Members of President George W. Bush's own party are voicing their opposition to his financial rescue plan even as Democratic leaders narrow their differences with the administration. Congressional leaders said the $700 billion measure is needed to calm market turmoil and they hope to complete talks and pass the measure as soon as this week. Treasury Secretary Henry Paulson agreed with Democratic demands that Congress can create an oversight structure, House Financial Services Committee Chairman Barney Frank said. Accord between Democrats and the Bush administration came as Alabama Senator Richard Shelby, the top Republican on the Senate Banking Committee, said the proposal is ``neither workable nor comprehensive, despite its enormous price tag.'' Another Republican senator, Jim DeMint of South Carolina, said Paulson's plan ``could make matters worse by socializing an entire sector of the U.S. economy.''
Congressional leaders said the $700 billion measure is needed to calm market turmoil and they hope to complete talks and pass the measure as soon as this week. Treasury Secretary Henry Paulson agreed with Democratic demands that Congress can create an oversight structure, House Financial Services Committee Chairman Barney Frank said.
Accord between Democrats and the Bush administration came as Alabama Senator Richard Shelby, the top Republican on the Senate Banking Committee, said the proposal is ``neither workable nor comprehensive, despite its enormous price tag.'' Another Republican senator, Jim DeMint of South Carolina, said Paulson's plan ``could make matters worse by socializing an entire sector of the U.S. economy.''
(This is dated 6 hours ago, so it is more current than the stories last night where Frank's bolded claim was denied) A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
I've had more time to read the Dodd proposal -- and it is a big improvement over the Paulson plan. The key feature, I believe, is the equity participation: if Treasury buys assets, it gets warrants that can be converted into equity if the price of the purchased assets falls. This both guarantees against a pure bailout of the financial firms, and opens the door to a real infusion of capital, if that becomes necessary -- and I think it will.
I think there's still scope for a diary, if Jerome or Bonddad don't beat me to it :-) A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
