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.
“Some talking heads have dumped on McCain’s tactic—Laura Ingraham among them—...”
Laura Ingraham’s show lately has been nothing but grousing and complaining about everything McCain does.
Oddly, only John McCain -- not a libertarian stalwart -- stands between the U.S. and (the next step to) socialism. The Democrats support Bush in overthrowing constitutional principles in the name of expediency (i.e., keeping their political supporters safe). The Republicans are beginning to show some spine against this outcome. With Bush in the wrong camp, only McCain can lead the way to a better of many bad solutions.
An election is occurring at a propitious time. It remains to be seen if McCain will stand with the Founders or with the "community organizers", and which side the voters will choose -- if they get a choice.
Watching this one very closely. If this is the plan McCain is backing, if he fights and fights hard for fiscal conservatism, and especially if he demonstrates the leadership to make it happen...just damn, I’m going to have to change my tag line. And I’ll be happy about it.
Try something not involved with Fannie or Freddie, I don’t know how they deal with small business but he knows the business.
Jeff Wolff
Senior Loan Officer
First Liberty Financial Mortgage
750 Old Hickory Blvd.
Suite 175
Brentwood, TN 37027
615-686-2529
The President has to “appear to favor” a different solution for the bailout mess so John McCain can differ with Bush and push for a much better plan. That way John McCain is not “just more of the same”.....
And NOT A PENNY FOR THAT DISGUSTING LEFTWING VOTER FRAUD DEMORAT SPONSORED ACORN!!!!!!! ACORN< THE Home of OBAMA HUSSEIN and GAY BARNIE FRANK!!
We bank with Wells Fargo and have plenty of investments there (business, 401Ks, IRAs, stocks, check, etc.). Nothing we own is related to Fannie/Freddie but there is simply no money available. YMMV but the business owners I speak to here are facing the same issue...no liquidity in the market.
We don’t need the money now but when we asked we heard a very clear answer: no loans. That was with 4-5 banks. I told the missus “screw them” and now we are paying cash and just managing via A/R.
Best year I have ever had, BTW, so I am not complaining but liquidity is a definite issue here.
Yes I hope the Dim’s go for it! They don’t have much choice though they were to chicken to vote on their own for the 700 billion dollar bailout! This is what Newt was talking about several days ago!
I don’t agree and I WAS a long time Bush supporter. Bush wanted this bill passed and worked with the Dems behind the scenes through his surrogates. They all ignored the Republicans as they crafted the bill.
He did not want this meeting and did not want McCain back in DC any more then the Dems. He wanted the bill that the Dems said they had agreed to but didn’t ask Republicans.
Exactly what he should do. Support reform not a blank check or a rubber stamp. Break from Bush and leave the Democrats hanging with him.
The alternative is a good deal put together by DeMint, Shelby, and others in the House. The GOP is finally inspired they just won on drilling and they are hyped on having something to believe in again. They are going for a home run and they are going to hit this out of the ballpark. The Democrays feel it, you can see it on Obama’s face. Expect them to start whining more about debates.
I think Bush felt something had to be done right away. And really, it does. That doesn’t have to mean that it is done 100% on the Democrat terms. The Republicans in the House were gonna get steamrolled until McCain showed up. That’s why Reid & Co. are so angry.
If Wells Fargo wasn’t involved in the securities scheme they will be OK. (BTW They did a pretty good check on me in the 80’s when I moved to Vegas.)
The problem is that Bush sent Paulson to meet with the Dems who left out the GOP, announced there was an agreement when there was none.
Bush knew something had to be done but he sure forgot where he came from when he was for a bill by Paulson with no oversight and now we find out ACORN is involved. No wonder the House members went ballistic.
We have several people to thank for stopping this madness — Sen McCain, Minority Leader Boehner, and Sen Shelby who first went public about not supporting the bill as written.
The House Republicans refused to go along and has played out they were correct. Bush was signing off on a bill that included ACORN housing which is part of ACORN the fraudulent voter people. Sometimes it doesn’t pay to rush a bill through without the facts.
I’m afraid that Bush is not a fiscal conservative in disguise. He never understood what that meant the whole time he was in office!
And it wouldn’t make sense for Paulson and Bernanke to follow along.
yitbos
That’s not too bad.
How's that TED thing doing? Still freezing stuff up?
yitbos
The president is siding with Paulson and Bernanke, who can only think in Big Governmen Lib terms.
Or so it would appear that he is...
I wouldn’t want to play poker against George W.
(Tell me, who is the president supporting? Who has he raised tons and tons of money for? Who has he avoided stepping on the toes of or impeding in any way, even while McCain has dumped all over him whether deserving or not? The answer is John McCain, that’s who he’s supporting. But doesn’t want to appear cozy with, for reasons which have been endlessly stated. It has occurred to me that there may be a bit of slight of hand here...)
Like a kind of trap laid, which Obama and the Dems and Media sychophants walked right into...
You can’t be serious! This is absolutely brilliant on McCain’s part. Are you hoping for an Obama win or just completely out of touch with Americans in flyover country?
Cindie
A great poker player has the other players completely fooled. Oh they believe, oh they just KNOW. But they are wrong.
We know you supported him.
We know you are totally convinced of the worst of him now.
He’s helping McCain.
He’s helping Republicans.
Do you have any idea what he has done in fundraising? It is staggering. And he doesn’t need to lift a finger if he doesn’t want to.
By seeming to embrace this plan he has teed it up for McCain and the Repubs to oppose him and come out on top in the election.
He is not a stupid man. He knows full well what he is doing.
But I already know you won’t listen, so having had my say I’ll shut up.
Bingo.
Sorry, I had to say this after shutting up.
You just named everything Bush did.
Nowhere can you cite that Bush did it without realizing what he was doing and without reference to helping Republicans and McCain.
Of course he did those things.
He did them on purpose to set up a win win win win situation for House Repubs, conservative senators and John McCain.
If he had sided with them, he would have been tied around their necks and they around his.
Now look where we are.
Just look.
Meanwhile, he has raised a ton, a ton of money. Quietly, steadily, without fanfare.
Smile.
Oh, never mind, I’ll smile for BOTH of us.
Has anyone seen/heard Gingrich's suggestions? All House/Senate Republicans have.
They include, as best I recall, repeal SarBox, replace mark to market with something reasonable, zero capital gains tax for 2 yrs., eliminate death tax, extend Bush tax cuts, lower payroll and corporate tax, lend all the money not buy stuff.
I left some out.
Announce that Friday/Sunday.
yitbos
President Bush and John McCain? Just show me the money | Countdown to Crawford | Los Angeles Times
http://latimesblogs.latimes.com/presidentbush/2008/09/mccain-fundrais.html
Bush has gone over the top in his fundraising for McCain and House, Senate Republicans.
He didn’t have to raise one cent.
Strange actions, if he didn’t fully support the party and McCain.
Strange indeed.
This is the best news since my mean wife left. This once Mccain hater is now a McPalin lover!!
As mentioned in prior posts, this does smell of a poker game and the Dems just lost if the Propaganda wing of the News media can't fix it for them, I have already seen one article that tries.
Since when does a failing company pay dividends? The stock SHOULD be worthless!
I can't wait until 8am and call my congress critter to support Mccain on this and I hope Rush shouts it from the roof top!
I've never been a big fan of McCain but I think he's coming around. He's still not my kind of Conservative but he's beginning to "get it".
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