Democrats Set Terms as Bailout Debate Begins

Democrats Set Terms as Bailout Debate Begins

www.nytimes.com

Congressional Democrats began to set their own terms on Sunday for a plan to rescue the nation’s financial institutions, including greater legislative oversight of the Treasury Department, more direct assistance for homeowners and limits on the pay of top executives whose firms seek help.

The Democrats’ demands came as Treasury Secretary Henry M. Paulson Jr. blanketed the Sunday talk shows to promote the Bush administration’s $700 billion bailout package, emphasizing...

(visit the link for the full news article)

Some lawmakers also said they did not want to be rushed into approving extraordinary new powers for the Treasury secretary and the government without full consideration of the consequences.

As if forcing taxpayers to pay for the screw ups of major financial firms wasn't infuriating enough for new Amerika, the new powers the treasury secretary is seeking are absolutely unacceptable. Since when can a court not review the actions of a government branch? WTF are these people thinking?

www.nytimes.com
(visit the link for the full news article)

I know a few people that are still stuck in ARM loans... and their bank will not work with them for a fixed rate. They are intentionally forcing these defaults further by doing this since it guarantees that a current owner that can make the payments and has for 2 years cannot now due to the ARM raise from 7% to 12% or more.

This can be fixed quite easily. Instead of just buying bad debt, the US could announce a new program.... "voluntary" 2% fixed with a catch..... Just like a student loan, you will pay it off. You cannot be foreclosed on but if you fall behind, you will have your tax rebates utilized to pay the remainder. This program would be for single homeowners primary residence only of course to keep the investors out of it.

reply to post by infolurker


Senator Dodd - People need to know that Congress is watching...lol

How about ACTING? Why give Paulson more power for effing it up? Get the GAO over the Fed.

I'll have to find a source, but isn't Senator Dodd one of the main recipients of campaign contributions from Fannie Mae and Freddie Mac? I find it ironic that he is calling for more government oversight. What was the finance committee doing all these years?

I found a source...

Where Was Sen. Dodd?
Playing the Blame Game On Fannie and Freddie

www.washingtonpost.com

During this period, Sen. Richard Shelby led a small group of legislators favoring reform, including fellow Republican Sens. John Sununu, Chuck Hagel and Elizabeth Dole. Meanwhile, Dodd -- who along with Democratic Sens. John Kerry, Barack Obama and Hillary Clinton were the top four recipients of Fannie and Freddie campaign contributions from 1988 to 2008 -- actively opposed such measures and further weakened existing regulation.

(visit the link for the full news article)

[edit on 22-9-2008 by BomSquad]