This is a tough situation to be in, but we are in it. It was be great if the Democrats had listened to John McCain about Fannie Mae and Freddie Mac instead of insisting there was nothing wrong. Instead they inferred the Republicans were racist for saying there was a problem. Honestly, looking at those hearing they might as well have just said, "You just don't want minorities to own houses." However it happened were here and something needs to be done.
Yesterday the Economic rescue package was dead. It was killed after Speaker Pelosi delivered a partisan speech on the House floor right before the bill. The speech blame Republicans for the entire problem and left many Republican lawmakers thinking they were about to be thrown under the bus with Rev. Wright and Obama's Grandmother. The vote come down 228-205. Only 65 Republicans supported the measure. That is far fewer than the 100 that was projected earlier. It appears that a partisian speech by Pelosi may have caused so few Republicans to vote for the bill.
However the bill is not dead. The Senate will take up the matter tomorrow. If it passes, and all indications are it will it will be sent back to the house for approval. The new verison will include an increase of FDIC insured money from $100,000 to $250,000. It also includes tax cuts for businesses.
"Another possible change to the bill would modify "mark to market" accounting rules. Such rules require banks and other financial institutions to adjust the value of their assets to reflect current market prices, even if they plan to hold the assets for years.
Some House Republicans say current rules forced banks to report huge paper losses on mortgage-backed securities, which might have been avoided.
Congressional leaders hope the half-dozen changes under discussion will be enough to persuade as few as six House Republicans and six Democrats to undo Monday's stunning vote."
So even though Speaker Pelosi tried to kill this bill by putting all the blame for the problem on Republicans, then following it up by putting all the blame for the bill's failure on Republicans. We may have an improved conservative version signed into law by week's end.
1 week ago