While the fight for the presidency goes on – the battle of Congress is still on hand.
$700Bn is a hell of a lot of money in anybodies theory of what is needed to save an ailing economy – this is as true for the US as anyone else. But – and this is the crux of the matter, this is tax payers money so the tax payer should get back all, if not more, of their money.
But is Bush trying to help those businesses while leaving the US tax payer out to dry?
Henry Paulson is calling for swift action from Congress – but is that a matter he wants this action to save the stock market from another crash?
Paulson on Sunday acknowledged that the plan involves considerable risk for taxpayers, but said that the Treasury should recoup at least some of what it will spend on this bailout.
“We’re talking about hundreds of billions of dollars, but remember this is not an expenditure, this is money that is being used to purchase illiquid mortgage assets that are very difficult to value,” Paulson said on NBC’s “Meet the Press.”
“They will be held [by the Treasury] and they will be resold at some time. And so we can’t determine what the cost is today,” Paulson said. “That’s going to be based on how quickly the economy recovers, what happens in the mortgage market.”
So there isn’t a real guarantee that the taxpayer will recoup most of the money being spent on their behalf. Nancy Pelosi says that this must be part of any help or bail out.
Democratic leaders on Capitol Hill said on Sunday that the Bush administration’s $700 billion proposal to bail out the financial system lacked necessary safeguards for taxpayers and homeowners.
Democrats want the measure to include independent oversight, homeowner protections and limits on executive compensation, House Speaker Nancy Pelosi, D-Calif., said in a statement early Sunday evening.
“We will not simply hand over a $700 billion blank check to Wall Street and hope for a better outcome,” she said.
This isn’t what McCain will advocate – he will still go for a safety package for corporations but not American tax payers.
Why oh why do Republicans insist on bailing out companies that have failed and not protect the person who is paying hard earned dollars to finance this? That would be the minimum thank you to the tax payer – “OK, we’ll use your money – but we will get it back for you and hopefully at a profit.” That is what should be said before any negotiations take place. I would have thought that it was obvious that this should happen.
We see McCain avocation reform and regulation – something he has shied away from in the past – saying that with deregulation can these things be sorted. But that is obvious flaw – and as that is the US economy at its hight, that flaw must be looked at under a microscope.
McCain is taking on the muse that he is a Democrat – which we all know is not the case. McCain is saying all that he can in respect of getting voted into office. His lies have not been investigated and reported enough to the US voter, which really isn’t any surprise. His economic plane should be shown for what it really is – a smoke screen he can hide behind until, and if, he gets into the Oval Office. God forbid.
May be the debate this Friday will show McCain up for the person he really is – I just hope upon hope that Obama doesn’r give him any leeway.
Strike while the iron is hot should be what Obama thinks.