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Wall Street bailout could `cripple' federal budget
By Jared Allen and Jackie Kucinich, The Hill

Congressional budget writers are already starting to worry that the massive federal government bailout of Wall Street could have drastic repercussions on how the government spends money next year and beyond, regardless of the make-up of either end of Pennsylvania Avenue.

Rep. Jim Cooper (Tenn.), a senior Democrat on the House Budget Committee, as well as a former investment banker, stressed that the moves by the federal government to prop up the financial markets are positive and necessary. Still, the investments -- just because of the sheer dollar amounts involved -- could freeze Congress's ability to spend money on a host of things well into next year and beyond, he added.

"This cripples the domestic policy priorities of the next president, whoever it is, because it soaks up so much cash," said Cooper, a senior Democrat on the House Budget Committee and a former investment banker. "In the long term, it is good news because it will encourage better behavior from everyone."
Treasury Secretary Henry Paulson said Friday the measure would cost "hundreds of billions" of dollars.

"Don't assume there will be revenue next year when we do this," said Rep. John Campbell (Calif.), a Budget Committee Republican, former CPA and member of the conservative Republican Study Committee who supports the Treasury proposal.

"I mean, we are talking what I think could be a half-trillion dollars," Campbell said, adding that while it's hard to say to what exact impact the bailout will have on the budget, there will be widespread pressure to keep federal spending low.

by Magnifico on Fri Sep 19th, 2008 at 07:22:48 PM EST
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That's going to make federal funding for health care plans and social security more interesting.

Neocon win! They keep the money, and destroy public spending on essentials.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Fri Sep 19th, 2008 at 07:32:10 PM EST
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That's the whole point. Makes it damned near impossible now.
by Magnifico on Fri Sep 19th, 2008 at 07:38:41 PM EST
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Unless it is all kept in that mysterious place, "OffBudget". A war of a few trillion, bailing out the financial system, another trillion or so.

I hope we get more than pennies on the dollar from the estates of the millionaires and billionaires who fleeced the system for the last several years. I fully presume that the bankruptcy estate manager of the US will claim back everything that they stole plus more.

Will we have to pay for their dinners and the dinners of their families while they are in their holding cells, awaiting trial? Or will they work on chain gangs. I can only imagine that if people taking pictures of them pay a dollar or so per, that this will be more monetarily remunerative than whatever service they are providing; trimming hedges on the road, etc.

I wonder if we should short some of the drug companies since all the rich won't be able to buy their 'mother's little helpers' as they do now. Geez, in that scenario, Prada, Chris-Craft, et al will be in dire straits. How will the world survive?

Never underestimate their intelligence, always underestimate their knowledge.

Frank Delaney ~ Ireland

by siegestate (siegestate or beyondwarispeace.com) on Sat Sep 20th, 2008 at 05:18:15 AM EST
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"In the long term, it is good news because it will encourage better behavior from everyone."

Better behavior? As in, "begging us for their survival, and obeying our every orders and whims because they have no other choice to survive?"

The Shock Doctrine has come home.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Sat Sep 20th, 2008 at 06:09:57 AM EST
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