Lines Drawn in Bailout Battle: Consensus Shifts Against White House

[Waiting For Everyman]

The Huffington Post, September 22, 2008
Sam Stein

Days after Treasury Secretary Hank Paulson rolled out a huge financial market bailout proposal to positive reviews, the battle lines across the political landscape have shifted. The prevailing sense, among tuned in observers, is that Paulson and the White House now face a steep climb in Congress.

On Monday, several high ranking Democrats stepped up their opposition to Paulson's plan, which called for spending at least $700 billion over a period of time, with scant additional oversight added to the financial markets or, for that matter, to Paulson's actions themselves.

Barney Frank, the chair of the House Financial Services Committee, was one of the first out of the gates, telling ABC's Good Morning America: "I trust Hank Paulson. But I don't trust anybody to have the amount of power he asked for in the bill he sent us." Chris Dodd, chairman of the Senate Banking Committee, followed suit: this bill, he warned, will "turn $700 billion over virtually to one individual."

And while the rest of the caucus was initially vague about where it stood, their positions have became more sharply defined. A counter proposal was released through Dodd's office, calling for government intervention in the market, and adding elements that the Bush team initially resisted: limiting corporate compensation, assisting homeowners, inserting measures to prevent foreclosures, and demanding additional oversight of Treasury's actions. It is a pill Paulson may have to swallow.

"I think the White House and the Treasury are in a position where they have to take what Congress offers them. I don't see how they have any bargaining power," said James Galbraith, a professor of economics at the University of Texas. "If Congress crafts a bill that serves and protects the public interest while providing some measures that protect the financial market, the White House will have to take it."

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http://www.huffingtonpost.com/2008/09/22/lines-drawn-in-bailout-ba_n_128372.html

[MannyGoldstein]

1. The Battlin' Congressional Democrats Are Busy Planning

their surrender.

Ugh.

[Demeter]

2. Absolute Power Corrupts Absolutely! These Boys Are Corrupt Enough Already

Fuggeddaboutit.