Obama Bombs Bailout Meeting–Whitehouse Still Standing–McCain Saved By House Republicans

Posted on September 27, 2008. Filed under: Blogroll, Economics, Investments, Life, Links, People, Politics, Quotations, Rants, Raves, Regulations, Resources, Taxes, Video | Tags: , , , , , , , , , , , , , , , , |

 The dirty little secret is out.

Obama bombed bailout meeting!

In the meeting with President Bush and Secretary Paulson, the Congressional Democrats deferred to Senator Barack Obama to be their spokesman and to lead his party in the bailout meeting with President Bush and Senate and House Republican Party leaders.

Apparently someone highup in the Treasury Department leaked the Congressional Republican Party proposal to higher ups in Goldman Sachs who in turn leaked the proposal to the Obama campaign. Treasury Secretary Paulson was former Chairman of Goldman Sachs and is a Republican.

Obama led off by criticizing the Republican Party proposal and asking for Treasury Secretary Paulson for his comments.

The result was the meeting blew up as Republicans felt betrayed and responded accordingly.

The purpose of the meeting was to negotiate a proposal acceptable to both political parties.

Congressional offices of both parties have been flooded with phone calls and e-mails against the Treasury bailout/rescue plan by about 95 opposed for every 100 calls/e-mails.

The House Republicans are by a wide margin opposed the Paulson Treasury bailout proposal.

The Congressional Republicans want in part repeal of the Sarbanes-Oxley law, especially the mark-to-market requirements, the elimination of the capital gains tax, and the reduction of corporate tax rate to 20% to provide a stimulus to investment in the economy and to compensate investors for the losses resulting from incompetent oversight and regulation of Fannie Mae, Freddie Mac, and investment bankers highly leverage positions in derivative mortage backed securites. 

Senator Obama’s performance was neither professional nor inspiring–just incompetent.

Once again Senator Obama without a teleprompter and his legends of advisors proves to be just a reader and not a leader.

Both Democrats and Republicans left the meeting unimpressed by Senator Obama’s ability to lead a negotiating meeting.

The Democrats are trying to blame Senator McCain for throwing the Obama bomb and injecting politics into the meeting.

Senator McCain observed the explosive meeting and played no part in the carnage despite attempts and lies by Senators Reid, Dodd and Schumer to blame everything on Senator McCain in press conferences.

Any Republican that votes for the Treasury Secretary Paulson’s currently proposed bailout bill will be defeated in November. Take it to your bank.

If the Democratic Party expects to obtain significant Republican support on a bailout bill–dream on.

Republicans should demand that President Bush ask for Treasury Paulson’s resignation for proposing a bill that the overwhelming majority of Republicans and conservatives oppose as well as failing to explore other alternative courses of action and scenarios. Request the FBI investigate who leaked to Goldman Sachs the House Republican position on the bailout proposal to determine if any laws were broken. 

The Beatles-Money

“Much of the social history of the Western world over the past three decades has involved replacing what worked with what sounded good. In area after area – crime, education, housing, race relations – the situation has gotten worse after the bright new theories were put into operation. The amazing thing is that this history of failure and disaster has neither discouraged the social engineers nor discredited them. …” 

~Thomas Sowell

Is Reality Optional?, 1993 

Background Articles and Videos

Michael Bloomberg – Origins of the Economic Crisis

Who’s responsible for the Freddie/Fannie mess?

Timeline shows Bush, McCain warning Dems of financial mess

Burning Down The House: What Caused Our Economic Crisis?

Did Someone Say Amnesty?
By W. James Antle III

“…Once again, House Republicans may be the key. Rumors circulated Thursday that only 45 to 50 of them are committed to voting for the bailout in its current form. The Democratic leadership is said to want 100 or so GOP votes in the lower chamber for cover if they are going to support the deal without pushing it further to the left. The conservative Republican Study Committee released a letter publicly opposing Treasury Secretary Hank Paulson’s plan. Sen. Jim DeMint of South Carolina, an RSC alumni, has been muddying the waters in the Senate.

This debate does have a Tom Tancredo, however — a damn-the-torpedoes high-profile hardliner. Ron Paul has been all over television and had a commentary up at CNN’s website opposing even the concept of a bailout with the zeal of Tancredo’s opposition to amnesty. A devotee of Austrian economics, Dr. No prescribes tough medicine for what ails the economy: the liquidation of all bad investments in the name of risking recession now to prevent a credit-fueled calamity later. Paul would let the market get rid of the “misallocation of resources into sectors in which there is insufficient demand.”

Such a radical fix wasn’t always so outside of the conservative mainstream. Ronald Reagan accommodated Paul Volcker’s tight monetary policy even at the expense of the 1982 recession. Unemployment zoomed to 10.8 percent but prosperity returned after the Reagan-Volcker policy mix licked stagflation. But Republicans who haven’t forgotten this also remember how many members of their party were thrown out of office in the November 1982 elections.

Which brings us to the final advantage bailout proponents have over those seeking an immigration compromise: there is a much greater sense of urgency surrounding the economy as well as a popular expectation that the government must Do Something about it. Politicians are reluctant to stand pat while retirement portfolios vanish and mortgage foreclosures rise. Even if the long-term consequences of their actions are uncertain, they are fairly confident the short-term electoral consequences of inaction will be bad.

Opponents can still try to rally a skeptical public against the impending bailout as a costly giveaway that won’t actually solve the underlying problem, an amnesty for the financially reckless. It’s worked before.

http://www.spectator.org/dsp_article.asp?art_id=13950

 

Kill the bailout: Call your GOP representative; Update: the deal details trickle out; No deal tonight; Paulson and the Dems bawl

 

“…Make the call: 202-224-3121.

Hope, however slim, lives:

Confident but not yet celebrating, congressional leaders agreed Thursday on a multibillion-dollar bailout plan for Wall Street aimed at staving off a national economic catastrophe. President Bush brought the two men fighting to succeed him to a historic White House huddle on how to sell a deal to lawmakers who were still resisting.

Private talks on Capitol Hill ended at midday with the announcement that an agreement in principle had been reached on a $700 billion financial rescue package that the Bush administration wants. Few details were immediately available.

There were signs that the conservative-leaning House Republican Caucus was not on board. Both of Congress’ Republican leaders, Rep. John Boehner and Sen. Mitch McConnell, issued statements saying there was not yet an agreement. …” 

http://michellemalkin.com/2008/09/25/kill-the-bailout-call-your-gop-representative/

 

Henry Paulson

“…AKA Henry Merrit Paulson, Jr.

Born: 28-Mar1946
Birthplace: Palm Beach, FL

Gender: Male
Religion: Christian Science
Race or Ethnicity: White
Sexual orientation: Straight
Occupation: Business, Government
Party Affiliation: Republican

Nationality: United States
Executive summary: US Secretary of the Treasury

http://www.nndb.com/people/788/000117437/

 

Henry Paulson

Henry Merritt “Hank” Paulson Jr. (born March 28, 1946) is the United States Treasury Secretary and member of the International Monetary Fund Board of Governors. He previously served as the Chairman and Chief Executive Officer of Goldman Sachs. …”

“…Leader of U.S. government economic bailout efforts of 2008

Paulson was the designated leader of the Bush administration’s efforts in 2008 to federalize the cost of bad loans made by financial institutions.

Through unprecedented intervention by the U.S. Treasury, Paulson led government efforts to avoid a severe economic slowdown. He pushed through the conservatorship of government agency mortgage giants Fannie Mae and Freddie Mac. Working with Federal Reserve Chairman Ben Bernanke, he influenced the decision to create a credit facility (bridge loan & warrants) of US$85 billion to American International Group so it would avoid filing bankruptcy.

In late September of 2008, Paulson, along with Ben Bernanke and Christopher Cox, led the effort to help financial firms by agreeing to use US$700 billion dollars to purchase bad debt they had incurred.[27] Discussing his decision to take action, Paulson said: “It just happened dramatically. There was only one way that we could reassure the markets and deal with a very significant and broad-based freezing of the credit market. There was no political calculus. It was overwhelmingly obvious.”[28]

On September 19, 2008, Paulson called for the U.S. government to spend hundreds of billions of dollars more to rescue financial firms from nonperforming mortgages that threaten the stability of those firms.[29] Due to his leadership and public appearances on this issue, the press labeled these measures the “Paulson financial rescue plan” or simply the Paulson Plan.[30]

 

Conflict of interest

There has been some criticism of Paulson, with suggestions that Paulson’s plan may potentially have some conflicts of interest. This since Paulson is the former CEO of Goldman Sachs, a firm that may benefit from the plan. [31][32] Unlike the previous bailouts and managed liquidations of Goldman competitors Bear Stearns, Merrill Lynch and Lehman Bros. and those of AIG, Freddie Mac and Fannie Mae, in which shareholder value was largely wiped out, Goldman’s stock would likely rise under the Paulson plan, benefiting his former partners, because it would take distressed assets off of their balance sheet. [33]

The proposed bill would give him unprecedented powers over the economic and financial life of the U.S.. Section 8 of Paulson’s plan states: “Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.”[34]

http://en.wikipedia.org/wiki/Henry_Paulson

 

Sarbanes-Oxley Act

“The Sarbanes-Oxley Act of 2002 (Pub.L. 107-204, 116 Stat. 745, enacted 2002-07-30), also known as the Public Company Accounting Reform and Investor Protection Act of 2002 and commonly called SOX or Sarbox; is a United States federal law enacted on July 30, 2002 in response to a number of major corporate and accounting scandals including those affecting Enron, Tyco International, Adelphia, Peregrine Systems and WorldCom. These scandals, which cost investors billions of dollars when the share prices of the affected companies collapsed, shook public confidence in the nation’s securities markets. Named after sponsors Senator Paul Sarbanes (D-MD) and Representative Michael G. Oxley (R-OH), the Act was approved by the House by a vote of 334-90 and by the Senate 99-0. President George W. Bush signed it into law, stating it included “the most far-reaching reforms of American business practices since the time of Franklin D. Roosevelt.”[1]

The legislation establishes new or enhanced standards for all U.S. public company boards, management, and public accounting firms. It does not apply to privately held companies. The Act contains 11 titles, or sections, ranging from additional Corporate Board responsibilities to criminal penalties, and requires the Securities and Exchange Commission (SEC) to implement rulings on requirements to comply with the new law. Debate continues over the perceived benefits and costs of SOX. Supporters contend that the legislation was necessary and has played a useful role in restoring public confidence in the nation’s capital markets by, among other things, strengthening corporate accounting controls. Opponents of the bill claim that it has reduced America’s international competitive edge against foreign financial service providers, claiming that SOX has introduced an overly complex and regulatory environment into U.S. financial markets.[2]

The Act establishes a new quasi-public agency, the Public Company Accounting Oversight Board, or PCAOB, which is charged with overseeing, regulating, inspecting, and disciplining accounting firms in their roles as auditors of public companies. The Act also covers issues such as auditor independence, corporate governance, internal control assessment, and enhanced financial disclosure. …””

http://en.wikipedia.org/wiki/Sarbanes-Oxley_Act

 

Mark-to-Market

” accounting and finance, mark to market is the act of assigning a value to a position held in a financial instrument based on the current market price for that instrument or similar instruments. For example, the final value of a futures contract that expires in 9 months will not be known until it expires. If it is marked to market, for accounting purposes it is assigned the value that it would fetch in the open market currently. …”

http://en.wikipedia.org/wiki/Mark-to-market

 

All’s fair

Sep 18th 2008
From The Economist print edition

The crisis and fair-value accounting

“…SO CONTROVERSIAL has accounting become that even John McCain, a man not known for his interest in balance sheets, has an opinion. The Republican candidate for the American presidency thinks that “fair value” rules may be “exacerbating the credit crunch”. His voice is part of a chorus of criticism against mark-to-market accounting, which forces banks to value assets at the estimated price they would fetch if sold now, rather than at historic cost. Some fear that accounting dogma has caused a cycle of falling asset prices and forced sales that endangers financial stability. The fate of Lehman Brothers and American International Group will have strengthened their conviction.

In response America’s Financial Accounting Standards Board (FASB), and the London-based International Accounting Standards Board (IASB) have not budged an inch. So, for example, banks will have to mark their securities to the prices Lehman receives as it is liquidated. The two accounting bodies already act cheek by jowl, and America will probably soon adopt international rules. Are they guilty of obstinately pursuing an abstract goal that is causing mayhem in financial markets? …”

“…Yet not all criticism of fair value can be so easily dismissed. The credit crunch has raised three genuinely awkward questions. The first of these concerns “procyclicality”. Bankers say that in a downturn fair-value accounting forces them all to recognise losses at the same time, impairing their capital and triggering firesales of assets, which in turn drives prices and valuations down even more. Under traditional accounting, losses hit the books far more slowly. Some admire Spain’s system, which requires banks to make extra provision for losses in good times, so that when loans turn sour their profits and thus capital fall by less. …” 

http://www.economist.com/finance/displaystory.cfm?story_id=12274096

 

September 25, 2008: “Bailouts and Uncertainty” featuring Arnold Kling (Podcast)

http://www.cato.org/dailypodcast/podcast-archive.php?podcast_id=741

This’s WHY Democrats Wanted to Get Rid Of John McCain—Bailout Plan and ACORN


 

 

Shocking!—Democrats Trying to Give Bailout Money to Obama’s Owner ACORN

Coulter on “Bailout Plan”

 

 

Hannity Colmes Newt Gingrich Oppose This BailOut CALL Capitol Now 1-202-224-3121

 

The Bailout: the Mood on Main and Wall Streets

Obama/Bailout: “We have to act..Jobs..Homes..at Risk” $700B

 

Obama After White House Meeting

Barack Obama & Friends Caused U.S. Economic Crisis

 

Senator Reid Slams McCain for Derailing Bailout Negotiations

Sen. Schumer Calls John McCain Odd

 

President Bush Addresses Nation on Economic Crisis

 

Wall Street’s Day of Reckoning: The Fannie & Freddie Bailout

 

Paulson:’We Had No Choice’

 

Charlie Rose – HENRY PAULSON, JR

 

Senator Jim Bunning Comments on Federal Bailout

 

Newt Lays It Out – Part 1 of 3 – Former Speaker of the House Newt Gingrich says the bailout plan is a disaster.

 

Newt Lays It Out – Part 2 of 3 – Former Speaker of the House Newt Gingrich says the bailout plan is a disaster.

 

Newt Lays It Out – Part 3 of 3 – Former Speaker of the House Newt Gingrich says the bailout plan is a disaster.

 

Wall Street “Socialism”, the new moral hazard

 

Charlie Rose – Fannie Mae & Freddie Mac

 

Bill Moyers Housing Market Meltdown 1 of 2

 

Bill Moyers Housing Market Meltdown 2 of 2

Deconstructing the Subprime Crisis

 

Richard Herring on Mortgage-backed Securities

 

Joseph Gyourko on Fannie, Freddie, and the Housing Bust

 

Franklin Allen on Past Crises

 

Franklin Allen on Lessons from the Subprime Crisis

 

Jeremy Siegel on the Resilience of American Finance

 

Susan Wachter on Securitizations and Deregulation

 

“NO BAILOUT” “YOU BROKE IT YOU BUY IT” Wall Street Protest

 


 

The Bailout and the USA economy

The Bailout continued

LOL

Red State Update: Bailout

 

Red State Update: Washington Fights Over Bailout Plan

 

Democrats responsible for Economic Disaster…

 

Solution to Our Economic Problems…
  

 

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17 Responses to “Obama Bombs Bailout Meeting–Whitehouse Still Standing–McCain Saved By House Republicans”

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A small point but Paulson is a Republican. You can search on his name and appointment by Bush to confirm this.

To be sure, other Goldman Sachs executives, like Rubin, are Democrats, but Paulson is a Republican. IF he had been a Democrat, you would have heard a lot about that being the case when Bush appointed him.

Thanks. I was trying to nail this down. I have corrected the post.

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[…] Obama Bombs Bailout Meeting–Whitehouse Still Standing–McCain Saved By House Republicans […]

[…] Obama Bombs Bailout Meeting–Whitehouse Still Standing–McCain Saved By House Republicans […]

[…] Obama Bombs Bailout Meeting–Whitehouse Still Standing–McCain Saved By House Republicans […]

[…] Obama Bombs Bailout Meeting–Whitehouse Still Standing–McCain Saved By House Republicans […]

[…] Obama Bombs Bailout Meeting–Whitehouse Still Standing–McCain Saved By House Republicans […]

[…] Obama Bombs Bailout Meeting–Whitehouse Still Standing–McCain Saved By House Republicans […]

[…] Obama Bombs Bailout Meeting–Whitehouse Still Standing–McCain Saved By House Republicans […]

[…] Obama Bombs Bailout Meeting–Whitehouse Still Standing–McCain Saved By House Republicans […]

[…] Obama Bombs Bailout Meeting–Whitehouse Still Standing–McCain Saved By House Republicans […]

[…] Obama Bombs Bailout Meeting–Whitehouse Still Standing–McCain Saved By House Republicans […]

[…] Obama Bombs Bailout Meeting–Whitehouse Still Standing–McCain Saved By House Republicans […]


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