Congress leaders announce tentative $700 billion Wall Street bailout plan

**min0 lee** · 09-28-2008, 08:40 AM

http://www.nydailynews.com/money/2008/09/27/2008-09-27_congress_leaders_announce_tentative_700_.html

BY BILL HUTCHINSON
DAILY NEWS STAFF WRITER

Sunday, September 28th 2008, 9:35 AM

WASHINGTON - After marathon talks, congressional leaders declared early Sunday morning they had reached a tentative deal on an unprecedented $700 billion bailout of the nation's imperiled financial markets.

House Speaker Nancy Pelosi (D-Calif.) announced the accord about 12:15 a.m.

"We've made great progress," Pelosi said. "We have to get it committed to paper so we can formally agree."

Treasury Secretary Henry Paulson also talked of finalizing the deal but added, "I think we're there."

He said the plan "protects the taxpayer to the maximum extent possible."

Few details were available, but House Republicans, who had worried the program would put taxpayers on the hook, won a provision that would set up an insurance program for mortgage-backed securities.

Sen. Kent Conrad (D-N.D.), who chairs the budget committee, said $250 billion would be immediately available and another $100 billion could be used when requested by the President for debt purchases. Congress could bar the expenditure of the remaining $350 billion only by passing a resolution to block it from being spent.

Senate Majority Leader Harry Reid (D-Nev.) said a formal announcement would come today. "This evening has been extremely difficult," he said.

The plan would spend billions of dollars to buy up deeply devalued mortgages from the housing market's collapse and other bad loans held by tottering banks and other investors.

The aim is to prevent credit from drying up and causing a meltdown of the U.S. economy.

The House could vote on the package Sunday and the Senate Monday.

The bill to bail out Wall Street fat cats has angered working people around the country, according to a new Associated Press-Knowledge Networks poll. Only 30% of respondents supported such a plan, and 45% opposed it.

On his weekly radio broadcast, President Bush said passage of the resolution was necessary to protect Main Street workers and small businesses from being swallowed if the major markets collapse.

"If it were possible to let every irresponsible firm on Wall Street fail without affecting you and your family, I would do it. But that is not possible," Bush said.

While lawmakers narrowed in on a bipartisan agreement to save the country from financial doom, the Senate passed a $634 billion spending bill that gives auto companies below-market loans and lifts the ban on offshore drilling.

Senate leaders said the bill, which passed 78-12, was needed to keep the government functioning beyond the current budget year, which ends Tuesday.

The measure has already been approved by the House.

whutchinson@nydailynews.com

With Ken Bazinet and News Wire Services

**min0 lee** · 09-28-2008, 09:00 AM

**min0 lee** · 09-28-2008, 09:06 AM

**brogers** · 09-28-2008, 09:39 AM

Thaddeus McCotter and some other House Republicans are still opposing this, I hope they have some success.... "Crony Capitalism" talk about government and "big business" being intertwined. How can anyone support it?

**tucker01** · 09-28-2008, 10:15 AM

Originally Posted by min0 lee

Be interested to see the party following in these areas for a comparison. My bet is the blue states have a higher tendancy for foreclosure

**min0 lee** · 09-28-2008, 10:28 AM

**min0 lee** · 09-28-2008, 10:31 AM

Cali really did bad, it's a blue state I assume.

**danzik17** · 09-28-2008, 10:57 AM

Originally Posted by min0 lee

Cali really did bad, it's a blue state I assume.

Both California and Florida are traditional blue states yes, but how can you seriously think that they're even remotely related?

No one is rushing to buy a home out in the middle of the desert in Utah or in the middle of nowhere in Idaho. All of the prime real estate is on the coasts with Florida and Cali being the top dogs. The foreclosures in those states are mainly from being buying multiple investment properties using these bad loans and then finding out that they couldn't resell them for twenty bucks.

**min0 lee** · 09-28-2008, 11:06 AM

Originally Posted by IainDaniel

Be interested to see the party following in these areas for a comparison. My bet is the blue states have a higher tendancy for foreclosure

Originally Posted by danzik17

Both California and Florida are traditional blue states yes, but how can you seriously think that they're even remotely related?

Just looking for a chart...not that it proves anything.

There have been a lot of crooks in real estate ripping off the elderly also.

**min0 lee** · 09-28-2008, 11:23 AM

Oh no....how low have we gone....

LOS ANGELES - Ed McMahon has an unexpected new job title: rapper.
The 85-year-old former "Tonight Show" sidekick will star in two viral rap videos for FreeCreditReport.com, a financial Web site owned by credit bureau Experian. The videos feature McMahon wearing a tracksuit, being chauffeured around Los Angeles in a Cadillac Escalade golf cart and waxing lyrical about his very public financial troubles.
"I knew I could sing the blues, but I didn't know I could rap," McMahon said Wednesday.
The videos will appear online in October.
Charles Harris, FreeCreditReport.com's vice president of strategic marketing, said the company sought out McMahon to star in the humorous spots after seeing him openly discuss his finances on "Larry King Live." Harris said McMahon represents "a man who is taking charge."
In the first video, McMahon — who once pitched the American Family Publishing sweepstakes — and a bodyguard are cruising through a neighborhood looking for sweepstakes winners to ask for some money back, but McMahon doesn't actually go through with it. In the second spot, McMahon dons a new suit after undergoing a financial and emotional makeover.
"When I retired, I was famous," McMahon raps in the video. "I had money and glory/I bought a house for 6 mill/I thought nothing could touch me/Until my credit went south, and debt started to crunch me/Next thing I know, instead of playing gin rummy, I was scrambling just to make ends meet/It wasn't funny."
After being joined by two scantily clad women, McMahon continues: "Got a bump from the media chumps, but that was temporary/Wife with bad credit was scary, so I got wise/I may have fallen, but I got back up/Now I'm back on the attack, like a ninja swinging nunchucks/I told the haters, 'Go on, take a hike'/It's my show now, and I can do what I like."
McMahon said he spent one day in the studio recording the rap. He said he hopes his participation will inspire viewers to learn from his mistakes and become more aware about their finances.
When asked if he would consider releasing a full-length rap album, McMahon said: "Not immediately."
In June, the former "Star Search" host revealed he was fighting foreclosure after falling $644,000 behind on mortgage payments on his Beverly Hills home. Last month, he agreed to a deal with a private buyer. McMahon said Wednesday the deal has not been completed, and he's not sure what he and his wife, Patricia, will do after the sale.
"We're in this together," said McMahon. "We're a team. We're going to solve it together. We're going to work this out. I'm very optimistic. I'm an old Marine. I've been in two wars and have 85 combat missions under my belt. I've got a background of looking for the good stuff, going for the best way. My wife is with me 100 percent."
It's not the first job for McMahon following his money problems. In July, the former "Tonight Show" sidekick reprised his role as pitchman with commercial segments alongside talk-show host Jimmy Kimmel on "Jimmy Kimmel Live." One of the spots featured McMahon teaching Kimmel how to sell a product. Another had the duo preparing for a road trip to Mexico.
Last week, a Los Angeles Superior Court judge ruled that McMahon's lawsuit against Cedars-Sinai Medical Center and two physicians he claims failed to properly diagnose and repair his broken neck laid out adequate legal ground to pursue claims that include negligence, elder abuse, battery, fraud and intentional infliction of emotional distress.

**Big Smoothy** · 09-28-2008, 10:30 PM

There is a lot of hidden pork in the bailout plan.

The quote a former politician,

A bureaucrat (Paulson) with ties to Wall St. comes in and says, give us $700 billion dollars. And give it to other bureaucrats.

The bailout smells bad.

It's an attempt to keep the Credit Default Swaps from being triggered.

**lnvanry** · 09-28-2008, 10:54 PM

Originally Posted by danzik17

Both California and Florida are traditional blue states yes, but how can you seriously think that they're even remotely related?

No one is rushing to buy a home out in the middle of the desert in Utah or in the middle of nowhere in Idaho. All of the prime real estate is on the coasts with Florida and Cali being the top dogs. The foreclosures in those states are mainly from being buying multiple investment properties using these bad loans and then finding out that they couldn't resell them for twenty bucks.

don't know about all that considering the past two presidential elections and the recent gov. were about as red as it got.

Also, the desert holds the countries two fastest growing cities, Vegas and Phoenix.

**min0 lee** · 09-29-2008, 04:10 AM

Originally Posted by lnvanry

don't know about all that considering the past two presidential elections and the recent gov. were about as red as it got.

Also, the desert holds the countries two fastest growing cities, Vegas and Phoenix.

It depends on what part of Florida I guess, it's almost a split.

Arizona is up there with defaults.......new city, new housing.

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