Bailout Bill Heads For Critical House Vote

President Says Revamped $700B Plan Is "Best Chance" To Restore Calm To Financial Industry

(CBS/AP)  A wave of House converts jumped aboard the $700 billion financial industry bailout Thursday on the eve of a make-or-break second vote, as lawmakers responded to an awakening among voters to the pain ahead of them if stability isn't restored to the tottering economy.

Black lawmakers said personal calls from Democratic presidential nominee Barack Obama helped switch them from "no" to "yes." Republicans and Democrats alike said appeals from credit-starved small businessmen and the Senate's addition of $110 billion in tax breaks had persuaded them to drop their opposition.

"I hate it," but "inaction to me is a greater danger to our country than this bill," said GOP Rep. Zach Wamp of Tennessee, one of the 133 House Republicans who joined 95 Democrats in rejecting the measure Monday, sending the stock market plummeting.

Still, the outcome was far from assured. Vote-counters in both parties planned to huddle first thing Friday morning to compare notes on coming up with the dozen or so supporters needed to reverse the stunning defeat.

A CBS News poll showed that while the vast majority of Americans feel the financial crisis is a national problem, voters remain split on whether the bailout is the right solution.

Lawmakers were agonizing as they decided whether to change course and back the largest government intervention in markets since the Great Depression. "I'm trying desperately to get to 'yes,"' said Rep. Carol Shea-Porter, D-N.H.

Fears about an economic downturn sent the Dow Jones industrials down nearly 350 points Thursday, three days after Monday's historic 778-point drop. The Federal Reserve reported record emergency lending to banks and investment firms, fresh evidence of the credit troubles squeezing the country

Obama and his Republican rival, John McCain, phoned reluctant lawmakers for their help. McCain, in Denver, predicted the bill would pass the House.

Rep. John Lewis, D-Ga., told a closed-door meeting of House Democrats that he will support the bill after speaking with Obama about it. Other wavering lawmakers said Obama's entreaties had swayed them as well.

Congressional leaders worked over wayward colleagues wherever they could find them.

Rep. Steny Hoyer, the second-ranking House Democrat, said there was a "good prospect" of approving the measure but stopped short of predicting passage — or even promising a vote. Nonetheless, a vote was expected on Friday.

"I'm going to be pretty confident that we have sufficient votes to pass this before we put it on the floor," Hoyer said.

The top Republican vote-counter, Rep. Roy Blunt of Missouri, did predict the measure would be approved.

"A lot of people are watching," Bush pointed out — as if lawmakers needed reminding — and he argued from the White House that the huge rescue measure was the best chance to calm unnerved financial markets and ease the credit crunch. He was calling dozens of lawmakers, a spokesman said.

Minds were changing in both parties in favor of the much-maligned measure, which would let the government spend billions of dollars to buy bad mortgage-related securities and other devalued assets from troubled financial institutions. If the plan works, advocates say, that would allow frozen credit to begin flowing again and prevent a serious recession.

GOP Rep. Ileana Ros-Lehtinen of Florida, said she was switching her "no" vote to a "yes" after the Senate added some $110 million in tax breaks and other sweeteners before approving the measure Wednesday night.

"Monday what we had was a bailout for Wall Street firms and not much relief for taxpayers and hard-hit families. Now we have an economic rescue package," Ros-Lehtinen told The Associated Press.

Republican Rep. Jim Ramstad of Minnesota also switched to "yes," partly because the Senate attached the bailout to legislation he spearheaded to give people with mental illnesses better health insurance coverage.

Rep. Gresham Barrett, R-S.C., also said he'd back it.

Democratic Rep. Emanuel Cleaver of Missouri was switching, too, said spokesman Danny Rotert, declaring, "America feels differently today than it did on Monday about this bill."

And Democratic Rep. Shelley Berkley of Nevada said she would back the bill after business leaders in her Las Vegas-area district made it clear how much it was needed. She said, "There isn't a segment of the population that hasn't been slammed and is not asking for some relief."

Rep. Elijah Cummings, D-Md., said he was on the verge of voting "yes," based on conversations with Obama. "I've got a man who I'm hoping will be president who's saying that's he's going to do the very things that I want done," he said. "It makes me feel a lot better."

Rep. Bobby Rush, D-Ill., also said Obama was asking him to reconsider his vote. "I'm seriously listening," Rush said.

Emboldened by the feverish bidding for votes, other members of both parties were demanding substantial changes to the legislation before they would vote for it. A group of Republican opponents indicated they'd back it if the price tag were slashed to $250 billion and several special tax breaks added by the Senate — including for children's archery bow makers, imported rum producers and racetrack owners — were removed. Democrats wanted to add a way to pay for the bailout and more help for homeowners staring at foreclosure.

Speaker Nancy Pelosi, D-Calif., said no, such revisions were impossible because they would slow the measure's enactment and further shake markets.

"I don't think that any changes here will do what we need to do, which is right now to send a message of confidence to the markets that Congress will act," she said.

The Senate breathed new life into the measure Wednesday after the stinging House defeat, voting 74-25 to approve the bailout, with additions designed to appeal to key constituencies. Business lobbyists were also inundating Capitol Hill in a rush to win over wavering lawmakers in both parties.

The changes helped satisfy some Republican critics, but they angered conservative "Blue Dog" Democrats who are concerned about swelling the deficit. Still, Hoyer predicted the number of Democratic defectors "is going to be minimal."

Basically, the Senate took the $700 billion package that failed Monday, increased FDIC deposit protection up to $250,000 - but then added almost every popular tax break circulating on Capitol Hill, reports CBS News correspondent Wyatt Andrews.

Among the breaks: adjusting the alternative minimum tax to keep 25 million people from paying higher taxes next year and tax credits for the wind and solar industries - to create new jobs in dozens of states.

Some of the tax breaks are aimed directly at winning new votes. Extra funding for rural school districts, for example, is highly popular in the far west, where 51 House members voted no. And a $1000 tax credit allowing families to offset property taxes is being pitched to liberals as tax relief for the middle class.

House Republicans also cheered a decision by the Securities and Exchange Commission this week to ease rules that force companies to devalue assets on their balance sheets to reflect the price they can get on the market.

The developments Wednesday prompted one Republican, Rep. John Shadegg of Arizona, to say he would support the new bill.

Bush, meeting with business executives at the White House, said increasingly tight credit markets are not just hitting big banks in New York City but threatening the existence of small businesses across the country.

Democratic leaders circulated data showing which states benefit most from an extension of a tax break for homeowners who do not itemize their tax returns. Texas, Florida, California and Pennsylvania ranked among the highest. The leaders hope the measure will bring support from black lawmakers, many of whom voted "no" earlier this week, among others.

[t_barr]

Congress is being THREATENED to pass this BS Bailout Bill or face a 3-4,000 pt Market crash and Martial Law in America! Anyone ever heard of the Plunge Protection Team (PPT)?
Working Group on Financial Markets
http://en.wikipedia.org/wiki/Working_Group_on_Financial_Markets

Well, it CAN be used in the opposite mode to CAUSE a Crash. And Martial Law? ***! This is Total BULL! Also, Sherman Explains How this Bill has been designed to Bailout Foreign Investors!

Watch Rep Sherman D-Cal explaining this BS ON THE HOUSE FLOOR!;
www.c-spanarchives.org/flash/player-time.html?start=2008-10-02%252020:06:57&stop=2008-10-02%252020:21:57&net=1

I''m from the Government... I''m here to help....

Mail This To EVERYONE!

[expressor1]

Bail-out plan? We cannot level our economy by spending money we are only pretending to have. Real wealth is not debt. Can you wrap your head around 90 year mortgages in California? I can''t! Negative savings numbers for our nation? How do you have NEGATIVE savings? Insane levels of credit card debt for the average American family. Why? because they feel "entitled" to touch, taste and play with merchandise they DO NOT OWN and cannot truly afford to purchase. The sainted ''American people'' have seriously contributed to this sad situation. They need ''saved'' alright... but not financially.. they need rescued from their skewed mindset that justifies continuing daily greed and selfishness. Living beyond our means for so long has ''come home to roost'' as my grandmother would have said. More spending of money we don''t really have won''t fix anything in the long-run. This bail out plan resembles peeing on a forest fire to me. Sure, it may be painful for awhile... we may have to eat a little possum this winter in Arkansas to get through... but we''d be better off than being "rescued" by more debt and more deficits... that must eventually come home to roost. This is a plan to prolong and enlarges the forest fire lapping at our behinds! American''s (gov''t and the masses) have to STOP living beyond their means long enough for the economy to stabilize. I think it is the only real (although painful) solution.

[jbutt5]

Listening to talk about lowering the principle for people who over bought outrages me. If the bailout passes, it is a reward to those who bought something that they couldn''t really afford. If these people over bought in the first place what makes the government think that lowering their principle will help keep these overspenders in their house, I'' willing to bet that their spending habits match their house problem.

[upto1947]

Get ready to get screwed.

[slim1h2o]

Anyway, the bailout will pass because it''''s not about us, it''''s about them and their vacation homes, their country club memberships, their lobster dinners, their plump colleagues. It''''s NEVER been about us and it never will be. They will scare us all into believing that these idiots need saving. I really REALLY wish that people would vote these people out of a JOB and really let them know how we feel. It wouldn''''t matter to them anyway. They''''ll still get their fat pensions that come out of our pockets too.


--------------------------------------------------------------------------------

Posted by MyOpinion1 at 07:53 AM : Oct 03, 2008


I agree, but I think it''s time to tell these creteants that it is not about them. But it''s about the country. And the middle class is the engine that runs it.

Ya ain''t going too far without an engine.

They vote yes for the bailout, We''ll vote them out in November!

[truthislife1]

Dave Ramsey has a much better idea. Check out daveramsey.com

[amervtrn]

End of Letter to a Senator: Little quips and pearls of insight that reflect on the moment. If this SCAM PIG BAILOUT goes through you will probably hear much stronger words.
For those still playing the Blame game remember, "Divide and Conquer."
Those still clinging to God and guns, forget it, it''s just a memory,say"Hello Comrade."
"It''s like a big cowpie with a little bit of marshmallow inside and I don''t want to eat the cowpie," said Rep. Louie Gohmert,R-Texas.
Sen. Jim DeMint, R-S.C., a leading conservative, said the step was "leading us into the pit of socialism."
Another was %u201C This is a *** sandwich!%u201D
For those fighting the party wars.
%u201CParty is the madness of many for the gain of a few.%u201D
%u2013 Alexander Pope

Have you ever seen anything the government has touched that is not as "Messed-up" as a"SOUP SANDWICH?
"Sen. Jim DeMint, R-S.C., a leading conservative, said the step was "leading us into the pit of socialism."


Sincerely ,

AmerVtrn

[amervtrn]

More of Letter to a Senator:I believe the Senate has just completed a Constitutionally illegal vote in their attempt to shove this Bailout down our throats. The Constitution requires that Bill originate in the House of Representatives, be voted on and passed, then sent to the Senate, where it may be voted on. The House did not pass the bill. The Senate appears to have tried to side step the Constitutional requirement by attaching it to an unrelated bill.
In closing I have this in plain %u201CTexan%u201D again, I would ask %u201CHave you lost your cotton picking mind?%u201D Perhaps it is time for the fabled NONE OF THE ABOVE slot on the ballot. I make this solemn promise to do my best to ensure the defeats of every member of congress who votes for the Bailout. Those of you who have enjoyed my support in the past, will see an active participant in the attempt to see you removed from office, should you vote for this abomination.

[amervtrn]

More of the Letter to a Senator:Do you truly believe that 700 billion will do the job? Rule of thumb for government estimates: Double the estimate for the first six months, triple for the next six month period, 33.5 percent for each following six month periods attributed to unforeseen inflation adjustments and cost overruns .But we are already at 850 billion, in only three days. Let it die a natural death. Do not waste resources on a hopeless case. Let the chips fall where they may, pick up the pieces, and move on.
Every working Citizen will lose if it ever goes through. Banks and Wall Street are not Citizens they are Business entities. The government will borrow (at interest) the money needed from the Fed. The Fed will create the dollars out of thin air ( refer to Germany 1923 ), devaluing the U.S. currency. Taxpayers will repay the loan. Much like the economy of the Carter years, except that the scale and damage will be about 300 fold more severe. Those business entities which cannot survive will be bought up in the market, as is already happening ( refer to Banks already acquired. It seems the politicians couldn''t run a business if their lives depended on it. This is a political solution that will compound the problem. I say Fasten your seat belts everyone. It''s going to be a long, bumpy ride. As one of those who survived the Carter years, %u201Cyou ain''t seen nothing yet!" But wasting resources will not cure the problem.

[amervtrn]

More of the letter to a Senator:Where the Senate and Congress have, ignored their constituents expressed desires, violated the Constitution, with this bill enslaved two generations to come, and demonstrated with certain clarity there is no representation of the people in our government.
I read the bailout plan, originally all 110 pages and am attempting to sort through the current 458 pages. This disconnected jumble is more sickening than the first and will not cure the problem. It will only worsen it. The bailout reminds me of a young lady who was told her bank account was overdrawn and remarked" I can''t be out of money! I''m not out of checks!" Is that the Senate''s excuse? They are trying to write a check they can''t cash. Come election day I bet the American People can cash a check.
In plain "Texan" you can dress up a Pig but it is still a Pig. It is time to slaughter this HOG and all who voted for it. The voting booth makes for a very large Slaughter House.
If the Bailout is such a good deal why haven''t the Democrats passed it by themselves and kept all the Glory? There is another question that comes to mind here. How much of this boondoogle is going to Foreign banks? If you have followed foreign news and stock markets, especially those who are blaming the USA for all the world''s problems ( Steinmeier ), their markets, which are in worse condition than ours'', suddenly seem to act as if the money is going straight into their accounts.

[amervtrn]

Part of a letter to a Senator: I have for years been a staunch supporter of your''s. Until your vote on this PORK BARREL SCAM BAILOUT, I would have bet the proverbial Farm on you and your judgment.
I felt confident that you and others like you had the best interest of Texas, The USA, and The People in your heart. I firmly believed you would support and protect the Constitution and the American way of life from all enemies foreign and domestic. I have down loaded and watched your speech before the Bailout vote in the Senate and watched it several times, trying to understand what in the world would possess you to support such a disaster of a bill. You mentioned strings of control several times, enough strings combined make a rope. This rope will hang us. ( Did someone have a gun to your head? ) Why?
To say I am throughly disappointed and discussed, is an under statement. The true feeling is much like the feelings I have had putting fallen comrades in body bags. I feel you and those who voted for this, PORK BARREL SCAM BAILOUT, have put The USA and The Constitution in a body bag.
Contrary to the quote,"this is a step down a slippery slope to Socialism!", this is a jumping, falling, and rolling down the hill to Communism.
I am quite sure you remember, Nikita Khrushchev''s speech before the U.N.,"America will fall without a shot being fired. It will fall from within." It seems his words have come through with ringing clarity.

[rickwar]

%u201CWe have a good deal of comfort about the capital cushions at these firms at the moment.%u201D %u2014 Christopher Cox, SEC, March 11, 2008.

Events in Washington, on Wall Street and elsewhere around the country have led to what has been called the most serious financial crisis since the 1930s. Decisions made at a brief meeting on 4/28/004 explain why the problems could spin out of control.

GOT THAT? 2004

Five members of the Securities and Exchange Commission met in a basement

They wanted an exemption for their brokerage units from an old regulation that limited the amount of debt they could take on. The exemption would unshackle billions of dollars held in reserve as a cushion against losses on their investments.

Five investment banks led the charge, including Goldman Sachs, which was headed by Paulson. Two years later, he left to become Treasury secretary

In loosening the capital rules, which are supposed to provide a buffer in turbulent times, the agency also decided to rely on the firms%u2019 own computer models for determining the riskiness of investments.

laissez-faire philosophy has driven deregulation throughout the government, from the Consumer Product Safety Commission to worker safety and transportation agencies.

Who stood behind the deregulation at the start? John McCain. He then said he''d fire Cox, he can''t

And people want to vote for more of the same with McCain?

Those who voted yes need to go at re-election

[myopinion1]

Posted by alphaa010 at 06:45 AM, post something once, that''s great. Post it over and over again, you look like an idiot. Wonder which one you are?

Anyway, the bailout will pass because it''s not about us, it''s about them and their vacation homes, their country club memberships, their lobster dinners, their plump colleagues. It''s NEVER been about us and it never will be. They will scare us all into believing that these idiots need saving. I really REALLY wish that people would vote these people out of a JOB and really let them know how we feel. It wouldn''t matter to them anyway. They''ll still get their fat pensions that come out of our pockets too.

[slim1h2o]

Remember Congress, you vote yes for a bailout, We''ll vote NO in the next election.



No bailout for Wall Street, till the American Taxpayer gets bailed out!


With all this talk about bailouts, Why no mention, or bailouts for out failed Health Care System?

Not even a wimper.

[stupidrules3]

These are the senators who listened. The rest must go.

Senators Voting %u201CNay%u201D on Federal Intervention in the Financial Markets
Wednesday, Oct. 1, 2008
Sen. Wayne Allard (R-CO)
Sen. John Barrasso (R-WY)
Sen. Sam Brownback (R-KS)
Sen. Jim Bunning (R-KY)
Sen. Maria Cantwell (D-WA)
Sen. Thad Cochran (R-MS)
Sen. Mike Crapo (R-ID)
Sen. Jim DeMint (R-SC)
Sen. Elizabeth Dole (R-NC)
Sen. Byron Dorgan (D-ND)
Sen. Michael Enzi (R-WY)
Sen. Russ Feingold (D-WI)
Sen. James Inhofe (R-OK)
Sen. Tim Johnson (D-SD)
Sen. Mary Landrieu (D-LA)
Sen. Bill Nelson (D-FL)
Sen. Pat Roberts (R-KS)
Sen. Bernie Sanders (I-VT)
Sen. Jeff Sessions (R-AL)
Sen. Richard Shelby (R-AL)
Sen. Debbie Stabenow (D-MI)
Sen. Jon Tester (D-MT)
Sen. David Vitter (R-LA)
Sen. Roger Wicker (R-MS)
Sen. Ron Wyden (D-OR)
15 Republicans voted no; 10 Democrats voted no
40 Democrats voted aye; 34 Republicans vote aye

[david393071]

This Bailout has nothing to do with what you nor I want.

This is about corporate ownage of the Government:
Executive Branch
Legislative Branch
Judicial Branch

Just to be fair, Examples:
Bush (both of them) Oil Corporations
Cheney Halliburton
Biden Delaware sworn to protect Corporations Incorporated there.
Obama promised electorial votes of NY, PA, NJ, CT if bailout passed.

Other Corporate Ownage:
Micro Soft National Broadcasting Corporation (MSNBC)
CBS
Other news media (TV Stations, Newspapers) like Hurst Argyle,etc.
KBR = Military thru Military Contracts/Contractors
Electorial Colleges (wikipedia)
US Military thru Politicians
US Industrial Complex (including Defense Industrial Complex)

[notfooled]

I geuss it all comes down to whether the House will follow suit like the Senate and tell the American people to F*CK OFF.

VOTE ALL INCUMBENTS OUT.

Take back the country,

[david393071]

Guys this is about the bailout not the Vice Presidental Debates.

So back on topic please?

This bailout is not about the Politicians. This is about the bailout of the Corporate Board Members that caused the "Economic Pearl Harbor"-Warren Buffet.

This bailout does nothing for the Common Stocks/Shares those were already devalued by the Corporations posting loses by cooking the books. Being investigated by FBI as fraud. The Corporate Board Member Stock Options get reinflated.

Jobs, Americans too expensive. We are providing them money to outsource these jobs to another country just like GM, Ford, Chrysler did. These are the same types of Corporate Board Members, sometimes the same ones that are on numberous Corporate Boards, that had multimillion USD parties while laying off Americans and closing Factories. Think they will not do the same? Think they won''t be back for more free money?

Loans to businesses? Nope you pay off the bad loans. Think I''ll loan you anything, repeat the same mistake? Nope. What happened to reinvesting the profits back into the business instead of begging for credit every year. Guess that new Porsche or Mercedes is more important.

Follow the money.
Most Corporations incorporated in Delaware, Delaware is sworn to protect these Corporations. Who is already bought out. Who promised the electorial votes of PA.
Who called everyone to change their votes to approving the bailout. Who wanted no regulation or restrictions on the bailout.

[gerardmulholland]

Unsupervised guarantees and loophole-ridden anti-corruption measures solve nothing.
The $ 850 billion bailout bonanza is just one last greedy grasp to empty the public till into the pockets of the prime parasites on the planet.
All countries failed to regulate markets and business practise against recklessness and fraud, went mad with greed and created real debts in fictitious money three times bigger than all real assets on earth.
Every lender/seller is now chasing everyone else''s money hoping to survive.
Next comes worthless money, and no-value assets!
But can the US ''solution'' really be more of the same?
No it can not!
This proposed bailout will only prolong and deepen the agony.
The only long-term solution is an economic freeze with foreclosure protection and a new Bretton Woods Conference and Agreement to agree new global rules for markets, currencies and business.
The US should ask the UN Security Council to convene that.
What the US House of Representatives should do right now is guarantee all troubled mortgages against foreclosure by buying them at market value -not one cent more- and holding them in a US Treasury Account for eventual full payment to the profit of the US taxpayer.
Bailout the public!
Leave the bankers to the free market!

[brownpride46]

Dear Zaq,
I agree Palin was out gunned.

But google: obama crimes. Do the same for McCain.

Imagine this, you''re on a 747. Would you trust a your captain if he refused to show his ID? Obama wont show his ''original'' birth certificate. This is the irrefutable proof needed before I''d vote for him.

Obama''s hubris in his reluctance to comply with Attorney General Philip Berg (DEMOCRAT)of Pennsylvania is telling. Hence, the lawsuit Berg vs Obama 0cv4083.

The Hawaiian state produced live birth certificate can be easily forged like a passport.

I''ll only vote for Obama if he can show proper ID. Hussein''s not flying my plane without ID.