The coming financial crisis

[Diomedes]

For the sake of argument let's say that the Senate Dems and Repubs, the House Dems, and the White House all more or less agree on a plan, which seems to be where they are right now.  It's a bailout plan not very different from what Paulson wants, basically.

But the House Republicans are not buying it, and are proposing a very different solution.  Can someone explain why the House Republican proposal is seen as a bad idea to the other wonks and pols?

[rjs246]

For the sake of argument let's say that the Senate Dems and Repubs, the House Dems, and the White House all more or less agree on a plan, which seems to be where they are right now.  It's a bailout plan not very different from what Paulson wants, basically.

But the House Republicans are not buying it, and are proposing a very different solution.  Can someone explain why the House Republican proposal is seen as a bad idea to the other wonks and pols?

It's because the House Repbulicans don't really have a proposal of their own as far as I know. The only reason this bailout is getting any support at all is because it's the only idea anyone has had. It's a bad idea that has the potential to lead to very bad things down the road, but there's a sense that if this isn't headed off immediately everything will completely fall apart. Politicians don't like that idea.

By all accounts the Republicans were on board until their constituents spoke up and let them know that this was a farging awful plan. People don't want to see their houses lose value while the iceholes who made it happen get to continue doing business on the tax-payer's dime. And good for them for actually doing something.

But in the mean time there is literally no agreed-upon counter-proposal because it's about 4 years too late for anything sensible to be done about this. It's either adopt a terrible plan, or let the shtein hit the fan and allow the markets to adjust and correct themselves naturally. Either way, we're all in for a big shtein storm.

[Cerevant]

I know that the Keating 5 scandal has been basically ignored because it is considered old, but isn't the fact that McCain was in part responsible for the S&L crash relevant to current events?

[fansince61]

I think we should all stop paying our mortgages immediately.  Tell the banks to go straight to hell and they can take my house after they take my gun.

"Gun Control"...Hitting the bullseye every time

[fansince61]

Using some very undocumented math techniques I came up with .. if each worker would pay the government $6-7K the goverment could raise the 700B.  In return the government would agree not to penalize any payers soc. sec. upon retirement (even if I decided to continue working I would not have the $13K threshold income level)..just tax my earned wages each year....problem solved...mission accomplished..write me in on election day:yay

[fansince61]

I know that the Keating 5 scandal has been basically ignored because it is considered old, but isn't the fact that McCain was in part responsible for the S&L crash relevant to current events?

Absolutely!  Once again he is the most experienced to handle this crisis 

[Seabiscuit36]

http://www.cnbc.com/id/26895236

Both Sides had the deal worked out, then the Mavrick came to town.  Both sides are offering him up to the platter now. 

"We're going ot get this done—and stay in session long enough to get it done," Senate Majority Leader Harry Reid told reporters. "The time is now, for House Republicans to come to the negotiating table and for presidential politics to leave the negotiating table."

"A few days ago i called on Sen. McCain to take a stand to let us know where he stands on the issue on this bailout, but all he has done is stand in front of the cameras," Reid said. "We still don't know where he stands on the issue."

[PoopyfaceMcGee]

Reid is "both sides?"

[Father Demon]

For those that want to understand this mess in easy language

[Seabiscuit36]

Reid is "both sides?"

Bob Bennett said it live on CNN

[PoopyfaceMcGee]

Rushing to throw a bunch of money at this with minimal thought is really going to come back to haunt us all.  I just want to get on the record now there.

Restraint and indecision is better than what we're going to get.

I concede that some level of "bailout" is necessary to prevent complete immediate collapse, but the $700 billion plan is a complete mess.

[Phanatic]

GOP has an alternate plan I heard this morning. Any of you financiers know anything about it?

[rjs246]

It sort of makes my ass twitch to think that Republican dregulation has helped cause this and that now we are relying on their fiscal-conservatism to come up with a reasonable rescue plan.

Don't worry faceless, soulless corporations. Do whatever you want in any manner you would like. No rules. And to make matters even better for you, when the bomb drops we'll concoct a plan to clean up your mess.

[reese125]

GOP has an alternate plan I heard this morning. Any of you financiers know anything about it?

there are no details of this plan by the GOP that I have seen or read anywhere. Either way, its looking like this plan is scaring the shtein out of both dems and repubs.....which is not good.

Heres the latest:

http://abcnews.go.com/Politics/PersonalFinance/story?id=5891721&page=1

[Diomedes]

It's either adopt a terrible plan, or let the shtein hit the fan and allow the markets to adjust and correct themselves naturally.

I vote for the latter.  Time for America to stop living on credit.