McCain's $1 Trillion bailout WITHOUT Congress approval

[Von Tonner]

Having read the threads here on whether Congress should bail out the banks many McCain supporters here have expressed their opinions that they are adamant that there should be no bail out.

Ok, I am interested to read your comments on what McCain now proposes.

http://www.huffingtonpost.com/2008/09/30/mccain-urges-bush-to-spen_n_130729.html

[Konovalov]

many McCain supporters here have expressed their opinions that they are adamant that there should be no bail out.
Hence why they are now labelling it as a "rescue package" and not a bail out.

[Von Tonner]

many McCain supporters here have expressed their opinions that they are adamant that there should be no bail out. Hence why they are now labelling it as a "rescue package" and not a bail out.
The point is not what you want to call it. McCain's latest proposal is to by pass Congress all together and let the Treasury 'bail' out 'rescue' (take your pick at name) wall street WITHOUT Congressional approval. We are not talking small change here. I find it incredible that someone like McCain can even suggest spending this amount of money without the approval from the citizenry via their elected representatives. Isn't that a cornerstone of democracy - you tax me but I have a say how you spend it.

[SUBMAN1]

Something tells me that you being from South Africa, that you really don't understand what is going on around here.

-S

[Digital_Trucker]

Number one, Huffington Post is the least unbiased source for information I have ever seen. Number 2, I'd like to see the rest of the statements that they so conveniently edited. The video was so out of context of anything else, that it could have been anything (i.e. listing the possibilities, responding to what we could do in an emergency, etc, etc). Will have to go find the entire videos to see................

Edit :

Here's one of them http://www.breitbart.tv/?p=185523
I hear McCain talking about possibilities, but nowhere do I hear him suggesting that Treasury use a trillion dollars in the bailout. He mentions how much they have to work with and what could be done.

[Von Tonner]

I hear McCain talking about possibilities, but nowhere do I hear him suggesting that Treasury use a trillion dollars in the bailout. He mentions how much they have to work with and what could be done.
At a round-table economic discussion in Iowa, McCain warned "the dire consequences of inaction" would reverberate far beyond Wall Street.McCain said he also recommended to Bush that the Treasury use its 250-billion-dollar "exchange stability fund" to directly shore up tottering Wall Street institutions.
And the Treasury has about one trillion dollars that it could expend without congressional authority to buy up "some of these terrible mortgages and help stabilize the situation," the Republican said.
"We're going to have to change enough Republican and Democrats' minds. It was 95 Democrats that voted against it," he told Fox News, without noting that even more House Republicans -- 133 -- also rejected the bailout.
"Even though we failed yesterday, even though I went back and was able to get more Republicans on board or help get more Republicans on board, we will go back to this, and I will be engaged always where I think America needs engagement."

http://afp.google.com/article/ALeqM5iP-s9UUWx03mN8ErQoXRQeePcHfQ

[Sailor Steve]

Something tells me that you being from South Africa, that you really don't understand what is going on around here.

-S
So, what exactly is going on around here?

[SteamWake]

:rotfl: :rotfl: :rotfl: Huffington Post :rotfl: :rotfl: :rotfl:

[Digital_Trucker]

Von Tonner, the key word in that section regarding the trillion dollars is "could". Read that again, "could". Not "should". I don't call that a proposal. A slightly veiled threat to Congress to get their crap together and get something done, maybe, but not a proposal.

[AVGWarhawk]

I hear McCain talking about possibilities, but nowhere do I hear him suggesting that Treasury use a trillion dollars in the bailout. He mentions how much they have to work with and what could be done.
At a round-table economic discussion in Iowa, McCain warned "the dire consequences of inaction" would reverberate far beyond Wall Street.McCain said he also recommended to Bush that the Treasury use its 250-billion-dollar "exchange stability fund" to directly shore up tottering Wall Street institutions.
And the Treasury has about one trillion dollars that it could expend without congressional authority to buy up "some of these terrible mortgages and help stabilize the situation," the Republican said.
"We're going to have to change enough Republican and Democrats' minds. It was 95 Democrats that voted against it," he told Fox News, without noting that even more House Republicans -- 133 -- also rejected the bailout.
"Even though we failed yesterday, even though I went back and was able to get more Republicans on board or help get more Republicans on board, we will go back to this, and I will be engaged always where I think America needs engagement."

http://afp.google.com/article/ALeqM5iP-s9UUWx03mN8ErQoXRQeePcHfQ

Read it again, the Treasury has the authority to use this money. I suspect the authority was granted by Congress. Personally, McCain is looking at it at a different angle and not just cutting a check so he can go play campaign like Obama. Obama answer the problem is going to another speech so he can hear himself talk some more. Again, just cutting a check in under a day that the Dems so much want to do is just bad judgement and poor stewardship of the tax payers monies.

[Von Tonner]

Read it again, the Treasury has the authority to use this money. I suspect the authority was granted by Congress.
Not all would agree that the Treasury has the authority though AVGWarhawk

But CNBC “Street Signs” host Erin Burnett explained this wasn’t something that was likely under the current rules. Burnett told viewers of her Sept. 30 program the toxic mortgages distressing many of the beleaguered banks hoping for a Congressional bailout aren’t the same mortgages the Treasury Dept. has the authority to buy.
“We’ve been looking into this,” Burnett said. “And there is room for Treasury to maneuver in many ways. The best sense of this that we have gotten, though, is that money – even if it is all available and not all of it still is – would have to be used to buy Fannie and Freddie-backed mortgages and as we know, those are not really the toxic mortgages that are the problem here.”

Burnett said one possible solution would be for the Treasury Dept. to have Freddie Mac and Fannie Mae purchase these mortgages from the banks to get them on their books. However, Burnett said that would be unlikely under the current rules that govern the two former government-sponsored enterprises.
“Now some might say the Treasury could tell Fannie and Freddie to go out and buy some of the bad stuff, but keep in mind – Fannie and Freddie are right now owned by the government in a conservatorship,” Burnett added. “They would have to take some insurance out to do that is our understanding. That would cost quite a bit of money – likely not be a business decision which would be approved by the conservator. So it doesn’t seem that that plan in its simplistic sense make sense. Bottom line, though, is that there might be some ways for Treasury to maneuver.”

[AVGWarhawk]

Read it again, the Treasury has the authority to use this money. I suspect the authority was granted by Congress.
Not all would agree that the Treasury has the authority though AVGWarhawk

But CNBC “Street Signs” host Erin Burnett explained this wasn’t something that was likely under the current rules. Burnett told viewers of her Sept. 30 program the toxic mortgages distressing many of the beleaguered banks hoping for a Congressional bailout aren’t the same mortgages the Treasury Dept. has the authority to buy.
“We’ve been looking into this,” Burnett said. “And there is room for Treasury to maneuver in many ways. The best sense of this that we have gotten, though, is that money – even if it is all available and not all of it still is – would have to be used to buy Fannie and Freddie-backed mortgages and as we know, those are not really the toxic mortgages that are the problem here.”

Burnett said one possible solution would be for the Treasury Dept. to have Freddie Mac and Fannie Mae purchase these mortgages from the banks to get them on their books. However, Burnett said that would be unlikely under the current rules that govern the two former government-sponsored enterprises.
“Now some might say the Treasury could tell Fannie and Freddie to go out and buy some of the bad stuff, but keep in mind – Fannie and Freddie are right now owned by the government in a conservatorship,” Burnett added. “They would have to take some insurance out to do that is our understanding. That would cost quite a bit of money – likely not be a business decision which would be approved by the conservator. So it doesn’t seem that that plan in its simplistic sense make sense. Bottom line, though, is that there might be some ways for Treasury to maneuver.”
It does not matter if all agree or not. The Treasury apparantly has the authority to do this. Once the authority is bestowed on the Treasury, it does not really matter who agrees or not. As it states, the bottom line is there are other avenues that can be taken other than having the tax payer bend over once again for the Governments failings along with the banks failings. The rush to cut a check and forget about it is NOT good stewardship of the tax payers monies. It is reckless to be sure. This has to be looked at in detail. If it takes weeks, then so be it. So, if it found the Treasury does not have this authority, at least it was discussed.

[Stealth Hunter]

:roll:

These bail proposals won't solve a thing. They'll make it worse. The market IS going to crash. We're in too deep. Pouring money into it is only delaying the inevitable. IMO, let it go under, then begin cleaning up this mess. You'll save a lot more that way...

Miserable state the country is in. I read a few days ago that the Republican party is proposing we print MORE money to solve the crisis, which will only add to our horrendous troubles. The dollar's value will drop even more.

[Yahoshua]

I wouldn't say that it'd be so severe as a crash right now but it does seem that we'll have a recession in the works.

Providing the bailout doesn't go through then the side benefit is that these large corporations will be broken up and create more competition for the market. It will also prompt much closer scrutiny over what decisions and actions companies take on the market and what CEOs' will be held responsible to.

If it doesn't hurt, people ignore the problem.

[Stealth Hunter]

A recession is already here, and it's quickly becoming a depression. It's a lot worse than it seems. The news doesn't cover all of the junk people are facing and having to put up with.

[GoldenRivet]

At least they didnt pass Obama's $1quadrilliongazillionjillionthousand bail out :lol:

[August]

I read a few days ago that the Republican party is proposing we print MORE money to solve the crisis, which will only add to our horrendous troubles. The dollar's value will drop even more.

You mean the same Republican party that voted down the same bailout bill just a few days ago?

[Stealth Hunter]

The very same, although we're now going to have to deal with an $850 billion dollar bailout plan that passed last night. Hopefully the House takes it down.

[August]

The very same, although we're now going to have to deal with an $850 billion dollar bailout plan that passed last night. Hopefully the House takes it down.

Maybe one more time but it looks like it'll eventually pass.

[Stealth Hunter]

I'm afraid it will, too... we've got problems...

[Frame57]

A recession is already here, and it's quickly becoming a depression. It's a lot worse than it seems. The news doesn't cover all of the junk people are facing and having to put up with.God forbid it should happen. I can only imagine the civil unrest that will occur. I cannot stop watching this signature it is almost comically hypnotic...:D

[August]

I'm afraid it will, too... we've got problems...

"We"? I thought you were leaving for Germany or Russia or some place like that.

[XabbaRus]

A depression, that's a bit extreme. The press isn't helping.

The thing in the UK at least is that people are taking the attitude that all the people who hold mortgages with the companies that have been rescued are all going to default which of course isn't true. However it makes enough people nervous the bank can't get money and its failure becomes a self fulfuilling prophecy....

The media is as much to blame as the Wall Street bankers.....

BTW in Britain we don't have the phrase "he's a merchant banker" for nothing...

[Von Tonner]

How to lose a trillion dollars.

http://www.youtube.com/watch?v=SMFt7tRq-Ps&feature=related

[Sailor Steve]

Gee, Von Tonner, I was watching that with great interest until I realized it was a campaign ad!:nope: