Posted on 09/25/2008 11:49:52 PM PDT by Chet 99
McCain may back alternative to bank bailout
Phoenix Business Journal - by Mike Sunnucks
U.S. Sen. John McCain, R-Ariz., may be throwing a monkey wrench into efforts to pass a $700 billion bank bailout, instead favoring alternative plans that looks to free up capital and credit markets via tax and regulatory relief while allowing financial institutions to temporarily skip dividend payments to shareholders.
Republican and Democratic officials in Washington said McCain was offering alternatives Thursday to the $700 billion plan backed by the Bush administration, Federal Reserve chairman Ben Bernanke and U.S. Treasury Secretary Henry Paulson.
That plan has the federal government acquiring bad mortgage assets from struggling banks with the goal of keeping them afloat and allowing more credit to flow.
McCain appears to be siding with conservatives and House Republicans who question the bailout and its costs to taxpayers as well as government rescuing private lenders and perhaps taking ownership stakes in rescued banks.
The alternative plan allocates less public money and relies more on tax breaks, lifting regulatory barriers and using less bailout-oriented mechanisms to free up capital and credit. It also seeks to create a privately funded mechanism to ensure mortgages and mortgage-backed securities.
One Republican official said McCain is standing up for taxpayers as he, President Bush, congressional leaders and presidential foe Sen. Barack Obama try to hash out a deal. A deal was close to being finalized Thursday but House Republicans and McCain are looking to get alternatives considered.
Bernanke and Paulson have warned that without action the flow of credit could totally freeze, more banks could fail and the rough economy sink into a recession.
A Democratic official said Thursday McCain and U.S. House Minority Leader John Boehner are the major barriers to passage of the bailout.
Public opinion polls show voters upset with the bailout plan and its relief to Wall Street bank and investment houses.
Some economists and business groups support the bailout, echoing worries that if something is not done the economy and financial markets could collapse.
Democrats had wanted to put stipulations on the Paulson bailout plan including limits on CEO pay.
McCain’s campaign and U.S. Senate office did not respond to requests for comment.
Good deal...this is exactly what he should be doing. Cut capital gains, repeal SOX, provide loans to credit markets etc., and let the free market bail us out.
You go McCain..push it push it push it!
Someone smarter than me, tell me if this is a good deal. So much info. Im confused. Thanks.
Some talking heads have dumped on McCain's tactic--Laura Ingraham among them--but this is actually a masterful move.
McSherif in town....taking names and kicking butt
YES!!!!
America doesn’t want the $700 billion blank check. McCain shows up, ends the madness, and puts forward a solution. That’s leadership. Meanwhile a certain junior Senator from Illinois tut tuts impatiently about his ever so important debate that he’s been forced to take his attention away from.
Congrats to the House Republicans. It’s good to see some in the party still believe in something other than socialism.
What's 700 Billion when Obama wasted two days studying when he could have been out saying some really nasty stuff about Sarah Palin and John McCain.
“A Democratic official said Thursday McCain and U.S. House Minority Leader John Boehner are the major barriers to passage of the bailout.”
oops. I don’t think that was one of the dimmy talking points!
This also fits perfectly in with John McCain’s track record as a rebel. Yeah, he might be pandering a bit, but I think him supporting the House Republicans on this is more about him believing it is the right plan. That is one thing I’ll give him; he always does what he thinks is best.
If this is true and he follows the House Republicans to the bitter end, then that would go a long way toward locking up my vote.
I would like to see a few more provisions in this bill: suspension of Sarbanes-Oxley in relation to asset revaluing, include a relatively small allocation of money for emergency “bailouts” until the insurance system is up and running, and cut payroll taxes to take a little pressure off of small businesses and get some real money flowing in the economy (but I’m not too hopeful on that one). However, more than anything, I like seeing the House Republicans take a stand, and this time they won’t back down.
This is the best news I’ve heard in a while...
Great alternative to what the Dimwits have tried to sign onto.
Damn good move. Stay the course.
A lot of good provisions in the plan, except for the suspension of dividends, that is not a good idea.
I question whether this plan can introduce enough liquidity into the market. Because if it doesn’t accomplish that it doesn’t address the major threat we are faced with.
There isn’t a liquid problem. I can get any loan today. It’s a bail-out for bad securities sold abroad.
McCain and Boehner are the major stumbling blocks to passage of the bill with ACORN funding? Thank God for those two men. McCain said no bill without oversight and now we find ACORN involved. Boehner needs to become Speaker of the House and McCain President. No wonder the Dems didn’t want him back in town.
So the President is siding with the Dems led by Obama? He cannot leave office fast enough for me now.
http://www.freerepublic.com/focus/f-news/2090846/posts
Intermediate term, $700 billion also won’t be enough liquidity, according to these analysts.
So bad times coming, just who helps the most people survive the damage. And who provides justice (just a wee spot, please) for the thieves who precipitated this mess.
I am not sure where you would get a loan. Everyone I talk to is facing a liquidity issue. There is simply no money available for small businesses right now and I have seen several fall locally.
I have top-notch credit and little debt (mortgage) and the banks say nothing is there. I am moving to self-financing everything. Cash is king at this point.
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