Senate Passes “Dodd Bailout” …. errr … Rescue – Update: Powerrline Weighs In

October 1, 2008 | Jim Vicevich | |

Update: I respect John more perhaps than anyone on the internet today. He is smart (Dartmouth, I believe), a successful corporate lawyer (hey, my sister is a corporate lawyer), reasoned and puts much thought into each post which generally amount to one or two a day. But today … my respect overfloweth!

I said on Monday that if I were in the House, I would vote, reluctantly, for the bailout package as negotiated by the Republican leadership over the weekend. …I’ve changed my mind. The bill failed in the House on Monday, and the sky didn’t fall. Those who predicted doom are a bit like the cartoon characters who don white robes and climb mountains carrying signs that say “the world will end tonight.” They feel silly when the sun comes up the next morning.

I’m not sure what to think … this bill is no different than the one offered in the house except its loaded with crap. OK, they upped the FDIC insurance threshold and addressed temporarily the AMT (not sure what that has to do with credit). Big deal.

“In addition to extending several tax breaks popular with businesses, the bill would keep the alternative minimum tax from hitting 20 million middle-income Americans and provide $8 billion in tax relief for those hit by natural disasters in the Midwest, Texas and Louisiana”

It’s still the government getting into the mortgage paper business and they likely could have accomplished the exact same thing by eliminating mark to market and eliminating or lowering capital gains. That alone would let banks keep the paper and sell it later at a profit. But then that’s just me.

Everyone stood around and congratulated Dodd who as chairman of the banking committee was at the eye of this storm. I don’t get it. And yet I have learned so much about the Senate. It does not matter who had oversight … just blame greedy capitalists and congratulate your colleagues. A boys club indeed. I’ll have video tomorrow … but for me … Michelle says it best … “crap sandwich”.

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Jim Vicevich

Jim is a veteran broadcaster and conservative/libertarian blogger with more than 25 years experience in TV and radio. Jim's was the long-term host of The Jim Vicevich Show on WTIC 1080 in Hartford from 2004 through 2019. Prior to radio, Jim worked as a business and financial reporter for NBC30 - the NBC owned TV station in Hartford - and as business editor at WFSB-TV in Hartford for 14 years while earning six Emmy nominations and three Telly Awards.

4 Comments

  1. Erik on October 1, 2008 at 6:54 pm

    Here is a message I sent to Dodd, I urge you all to send a similar letter, explaining that we are doing everything possible to ensure that he does not get re-elected.

    You say that the biggest risk we run is that of losing the confidence of the people. TOO LATE!! You have proven yourself incompetent. The people spoke on Monday and the said "we don't trust washington to act in our best interest."

    My company donated about $1000 to your campaign in the form of in kind donations. I want my money back. You ripped me off. Can you please tell me how much it costs to buy some legislation? Or should I just ask Countrywide?

    You are a deplorable human being. I will do everything in my power to see to it that you are not re-elected.

    This problem would work itself out, our government is WAY over stepping it's boundaries, and this is nothing but a power grab.

    I am tired of people like you saying "Act now and do it, trust me I know more than you" This is the same BS that was pulled over on us to get into the Iraq war. "Don't want the smoking gun to be a mushroom cloud" This is the same tactic and each time it is nothing but a thinly veiled power grab.

    You are lucky that most people are really stupid and fall for this and re-elect you.

    This problem was engineered, it started with the repeal of glass-steagal maybe before that but this is where millions were spent by lobbyists to allow the creation and trade of CDOs. The consequences were obvious and nothing was done.

    I am very sorry that I ever voted for you and donated that $1000. I want the money back!

    Thanks
    Erik XXXXXXXXX



  2. Erik on October 1, 2008 at 7:29 pm

    Here is the text of a letter that you may cut and paste and send to your rep.
    Start here to find who reps you.. https://forms.house.gov/wyr/welcome.shtml

    Dear Representative,

    I am 100% AGAINST the Bailout Bill for several reasons. one is allowing the SEC to suspend FASB Rule 157. This Section of the Bill allows the SEC to allow banks to OUTRIGHT LIE about the TRUE (non) value of balance sheet assets. You are instructed to vote no on this Bailout Bill. I am closely watching your behavior during this critical moment in the history of this country.

    Thanks
    Erik



  3. BDG on October 2, 2008 at 5:12 am

    Let's see. As of right now, the Dow is down over 200 points. Quite a vote of confidence in the "rescue" the Senat passed yesterday.



  4. Scott on October 2, 2008 at 7:01 pm

    There is one addition to this Bail Out Bill that seems to be missing , but I am not surprised .A full investigation into everyone and anyone involved. Where in the Constitution does it say that congress has the right to do this. Someone ought to test the Constitutionality of this Bill.



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