Can someone explain to me the big differences in the bailout plans?

[dubeskin]

All I really understand is that there was a Republican plan for a while that NO ONE liked because of the huge amount of money ($700 billion +) it required, and now I'm reading that the Democrat plan is likely to pass tomorrow. The big difference I'm noticing though is that DU is, for the most part, supporting the Democratic one. Why is that? Aren't they essentially both giving money to the people who got us in this mess in the first place?

[Newshues]

1. um

Substantively the differences between what Paulson put forward a week ago as a draft plan and the one the Democrats are going to put on the floor to vote on are this

1) strong oversight - so we know where that 700 billion went.
2) Removal of Mark-To-Market accounting ( personally I think this is worth more than the 700 Billion )
3) mostly fluff that encourages Paulson to do the right thing in such a way that it's easier for him to do the right thing ( mortage relief for people facing foreclosure ) then the wrong thing.


Lots of fluff for mostly political cover and the shut up the House Republicans.

1 and 2 are the biggie differences.

[dubeskin]

2. But what exactly does "strong oversight" mean?

Are the banks going to be heavily regulated, almost nationalized? It Paulson going to "oversee" them for the rest of this time? Pretty much it sounds like the Treasure decided everything, which to some degree sounds a lot like the Republican's plan.

[Newshues]

5. The oversight is in heavy documentation of what

Paulson decides to do with the money in a timely manner and a committee with cease-and-desist and injunction powers.

Regulation and nationalization don't provide oversight in and of themselves. They can, and should, but it is no sure thing.

[Venceremos]

3. um

there's no way to tell the difference for certain yet because the final bill hasn't been released yet. "Strong oversight" in the 102 page plan Dodd proposed last week was a complete joke.

And yes, both plans give $700 billion to the idiots who caused this mess.

[shirlden]

4. Major difference is

The first plan was three pages......the second one is 106 pages.
It took another 103 pages to try to convince the taxpayers that they are not being screwed. I read all 106 pages. Strange, but I still think I am getting screwed...........Hummmmmmmmm??

:shrug: