JUST IN – 8:30PM EST: Urgent efforts to lash together a $700 billion rescue plan for the national economy broke apart Thursday night, hours after key lawmakers had declared they had reached a deal.
Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke sped to Capitol Hill to try to revive or rework the proposal that the administration says must be quickly approved by Congress to stave off economic disaster.
Congressional leaders were to meet with the economic chiefs into the night.
Initially, key members of Congress claimed agreement Thursday on an outline and crucial details of an urgent multibillion-dollar plan to stave off national economic disaster, but a historic White House meeting with President Bush, the two men fighting to replace him and other congressional leaders broke up with conflicts in plain view.
After six days of intensive talks on the $700 billion package urgently requested by the Bush administration, with Wall Street tottering and the presidential election nearing, there was more confusion than clarity.
A tentative accord in principle among influential Democratic and Republican lawmakers was announced at midday, giving the Bush administration just a fraction of the money it wanted up front, with half the $700 billion total subject to a congressional veto, congressional aides said.
But conservatives were still in revolt, balking at the astonishing price tag of the proposal and the heavy hand of government that it would place on private markets. Sen. Richard Shelby of Alabama, the top Republican on the Senate Banking Committee, emerged from the White House meeting to say the announced agreement “is obviously no agreement.”
(CBS2 HD / Associated Press)
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13 Responses
THIS BAIL OUT WILL ONLY HELP THE RICH AND CROOKS WHO CREATED IT
AND WE WILL BE THE ONES TO PAY FOR IT
IT WILL NOT HELP WITH JOBS OR THE ECONOMY
LET THEM FALL YOU CREATED IT NOW EAT IT,,,
B”H the congress did not give Paulson – who was the CEO of Goldman Sachs, a blank check to spend our grandchildren’s tax dollars to save Wall St., and – you guessed it, Goldman Sachs. This was utter ridiculous that tax dollars should be used to bailout the financial mistakes of wealthy people. Call your congressman and Seantors and urge them to stop this mess, because if they vote for it, we will send them home in November.
if this bill does not pass in a few days forget about ANYONE having any money. Forget about ever getting a home loan at any reasonable rate (it will be 15%), or trying to buy anything on credit even at Jewish stores. As it is there is not much cash flowing. Most people pay via credit card which will not be affordable anymore.
And US middle class will not be able to find a job that even makes a decent living because the economy and lack of short loans for business to run and purchase raw material to produce items to sell will not be available.
So to all the ones who state this is ridiculous. You are right BUT you will also be wrong and deeper and faster in trouble if something does not happen NOW!!!!
IF foreclosure did not effect the Jewish Kehilla YET it May do so NOW. NOW not only real estate which past success help support many Yiddesh families and Tzedakas will further tumble, so will another source has and will further tumble = the investment market.
Look for many families who will now need help or have no source of income from jobs and/or POP.
You simply do not understand. This is not about bailing out the rich. This is about avoiding a major depression like the one in the early 30s that caused a third of the workforce to be unemployed and lined up for food all day. There is a growing run on all of the banks and all of the investment houses. There is no money to borrow anywhere. Companies are about to begin massive layoffs because they cannot borrow money to start new projects and they can’t collect the money owed to them. This country is grinding to a financial stop. This is VERY serious, VERY dangerous for everyone, especially frum Jews. Experts / Mumchas are TERRIFIED by what’s going on. The greed of so many is spinning this country more and more rapidly to a total financial collapse, Heaven forbid. THIS IS NOT THE TIME FOR POLITICS OR SIMPLISTIC NEGATIVISM. Hashem Yerachaim Aleinu.
I HAVE THE SOLUTION: Hear me out a minute here !
Instead of bailing out AIG, I’m in favor of giving $85,000,000,000 to all Americans as a
“Dividend”.
To make the math simple, let’s assume there are 200,000,000 bonafide U.S.
Citizens 18+
Our population is about 301,000,000 +/- counting every man, woman and child.
So 200,000,000 might be a fair stab at adults 18 and up..
So divide 200 million adults 18+ into $85 billion that equals to a hefty
“$425,000.00”
My plan is to give $425,000 to every person 18+ as a “Dividend”
Of course, it would NOT be tax free. So let’s assume a tax rate of 30%.
Every individual 18+ has to pay $127,500.00 in taxes.20That sends $25.5 Billion
right back to Uncle Sam.
But it means that every adult 18+ has $297,500.00 in their pocket.
A husband and wife have $595,000.00.
What would you do with $297,500.00 to $595,000.00 in your family?
Pay off your mortgage – “housing crisis solved”
Repay college loans – “a great boost to new grads”
Put away money for college – “it’ll be there”
Save it in a bank – “create money to loan to entrepreneurs”
Buy a new20car – “create jobs”
Invest in the market – “capital drives growth”
Pay for your parent’s medical insurance – “health care improves”
Remember this is for every adult U S Citizen 18+ including the folks who lost
their jobs at
Lehman Brothers and every other company
If we’re going to re-distribute wealth let’s really do it…instead of trickling
out
If we’re going to do an $85 billion bailout, let’s bail out every adult U S
Citizen 18+
As for AIG – liquidate it and Sell off its parts.
Sell off the real estate. Let the private sector bargain hunters cut it up and
clean it up.
Here’s my rationale. We deserve it and “AIG doesn’t” we were not invited to the
last 10 years of “party time” bonuses
And remember, The this plan only really costs $59.5 Billion because $25.5
Billion is returned instantly in taxes to Uncle Sam.
kollelguy_dot_com,
Its YOUR money too. We cannot allow a donation to help them. I would like to know why the govt cant waive certain taxes (not payroll) that companies pay for a period of 2 years? Let them have their money so they could do as they please. This will help the economy more than the bail out and it will keep us from having to pay back the 1 trillion (thats TWELVE ZEROS!).
I also would like to see a complete investigation into the congress persons who have recevied nice funds from these institutions.
Seems like many don’t understand at all what’s going on and why we’re all in this together.
When a bank opens, let’s they borrow a million dollars and give 4 people mortgages of 1/4 million each. Then they don’t have any money left, so they sell these for mortgages for about 300k each (assuming it has good collateral and a high probability of getting back all the money plus all the interest). Then they use that money to write new loans, and eventually sell those loans. If at one point they have to make payments to whoever lent them the money that they are using, and they don’t have any cash, they will lower the price and try to sell it at a discount. As long as someone else will buy it, they can stay in business. If there is no other bank willing to buy those loans (meaning to lend them the money that they lent out) then they will go bankrupt.
Since every bank is in this business of borrowing money and then using it for loans, if they have to make payments and no one is willing to take risks anymore and lend them the money, then they will all not be able to function anymore. That means many banks will close, and even the banks that stay open will be reluctant to lend. You will not be able to finance cars, homes, businesses, or even student loans.
The problem is how to evaluate a loan in the current market, where no one can be certain that it will be paid back, and usually the collateral is no good anymore. That means that a 300k loan will only be worth 200k. If a bank is not desperate then it will wait until things stabilize. But since no banks are willing to lend to each other anymore, if a bank is desperate to pay its obligations to its lenders it must sell its loans and they will probably only get 100k for that loan.
The issue now is not to save specific banks, the issue is to stabilize the entire banking industry so that banks will be able to function. The problem is everyone’s not just the banks.
And by the way, it was not only the rich who cheated, the problems all started with subprimes, with the people who were making a little money and borrowed crazy amounts which they couldn’t afford.
#5 who taught you math? If you give 200 million people $1000, that’s already $200 billion!!
Its really funny reading comments from people that cant do basic math or have any understanding about what is going on; screaming bloody murder.
The moral equation of this is irrelevant now. We could discuss who’s at fault for this whole mess (Banks giving out idiotic loans out of greed, people buying homes they should have known they couldn’t afford, short sellers of financial stocks, etc, etc) another time for entertainment purposes if we wish to. The reality that has to be dealt with now is the situation at hand. Try to be unemotional for a minute. Realize that if no action is taken (read that: 700 billion dollars worth) then you, me, the rfilthy rich and the struggling poor will ALL suffer for way too long.
This “Goverment bailout” is a gift to us if the government is still willing to exercise it. All gifts come with a price tag, but this price tag is much, much easier to swallow than toughing it through. Guaranteed.
If it makes you all feel better to put it in perspective; before the “bailout” this country already has a deficit of OVER 10 trillion dollars. This was basically the case for a pretty long time and no one seemed to be crying. Now it will be over 11 trillion instead of only 10 trillion.
Boo Hoo. Get over it.
Typical that the AP “blames” the conservatives. They should be applauded for being responsable, and not wanting Americans to foot the bill.
You will know when the banks are in trouble when people give up their career on Wall Street in order to become teachers, or when bank presidents dream of getting government jobs so they can earn more money.
The people the banks made bad loans to still have their money. Adding a trillion plus dollars will just cause inflation. The country will survive losing the infamous “big” banks, but the world will be badly damaged if the United States prints so much money that ATM machines will have to offer bags to carry the money in. The US survived the depression of 1932, Germany (as it was) didn’t survive the inflation of 1923. That is something we should keep in mind.
#5
85bil divided by 200mil is $425 not even enough for a weeks food
#5, Im moideh that I dont know math, I just know how to copy and paste an email I got