chloess Quote  Post ReplyReply Direct Link To This Post Posted: October 03 2008 at 1:57pm
Well, We The People apparently no longer have representationThumbs%20Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Guests Quote  Post ReplyReply Direct Link To This Post Posted: October 03 2008 at 8:24pm
nothing but a gambling hall.
.................................................

right on...
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from Chloess -View%20Drop%20Down

Well, We The People apparently no longer have representationThumbs%20Down
.........................................................................................................



Ms Warren on the Harvard panel understands the plight of the middle class....she said... it was like beating up someone who is already sick....

to foreclose on people who are getting a lousy second mortgage to get some cash out on the equity in their home just to pay bills...medical or help kids with college or put on another room for an elderly parent.

The Greenspans of the world have no clue.  Let the regulations be damned...
I'm on my way to being a Hedge Fund Adviser.

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