Cheap at twice the price: federal government unveils 700 billion dollar bailout
Posted on September 20th, 2008 by bile Tags: America, Arizona, bailout, Barack Obama, Bernard Sanders, Bush administration, Charles Schumer, Christopher J. Dodd, Congress, Connecticut, Department of the Treasury, fascism, Florida, Illinois, Iraq, Jim Bunning, John McCain, Kentucky, Main Street, Mitch McConnell, New York Times, Pentagon, real estate prices, state socialism, United States, Vermont 2 Comments »The Bush administration on Saturday formally proposed to Congress what could become the largest financial bailout in United States history, requesting unfettered authority for the Treasury Department to buy up to $700 billion in mortgage-related assets.
The proposal, not quite three pages long, was stunning for its stark simplicity. It would raise the national debt ceiling to $11.3 trillion. And it would place no restrictions on the administration other than requiring semiannual reports to Congress, granting the Treasury secretary unprecedented power to buy and resell mortgage debt.
A $700 billion expenditure on distressed mortgage-related assets would be roughly what the country has spent so far in direct costs on the Iraq war and more than the Pentagon’s total yearly budget appropriation. Divided across the population, it would amount to more than $2,000 for every man, woman and child in the United States.
“This is a good foundation of a plan that can stabilize markets quickly,” Mr. Schumer said in a statement. “But it includes no visible protection for taxpayers or homeowners. We look forward to talking to Treasury to see what, if anything, they have in mind in these two areas.”
In Florida, Senator Barack Obama of Illinois, the Democratic presidential nominee, said he would press for a broader economic stimulus initiative to be part of the bailout plan for financial firms.
Senator John McCain of Arizona, the Republican nominee, issued a statement on Saturday saying he was reviewing the administration’s plan. He also urged the administration and lawmakers to consider his own plan for creating a trust within the Treasury Department to aid ailing mortgage lenders and other financial institutions.
Senator Mitch McConnell of Kentucky, the Republican leader, said in a statement: “This proposal is, and should be kept, simple and clear.” He added, “Simply put, now is not the time for partisan plans or pet projects.”
Some Democrats, including lawmakers like Mr. Frank and Senator Christopher J. Dodd, Democrat of Connecticut and the chairman of the banking committee, were adamant about including provisions to promote government action to stabilize real estate prices and help troubled borrowers refinance their mortgages.
Still another group of Democrats was pushing for a wider stimulus package that would direct help more directly and immediately to Main Street, perhaps including an increase in unemployment benefits and investments in infrastructure projects, including bridges and roads, that would help to create jobs.
A fourth, smaller group of lawmakers was highly critical and in some cases adamantly opposed to the plan. That group included including Senator Jim Bunning, Republican of Kentucky, and Senator Bernard Sanders, independent of Vermont.
“The free market for all intents and purposes is dead in America,” Mr. Bunning declared on Friday. “The action proposed today by the Treasury Department will take away the free market and institute socialism in America. The American taxpayer has been misled throughout this economic crisis. The government on all fronts has failed the American people miserably.”
COME ONE, COME ALL! FREE MONEY! FREE FASCISM! ALL YOU CAN CARRY!
I have to laugh because otherwise I may cry.
