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The “Big Tent” analogy isn’t the correct one…the correct one is a MAGNET…we need to be a MAGNET that draws these independents in who are sick and tired of what’s going on in Washington—Fred Thompson

Spare me the nobility of the Lost Cause.

Lee surrendered at Appomattox, but he still surrendered. Barney Frank and the Porkmeisters hold the whip hand, unfortunately, and have ladeled this monstrosity with more pork than Maxine Waters could have imagined in her wildest dreams.

However, if there is a crash in equities and a genuine credit freeze, don’t kid yourself: Bush, McCain, and the Republican Party will be blamed.

Thanks, but no thanks. This is a small price to pay for not spending a generation in the political wilderness trying to argue that the Second Great Depression wasn’t really our fault.

Sometimes, as with Barry Goldwater and the Civil Rights Bill in 1964, Republicans have to learn not to drink from the Cup of Stupid. Thankfully, it appears that both McCain and Palin get this.

Erick, I’m sorry to have to say this, but what you’re proposing is utter lunacy. The kind of crash that could come about through inaction would lead to a massive expansion of government programs a la the new deal, not to mention untold human suffering both here and abroad. You can’t possibly want that can you?

You are wrong.
If we pursue your strategy, we will be lucky to be the equivalent of France on the other side. And with the egomanical democrat nominee as the winner in your strategy, we will be a lot closer to Mexico when the dust settles.
If we are lucky.
Washington knew about this a year ago. Heck, I got out of the markets a year ago this August when the first mortgage shoe dropped. This has been no surprise.
Our entire system has ebcome so dysfunctional- all three branches- that standing on some ideological principal is not going to amount to anything.
President Bush has been trapped in some sort of passive agressive pose since Katrina. And the democrats have done no better. We have been abandonded by our leaders.
This is like a war. We either use the tactics and strategies that keep us alive and lead to hope of victory, or we lose and die.
Refusing to use a particular weapon because it does not fit our taste is inviting defeat of massive levels.

So, the GOP’s role here is to provide political cover for the Dems? They do that for us all the time, don’t they?

I’m with Erick. Give them enough votes to pass the plan but no more. They got us in this mess in the first place.

So, the GOP’s role here is to provide political cover for the Dems? They do that for us all the time, don’t they?

I’m with Erick. Give them enough votes to pass the plan but no more. They got us in this mess in the first place.

Why can’t we put in some add ons as well. How about tax cuts, drill now legislation, assurances we will never see another GSE.

Why can’t we put in some add ons as well. How about tax cuts, drill now legislation, assurances we will never see another GSE.

let go and hope for the best is not a good choice. I’ve thought about that alot over the past few weeks and it’s terrifying. One can only hope that we get a good, honest group of individuals overseeing this money. Asking for an honest group in DC is rather ridiculous , I know. But letting the markets fail is not an option that will benefit anyone. I certainly am not looking forward to a Depression.

SURVIVING IN WYOMING…

Join the RedState Strike Force

GWB has really screwed over his own party with this, and I don’t see how going on television last night helped anything. The problem with your plan of letting the Democrats pass this bill is that most of America will associate it with Bush anyway. I’m not sure the Republicans have a way to save face on this sans coming up with a different plan. I just want to punch someone when I hear about all of the crap that Frank and company are attaching to this bill. I’m only 27, so I know I should have time to recover from whatever happens. If this doesn’t pass, I really feel for those in their late 50′s and early 60′s who plan to retire soon. If it does pass, I will have to think long and hard before ever bringing a child into the world that we’ll be living in. This is the ultimate definition of a lose/lose situation.

I’m glad to see some pundits finally get a clue as to what is going on.

If you still don’t want the Paulson plan read this:

http://online.wsj.com/article/SB122230704116773989.html

“My analysis suggests that Treasury Secretary Henry Paulson (a former investment banker, no less, not a trader) may pull off the mother of all trades, which could net a trillion dollars and maybe as much as $2.2 trillion — yes, with a “t” — for the United States Treasury.”

For goodness sake, educate yourselves before posting ignorant comments. Actually listen to Paulson and Bernanke on CSPAN.

Government got us into this, and it’s going to have to get us out. Get with the program y’all.

Once the hole in the boat is fixed, we will have to row the boat ashore, and re-build it…but that’s later, not now.

If the GOP does not act and bring out a bill in the next few days-

Obama is going to win the election. Then you think HIS bill with Reid and Pelosi will be more conservative than what we have now?!!

Only at that stage the GOP will be blamed for the depression, the libs will gain even more power through the November elections, and their solutions to the economic crisis will be much worse.

Always count on paleocons to chop off not only their own nose to spite their face- but a leg and arm as well.

I have been watching the problem and see that the lack of credit is key to the potential for problems, not the failure of any one or multiple entities.

What would happen if say 5% of the US population could not get their paychecks cashed? Then the trickle down effect of failing to pay bills. The liquidity of companies not even remotely related to the Wall Street groups are now in jeopardy. And while I am not a believer in “the ripple effect” of most financial problems, this is a case where it is so big a rock that the ripples will indeed upset other boats on the lake.

I am by no means an expert, but I believe that if the credit market constricts enough, we will see a wholesale “calling of loans” and the use of acceleration clauses like never before. And if we get to that point, even the most financially secure of the middle class will be faced with severe problems too.

you call mark to market trivial but it isnt. If we changed the way these toxic securities where presented on the balance sheet, we could free up credit.

The CDOs and such were bought with borrowed money. The people who lent the money are making the people that borrowed the money put more and more capital away to cover their borrowing. This is causing the freeze up. Why are they being forced to put more and more capital away? Because the CDOs on the books arent worth anything AS OF THIS DAY. So scrap mark to market and the whole Enron overreaction GAAPs and let them mark em UNTIL MATURITY or UNTIL GAIN of X is REALIZED. This move should calm the markets and end the panick or near panick conditions.

The books will look healthy, credit will be put back into the system, and we wont have to print money and become Zimbabwe.

This bailout is theft. The government is going to steal the wealth of the investment banks, hold on to it for a few years, and then sell it at a profit. Cramer sayed we should call it “Invest in America”

This is getting long sorry. I have opposed this seizure from the beggining, and notwithstanding my above suggestion, there are a lot of good smart people out there who think if this doesnt passed, we get Great Depression 2.

Joe P on Kud was talking about Beaver Bonds. Anyone know what that means?

from the airlines every week?

There’s something wrong when a bank is willing to extend credit to someone based on the number of frequent flyer miles he’s racked up. I thought the applications would have stopped with the financial crisis, but another arrived again on Monday.

Let’s be clear that the bailout is not socializing the markets. Even though the ‘doom and gloom’ scenario has been overdone, the systemic risk involved if action isn’t taken is far too great to play politics with. The bailout represents what the government (e.g., Fed, Treasury, et al) must do when the markets are at the brink of disaster. I have talked previously about what caused this crisis, but it isn’t just Democrats or Republicans, or inept Wall Street managers, or speculating hedge funds, or even consumers. It’s all of the above. And now, the markets must be rescued, as is the role of the central bank stepping in as a lender of last resort. But, make no mistake about it, we can’t afford to ‘let the markets go’ and we certainly can’t afford to play politics with this situation. Also, keep in mind, that the $700 billion is not a grant – it’s an investment in the markets and despite what many have said, the valuations are low. We can thank Lehman and the other financial firms for that. So, this is no time for the Potomac Two Step and it certainly isn’t a scenario where we can let the markets go.

it is the reason why 9% mortgage delinquency is about to destroy the U.S. financial system.

The core of the Paulson plan is to fix the balance sheets of institutions so they can lend again.

The balance sheet issue is the direct result of “mark-to-market”.

I agree that Paulson is better than nothing, but to say that Paulson is the only possible solution to this, and that we should all just jump in line is rediculous.

The Paulson Plan is a brute force remedy that one would expect to come out of a country like Venezuala or Russia.

Make no mistake here, capitalism is in jeopardy. This is a fundamental intrusion into the economy in the way that the New Deal was.

“The credit market is crashing. There is not enough credit in the market right now. Come Monday, if Wall Street does not have the assurance of a workable plan, the nightmare scenario that there may not be enough credit to get paychecks cashed next week may very well come true.

That is not hyperbole. That is an accurate reflection of existing facts on the ground. It is a very real possibility.”

… but I’m not seeing any citations or sensible analyses to demonstrate this. Granted, I’ve not read every thread on RedState about the bailout. But you’d think people selling the bailout would want to make this case. Because without that urgency, we have time to consider better plans.

seeks to purchase securities at actual current market value. The actual current market value (thanks to mark-to-market) is the reason why the balance sheets of the Wall Street are in shambles.

Paying the market value would by definition, NOT impact the balance sheet in any way.

The Paulson Plan essentially admits that this is an accounting issue by providing for purchasing bonds at rates that are higher than the current market rates (an acknowledgment that the current rates are unduly distressed).

People like Forbes and Gingrich have put forth viable and superior alternatives. Not sure why should ignore them.

A student asked me this earlier, and I think the limits of my knowledge of this market (I’ve never tried to get a mortgage), and its problems kept me from answering. I know I am missing something obvious, but I just can’t rationally grasp it…

Lets say I am in good standing with my mortgage, but if the government is buying foreclosed homes cheap, and selling them at 30-40% of their value, would it not be in my interest to then default my own mortgage, and try to buy it back at auction for the low price? That way I would save a bundle on my payments, and not be paying for a house that is declining in value anyway, assuming the others around me are also having problems.

I figured the problem would be finding someone to lend to you after foreclosure, but if the problem is this CDA regulation that requires lending agencies to lend in spite of poor credit, something I haven’t heard as being discussed to change right now as part of the bailout, then isn’t this a moot point?

What would stop us from doing that? Aside from the LT effects on the market, and what it would mean to future development, since I couldn’t see anyone building anything because of this – how would they ever cover their costs – I can’t see what would stop this from happening, so I appeal to your help.

Please hit me with the obvious…

Why the rush to open our federal wallets and reward bad businesses,businessmen and business practices without doing anything first that might let the market itself deal with it?
Why not suspend capital gains taxes for 3 to 5 years? That would allow for a huge
inflow of capital that people have been
“stashing away” to prevent from getting
robbed by that punitive tax.
Significantly lower what are the highest corporate taxes in the world, already known to create jobs and increase the tax coffers.
And where are the flat-taxers and fair taxers when we need them? This would be a great time to push for a bold move on tax reform.
And should I even mention the repeal of the aptly named “Death Tax”?
All or some of these tax policy reforms would create a huge influx of capital and would allow for a lot of this debt to be bought up and spread out just like it’s supposed to work. The real problem is everything they are doing or are planning to do rewards those who caused this misery and punishes
those who are legitimately successful.

Why the rush to open our federal wallets and reward bad businesses,businessmen and business practices without doing anything first that might let the market itself deal with it?
Why not suspend capital gains taxes for 3 to 5 years? That would allow for a huge
inflow of capital that people have been
“stashing away” to prevent from getting
robbed by that punitive tax.
Significantly lower what are the highest corporate taxes in the world, already known to create jobs and increase the tax coffers.
And where are the flat-taxers and fair taxers when we need them? This would be a great time to push for a bold move on tax reform.
And should I even mention the repeal of the aptly named “Death Tax”?
All or some of these tax policy reforms would create a huge influx of capital and would allow for a lot of this debt to be bought up and spread out just like it’s supposed to work. The real problem is everything they are doing or are planning to do rewards those who caused this misery and punishes
those who are legitimately successful.