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2.7%  Q1 GDP    4.57%  avg. 30-year mortgage     9.5%  Unemployment

Pelosi: We Hope to Bring a Bailout Bill Soon

House Speaker Nancy Pelosi (D-Calif.) told reporters that House and Senate negotiators from both parties are hard at work on a $700 billion bailout package and that "we hope we will be able to bring a bill to the floor soon."

She declined to say whether a bill could be passed by the time markets open Monday, adding that much will depend on progress in today's meetings.

Pelosi also said Democrats would probably bring a new economic stimulus package to the floor tomorrow, separately. She said she hoped to be able to persuade President Bush to support it in a meeting this afternoon.

Pelosi said Democrats are insisting on four principles in the bailout bill: strict oversight, curbs on executive pay, help for homeowners and an equity position for taxpayers in firms that accept public funds.

"Please be assured we will have a package that will speak to the issue," Pelosi said, adding, "We will act, and we will act deliberately."

Pelosi raised the prospects of setting up a review of the bailout program in the future, leaving open the option of raising taxes if the revenue is not recouped from the mortgage-backed securities purchased by the federal government. Such tax increases would not be part of the currently proposed legislation.

However, House Minority Leader John Boehner (R-Ohio), after gathering his GOP colleagues in a private huddle for a third straight morning, declared that there was no bipartisan compromise.

"There are no decisions yet," Boehner told reporters after his GOP conference meeting.

The markets continue to rise on the expectation that lawmakers will reach a deal in the coming days. The Dow Jones industrial average is up 220 points, or 2 percent. The S&P 500 is up 24 points and the Nasdaq is up 39 points.

--Bill Branigin and Paul Kane

By Sara Goo  |  September 25, 2008; 12:24 PM ET
Categories:  The Ticker  
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Comments

On the face of it the Democrats seem on target. Stick with it NANCY!

Posted by: Peter Roach | September 25, 1908 12:03 PM | Report abuse

So in the end they all agree its a crisis and they all will come together with a plan.
Gee how nice, now we don't have to move to Tehran...

Posted by: robinhood | September 25, 1908 12:06 PM | Report abuse

"an equity position for taxpayers in firms that accept public funds."

+++++++++++++++++++++++++++++++++++++++++++

Does this portion of the bill make it communism or fascism? Government ownership/collaboration in business seems to me that it must be one or the other.

Posted by: Dahagg | September 25, 1908 12:09 PM | Report abuse

Welfare is Welfare is Welfare. They need to pull themselves up by there bootstarps. Give the money to the taxpayers and let prosperity trickle up. They are looking for a handout because they are to lazy to work through bad times. Does any of this sound familiar???

Posted by: Tupac Wellington IV | September 25, 1908 12:10 PM | Report abuse

That sounds reasonable...

Posted by: Anonymous | September 25, 1908 12:13 PM | Report abuse

Unfortunately, the effects of passing any bailout on inflation is very bad. I would rather take our hit now, don't pass a bailout and pull up our sleeves and work ourselves out of the recession. The alternative, is that I'll be broke because of the continuing rampant run of inflation -- not a good situation. Please readers, watch this video ( http://www.youtube.com/watch?v=iYZM58dulPE), there is some good info to glean from it. I think you'll agree after watching the movie that you will see that the bailout is just a patch on the balloon that needs to deflate.

Posted by: macro | September 25, 1908 12:14 PM | Report abuse

Let's see, Paulson running the show:

a) Compensation Caps: $100 million per year
b) Taxpayer Equity: 1% of company for every $50 billion invested
c) Homeowner Assistance: Bekins moving boxes

Posted by: Dwight | September 25, 1908 12:17 PM | Report abuse


nice rant from Ohio congresswoman Marcy Kaptur (addressing the AIG takeover last week):

http://tw.youtube.com/watch?v=mbD62gNi9WE

these bankers have come back to Mama for help, lol.

Posted by: apeiron | September 25, 1908 12:19 PM | Report abuse

Have you secured significant infrastruture investment for job creation?

Have you re-regulated or repealed Gramm Bliley Leach?

Have you capped CEO pay at $100K?

Have you secured the $2.5 billion in bonuses Lehman Bros gave away?

Have you eliminated all "bailouts" and made them loans?

Have you tendered your resignation yet Nancy, because the Democratic base can;t stand you!

Posted by: Too Quick | September 25, 1908 12:22 PM | Report abuse

I get so bitter and angry when I see people not acknowledging that Hillary is adept at solving the financial mess the Repugs have gotten us into.

Hillary, after all, was entitled to the presidency.

Obama Hussein Barack is not able to carry Hillary's athletic supporter in regards to being competent on the economy.

That is why the angry, bitter leftists -- people like me who read firedoglake and our secure in our gender identity -- support Hillary.

Posted by: twin_peaks_nikki | September 25, 1908 12:29 PM | Report abuse


What we need comprises several sub-points:

1. Separation of the forms of debt.

a. We should "bail out" all debts in college loans, and all debt extended to private individuals which was issued on the basis of excellent credit, for example people who have paid off a first mortgage and are seeking s second to run a rental property, for example.

b. "Probably Bad Debt" (mostly from the mortgage and mortgage-backed and deriviative markets) should be bailed out only as a last resort and should be bought for no more than 30 to 40 cents on the dollar. This prevents overfunding of declining inflated "bubble" value covering. It also utterly prevents anyone making bad bets in the mortgages market from ever making a cent on it in any way.

c. The taxpayer needs equity on all assumptions of debt, either "good" or "bad".

2. The government needs to create a fairly immense "interbank credit covering fund". This would be separate and apart from everything else. This will allow banks to lend to each other and be assured that the credit will travel in both directions.

3. Oversight needs to be deep and wide. Creation of a new specialist agency with nearly plenipotentiary investigative and authoritative powers is probably required.

4. We should see the development of a new agency that has only one major and one minor mission. The major mission is to defend the value of taxpayer equity in the bailout. The minor mission will be to reinvest that money in such a way that pays dividends. The taxpayer could select on a quarterly basis how much to re-invest dividends to grow their equity, or to pay out cash. The taxpayer would have a "basic inalienable stock" in the treasury agency underwriting the bailout.

Posted by: Thomas Hardman | September 25, 1908 12:30 PM | Report abuse

The US has core value issues that allow us to be constatntly screwed by the rich. We are duped into focusing on divisive intagible issues while the upper 3% robs us blind. I guess it's true that you can't rape the willing. By the way, has the report showing eminent financial disaster been made public????

Posted by: Tupac Wellington IV | September 25, 1908 12:31 PM | Report abuse

Once again the Dems in congress will cave. Nothing new here. By crying wolf Bush repeatedly gets what he want even when he only has a few months left in his presidency. Now they talk about raising tax to pay for this?

Throw all the Dems who will vote for this out starting with Nancy, Harry, Barney, and Chuck.

Posted by: Anonymous | September 25, 1908 12:32 PM | Report abuse

You don't think Boner is delaying this just to make John McCain look good, do you?

Amazing how well this was progressing until McCain introduced presidential politics into the mix.

Posted by: Phxflyer | September 25, 1908 12:33 PM | Report abuse


NOTE TO CONGRESS:


VOTE FOR THIS HOUSING BAILOUT AND BE IMMEDIATELY VOTED OUT OF OFFICE!!!!


You seem to have forgotten WHO you work for!! There will be a massive nation-wide campaign to vote out all incumbents who DID NOT LISTEN TO REASON and SOLD THEIR COUNTRY UP THE RIVER!!!

Posted by: Anonymous | September 25, 1908 12:35 PM | Report abuse

I don't think it is fair that our children, grandchildren and great grandchildren will have to work extra hours for many years, just to pay off a debt that basically has been supporting the flamboyant life style of wealthy greedy people. Congress has to assure the American people that this will be an investment for them, that they will receive a share of the profits and that they will become co-owners of these firms, or the bail out should be off the table.

Posted by: Frida | September 25, 1908 12:36 PM | Report abuse

We have been sold-out by congress.. God Help US..

Posted by: wowisdabomb | September 25, 1908 12:39 PM | Report abuse

Well, Looks to me like the margin call came to treasury, pay up or ..... Why else would you have a date by which time the bill must pass? Seems to me that the creditors must be paid by date certain or else they are going to unload the paper they hold. Also,there would be no future credit. I think this is what they talk about frozen credit or lack of availability of credit. Hope the creditor is happy after thier margin call is met and they send us more mony so we can borrow and start to live beyond our means again.

Posted by: RK, Gaithersburg | September 25, 1908 12:40 PM | Report abuse

I Bush says it you know that it is true.....

We will catch Bin Laden.....

Iraq has WMD's.......

The war is over and we won......

We face finacial destruction if you don't give the rich $700,000,000,000 of tax payer money.........

This is BULLCHIT......

Posted by: Anonymous | September 25, 1908 12:41 PM | Report abuse

I can't describe how sickened I am with the prospect of this country's duped masses paying to keep their corporate overlords in business.

Suddenly, Poverty has become a "Crisis" whereas, when it was everybody else, it was described as "opportunity" or "freedom"

... as in "the freedom to NOT have Healthcare" or "the freedom to work three jobs and attain Nothing"

... it was truly Wonderful when it was only the dumb working class idiots who cling to their race or flag pins.

Unfortunately, the duped American people deserve all of this, as a whole, for putting GWLiar and his Wall Street prostitutes of a cabinet back in control for 4 more years.

Ultimately, it is not their fault, for they are basically a Stupid and Uneducated People, on the whole illiterate, dispassionate about taking control of their own country, and gullible, Nationalistic, Xenophobic, and violent.

The Forrest Gumps of the world, successful so far, Despite their own ignorance and intellectual laziness, the American People will watch their paychecks being stolen, crack open another beer, and fart into their Lazy Boys.

Let Feedom Ring, Zombies. You have been Robbed again.

Posted by: Welfare State | September 25, 1908 12:43 PM | Report abuse

Wow, what a sharp turn of course by the "do nothing" democrats. So now McCain's chiken, ha? What a bunch of morons! "First we are against the bailout and we listen to our constituents and now we are all for it" Yeah, aha I buy that! Now that's CHANGE at it's very best!

Posted by: AlexZ | September 25, 1908 12:45 PM | Report abuse

Nancy, wait! McCain has not yet left NYC for DC to claim credit.

Posted by: dmw | September 25, 1908 12:55 PM | Report abuse

Let them claim credit. The crooks who claim credit are the one to be voted out. Dems or Reps don't matter.

Posted by: Anonymous | September 25, 1908 12:57 PM | Report abuse

I believe most people agree that something will need to be done.

1)Strict oversight - is not an option here (no oversight, no deal).

2)Curb executive pay - I believe that has to be a deal breaker as well; too many golden parachutes.

The other items seem to be yes/no's based on individuals. Banks are responsible for bad loans. People are responsible for taking out the loans they can't afford.

There has to be some accountability on both sides (not just the bank's fault here but they seem to be more at fault between the two).

Posted by: ssanford00 | September 25, 1908 12:58 PM | Report abuse

Any "bailout" will ensure that the people at the top, who have profited from mindless greed, will continue to NOT "pay the piper", everyone else will pay. The bailout will also be a very temporary measure and in the end, America's economy will go in the dumper. Only THEN will the REAL corrections be made to establish a sustainable, realistic economy. Petro-dollars and the American control of world oil markets will be GONE and once again the economy will be based on what the United States actually PRODUCES and not what it seems to generate.

Posted by: expat | September 25, 1908 1:10 PM | Report abuse

What would say of McKeating5's ability to be merely partisan, if the House GOP and/or Senate GOP dis the package?

Posted by: Roofelstoon | September 25, 1908 1:11 PM | Report abuse

From:
Head of State
http://headofstate.blogspot.com/2008/09/mccain-and-bushs-kabuki-theatre-mccain.html

Thursday, September 25, 2008
McCain and Bush's Kabuki Theatre: McCain Contacts Bush To Set Up Meeting To Prop Up His "Suspension"

Now we know why McCain hired the Bush contingent.

It emerged in the White House briefing today that McCain called Bush and asked him to initiate a meeting today at 4 pm at the White House, putatively for him to "deal with" the crisis.

That is, McCain asked Bush to help him create an avoidant trifecta: To try ti\o lend some credence to McCain's desperate assertion that a suspension of his campaign is necessary, in effect avoiding a debate in which he would face critical questions about his stance on the economy; attempting to co opt the financial crisis thereby trying to put an end to his plummeting in the polls created by his flailing positions on the economy--perhaps best reflected by his statement days ago that the "fundamentals of the economy are strong"; and, while avoiding his own debate, also buying more time for Sarah Palin after her embarrassing photo op at the UN yesterday, by moving her debate forward as well.

Here's how it happened, according to Q and A at the WHB:

McCain emailed Bush asking for the 4 P.M. meeting. Now, one reasonably might ask, why is today such a necessity for McCain, if his interest is solely the national good?

Because it is before the debate. McCain hopes to stage a meeting at the White House, thereby, with Bush's cooperation, lending plausibility to his claim to need to suspend his campaign. Then, if Republicans, in their own electoral interest, can be persuaded to come to agreement today, before the debate, he would claim--in an act of utter stage management--to have "resolved" the crisis. Thereby hoping to take the heat off on his past careening stances and sliding polls and staunch the bleeding on the polls--before the debate.

This is Kabuki Theatre masquerading as substance--no different than what we saw at the U.N. yesterday.

It is utterly stage managed, utterly cynical, and utterly unrelated to the substantive deliberation necessary to actually resolve these matters on the merits and for our nation's future, rather than for short-term and desperate political advantage.

These occurrences are equally important for what they indicate about McCain's governing style as they are for their impact upon democratic process: impulsive acts that rely on drama and theatrical posture rather than substantive reasoning and long-term deliberation; a strong willingness to sacrifice substantive reasoning, deliberative process, and even prior structures and agreements to immediate political need; an attempt to reach outcomes through last minute stage management rather than substantive argument.

These should create deep concern for anyone who wishes for a change in governmental process from the past eight years.

We have an economy, rather than a campaign, to rescue. Putting nation before politics means putting all attempts to resolve it before political attempts to co opt it--and to move towards one's commitments, rather than towards a more immediate and short-term salvation.

Cite:
Head of State
http://headofstate.blogspot.com/2008/09/mccain-and-bushs-kabuki-theatre-mccain.html

Posted by: Anonymous | September 25, 1908 1:13 PM | Report abuse

Senator McCain should "un-suspend" his campaign and "un-cancel" the debate. There is absolutely nothing more important that he's going to be doing tomorrow night at 9:00 p.m. than debating Senator Barack Obama. This has been a silly campaign stunt. The negotiators are near to a deal, and McCain needs to get back to the serious matter of the national election. We didn't suspend the elections in 1864 in the midst of the Civil War, or in 1944 in the middle of World War II, and we shouldn't do it now. The national debate provoked by these crises is part of the process, not a distraction from it.

Posted by: Army Brat | September 25, 1908 1:20 PM | Report abuse

Bush and Paulson’s Plan would have us Squander our ability to Create Jobs.

http://www.washingtonpost.com/wp-dyn/content/article/2008/09/25/AR2008092501412.html

Even with the $700 Billion Bailout: “rising unemployment, stagnant wages and lingering concern about inflation -- may well outlast the financial crisis now occupying Washington and Wall Street.”

This is the underlying problem that is not being addressed in the proposed Wall Street Bailout.

There are lots of Houses for Sale because there are NO JOBS. The Bail out doesn’t create Jobs, Income, and a widespread Tax base for the treasury. It’s just a drain on our Resources and Ability to create Jobs.

The Proof is in the Pudding. Are Jobs being Created? Is our Economy Growing? Are we doing all we can to free us from borrowing from China and from sending our Money and Troops to the Middle East?

Even in the best of times under Bush, our Economy lost Millions of Jobs. We’ve had negative Job Growth for the last 8 years and lost over 600,000 jobs this year alone and that is as much of a problem and another reason for the home foreclosures.

Massive investment in our ***Infrastructure*** and ***Renewable Energy*** Production is the most effective way to strengthen our Economy and National Security.

We can create millions of Jobs and dozens of new Industries while taking advantage of our Natural Resources in the most effective and efficient manner.

We can create 2 Million Clean Energy jobs in just 2 years with a $100 Billion investment. Imagine how many $700 Billion would create (14 Million New Jobs?)

http://www.reuters.com/article/environmentNews/idUSN0930092120080909

Posted by: Derek | September 25, 1908 1:23 PM | Report abuse

AND WHERE IS JOHN MCCAIN WHILE THIS IS HAPPENING? IN NYC, GIVING A SPEECH! WHY DOES HE HAVE TIME TO DO THAT, AND NOT DEBATE HIS RIVAL ON LIVE TV? PERHAPS HE"S NOT 'READY ON DAY ONE' FOR THIS EVENT THAT HAS BEEN ON HIS CALENDAR FOR 18 MONTHS?

Posted by: molama | September 25, 1908 1:24 PM | Report abuse

Nancy who?

Give me a break! My grandchildren can do a better job.

Posted by: Al | September 25, 1908 1:29 PM | Report abuse

Nancy who?

Give ma a break! My grandchildren can do a better job.

Posted by: Al | September 25, 1908 1:31 PM | Report abuse

The only way to permanently correct the market is to allow poorly managed companies to fail. This will rid the economy of dead weight and provide future opportunities for new growth. The American people are tired of bailing out the incomptent. It is time for these dinosaurs to become extinct.

Posted by: Anonymous | September 25, 1908 1:31 PM | Report abuse

Wasn't McCain a major player in the last Banking Bialout? Oh yeah he was. We all remember the Keating 5 and the whole Charles Keating Silverado bank scam. I guess McCain wants to go to DC to see if he can grab some cash while the grabbings good. He can do that now that he no longer supports the McCain/Feingold Campaign finance reform.

Posted by: PFJ | September 25, 1908 1:39 PM | Report abuse

I for one, will not be voting this election. I have had enough. Both the Democratic party and the Republican party, represent a one corporate party system. They don't need my little vote.

I'm tired being belittled and treated like I'm an imbecile.

I want to hurl, when I see them patting themselves on the back for sticking it to the little taxpayer once again.

Posted by: June | September 25, 1908 1:40 PM | Report abuse

Bad News for McCain. A bailout deal has been reached. I guess he will have to get back to campaign trail, where Obama's mopping the floor with him! Sorry John the crisis didn't last long enough, your ploy backfired!

Posted by: Anonymous | September 25, 1908 1:43 PM | Report abuse

It amazes me how little confidence the democratic party leaders have in our presidential candidate. Had Hillary been the nominee I know she would have been deeply involved in determining the solution. I'm getting a little worried

Posted by: KALevy | September 25, 1908 1:44 PM | Report abuse

If you don't vote JUNE you will be an embecile.

Posted by: Anonymous | September 25, 1908 1:45 PM | Report abuse

I think we can all stand behind our socialist
leaders whether they are democrat socialists or republican socialists.I however will vote third party and let the sheep vote republicrat.What morons the american people have become over the years.

Posted by: pooty | September 25, 1908 1:45 PM | Report abuse

Like there was ever any doubt. When W. says, "Suck," Pelosi says, "How hard?"

Posted by: Nan | September 25, 1908 1:58 PM | Report abuse

Why don't they just help those banks who can't help themselves?

Why help those who have made the big bucks in other areas. They can afford to take care of their own sub prime loans.

The banks and brokerages have stuck subprime loans in our money market accounts and they best make them whole and safe.

Posted by: Jo | September 25, 1908 2:30 PM | Report abuse

Pelosi is to blame for NOT impeaching Bush.
-If he had been impeached on time, NONE of this would be taking place.
-But she said "We don't want to distract from the election". And now what will she say? Hint: What all politicians do: Lie their way out, like kids when they get into trouble, or want to have it their way.

Posted by: El Mugroso | September 25, 1908 2:41 PM | Report abuse

Pelosi position on not impeaching Bush, and just let Congressmmen 'vent' all they wanted about it is not unlike saying "Let's keep the excrement inside and just fart". That sure leads to illness like we continue to be in, and it's getting worse.

Posted by: El Mugroso | September 25, 1908 2:44 PM | Report abuse

Some of you that are blaming the Republicans for this mess have not seriously studied how this came about. The Democrats insisted that Fanny and Freddie lend more money to eveyone that wanted a house whether or not they could afford it. Now you act like the Democratic Congressmen had no part in this. Actually, both parties can share a lot of the blame. We need Ronald Regean to minimize the involvement of the Federal government our free enterprise system. Having the Federal government dictate who should be given loans created this huge financial crisis. If you don't understand the downside of having the Federal government make economic decisions, you will love Obama as President. He wants the incompetant bureaucrats to make a lot more of your decisions and spend a lot more of your money. If you want to deal with rules written by the same people who wrote the tax code when you seek medical care, then vote for Obama. He wants the Federal government to control our medical system. The same Federal bureaucrats in charge of Social Security, Katrina relief, Ike Relief and every other failed federal program.

Posted by: hardworking | September 25, 1908 2:58 PM | Report abuse

Pelosi, you IMBECILE. You're buying into the WHOLE SCAM and we're all the SUCKERS!!!

For God's sake, her and Harry Reid want to give these scammers EVERYTHING. What is getting in the way of them seeing that buying 1 TRILLION DOLLARS of corporate debt is in NO WAY going to help the average American. It's a LIE.

Posted by: Mike Garske | September 26, 1908 1:02 AM | Report abuse

I am an independent who has supported both Democrats and Republicans in state (here in CO) and national elections. Today I watched President Bush basically threaten the American people and lament the fact that he has to work with a "legislature." I am infuriated. I am proud of my Republican representative here (Musgrave) for opposing this bailout utterly. This will absolutely influence my decisions in November. I do not buy for a moment that the economy will collapse should this not pass. I DO think that some major banks will sink, and do not care, even if it means planting a garden. I want Democrats to know that if they want me to support them this November, they need to tell Bush to stick it.

--------

Posted by: Watcher | September 26, 1908 4:27 PM | Report abuse

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