Economic Bail Out Plan Moves Forward

Posted on September 28, 2008




Deal Reached

—FROM Wall Street Journal

250 billion available immediately
100 billion available on report to Congress
350 billion available only upon Congressional action

Sen. Barack Obama (D. Ill.), the Democratic Party presidential nominee, said the tentative deal appears to embrace key principles he favors: better oversight, the potential for taxpayers to receive profits from the workout, CEO compensation limits and foreclosure protections.

“When taxpayers are asked to take such an extraordinary step because of the irresponsibility of a relative few, it is not a cause for celebration,” Obama said in a statement Sunday. “But this step is necessary.”

Republican nominee Sen. John McCain, interviewed by ABC’s “This Week,” said, “This is something that all of us will swallow hard and go forward with.”

A written plan will be available later today.

The plan would let the Treasury begin purchasing distressed debt securities from financial companies affected by the record number of home foreclosures.

After five years, if there was a net loss to taxpayers, the president would have to submit a plan to Congress to recoup the funds, according to an outline circulated by congressional aides.

The proposal also includes accountability provisions, limits on executive pay for participating companies, and foreclosure relief.


*How this is going to help people who are losing their homes is yet to be seen.
Their goal is to have this all ready to go by tomorrow, Monday, Sept. 29, 2008.

Posted in: Economics, Politics