Does Anyone feel like Bailing

[classicman]

I agree with the latter half of your post, but with respect to the first assumption, both sides confirmed earlier that they had discussed the situation. One of the reasons that Obama was going to have Bush ask for the money was because he could not get assurances from the congress to approve it. He didn't want one of the first things he did in office to be using the presidential veto. I think the congressional leaders have come around in the last few days and there are enough votes now.


That's what I read in the papers and saw on tv anyway. (too busy to look for it right now)

[classicman]

From The Los Angeles Times

Reporting from Washington -- President Bush today agreed to a request from President-elect Barack Obama to notify Congress to access the second half of the $700-billion financial bailout fund, starting a 15-day period in which lawmakers must act to block the money before it is automatically released.

In a letter to congressional leaders, one of Obama's top economic advisors told lawmakers "the need is imminent and urgent" for the remaining $350 billion of the Troubled Asset Relief Program, or TARP.

Bush said at his final news conference this morning that he would be willing to ask for the money on Obama's behalf to speed up the process for his incoming successor. But Bush said Obama had not asked him.

Within hours, however, White House spokeswoman Dana Perino said Obama formally asked Bush this morning to notify Congress for the remaining $350 billion from the program.

"President Bush agreed to the president-elect's request," she said. "We will continue our consultations with the president-elect's transition team, and with Congress, on how best to proceed in accordance with the requirements of the statute."

That article seems to have a very different spin than the was previously posted. This one seems to say that Obama asked and Bush agreed. Nothing sinister there.

[TheMercenary]

Good to see the cooperation, but have they put the oversight into it yet?

[classicman]

That plan is apparently well under way and congress is going to be deeply involved in those discussions. That will take some time. To get that many people to agree on anything takes time.

[TheMercenary]

So we just continue to throw money out there without the oversight? I thought they pointed that out last month as a huge issue. Didn't they even have a few Congressional hearings about it? the system is still broken and we are still throwing money at it.

[classicman]

What the hell are you talking about? They are dealing with the oversight and the logistics of how to implement them as we type.

[TheMercenary]

But they don't have them in place and there is a bunch of those millions/billions unaccounted for.

[classicman]

that's on Bush's watch - He fucked that one up royally! He even alluded to that yesterday in an interview. This money is being asked for by Bush because of the 15 day period that congress has to approve the request. That way it will be ready for Obama to use in implementing his plan.

One article I read hinted that the request didn't come until today due to a miscommunication between Obama & Bush at the transition meetings. Bush brought up the issue again to Obama.

[TheMercenary]

We will see. It has much less to do wtih Bush or Obama as it does with Congress. They need to provide the oversight and mandate reporting with dollar for dollar accountability. I have not seen that to date.

http://alaskakid.wordpress.com/2008/...08-gao-report/

[classicman]

And you won't - that money is G-O-N-E. That was a big part of the problem.

[TheMercenary]

Tax breaks needed.

Economists Are Divided on Best Mix of Stimulus Article

By PHIL IZZO

Economists in the monthly Wall Street Journal forecasting survey generally agree with the size of President-elect Barack Obama's stimulus package but remain divided on where the money should be spent.

http://online.wsj.com/article/SB123195389790581947.html

[classicman]

Congress clears way for second half of bailout
Senate approves infusion of bailout cash and an $825 billion stimulus bill

Congress laid the foundation for President-elect Barack Obama’s economic recovery plan on Thursday with remarkable speed, clearing the way for a new infusion of bailout cash for the financial industry while majority Democrats proposed spending increases and tax cuts totaling a whopping $825 billion.

It recommends tax cuts for businesses and individuals while pouring billions into areas such as health care, education, energy and highway construction.

At the same time, more traditional anti-recession spending was built in. There was more than $130 billion for health care, much of it to help states cope with the rising demand for Medicaid, the health care program for the low-income and a recession-era refuge for the newly laid-off.

More than $100 billion was ticketed for education, in part to help local school districts avoid the impact of state budget cuts. Billions more would increase spending for food stamps and unemployment benefits and finance expanded worker retraining programs.

A written summary showed $30 billion for highway construction, $10 billion for mass transit and rail, and $3 billion for airport improvements.

Looks like things are already happening and he hasn't even hit the oval office yet.

[classicman]

Then again:

From NBC's Mike Viqueira
It's on. The $825 billion stimulus package unveiled by Democrats this morning has Republicans literally speechless.

"Oh. My. God," said a stuttering Minority Leader John Boehner moments ago at a news conference. He was reacting after having just read the provisions outlined by Democrats today.

$1 billion for community development block grants. $650 million for digital TV coupons. Billions for universities.

Boehner says that much of it isn't going to do anything to help the economy in the short term. He says the approach by Democrats is to "clean out every dime from the taxpayer," and that the nation can't "borrow and spend it's way to prosperity."

House Republicans held their own forum today in an effort to talk about their ideas for an alternative, which are largely centered around tax cuts and credits.

The Democratic bill will see committee action on Wednesday, or, as Appropriations chairman Dave Obey put it today, "The day after the crown prince is sworn in."

[TheMercenary]

Yep, BOHICA!

[classicman]

An interesting turn of events

Bank of America Soars as Lewis, Directors Buy Shares

Jan. 21 (Bloomberg) -- Bank of America Corp., the biggest U.S. lender by assets, gained 31 percent in New York trading after Chief Executive Officer Kenneth Lewis and five directors bought more than 500,000 shares for at least $3 million.

Lewis bought 200,000 shares of the bank at prices ranging from $5.98 to $6.06 yesterday, while director Robert Tillman also bought 200,000 shares for $5.77 to $5.78, according to a filing today. Temple Sloan Jr., lead director of the Charlotte, North Carolina-based bank, bought 41,800 shares. Buyers also included William Barnet III, Jacquelyn Ward and John Collins.

Purchases by insiders typically are seen as a vote of confidence, and the filing helped Bank of America stock regain some of the ground lost this week. Jamie Dimon, CEO of JPMorgan Chase & Co., also bought 500,000 shares of his bank valued at $11.5 million, according to a separate filing. Lewis bought his stake as the bank prepared to dismiss about 1,000 people, part of a reduction that may ultimately affect 35,000 jobs.

Bank of America shares advanced $1.58 to $6.68 at 4:15 p.m. in New York Stock Exchange composite trading. Earlier in the session, the shares reached $6.88. The company fell 29 percent yesterday to $5.10, a two-decade low, after Paul Miller, analyst at Friedman Billings Ramsey Group Inc., said the bank needed to raise $80 billion of capital to reach adequate levels. JPMorgan added 25 percent today to $22.63.

Whats this all about? Anyone?