White House, Lawmakers to Seek New Bailout Deal

[Hissyspit]

Source: Associated Press

White House, lawmakers to seek new bailout deal
By JIM KUHNHENN, Associated Press Writer
16 minutes ago
WASHINGTON - Top congressional and White House officials, stunned when the House rejected a massive rescue plan for the nation's economy, scrambled to structure a new bailout proposal that would attract reluctant lawmakers and still soothe the unnerved financial markets.

- snip -

With the House not scheduled to meet again until Thursday, congressional leaders and Bush administration officials promptly sought to assess what types of changes could win over enough votes to guarantee success. President Bush planned to make a statement on the rescue plan at 8:45 a.m. EDT Tuesday.

- snip -

Democratic presidential candidate Barack Obama on Tuesday said in a statement that lawmakers should not start from scratch as they weigh their next move. From the campaign trail, the Illinois senator proposed that one change would be to raise from $100,000 to $250,000 the amount of federal deposit insurance for bank accounts. He said that such a move would be a boost for small businesses and would make the U.S. banking system more secure as well as restore public confidence in the nation's financial system. Obama also said further inaction would be catastrophic for the economy and for American families.

- snip -

The sense of urgency was not universal. Many opponents of the bill argued that the package amounted to a too-costly commitment of taxpayer money to bail out financial institutions for their own mistakes.

Read more: http://news.yahoo.com/s/ap/financial_meltdown

[AndyA]

1. Hey, here's an idea: How about doing something for the AMERICAN PEOPLE this time?

You know us. We're the ones who foot the bills for all this crap dredged up in Washington.

How about doing something to put a stop to foreclosures due to ARMs. Let Judges lower interest rates and mortgage payments to keep people in their homes, and keep money flowing into the mortgage companies.

How about starting at the bottom and allowing the money to flow up to the top? We know trickle down doesn't work. So why are we handing over money to the very same people who screwed everything up?

Take steps to prevent mortgages from going bad.

Take steps to keep people in their homes, which will help to stabilize the market.

Take steps to immediately reduce mortgage payments for people who signed ARMs.

That will go a long way toward fixing the problem, and it will give the American people more money to spend, which will STIMULATE the economy.

[PearliePoo2]

3. Wish I could recommend your post

Start it as an OP please.
EVERYONE wants to pay their mortgage. No one wants to be out in the street.
Help people who want to truly do the right thing and it WILL trickle up.

[jjanpundt]

7. This is probably an incredibly stupid question, but would it be

possible to reverse all ARM mortgages to fixed rates? Could the FHA or some other gov agency start reviewing the ARM mortgages and re-work them so that people could afford to stay in their homes? I've read where some ARM payments went from $600 a month to more than $1600. If these could be re-negotiated....

I realize there still many problems as some people have lost their jobs, used up all their savings, and maybe have other bills on top of trying to provide a roof and food for their families - I'm not sure what kind of help would be needed to sort out their crises.

[AndyA]

10. At this point, I think they need to explore all avenues.

Anything that can be done to keep more people in their homes will stabilize the housing market, which seems to be the big issue here. It's not difficult to understand how a house payment increasing by $1,000/month becomes a problem real fast.

And why do the mortgage companies feel it's necessary to hold people to these increases? Nothing says they HAVE to do it. Keep the payment the same and keep money coming in, instead of throwing the homeowner out onto the street and collecting nothing. It's ridiculous. The mortgage companies could cut their losses if they wanted to, but they're just being greedy.

[ixion]

2. and so the next wave begins

the WH will change the wording, but not the intent, and we'll be told it's a brand new deal.

Look folks, anything, and I mean ANYTHING the WH creates will be nothing more than the first failed attempt at robbing the taxpayers. The Bush cabal will never ever, ever give the middle class a fair shake. They despise the middle class. They see the middle class as a glorified slave class, and they'll be damned if they're going to make a deal to benefit slaves.

Do you see where this is going? There can be no deals until the neocon cabal is gone, because ANY deal made with them will ultimately be designed to screw us for decades to come.

[pleah]

5. That is it exactly.

IMO

[mike_c]

13. bingo!

Yes, a thousand times! We should not even be CONSIDERING any bailout until the people responsible for this mess acknowledge their responsibility and step aside. IMO that begins in the White House and the executive cabinet, proceeds through BOTH parties in Congress, and through the financial industry at the very least.

The current proposal is that the solution is to give the very same people access to the taxpayer's wallets so they can "stimulate" their failed policies with more of other peoples' money. They've pumped their self-primimg funny-money wells dry, and now they want to "fix" the problem by refilling their wells with the peoples' resources.

NO FUCKING WAY! NO DEAL. STOP THIS MADNESS NOW!

[SpiralHawk]

4. Republicon = FAIL

As ususal.

[whistle]

6. Add a surtax of .65% on all stock trades to create a bailout trust fund

...which is submitted weekly to the U.S. Treasury to can be used to distribute emergency bailouts when the investment banks are in crisis and to payback taxpayers for the last $350 billion in bailouts and also the $300 billion bailout more the Federal Reserve issued yesterday and any future bailouts taxpayers are asked to front.

[Deny and Shred]

8. The first thing I would do is Spin it in the media - McCain

"The first thing I would do is say, 'Let's not call it a bailout. Let's call it a rescue"
That's your first response? Bravo John. What's second, toss a life preserver?

[Dover]

9. WHY is Obama committed to this bill and not to us?...

This is pretty disturbing that the Dems are so gung-ho for this deeply flawed bill.

[Sadie5]

11. This bill is flawed but...

I believe that the Democrats want this bill to pass because they know they are going to take the White House. They don't want to take over with all of this hanging over their heads. I say let the greedy crooks stew in their own juices and fix the problem after the election.

[BootinUp]

12. I am having a hard time accepting

the cash for trash plan, the lipstick ain't helping. I like the article in Time today (see cnn.com).