Senate passes financial bailout 75-24
October 2nd, 2008 by Rossputin[Update: 2 hours after the Senate passed the bailout bill by a wide margin, S&P 500 stock index futures are down 12 points, or a little more than 1%, roughly the equivalent of 120 points in the Dow Jones Industrial Average. I was suggesting, and I emphasize this is just a theory, that part of the reason the market recovered much of Monday's loss on Tuesday could have been due to the belief that a Paulson-plan-like bailout might not pass. Anyone with any common sense realizes that this plan is likely to cause massive problems, not least with moral hazard, in the future. After all, what's next, bailing out credit card companies or auto finance companies?]
At about 9:20 PM Eastern Time on Wednesday, the U.S. Senate passed the “Financial Markets Bill” by an overwhelming vote of 74-25 , including yes votes from some conservative Republicans such as John Cornyn, Richard Burr, and Tom Coburn. Both Senators McCain and Obama voted for the measure, as expected. The vote eliminates the possibility of filibuster, although that was very unlikely in any case.
It will be very interesting to see what happens in the House. My guess is that the turn of the tide in the Senate presages a similar thing in the House, much to my dismay. The key will be for the House to demand an immediate suspension of mark-to-market rules and to ensure it survives a conference. After that happens, I believe the Treasury won’t even be able to spend the $250 billion initially authorized to be spent on distressed assets because banks won’t want to sell once they can keep them on their balance sheets at more reasonable prices.
October 2nd, 2008 at 6:43 am
“that part of the reason the market recovered much of Monday’s loss on Tuesday could have been due to the belief that a Paulson-plan-like bailout might not pass.”
For the love of Mike…were you watching what ACTUALLY happened to the markets after the House bill tanked?!?! To try and pull this line of BS is the most ridiculous thing that you’ve ever uttered in this blog. And to think that people pay you for your opinion…someone’s getting housed on *that* deal for sure…LOL!!
October 2nd, 2008 at 12:06 pm
The DJIA isn’t necessarily the best guide of what’s happening with the banks, anyway. Despite the recovery last week, credit basically dried up. And that’s the real problem right now, is how to get that credit moving again. State and municipal governments, who rely quite a bit on credit, are already feeling the pinch. (However, to folks like Ross who hate government, this might be seen as a good thing.)
In any case, Ross’s suggestions here are kinda stupid. Those in the know are watching other indicators right now. Everyone’s in a freeze while we wait to see what happens with the credit markets, if anything.
October 2nd, 2008 at 2:41 pm
If you listened to Rush today - there was a banker and several people who called that contacted their banks to say that there is money for houses, cars, loans, etc… just for those w/good credit and a down pmt. The scare tatics have the bank phones dead! Sounds to me like to many Americans believe what they are hearing on the Obama news!!! Get real people, if this was a crises, there wouldn’t be any pork or earmarks in this so called bail-out! We are not as stupid as we are made out to be! The crisis are the recepients of those millions from Fannie Mae and Freddy Mac, i.e. Dodd, Frank, Gurelic, Obama - we they need to be prosecuted and the money needs to be returned!!! There is no way on earth that we “hard working Americans” could ever get away with this type of theivery nor could we write off all our debt every year for the bad decisions we make in our lives.
October 2nd, 2008 at 10:41 pm
We said no to the bill and now they’re right back at it trying to force it down our throats - I think there’s something tremendously wrong with that! Its like date-rape, no should mean no.
It appears that most of the media, the financiers, and the politicians are all in cahoots making it look like this is the ONLY way to fix things, and it looks like they are gonna pass it with our consent or without it. And they wonder why the majority of Americans neither care about the issues or vote at election time. This whole thing has just made me ill, I wish there was more I could do.
October 4th, 2008 at 10:35 am
My fellow Americans, you have just witnessed the end of the USA and the constitution if this is allowed to go unchallenged. Our so called Representatives have, against expressed desires of those they swore to represent, blatantly sold us and our children into slavery. The SCAM BAILOUT bill will not cure the problem. It will compound it. There are three things to do. Mount a Constitutional challenge, vote each who is up for reelection and voted yes out of office, and start recalls on those who are not up for reelection this election. Save THE USA while we still have the time. To say I am throughly disappointed and discussed, is an under statement. The true feeling is much like the feelings I have had putting fallen comrades in body bags. Those who voted for this, PORK BARREL SCAM BAILOUT, have put The USA and The Constitution in a body bag.
Do you wonder why the DOW went down after the vote for the SCAM BAILOUT? Because it marked the end of free representative America! Communism is bad for business !
October 4th, 2008 at 10:36 am
Senator Kay Bailey Hutchison,
CC: John Cornyn, Kay Granger
I have for years been a staunch supporter of your’s. Until your vote on this PORK BARREL SCAM BAILOUT, I would have bet the proverbial Farm on you and your judgment.
Even though I am overseas at present, I felt confident that you and others like you had the best interest of Texas, The USA, and The People in your heart. I firmly believed you would support and protect the Constitution and the American way of life from all enemies foreign and domestic. I have down loaded and watched your speech before the Bailout vote in the Senate and watched it several times, trying to understand what in the world would possess you to support such a disaster of a bill. You mentioned strings of control several times, enough strings combined make a rope. This rope will hang us. ( Did someone have a gun to your head? ) Why?
To say I am throughly disappointed and discussed, is an under statement. The true feeling is much like the feelings I have had putting fallen comrades in body bags. I feel you and those who voted for this, PORK BARREL SCAM BAILOUT, have put The USA and The Constitution in a body bag.
Contrary to the quote,”this is a step down a slippery slope to Socialism!”, this is a jumping, falling, and rolling down the hill to Communism.
I am quite sure you remember, Nikita Khrushchev’s speech before the U.N.,”America will fall without a shot being fired. It will fall from within.” It seems his words have come through with ringing clarity.
Where the Senate and Congress have, ignored their constituents expressed desires, violated the Constitution, with this bill enslaved two generations to come, and demonstrated with certain clarity there is no representation of the people in our government.
I read the bailout plan, originally all 110 pages and am attempting to sort through the current 458 pages. This disconnected jumble is more sickening than the first and will not cure the problem. It will only worsen it. The bailout reminds me of a young lady who was told her bank account was overdrawn and remarked” I can’t be out of money! I’m not out of checks!” Is that the Senate’s excuse? They are trying to write a check they can’t cash. Come election day I bet the American People can cash a check.
In plain “Texan” you can dress up a Pig but it is still a Pig. It is time to slaughter this HOG and all who voted for it. The voting booth makes for a very large Slaughter House.
If the Bailout is such a good deal why haven’t the Democrats passed it by themselves and kept all the Glory? There is another question that comes to mind here. How much of this boondoogle is going to Foreign banks? If you have followed foreign news and stock markets, especially those who are blaming the USA for all the world’s problems ( Steinmeier ), their markets, which are in worse condition than ours’, suddenly seem to act as if the money is going straight into their accounts.
Do you truly believe that 700 billion will do the job? Rule of thumb for government estimates: Double the estimate for the first six months, triple for the next six month period, 33.5 percent for each following six month periods attributed to unforeseen inflation adjustments and cost overruns .But we are already at 850 billion, in only three days. Let it die a natural death. Do not waste resources on a hopeless case. Let the chips fall where they may, pick up the pieces, and move on.
Every working Citizen will lose if it ever goes through. Banks and Wall Street are not Citizens they are Business entities. The government will borrow (at interest) the money needed from the Fed. The Fed will create the dollars out of thin air ( refer to Germany 1923 ), devaluing the U.S. currency. Taxpayers will repay the loan. Much like the economy of the Carter years, except that the scale and damage will be about 300 fold more severe. Those business entities which cannot survive will be bought up in the market, as is already happening ( refer to Banks already acquired. It seems the politicians couldn’t run a business if their lives depended on it. This is a political solution that will compound the problem. I say Fasten your seat belts everyone. It’s going to be a long, bumpy ride. As one of those who survived the Carter years, “you ain’t seen nothing yet!” But wasting resources will not cure the problem.
I believe the Senate has just completed a Constitutionally illegal vote in their attempt to shove this Bailout down our throats. The Constitution requires that Bill originate in the House of Representatives, be voted on and passed, then sent to the Senate, where it may be voted on. The House did not pass the bill. The Senate appears to have tried to side step the Constitutional requirement by attaching it to an unrelated bill.
In closing I have this in plain “Texan” again, I would ask “Have you lost your cotton picking mind?” Perhaps it is time for the fabled NONE OF THE ABOVE slot on the ballot. I make this solemn promise to do my best to ensure the defeats of every member of congress who votes for the Bailout. Those of you who have enjoyed my support in the past, will see an active participant in the attempt to see you removed from office, should you vote for this abomination.
Little quips and pearls of insight that reflect on the moment. If this SCAM PIG BAILOUT goes through you will probably hear much stronger words.
For those still playing the Blame game remember, “Divide and Conquer.”
Those still clinging to God and guns, forget it, it’s just a memory,say”Hello Comrade.”
“It’s like a big cowpie with a little bit of marshmallow inside and I don’t want to eat the cowpie,” said Rep. Louie Gohmert,R-Texas.
Sen. Jim DeMint, R-S.C., a leading conservative, said the step was “leading us into the pit of socialism.”
Another was “ This is a crap sandwich!”
For those fighting the party wars.
“Party is the madness of many for the gain of a few.”
– Alexander Pope
Have you ever seen anything the government has touched that is not as “Messed-up” as a”SOUP SANDWICH?
“Sen. Jim DeMint, R-S.C., a leading conservative, said the step was “leading us into the pit of socialism.”
Sincerely ,
S. Michael Bryant
October 4th, 2008 at 1:01 pm
Dear Friends.
America must know the real reason for this pre-planned bailout.You see there has been a conspiracy going on for years for this to happen.Myran Fagan gave a speech on the CFR Takeover years ago in the late 1960`s.Our freedoms were included in this bailout hoax.Do a search Myran Fagan or click on the website I listed.Martiall Law is coming and Bush needs to be arrested and prosecuted for every life lost in the 911 attack evidence shows he was behind along with every person who has died in Iraq including the Iraq residents.The Bailout is going to bring a law that outlaws the ownership of any type of gun and noone will have the right to own property even if they fully own it now.You dont believe this?Just set back and watch it happen and soon.Someone has to make Bush pay or these things will happen.Bush is a driving force behind the New World Order under a one world government that will give him untold power.
October 7th, 2008 at 12:28 am
Mr. S.Michael Bryant…please stop posting the same, exact nonsense/hyperbole in every single thread…you’re boring the heck out of us!
“The Bailout is going to bring a law that outlaws the ownership of any type of gun and noone will have the right to own property even if they fully own it now.”
Wrong. Wow, this issue certainly has brought out the wackos…whew!
October 11th, 2008 at 2:06 pm
We have sold our heritage for a bowl of porridge. All of you great thinkers who are discussing the pros and cons of the bailout bill don’t address one question. Namely, what do we tell our unborn when they arrive as bond servants? We are cowards and our children will despise us.
October 14th, 2008 at 12:53 am
“what do we tell our unborn when they arrive as bond servants?”
What will you ask for when you reach the Wizard…a brain or some courage??