Bush Endorses Housing Bailout

Posted by John Carney, Jul 23, 2008, 9:03am

President George Bush announced this morning that he was giving up his opposition to the housing bailout bill. Over night news emerged that House and Senate leaders had reached compromise deal that would extend protections Fannie Mae and Freddie Mac and provide up to $300 billion to insure refinanced mortgages.

The president had said he would veto the bill on the grounds that it would "unfairly benefit lenders who made bad loans." It had been tainted by news that its most prominent supporter, senate banking committee chairman Chris Dodd, received massive campaign donations from Bank of America executives and sweetheart loans from Countrywide. A memorandum emerged indicating that the bill may in fact have been written around the requests of Bank of America.

In the end, it seems that everyone in Washington, DC decided to drop partisan fighting and ideology in favoring of "doing the right thing," by which we mean spending other people's money, increasing the authority of federal regulators and further distorting market processes.

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Comments

1

Posted by Isiah, Jul 23, 2008 9:15AM

Isiah's mad as hell, and he's not going to take it anymore!!

2

Posted by guest, Jul 23, 2008 9:44AM

Dodd is a piece of shit. Fuck him til his eyes bleed.

3

Posted by guest, Jul 23, 2008 9:57AM

I just want to fuck him until his ass bleeds.

-Barney Frank

4

Posted by Joseph di Jersey City, Jul 23, 2008 10:13AM

Does B of A gets signage rights to the Capitol building as part of this?

5

Posted by guest, Jul 23, 2008 10:24AM

A very dispiriting episode. This whole thing was conducted with so much secrecy and very little chance for public input. Basically, the Treasury Secretary and leadership figures from both parties cut a deal that carries a huge price tag in private. The public doesn't understand (or perhaps doesn't care) what has gone on in Washington around this issue.

6

Posted by guest, Jul 23, 2008 10:36AM

I think we're all going to feel a little leakage when all is said and done:
http://dealbook.blogs.nytimes.com/2008/07/22/goldman-banker-to-take-advisory-post-with-paulson/

(btw in case anyone forgot old Hank was former chairman at Goldman)

-C

7

Posted by guest, Jul 23, 2008 10:50AM

Heck of a job, brownie.

8

Posted by merkin capital partners, Jul 23, 2008 10:58AM

it was fun pretending to be a conservative huh GW? oh well, back to the neocon camp.

9

Posted by guest, Jul 23, 2008 11:10AM

Get off your asses and send an email to your Representative and Senator now.

You and your kids are going to pay this monstrous misjudgment long after everyone who voted for it, including GW, is at home living on their inflation-indexed government pension.

Why should they care if you don't?

Stop the madness.

R./
Spartacus

10

Posted by guest, Jul 23, 2008 11:37AM


It was a good run while is lasted. Granted true Empires like the Persians, Greeks Romans, British (even the Mongols) etc. had a more extended stay but in this day of Moores law what can we expect?
I'm starting to think Jim Rodgers had the right idea, decided the system was screwed beyond belief and bid us sayonara [more properly 'zai jian'].

Maybe an interesting topic of conversation is where to go?
The Islands are typically boring longer term, unless you mean Australia and even that after a few months has one longing for NYC. I've enjoyed spending time with our good neighbors north of the border; (good economy, natural resources, clean cities and dirty women) and it seems to be worth a look. South of Spain and Portugal are also pretty high up there.
So I leave it up to you learned readers of DB's. If the rats, present company included, are looking to jump ship any suggestions? [Yes I know hell, and Bagdad are two options]. -C


11

Posted by merkin capital partners, Jul 23, 2008 12:30PM

Bunning says bill "horrendous"...just when i thought you were completely retarded, you go and...totally redeem yourself.

12

Posted by guest, Jul 23, 2008 1:08PM

10: Try the Greek islands. Many to choose from based on your 'preferences'

Also, post Olympics Athens is not a total hole and you've got a lot of options for hiding funds: Andorra, Cyprus, Lichtenstein...

13

Posted by guest, Jul 23, 2008 2:31PM

Paulson will now have the power to spend taxpayer dollars buying stock in companies (freddie/fannie) that are being guaranteed by that same tax-payer dollar. That almost sounds like a "wash trade".
How many comission dollars are going to be generated by Hanks purchases?
Now i understand why the financials are rallying - the government effects wash trades using taxpayer money and generates trading commission for the shops without a hope of real earnings for the next 12 monthes.
Giddup!

14

Posted by guest, Jul 23, 2008 2:38PM

Paulson will now have the power to spend taxpayer dollars buying stock in companies (freddie/fannie) that are being guaranteed by that same tax-payer dollar. That almost sounds like a "wash trade".
How many comission dollars are going to be generated by Hanks purchases?
Now i understand why the financials are rallying - the government effects wash trades using taxpayer money and generates trading commission for the shops without a hope of real earnings for the next 12 monthes.
Giddup!

15

Posted by guest, Jul 25, 2008 3:44PM

Anyone know of the complete list of people who voted "yes" for this reinforcement of greedy, selfish, bad behavior/judgement so that I can vote them out of office?

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