Bailout?
From Fox:
But:
Actually, an hour ago, when it was reported widely as a "done deal", only Dodd, Franks, and Pelosi were quoted, with only some Republican mumble, and no authoritative statement. Now there is, from Boehner. Pretty obviously this was a "credit gambit", Democrats wanted to take credit for a done deal, so that if it later falls apart, then John McCain won't be the savior who made it all possible, but the man who caused it all to collapse.
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9:30 PM
Man, do I feel better. Appears the Paulson deal is breaking down. Good, we're Americans, not Soviets.
Republican house members have a very nice idea: Insurance. The idea seems to be this:
--There are trillions of billions of zillions of dollars out there in securities that would normally be bought and sold and used to finance lending. But it's all "frozen up". The trick is to unfreeze it.
--The idea is that those assets are frozen because they're tainted by the inclusion of subprime mortgages, but nobody knows what package contains what, so the true value of any package is not known, thus the hesitancy to buy.
--but the total of bad assets to good is actually tiny.
--This is where insurance comes in. The idea is that financial institutions should continue to deal with them as if they were all good. If it does turn out that a particular package is bad, the government covers the loss. That makes all of them good.
--But the government believes they can cover this cost by selling insurance. The idea is that institutions want to be able to do business. If for a small additional price they can do business, they will. Since it will turn out they are far more businesses traded that affected, the insurance will cover the cost.
Very very smart. And there are other ideas concerning additional infusion of capital and so forth, but this is the basic idea and it's free market and brilliant.
---------
As I understand, Barney is very upset. Ha Ha. I also understand a lot of Democrats in the house are warming to this plan.
And on the debates? Obama apparently has decided his presence is needed throughout the night. If it's needed tonight, it will be needed tomorrow, and there will be no particular reason for him to speed off to his debate, all by himself, while McCain continues to save the country.
Emerging from a two-hour negotiating session, Sen. Chris Dodd, D-Conn., said, "We are very confident that we can act expeditiously."
Rep. Barney Frank, D-Mass: "There really isn't much of a deadlock to break."
But:
Rep. Spencer Bachus, R-AL, the top Republican on Frank's committee, told FOX News "there is no deal yet," although he conceded there was progress....
House Minority Leader John Boehner, R-OH, agreed with Bachus.
"I am encouraged by the bipartisan progress being made toward an economic package that protects the interests of families, seniors, small businesses and all taxpayers. However, House Republicans have not agreed to any plan at this point," Boehner said in a written statement.
Actually, an hour ago, when it was reported widely as a "done deal", only Dodd, Franks, and Pelosi were quoted, with only some Republican mumble, and no authoritative statement. Now there is, from Boehner. Pretty obviously this was a "credit gambit", Democrats wanted to take credit for a done deal, so that if it later falls apart, then John McCain won't be the savior who made it all possible, but the man who caused it all to collapse.
-------------------
9:30 PM
Man, do I feel better. Appears the Paulson deal is breaking down. Good, we're Americans, not Soviets.
Republican house members have a very nice idea: Insurance. The idea seems to be this:
--There are trillions of billions of zillions of dollars out there in securities that would normally be bought and sold and used to finance lending. But it's all "frozen up". The trick is to unfreeze it.
--The idea is that those assets are frozen because they're tainted by the inclusion of subprime mortgages, but nobody knows what package contains what, so the true value of any package is not known, thus the hesitancy to buy.
--but the total of bad assets to good is actually tiny.
--This is where insurance comes in. The idea is that financial institutions should continue to deal with them as if they were all good. If it does turn out that a particular package is bad, the government covers the loss. That makes all of them good.
--But the government believes they can cover this cost by selling insurance. The idea is that institutions want to be able to do business. If for a small additional price they can do business, they will. Since it will turn out they are far more businesses traded that affected, the insurance will cover the cost.
Very very smart. And there are other ideas concerning additional infusion of capital and so forth, but this is the basic idea and it's free market and brilliant.
---------
As I understand, Barney is very upset. Ha Ha. I also understand a lot of Democrats in the house are warming to this plan.
And on the debates? Obama apparently has decided his presence is needed throughout the night. If it's needed tonight, it will be needed tomorrow, and there will be no particular reason for him to speed off to his debate, all by himself, while McCain continues to save the country.
posted by mouse at 12:10 PM
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