The latest version of the bailout bill
House Republican Whip Roy Blunt’s office provides this side-by-side comparison of Treasury Secretary Henry Paulson’s original Wall Street bailout proposal with the final compromise agreed to over the weekend by congressional and Treasury negotiators here.
Much better. Thanks are due from the American taxpayers to the House Republicans. After the debacles of recent years, I never thought I would say that.
Now watch out for devious, last-minute maneuvers by the Left prior to final passage.
Michelle Malkin reiterates her objections to any bailout and reminds us that there is no draft legislation available to anyone yet. She also provides a link to another interesting post, which says:
…My take: The way the WaMu bondholders are being treated [wiped out] is unprecedented (I also read that at another link), and is a major and again (sorry for the tired word) unprecedented threat to the markets’ confidence.
I think that Hank Paulson threatened to tank the markets himself if the bailout deal didn’t get done very quickly. Maybe Ben Bernanke, too.
If the government changes its position on the treatment of WaMu bondholders and makes them whole or almost whole, you will know that I was right. If the government treats future situations as it did pre-WaMu, you will know that I was right.
You have no idea how much I want to be wrong.
This is sickening.
The post links to a UK Times article, which says:
The broader debt markets were crippled by fears on Friday after the sale of WaMu. Unlike other recent bank deals, this one saw senior creditors wiped out alongside shareholders – an unexpected blow.
The wipeout of WaMu bonds is likely to make it much more difficult for any struggling US bank to raise new finance. If bondholders can be wiped out so easily, there is little point in extending debt to struggling firms. The added uncertainty is likely to make it harder for all companies to renew their debt facilities, and put a further squeeze on the price.
to which these comments are added:
Chances are very great that the uncertainty will bleed into the equity markets, perhaps even giving Paulson & Co. the 1/3 meltdown “Treasury officials have warned of.”
I detect a whiff of financial sedition.
More here. (H/T Instapundit)
Well, this wouldn’t be the first time that Washington politicians and bureaucrats acted against the best interests of American citizens, now would it?
Conservative stalwart Congressman Mike Pence says no to the bailout:
…We now have a deal that promises to bring near term stability to our financial turmoil, but at what price?
Economic freedom means the freedom to succeed and the freedom to fail.
The decision to give the federal government the ability to nationalize almost every bad mortgage in America interrupts this basic truth of our free market economy.
Republicans improved this bill but it remains the largest corporate bailout in American history, forever changes the relationship between government and the financial sector, and passes the cost along to the American people. I cannot support it…
ADDENDUM #3: IMPORTANT UPDATE
Michelle Malkin has lots more on the actual language of the bill and it is NOT pleasant reading.
There appear to be some genuine problems in the financial markets but this bailout bill appears to be another federal government travesty.