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Bush to address nation to push bailout – CNN.com

Bush to address nation to push bailout – CNN.com

NEW YORK (CNN) — President Bush will deliver a prime-time televised speech Wednesday night to pressure Congress to pass a $700 billion plan to bail out Wall Street, the White House announced.

Bush’s speech is set to begin at 9:01 p.m. ET and will take just less than 15 minutes.

Federal Reserve chief Ben Bernanke warned Wednesday that the Wall Street crisis is the worst the nation has faced since the end of World War II and urged Congress to take action on a proposed bailout package.

Congress is considering whether to allow Treasury Secretary Henry Paulson to use federal funds to buy up to $700 billion in mortgage-related securities and other assets that have caused turbulence on Wall Street and have undermined credit markets worldwide.

But Paulson and Bernanke faced deeply skeptical lawmakers, including members of Bush’s own party, when they pitched the plan before congressional committees Tuesday and Wednesday.

This will be interesting … it’s time that someone attempted to explain the plan to the average American citizen.

I’m hardly an expert, but I’ve been reading everything I can get my hands on over the past few days to try to find out what’s going on, even going so far as to contact one of my company’s economists to try to get a better explanation.

I believe the effect will be short-term pain and eventual recovery, versus what I think will be the long-term pain if we don’t do anything.

The economy is not healthy. It’s not going to heal itself, no matter how much Art and Julie want it to.

I also question Barack Obama’s decision not to step back from the campaign, at least for a few days, as did John McCain. I think that Obama needs to do the same thing ASAP; for appearances sake, if nothing else.

This is not a time for campaign bickering, but for the parties to come together and hammer out some sort of agreeable plan. The economy is sick, and unfortunately some intervention is necessary. It needs more controls than in the original proposal, but those compromises should be fairly easy to come by if both sides stop thinking in a partisan manner, and start thinking about Americans.

Regardless of McCain’s motivations, if Obama doesn’t step back as well, I know the Republicans will use his decision for political fodder … “see, we put ‘Country First’, while Obama put Obama first” …

We don’t need that.

The most important thing is to put some sort of review/oversight over Paulson’s actions once the bill is hammered out and passed.

The former Section 8 (the “32 dirty little words”), which is now section 12 in the 9/21 draft proposal (and now “39 dirty little words”) needs to be addressed. There is no way that Paulson’s decisions under the act should not be subject to review …

The speech just started. More thoughts later.

flahute

14 thoughts on “Bush to address nation to push bailout – CNN.com

  1. I was telling the wife, Obama needs to get to DC and act like the president. Sit down with the Dems and say this is what we need. Meet with key Reps and say this is what is required. Demand to talk to Paulson (as a senator he should be able to pull that off) and tell him oversight is required.

    If he doesn’t say hello President McCain.

  2. You and all the politicians seem to think that the economy needs to be constantly growing. Yes that would be nice but it just can’t happen, especially when that growth is fueled by credit. People are using Japan as an example of what this “bailout” will do but even that is flawed. Japan had a lot more saving than we do and they are still recovering after 18 years. Just like a forest fire cleans out all the dead wood and a healthier forest grows back. Same is true with any economy. Greenspan was so worried that the dreaded R would rear it’s head during his term that he started dropping interest rates, the .com bubble burst and the housing bubble started to grow fueled by low interest rates. Now that is popping. The reason no one is buying this debt is because it is over valued, that is why Lehman went down, they had an offer and Dick Fuld would not take it. Now their assets are being sold off for what they are really worth. Same thing would happen to all the others waiting for their hand out if the free market were allowed to function. Bernake is saying he wants to pay full value for this crap, loans with a default rate of 22% in a good economy!

    It is encouraging that the Senate is balking at the Paulson Scheme and starting to ask some hard questions. Still no one is asking what this will do to the dollar. I’ll give you a clue, nothing good.

    Don’t worry about Obama. There is now way the Republicans want to step any deeper in this mess. Here are the steps: Obama will win, he wont be able to fix the economy (no one could in 4 years), Republicans will have 4years of “see we told ya he could’t fix it”, hello President Romney.

    The horror, the horror….

  3. I don’t think it needs to be constantly growing … but this isn’t a healthy retreat; this could be an economic holocaust, unless something is done to help mitigate the disaster.

    I find it interesting that the politicians are the ones balking, and that economists generally seem to think that something needs to be done, and that it ultimately will not cost the taxpayer anywhere near the $700-billion that Paulson is asking for.

    Politicians are not generally known for their intelligence in money matters, other than how to raise it to fill their own pockets.

    My gut is telling me that with some controls to make sure that Paulson (and his replacement) don’t run hog-wild, then this is absolutely necessary. And for all of our sakes, I hope that I am right, and that you’re wrong, Art … but if the bailout plan does prove to be a disaster as well, then I will be the first to say “you told me so.”

  4. Bush is hijacking our economy to get Mccain elected with FEAR as the main tactic. We as the Middle Class people, the people who are supposedly “Thee Government” are supposed to somehow feel sorry that CEOs and other Bush cronies are not making billions and billions of dollars, so WE are the ones who have to bail them out!
    It is becoming more and more clear everyday that passes by that Barack Obama is the only leader that this nation has left. The only leader who is the most accurate representation of the diversity that WE-ALL-TOGETHER share, in one person. It is the Republicans who are making Barack Obama look like a Messiah with every move they make.

  5. God, Bush is an asshole. He lost a war he shouldn’t be in AND ruined the economy. Then he tells people to panic. One hundred years ago there would be a mob outside the White House with pitchforks, torches, and tar.

  6. Instead of giving these corrupt financial corporations “our” money back, why not create a government loan agency (ex: American Loan Agency)…put 700 billion dollars into the new government loan agency that gives low interest loans to AMERICAN CITIZENS!! Let these corrupt corporations crash and burn like they deserve, and actually give back to the taxpayers. Make all of the loans public information over the internet for the PUBLIC to monitor,minimizing corruption, since we seem to be the only ones that care… All this corruption is nauseating.

  7. It is great to hear that you are trying to figure out exactly what this plan is all about. Unfortunately, if you listen to the news sources, especially CNN, you will only be filled with misinformation and it is the news services that are confusing the American public.

    This so called “Bailout” is actually really pretty simple. The Treasury simply wants authority to purchase troubled assets from US financial institutions. This will restore stability and put in place a floor on the market. These troubled assets are like a clog in your sink. Nothing will pass when the clog is present. However, these troubled assets are still assets and do have value. The value of these assets will increase as the economy’s stability increases.

    If the Treasury Dept. is given authority to purchase I predict that a market for these assets will return and the Treasury Dept. will purchase far fewer assets than the public realizes. Also, I predict that the gov’t will at a minimum break even on these asset purchases and there is even a good chance that the gov’t will earn additional money.

    Bottomline: The gov’t is not giving away any money. They simply want to buy assets that have no market place in a troubled financial system. The assets have value and the gov’t should at a minimum break even.

    Read the US Treasury Fact Sheet here (it is all you need to read to understand what is going on): http://www.ustreas.gov/press/releases/hp1150.htm

  8. Pilgrims pride seems to be the first “Fat cat” to fall. Those Fuckers!!! how dare they try and sell America overpriced Chicken. Corrupt chicken growing Republican Welfare motherfuckers.

    We will show them!!!!

  9. As of the financial crisis deep even more into a graveyard, we as Americans are waiting on the bailout plan proposed by the treasury secretary Paulson. The average people do not understand the idea of bailing out financial firms and commercial banks. Here is a simple word to conclude the money spend and money short. When the government buys bad assets from the banks with the right to reverse it back for a potential purchase at the market value, it is actually investing into a more comparative budget of earnings for the American taxpayers. Some congressmen’s and senators that are refusing this plan, are those ones that argue or pretend that they are protecting the average American, but instead they are putting our heads even deeper into the crisis. Those upon whatever degree of responsibility that forces against this bailout plan are those that hope for financial firms to go down and purchase them at their convenient budget to flip them later to the American people. I do realize that this is a matter of saving America, and therefore it is an emergency to act now. Last week had a final blow and raise enough capital to withstand any downgrading from Fitch, and that is thanks to rumors and speculation that the market had given. Financal banks like (WM), (WB), (MER), (AIG), (FNM), (FRE), are poised to this market, they are in waiting for the bailout, they realize the need of cash at this time. There is a big concern in the financial sector from the distress of not raising enough capital needed to support those bad debt of mortgages that have been lend to people for this 10 year period. Some in defaults are already occupying their houses and do not tend to pay a dime because of the crisis on the wallstreet. This bailout plan need to be passed along with many regulations for the housing market to prevent this from happening in our future, and it could be done by reforming and downgrading the financial corporates to a more diversified asset to be able to raise capital and build a more wealthy portfolio. Put more money on the financial commercial banks to be able generate loans to businesses and people in need, to give farmers the ability to produce and sell, to open new jobs, to rebuild the consumer confidence in spending and helping the heritage of a small business to survive.

  10. Un Fucking Believable!
    The President has the Balls to speak to us as if we are dunbasses like himself!
    “Extraordinary period” is how he starts off, lol spit.

    “Serious Financial Crisis”

    but don’t worry, “The Federal Government is Responding”. Ask the people of Mississippi and Louisiana, and Galveston if they have heard that one before.

    “My Administration is working with Congress to address to root cause behind much of the instability of the Markets” I believe we have a conflict of interest……Their Fucking Money!, not ours. There has to be something illegal about that.

    “Supply more Money so the Banks don’t collapse” I don’t know about the millionaires out there, but I will be able to survive, but I’ll be cautious of anyone wearing a suit.

    I would like to debate is Speech Writers!

    Ohhhhhhhhhh, and Bush says it’s the citizens fault that we are in this Financial Crisis because we borrowed money and were unable to repay. Well, who was the dumb ass that decided to give out credit over the damn computer, no face to face. No collateral needed, just type in whatever amount that you wish where it ask for your income?
    If we hadn’t invaded Iraq, and gone sticking our nose where it does not belong, we would not be in this mess at this time, maybe later, but.

    And I hear him talking about “investors assuming”, it isn’t my fault that the investors didn’t study Roman History. So let the RICH investors lose! Screw them. And their serious losses!
    Eminent Collapse, isn’t that ok, someone else will learn from their mistakes and do it right. Do Not reward Bad Business.

    Do any of you know what happens literally when “Gears come to a grinding halt”? It doesn’t mean you should back up, and push harder. Those gears have had it, trash them. It means you need to dismantle the axle, sand it down, repair the damage, change the bearing and gears, add lube, and then try to move forward!

    And I think those Gears that were mentioned earlier are The Elephant and the Donkey, and all that stand under them!

    “These are not Normal Circumstances” He, our President, really doesn’t have a clue! We’re Screwed Again!

    “A Distressing scenario would Unfold” if you do no give me the money! That is a threat from our President! Isn’t that a crime.

    “Banks could Fail, even Some in your community” Another threat in order to make us submit! Getting Personal. Reduce the value of your retirement account. That’s why they want you to use the Banks, so the government can threaten you. You put your money in a Federal Bank?

    And there might not be any credit. Hmmmmmm. Not too bad, that’s what got us partly to this point.

    Many Americans could lose their jobs, Especially if it is a Government Job!

    When he says” Fellow Citizens”, I just want to slap him and Expel him from this country(one mild option), after freezing His Assets!

    And if Congress goes on Vacation during all this crap, we need to follow them, harass, them, and more, sling some literal shit on them!

    But they “Understand Your Frustrations” , that is a big lie in itself!

    And we will need a “Bipartisan Board To Oversee The Plans” Maybe we should OUTSOURCE that too! Can you imagine the money going to these crooks?

    Paulson, Benacke, and Cox should be Expelled also! Or hung!

    “Troubled Assets Are Clogging the Financial System” Sounds like a job for Mr Plumber. Maybe we should sell our bad debt to Canada and let them run the country.

    So, here is the Trojan Horse……..The Government wants to buy your debt, and hold it until the markets recover. No No No No……sounds like Russia to me, or worse. So, I guess they will be our landlord? We Will be Screwed! Loss of Privacy!

    The Government will be able to keep a closer eye on a businesses books? I do not like that, do you want more governmental control? Wasteful!

    Stand up people! Speak out! Tell your Representatives and Congressmen that you know where they live, and where their families live. Threaten Back! They are suppose to be speaking for the citizens.

    And he finishes by putting us in Gods Hands, the only thing he said that I believe.

  11. David, lots of complaining but I did not see your solution to the current problem. The problem is that there is no market place for mortgage backed assets due to market instability. How would you solve that problem?

  12. i think that the bailout would be a good idea. I’m not a rich person, i don’t own a house, i have no stocks…i am a hair stylist and this plummet is affecting me. My usual day in the salon is busy and loud and i didn’t think that i would be affected as much as i have been. my clientel will usually drop some cash for covering their greys, but now they are hesitant to even come in because they are pinching pennies. i mean rich and poor. The salon for the last 2 weeks has been a ghost town. I was saving my tips for the last few weeks to fly my brother in to see me for a week because he is going through a tough time and now because of clients pinching pennies, i have to as well. this is where americans need to really come together and stop depending on certain politicans to make the decision for them. look around you, we are all being affected. Now the focus point is on the presidential debates and yadda yadda, forget that for a second…we need to keep this economy running.

  13. Our Great President risks driving our great country to Communism, if he keeps buying failing financial companies with our Federal Reserve!

    The Bush II WHite House, and its policy of allowing corporate greed to run roughshod over Wall Street, have caused this entirely. Bush is an utter disaster and must be impeached for such gross negligence. McCain Superfries would do no better as Prez.

    Dr. Ted Baehr
    Christian Film & Television Commission

  14. Ted said: “Our Great President risks driving our great country to Communism, if he keeps buying failing financial companies with our Federal Reserve!”

    Ted, what financial companies has the govt bought? Lehman failed and Bear Sterns was absorbed by JP Morgan. The only intervention was a Federal Reserve loan to JP Morgan. Shareholders in both companies lost almost all their investments.

    The current legislation has no wording that the Treasury will buy any financial companies. The legislation seeks to purchase assets to stabilize a weak financial system.

    Stop spreading fear!

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