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

Breaking: House To Vote Friday on Rescue Bill

The Post's Lori Montgomery is reporting that the House is planning to vote on the $700 billion Wall Street rescue bill on Friday, following an expected Senate vote tonight.

House leadership plans to brief rank-and-file members tomorrow on the Senate changes to the bill.

-- Frank Ahrens

By Frank Ahrens  |  October 1, 2008; 1:59 PM ET
Categories:  The Ticker  
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Comments

There is an alternative plan in the House that would actually solve the problem at minimal cost to the taxpayer without creating a fourth branch of government with unlimited power as the Paulson plan does. It is being headed up by Rep DeFasio. Please check this out and get behind it. This press conference was yesterday and there has been ZERO press coverage.

http://www.c-span.org/Topics/US-Economy.aspx
House Democrats Press Conference on Alternative Financial Intervention Plan (September 30, 2008)

Posted by: pmccurry | October 1, 1908 2:34 PM | Report abuse

Why would we borrow money from the banks to give it back to them, and then pay interest on it? Stand fast Congressmen. Do not give in to the the elitist in the Senate and in the white house. Let the market right itself. All the folks and banks that foolishly over extended themselves ought to reap the consequences of their actions.

Posted by: AmericanMan | October 1, 1908 2:57 PM | Report abuse

Today the U.S. Senate will vote to bailout Wall Street. We wouldn't be in this crisis if it weren't for the billions of dollars Wall Street lavished on politicians, and the deregulatory policies Congress passed for them in return.

AND NOW THEY WANT TO PUT THEIR LOSSES AND FAILURES ON OUR BACKS!

CALL, FAX AND EMAIL YOUR SENATORS -

NO BAILOUT!!

Posted by: Anonymous | October 1, 1908 3:04 PM | Report abuse

The US economy is in deep crisis and needs a rescue. However, the bail-out as discussed now is the wrong measure. It does not hit, where the problem really lies, ie. with the millions of american home owners, who overborrowed. These countrymen need to be at the centre of any package not the banks and financial instutions who caused the current crisis. In support of the above, note that data show, that, in spite of massive depreciations of the subprime morgages banks are till today reluctant to offer improved terms on existing and defaulting loans.

Posted by: Facco Bonetti | October 1, 1908 3:27 PM | Report abuse

Phony crisis. Nothing but a scare tactic!
Big business and the Washington elite are trying to scare the taxpayers into going along with this rip off!
Unfortunately, the greedy, corrupted, criminal and blood sucking financial SOBs will get bailed out. And note that we do not get any guaranteed return on our money. We need Warren Buffet not Hank Paulson former CEO of Goldman Sachs in charge of the bill! Well the bill will pass, why? Just note yesterdays 777 drop in the Dow and the 5 percent drops in the NASDAQ and S&P 500. Be sure that this was created by the same people with their hands out. They are telling us give us what we want or we will wipe out your pension plans, 401-Ks and IRAs. They are scaring the Congress and the Senate into action! Note that no one in DC has the guts to go against them! BTW - notice all the business men and Senators and Congress now coming forward saying they are now getting many more calls in favor the bailout then against. Bunch of BS..!

Contact banking Comm. Charman Chris Dodd and your Senators and let them know what you think!
Here are links........
http://banking.senate.gov
/public/index.cfmFuseAction=Contact.Form

www.senate.gov
###########################################

Posted by: Snoop2 | October 1, 1908 3:30 PM | Report abuse


How many times in the past Wall Street has bailed out the average citizen?

No bailout. It makes no sense.
There are lot on very bright people in the country, invite them to offer a sensible alternative.

Posted by: No Bailout | October 1, 1908 3:31 PM | Report abuse

This thing was hawked to the American people the same way time shares are sold in Cancun.
When I was about younger my brother and I were at home getting ready to eat some corn flakes....

We poured them in the bowl and poured the milk over them..

immediately we noticed the milk was soured....

no matter how much sugar we put on it, the milk was still spoiled and we added a LOT!

This is the problem.

The system is spoiled.

No matter how much sweetener we add in the form of money..we are still going to have a rotten deal.

NO BAILOUT- NO WAY- NO HOW

Posted by: dano | October 1, 1908 3:31 PM | Report abuse

The billionaires should pay for the bail out. Pres. Bush should resurrect his father's "a thousand points of light" vision of the haves helping the have nots and demand the ultra rich to stand up and show some dignity and responsibility.

Those who gained so much and lived the American Dream as a result of these mortgage backed security derivative scams and hedge funds have a moral and patriotic duty to help Main Street so that we ordinary people and our posterity are not burdoned with the American Nightmare of inflation and a deflated dollar due to such a massive deficit.

It is time for Wall Street moguls to shell out for the shell game of greed they have been playing.

Posted by: Madeleine | October 1, 1908 3:32 PM | Report abuse

Apparently, there is plenty of money out there in the marketplace, however, it's not for Wall Street, it's for the smaller business folks. So what is this Wall Street gig? No Taxpayer money for Wall Street executives, not now and ever.
We are not getting the straight scoop. No Slam Bam thank you - but no thank you.

Posted by: mzbond | October 1, 1908 3:37 PM | Report abuse

IF there has to be a bailout:

Change the relationship between Wall Street and Government. Buy the actual Mortgages (at 20% Discount) upon which the Wall Street securities are based. That gives the Taxpayer power over Wall Street policies instead of the other way around, and it pumps needed CASH into the Credit Market.

It's OK if the Democrat Blue Dogs vote against the plan. 47 Republican Votes can replace theirs, making for a near 50-50 split of support from the two parties. That's Bi-partisanship.

What Both Parties need to make clear is that the Bailout is to protect Trillions of Credit Swaps/Slices and Collateralized Debt Obligations (CDO) that companies have invested in. If these fail, the World Economy may fail under an Avalanche of Debt.

Both parties and the Financial Industry are Guilty as Deregulation of the Financial Industries, Fannie Mae's qualifying of Unqualified Loans, and Wall streets creation and selling of "Credit Default Swaps" and “ Collateral Debt Obligations (CDO) equally threaten to Ruin the world economy.

BUY the actual MORTGAGES from the BANKS and not these Wall Street paper “Black Holes”.

If we buy these ”Paper Debts” at discounted rates, other Banks and Investors will realize how little they are actually worth, which could accelerate the Bank Failure rate.

IF we must invest in Wall Streets problems; BUY THE MORTGAGES at 20% below cost, NOT “the discounted mortgage-backed securities that are choking off credit and roiling the markets”.

Read: How 'credit default swaps'—an insurance against bad loans—turned from a smart bet into a killer.

http://www.newsweek.com/id/161199

Posted by: Derek | October 1, 1908 3:39 PM | Report abuse

Stop these nutjobs who want to drive our economy into recession. They don't understand the issue and for some reason are coming out of the woodwork--it's ridiculous that the vocal minority have any chance to win this. Call your senators and congressmen and tell them you want to keep your job and family safe--vote FOR THIS BILL.

Posted by: Andy | October 1, 1908 3:40 PM | Report abuse

If credit is so tight why am i still getting these pre-approved credit card offers? I called 2 local banks and my credit unio!n, they all said they would give me a loan. No, the sky is not falling

Posted by: Steven | October 1, 1908 3:44 PM | Report abuse

The idiots and demagogues are out in force.

The financial rescue bill must be passed as the FIRST STEP toward stabilizing the situation. There will--and must--be other steps, including bolstering the situation of ordinary mortgage holders. There will be assessments and assigning of blame. There will be an end to the deregulated merry-go-round and to the Reaganonics and Bushwackonomics (and Clintonomics!) that got this country and the world into this ungodly mess. There will be a new New Deal to start putting things back on track, and dealing with the climate-change and fossil-fuel dependence issues. All that is on the way.

But first, pragmatic measures must be taken and unpalatable medicine must be gargled down. Get real, people. The crisis is NOW. Get used to that, and get over your squeamishness.

If this rescue plan gets aborted, it will be a crime and a piece of folly comparable to, say, Jackson's Bank War of the 1830s. Or the Smoot-Hawley Tariff of 1930.

And the candidate who is showing wisdom, courage, and leadership is Barack Obama. As we speak, he's putting his presidential bid on the line to argue the case for passing this measure as the first--but certainly not last--step to resolve the mess.

And where is Captain Top-Gun in all this? Scoring cheap political shots,

Posted by: jm917 | October 1, 1908 3:48 PM | Report abuse

The problem we face right now is in objective terms not real. We're in the middle of a market Panic. In Panics, people tend to act irrationally, with bad results for everyone.

Look at Washington Mutual for example. They were holding, according to some estimates, about $40 billion in bad paper (i.e. sub-prime loans). But they had over eight times as much money in deposits.

Lots of businesses have rough patches where their assets decline by 10%, or 20%, or even 50%, and still can pull through. But because of the Panic and only because of the Panic, no one would lend any money to WaMu, and WaMu depositors started a run on the bank, taking our $14 billion in 10 days. Goodbye WaMu.

The very first thing that has to be done is to stop the Panic, so people can start using their alleged brains to find real solutions to the real problems we face -- rational solutions. That is what the bailout is all about -- to stop the Panic.

Personally, I hate the bailout bill because it removes the consequences of bad behavior from the backs of the people that were engaging in bad behavior. But if the mere fact of passing the bailout bill, however odious, stops the Panic it will have done its job, and an initial price tag of $700 billion is not too high a price to pay for it, especially if we get some or most of it back over time.

With the time gained by stopping the Ppanic, the new Administration and Congress can start fixing the real problems on Wall Street -- ineffective regulation, incentives that reward bad decisions instead of good ones, predatory and stupid lending practices -- all of it. As for which new Administration and Congress would be more likely to deal with these problems, all you have to do is look at the record. You don't need to be a rocket scientist to figure out which party got us into this mess.

Obama/Biden '08
MORE DEMOCRATS IN CONGRESS

Posted by: willythekorn | October 1, 1908 3:49 PM | Report abuse

It's not just about Wall Street. It's also about our pension and retirement plans, too. Own a house? Want to sell it someday? Not in today's market, because the banks don't want to grant mortgages with so many bad debts on their books. If people can't buy, nobody can sell. No credit moves, and the economy stagnates. Everybody loses. If you are in a boat that leaks, you plug it and start bailing. Worry about where the blame lies when you're on dry land.

Posted by: cb11 | October 1, 1908 3:53 PM | Report abuse

Stop these crooks who want to drive our country into the poor house. They know the con is on and for that reason alone are coming out of the penthouse - it's unAmerican that the minority who already lost once now wants a revote. Call your men and women in Congress and tell them you want to keep your country and your money - vote AGAINST this theft.

Posted by: Anonymous | October 1, 1908 4:16 PM | Report abuse

They should scrap this plan as too costly. The best solution is to use the AIG example to inject capital into the major banks, have them discontinue their dividend payments ($40B/yr), let them hold on to the assets and dispose of them in a timely manner, and earn their way back to health. It can be done for one-tenth the cost of this plan which leaves the government holding the bag with no sacrifice on the part of the banks.

Posted by: Les | October 1, 1908 4:17 PM | Report abuse

Come on people....PASS this bill already! Our country needs it NOW!!!!

Posted by: Karen | October 1, 1908 4:32 PM | Report abuse

Do not rescue them, please!!! They should pay for this mess, why reward them?
If you have fail to pay for mortgage the bank will take your house, if the banks are frauds, they should be penalized and the CEO should not be rewarded with 50 millions!!! Pure Logic...

Posted by: purelogic | October 1, 1908 4:54 PM | Report abuse

Obama wants to coverup his party's involvement since 1999 setting up the financial crash.

What do ENRON, WORLDCOM, FREDDIE MAC, and FANNIE MAE have in common? Everything; they are identical cases of criminality. There is one difference, however, the FREDDIE MAC and FANNIE MAE crimes are not being investigated nor are they being reported fully to the origins and persons involved of the crimes committed.


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Posted by: tucanofulano | October 1, 1908 7:05 PM | Report abuse

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