From the New York Times:
WASHINGTON — The status of a rescue plan for the nation’s financial system was in doubt on Thursday, at least for the moment, as lawmakers emerged from a meeting with President Bush to say that negotiations had a ways to go.
One critical snag seems to be opposition to the $700 billion plan by conservative House Republicans.
“My hope is that we can get a deal,” said Senator Christopher J. Dodd, chairman of the Senate Banking Committee, hours after House and Senate negotiators had announced that an accord was at hand. President Bush had hoped that an agreement could be announced after the late-afternoon meeting.
Mr. Dodd, looking tired and annoyed, complained that the late complications were making the episode sound more like “a rescue plan for John McCain,” the Republican presidential candidate, than one for the financial system.
It does no good, Mr. Dodd said, “to be distracted for two or three hours by political theater.”
The senator was apparently alluding to a growing revolt by conservative Republicans, and the fact that Mr. McCain had not yet endorsed the plan, whose concept runs contrary to the policy positions he has taken.
House Republicans are not on board, according to Minority Leader Rep. John Boehner, R-Ohio.
“House Republicans have not agreed to any plan at this point,” Boehner said.
Instead, they issued a statement of economic rescue principles that calls for Wall Street to fund the recovery by injecting private capital – not taxpayer dollars – into the financial markets. Easing tax laws would prompt investors to put in their own dollars, they said.
And from the Wall Street Journal:
Earlier Thursday, congressional leaders had hammered together the outline of a compromise that involved allotting the bailout money in installments. However, after a meeting at the White House — attended by President George W. Bush, congressional leaders and the two presidential candidates — the gathering broke without announcing a deal, despite widespread expectations that one was imminent.
One cause of the delay: opposition from House Republicans who have tried to fashion an alternative “free market” plan that, instead of relying heavily on taxpayer money, could let banks buy insurance for the troubled assets weighing down their books.
Let me see if I’ve got this straight. Republican deregulation policies got us into this mess. Republicans proposed a solution, that while not ideal is the best shot we’ve got to get out of it. And, Republicans are the ones fighting against the solution that the Republicans proposed.
I’m trying to figure out where the House Republicans think that banks are going to get the spare capital to buy the insurance to protect their troubled assets, when so many banks are failing because … wait for it … THEY’RE LACKING SUFFICIENT CAPITAL!!!
Awesome. I love it. Fuckwits on parade.