While the fellow who use to play political prophet of deregulation scurries to avoid responsibility for the crises that is engulfing Wall Street like a wild fire. We can be thankful George W. Bush in his final days as President, is at least attempting to put country first in sending secretary Paulson down to the hill.
Under discussion is a bi-partisan effort similar to the reconstruction finance corporation Herbert Hoover established after the Great depression. The plan is an attempt to proactively avert what every expert not working for team McCain asserts is a sure certainty if we do nothing. No less than a national financial catastrophe that would dwarf even the Great depression in scope and depth.
Current drafts of the proposal , would essentially give the secretary of the Treasury a purse of seven hundred billion to a trillion dollars. He could then go into any financial institution and buy, hold and ultimately sell mortgage-related assets.
The proposal under consideration would also have the effect of transforming Washington D.C, into the nation’s financial capital, the proposed powers would last for two years, but could be extended and Mr. Paulson has already said the troubles with mortgage loans will most likely last year
While the Obama campaign attempts to avoid inflaming the fears and uncertainty griping the financial markets. Top gun McCain and his pistol packing side kick are doing their neoconservative best to dodge blame and incite fear. Hoping to play pitch fork populist, the McCain campaign is now offering single sentence stump attacks that attempt to blame Senator Obama for the crises hoping people will ignore the fact he spent nearly thirty years as one of the principle architects behind legislation that created the crises.
Unfortunately for Senator McCain his overnight conversion doesn’t seem to be selling on main street and the poll numbers continue dropping as GOP pundits grudgingly begin to concede the election is now Obama’s to lose. Which leaves Senator McCain with his strategy of last resort. If he is unable to pull out a miracle in the debates. The Senator will indirectly begin playing the race card. In key battle ground states the republican swift boat armada will ramp up racism, and the Senators own campaign will run as many ads showing groups of black people surrounding Obama as they can slap together.
4 users commented in " Bailout plan should work "
Follow-up comment rss or Leave a TrackbackMcCain just sounds desperate.
As for trusting Bush hell no, what has he done to gain the confidence of the people. He has no credibility in the eyes of many. This is just one last harah as he screws us out of 700 billion.
He is wasting our tax dollars by the millions evey week in Iraq.
Scaring us of economic doomsday scenario as an alternative is bull honky. Who cares of the ones duped on home loans they should not have recieved a loan anyway.
My Dear PSBurton,
As for McCain’s “overnight conversion” we would draw your attention to the following from … May 25, 2006:
“Mr. President, this week Fannie Mae’s regulator reported that the company’s quarterly reports of profit growth over the past few years were “illusions deliberately and systematically created” by the company’s senior management, which resulted in a $10.6 billion accounting scandal.
The Office of Federal Housing Enterprise Oversight’s report goes on to say that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives. In the case of Franklin Raines, Fannie Mae’s former chief executive officer, OFHEO’s report shows that over half of Mr. Raines’ compensation for the 6 years through 2003 was directly tied to meeting earnings targets. The report of financial misconduct at Fannie Mae echoes the deeply troubling $5 billion profit restatement at Freddie Mac.
The OFHEO report also states that Fannie Mae used its political power to lobby Congress in an effort to interfere with the regulator’s examination of the company’s accounting problems. This report comes some weeks after Freddie Mac paid a record $3.8 million fine in a settlement with the Federal Election Commission and restated lobbying disclosure reports from 2004 to 2005. These are entities that have demonstrated over and over again that they are deeply in need of reform.
For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac–known as Government-sponsored entities or GSEs–and the sheer magnitude of these companies and the role they play in the housing market. OFHEO’s report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO’s report solidifies my view that the GSEs need to be reformed without delay.
I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.
I urge my colleagues to support swift action on this GSE reform legislation.”
Rather to the point wouldn’t you say? And three years hence. Hmmm. And who stood in the way of proposed reform? Oh yes, it was the Democrat Congress.
Once again, Nancy’s Boys looking out for the best interest of their country. Splendid!
Cheers,
Charlie
Bailout, after Bailout, after Bailout!
Enough is enough!
Let’s help to save the big mans inflated salary!
Bitter much? LOL
If the elected officals really wants to help the economy and the credit problem with the banks split the 85 billon 3 million ways and give it to the tax payers, we will pay off our mortgages and credit card bills and end this bad economy.
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