Bush signs bailout bill

**min0 lee** · 10-03-2008, 03:17 PM

President Bush signs historic financial rescue plan into law - Oct. 3, 2008

Bailout is law

President Bush signs historic $700 billion plan aimed at stemming credit crisis.

By Jeanne Sahadi, CNNMoney.com senior writer
Last Updated: October 3, 2008: 3:07 PM ET
NEW YORK (CNNMoney.com) -- After two weeks of contentious and often emotional debate, the federal government's far-reaching and historic plan to bail out the nation's financial system was signed into law by President Bush on Friday afternoon.

"By coming together on this legislation, we have acted boldly to prevent the crisis on Wall Street from becoming a crisis in communities across our country," Bush said less than an hour after the House voted 263 to 171 to pass the bill.

The House vote followed a strong lobbying push by the White House and other supporters of the bill. The House rejected a similar measure on Monday - a defeat that shocked the markets and congressional leaders on both sides of the aisle.

The law, which allows the Treasury Secretary to purchase as much as $700 billion in troubled assets in a bid to kick-start lending, ushers in one of the most far-reaching interventions in the economy since the Great Depression.

Federal Reserve Chairman Ben Bernanke said he welcomed the news. "The legislation is a critical step toward stabilizing our financial markets and ensuring an uninterrupted flow of credit to households and businesses," he said.

Treasury Secretary Henry Paulson said he would act swiftly but "methodically" to carry out the plan.

"The broad authorities in this legislation, when combined with existing regulatory authorities and resources, gives us the ability to protect and recapitalize our financial system as we work through the stresses in our credit markets," Paulson said.

Switching votes
Republicans picked up 26 votes in favor of the bill among caucus members who'd originally voted against it on Monday, while Democrats picked up an additional 32 votes.

According to voting results, 172 Democrats voted in favor of the bill while 62 opposed it; and 91 Republicans voted for it and 108 voted against it.

"We did today what we had to do because past mistakes made it necessary," said Rep. Barney Frank, D-Mass., one of the lead negotiators on the bill.

Republicans who switched their votes from "no" to "yes" included Rep. Howard Coble, R-N.C., and Rep. Sue Myrick, R-N.C. In a statement before the vote, Myrick said, "We're on the cusp of a complete catastrophic credit meltdown. There is no liquidity in the market. We are out of time. Either you believe that fact, or you don't. I do."

Democrats who switched to "yes" votes include Rep. John Lewis, D-Ga., Rep. Elijah Cummings, D-Md., and Rep. Donna Edwards, D-Md.

Cummings noted before the vote that this was the most difficult vote for him in his 12 years in Congress. "But today we must step up and lead," he said.

Earlier this week, Cummings and Edwards were part of a group that had been working on an alternate proposal. The lawmakers had lobbied strongly but unsuccessfully to include, among other things, a change to the bankruptcy law that would let judges modify mortgages on primary residences, a move the lending industry has strongly opposed.

Cummings and Edwards said they had received calls from Democratic presidential nominee Barack Obama, encouraging them to change their minds. They said they received assurances that he was committed to the bankruptcy provision.

House Minority Whip Roy Blunt, R-Mo., told reporters before the vote on Friday morning that three things have happened to change some Republican members' opposition to the bill since the House defeated the measure on Monday: more calls to their district offices in support of the bill; a clarification of SEC accounting rules; and the Senate additions, passed on Wednesday, including a number of tax break extenders and an increase in FDIC deposit insurance coverage. (What's in the bill.)

Economy in need of a fix
The House debate began on the heels of two market-moving events early Friday morning: a worse-than-expected monthly jobs number; and a surprise merger announcement between Wachovia and Wells Fargo.

For the past two weeks, lending between banks and between banks and businesses has gotten considerably more expensive. Small businesses are having trouble getting loans. As of midday Friday, one key measure showed that banks were hoarding cash rather than loaning it. Meanwhile, an indicator showing how willing banks are to lend each other was at an all-time high.

Advocates say the plan is crucial to government efforts to attack a credit crisis that threatens the economy and would free up banks to lend more. Opponents say it rewards bad decisions by Wall Street, puts taxpayers at risk and fails to address the real economic problems facing Americans.

Lawmakers who voted against the bill warned that "being stampeded" into voting the bill through would be a serious mistake.

"Wall Street is so hungry for the $700 billion they can taste it. To get it they need to ... create panic, block alternatives and herd the cattle. We ask Congress not to rush. Defeating this bill today isn't the last step. It's the first step in passing a good bill," said Rep. Brad Sherman, D-Calif. before the vote.

Rep. Marcy Kaptur, D-Ohio, who has called for the FDIC and SEC to use their powers to ease the credit crisis, said, "Pray for our Republic. She's being placed in ... very greedy hands."

Lawmakers who stood in support of the plan noted that it will help Main Street, not Wall Street. "We [would] rescue the jobs, the savings and the ability to get a loan for each hard-working American," said Rep. Louise Slaughter, D-N.Y.

Rep. Maxine Waters, D-Calif., noted in the floor debate that the plan as amended by lawmakers also supports homeowners at risk of foreclosure by giving the government more say in how loans for troubled borrowers are modified so people can stay in their homes.

"When we buy up this toxic paper, we're in charge. We can do the kind of loan modifications we've been urging [the industry coalition] Hope Now to get done. ... We'll be able to set some standards," Waters said during the floor debate. "For anybody who says there's nothing in this bill for homeowners, they're incorrect."

CNN congressional producers Deirdre Walsh and Lesa Jansen contributed to this report.

First Published: October 3, 2008: 9:23 AM ET

**bio-chem** · 10-03-2008, 03:46 PM

shit

**IronAddict** · 10-03-2008, 03:52 PM

Originally Posted by bio-chem

shit

That was the first thing that came to my mind as well.

**bio-chem** · 10-03-2008, 04:00 PM

Originally Posted by IronAddict

That was the first thing that came to my mind as well.

lets try not to agree too much

**maniclion** · 10-03-2008, 04:02 PM

More Important is they attached the Renewable Energy Incentive Tax Credit to that bill and now there is no cap on residential Tax Credits until 2016.....that means 30% of everyones Solar, Wind or whatever system will be tax creditable........Sweet Jesus that is beautiful, good things are coming I can't wait to triple my solar system next year.....This also means I'm about to get much busier...

**IronAddict** · 10-03-2008, 04:02 PM

Originally Posted by bio-chem

lets try not to agree too much

**min0 lee** · 10-03-2008, 04:05 PM

Originally Posted by bio-chem

lets try not to agree too much

**lucifuge** · 10-03-2008, 07:32 PM

Holy Fukkin Shit!

YouTube Video

Alex Jones' Prison Planet: The truth will set you free!

Democratic Congressman: Representatives Were Threatened With Martial Law In America Over Bailout Bill
Friday, Oct 3, 2008

A Democratic Congressman has warned that a panic atmosphere is being intentionally created in order to get the financial bailout billed passed, further stating that several members of Congress were told before Mondayâ€™s vote that martial law will be instigated in America if the legislation fails.

Congressman Brad Sherman of Californiaâ€™s 27th congressional district told the House in a speech yesterday evening that he personally knew of several Congressional representatives who have said they were threatened with the prospect of all out martial law should they vote in opposition to the $700 billion bailout.

Sherman essentially intimated that powerful forces who want the bill passed have attempted to blackmail elected representatives.

â€œThe only way they can pass this bill is by creating and sustaining a panic atmosphere. That atmosphere is not justified.â€ Sherman stated.

â€œMany of us were told in private conversations that if we voted against this bill on Monday that the sky would fall, the market would drop two or three thousand points the first day, another couple of thousand the second day, and a few members were even told that there would be martial law in America if we voted no.â€ The Congressman continued.

â€œThatâ€™s what I call fear mongering. Unjustified. Proven wrong. Weâ€™ve got a week, weâ€™ve got two weeks to write a good bill. The only way to pass a bad bill is to keep the panic pressure on.â€ Sherman urged.

Sherman has been a member of the House of Representatives since 1997 and also serves on the Committee on Financial Services along with Texas Congressman Ron Paul.

On the Eve of a second Congressional vote on the legislation, these revelations show that freedom in America is under direct attack. The Congress should instigate an immediate investigation into these serious allegations to uncover which private individuals and administration officials, if any, are involved with directly threatening a military takeover of the workings of the U.S. government.

Shermanâ€™s comments follow those of Rep. Michael Burgess (R-TX), who warned Monday that the only information he had received about the bailout was what talking points to use on the American people and that he had been thrown out of meetings for not blindly supporting the bill.

Ominously, Burgess also commented, â€œMr. Speaker I understand we are under Martial Law as declared by the speaker last night.â€

Rep. Burgess appeared on the Alex Jones show earlier this week to discuss his comments. Subscribers, listen here.

However, it must be stressed that the definition of martial law that Congressman Sherman is referring to is the full blown military suspension of the normal administration of justice, while rep. Burgess was referring to the temporary suspension of the rules and procedures of Congress by its leaders so that a bill can be passed quickly.

Shermanâ€™s allegations of threats against elected representatives have also been echoed by outspoken political activist Lyndon LaRouche who told an audience â€œThere are those in high positions who know that if they donâ€™t allow this bill to pass, that there are people behind the Bush Administration who will force them to pass it or kill themâ€¦â€. LaRouche stated that well placed sources had told him that the use of armed troops to enforce the passage of the bill is â€œrealityâ€.

**maniclion** · 10-03-2008, 08:17 PM

Panic is the only reason I supported the bill. I know that when people start to worry about their money bad things can happen. Paranoia in the form of financial ruin can cause catastrophes. Even though I myself and many others knew that panicking was not a good strategy you have no control over mob rule. You yell fire in a crowded room people are going to get trampled even if there are a handful of people who say "There's no smoke where's the fire?" All it takes is another handful to start running for the exits to get the panic started.... Based on that I knew we needed to douse that match quick before it set off alarms and things began to get crazy....

**Crono1000** · 10-03-2008, 08:25 PM

Originally Posted by maniclion

Panic is the only reason I supported the bill. I know that when people start to worry about their money bad things can happen. Paranoia in the form of financial ruin can cause catastrophes. Even though I myself and many others knew that panicking was not a good strategy you have no control over mob rule. You yell fire in a crowded room people are going to get trampled even if there are a handful of people who say "There's no smoke where's the fire?" All it takes is another handful to start running for the exits to get the panic started.... Based on that I knew we needed to douse that match quick before it set off alarms and things began to get crazy....

FIRE!!!!!!!!!

**lucifuge** · 10-03-2008, 08:26 PM

Originally Posted by maniclion

Panic is the only reason I supported the bill. I know that when people start to worry about their money bad things can happen. Paranoia in the form of financial ruin can cause catastrophes. Even though I myself and many others knew that panicking was not a good strategy you have no control over mob rule. You yell fire in a crowded room people are going to get trampled even if there are a handful of people who say "There's no smoke where's the fire?" All it takes is another handful to start running for the exits to get the panic started.... Based on that I knew we needed to douse that match quick before it set off alarms and things began to get crazy....

I agree, but threatening martial law?
wow... spelling America with a 'K' are we?

welcome to the U.$.$.A

**bio-chem** · 10-03-2008, 08:28 PM

crono, post like that should not be allowed

**Crono1000** · 10-03-2008, 08:33 PM

Originally Posted by bio-chem

crono, post like that should not be allowed

it'll get modded, give it time.

on that note, faces like you're should not be allowed. FACE!

**bio-chem** · 10-03-2008, 08:59 PM

Originally Posted by Crono1000

it'll get modded, give it time.

on that note, faces like you're should not be allowed. FACE!

we dont have a plastic doll fetish forum here at IM. im not sure you qualify for any other MOD position.

good luck with getting it started though

**Big Smoothy** · 10-03-2008, 11:29 PM

We do not know if the bailout will restore confidence.

also,

reasearch, CREDIT DEFAULT SWAPS

You will be hearing about Credit Default Swaps in the near-future, IMO.

**Splash Log** · 10-04-2008, 12:31 AM

As a young person I wanna see the market bottom out, I hope it ends up worse then the Great Depression.

This "bill" made it harder to get to this point, but I hope our markets go to shit.

When they get low enough I will start buying, because guess what I am in it for the long run and when I buy I dont plan on using that money for 30 years. See I will survive and will put away as much as i can and still survive because when you are in it for the next few decades you will end up way on top.

**bio-chem** · 10-04-2008, 08:38 AM

Originally Posted by Splash Log

As a young person I wanna see the market bottom out, I hope it ends up worse then the Great Depression.

This "bill" made it harder to get to this point, but I hope our markets go to shit.

When they get low enough I will start buying, because guess what I am in it for the long run and when I buy I dont plan on using that money for 30 years. See I will survive and will put away as much as i can and still survive because when you are in it for the next few decades you will end up way on top.

unless you don't have a job, or one that pays you just enuogh to get buy with no additional money to put away.

you're right. you are young. and this post shows that.

**Big Smoothy** · 10-04-2008, 09:43 PM

The $700 billion may be the first of more payments. Basically buying bad loans.

Nobody knows what will happen in.....

**lnvanry** · 10-05-2008, 06:43 PM

Originally Posted by Big Smoothy

We do not know if the bailout will restore confidence.

also,

reasearch, CREDIT DEFAULT SWAPS

You will be hearing about Credit Default Swaps in the near-future, IMO.

Its the only part of the international market that has been making large gains (+25%) according the latest Economist issue

**Big Smoothy** · 10-05-2008, 11:55 PM

Originally Posted by lnvanry

Its the only part of the international market that has been making large gains (+25%) according the latest Economist issue

So, I presume these people investing in the CDSs are assuming there will be a payoff.

Meaning, more bad things will happen.

**Zaphod** · 10-06-2008, 07:09 AM

Six more months and they'll be wanting more money because it wasn't enough the first time. Just like little kids. They got what they cried for and now they will be wanting more and more. Slippery slope we're on.

Also the execs at the companies getting money from the bailout will be getting HUGE bonuses one way or another. Regardless of any wording of the bailout bill they will be getting a large part of it.

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