House Passes Economic Rescue Bill 263-171
By Justin Gardner | Related entries in Bush, Congress, Economy
Looks like those 100 Republicans still stood firmly in opposition even though it was widely known that the credit markets AROUND THE WORLD had frozen up and there was absolutely nothing that could reverse that except this bill.
The core of the plan remains little changed from its inception—the Treasury Department would have $700 billion at its disposal to purchase bad mortage-related securities that are weighing down the balance sheets of institutions that hold them. The flow of credit has slowed, in some cases drying up, threatening the ability of businesses to conduct routine operations or expand.At the same time, lawmakers have dramatically changed the measure, insisting on greater congressional supervision over the $700 billion, taking measures to protect taxpayers, and insisting on steps to crack down on so-called “golden parachutes” that go to corporate executives whose companies fail.
Earlier in the week, the legislation was altered to expand the federal insurance program for individual bank deposits, and the Securities and Exchange Commission took steps to ease the impact of the questionable mortgage-backed securities on financial institutions.
Bush is expected to sign the legislation immediately.
Expect this to be a campaign issue in 2012.
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October 3rd, 2008 at 1:06 pm
We know this HOW exactly? It may be true, but let’s call this notion what it really is. It’s the driving presumption behind passage of the bill. It’s not an established fact, it’s a presumption.
One could argue that American indecision on this HUGE financial decision was what was causing credit markets to freeze.
October 3rd, 2008 at 1:13 pm
This is a dark day for our country and the future will prove that it is a dark day for our economy as well. Perfect portrait of the failure of our government and the people we elected. There were other options, but instead of behaving like leaders our Senators and Representatives went for the quick, short term decision that, incidentally, had billions of additional dollars of pork in it. Nothing but legislated bribery. I’m just simply disgusted right now.
We live in an era of panem et circeses, interrupted periodically with a liberal dose of government-inspired fear and paranoia. A hundred years from now, historians will point to this era as the beginning of the end for our country as we know it.
I can only hope that this serves as a clarion call for the masses to wake up and start paying attention to their government, to participate more, to require accountability, to put the source of governmental power back in the hands of the citizenry. Otherwise we are sheep to the slaughter, happily cashing our “stimulus checks” while our republic mutates into a socialist oligarchy.
Shame on us.
October 3rd, 2008 at 1:37 pm
i’ve got two questions. Is it true that this is all going to come from newly printed money, and if so won’t that devalue the dollar to a pretty serious extent?
October 3rd, 2008 at 2:00 pm
Andrew, surely you don’t think that after this bill is signed, they’re going to send a note down to the treasury dep’t to order the mints to print up 35 million new $20 bills and then ship pallets of cash to failing banks?
Currently, foreign governments are forecasting our financial collapse with glee despite the even sketchier state of their own markets. Meanwhile, foreign investors desperate for safe havens for capital are pouring their money into US treasury securities. In essence, we’re being lent this money by such actions. That’s how the government spends money it doesn’t have, by issuing bonds. Government bonds are promises to pay slightly more than a dollar some day in return for a dollar today.
October 9th, 2008 at 7:26 am
At the same time, lawmakers have dramatically changed the measure, insisting on greater congressional supervision over the $700 billion, taking measures to protect taxpayers, and insisting on steps to crack down on so-called “golden parachutes†that go to corporate executives whose companies fail.