Bailout Agreement Reached
Bush is trying to keep it together and sell Americans on the bailout. Acknowledging that many have fallen on hard times, Bush warns that not helping Wall Street out could make things worse instead of better.
“And that would put our economy on the path toward a deep and painful recession,” he argued. “The rescue effort we’re negotiating is not aimed at Wall Street — it is aimed at your street.”
It still remains to be seen how much money will be spent or what will be the final cost for tax payers. In an odd twist that can only happen in an election year it seems that more Democrats were in support of President Bush’s plan than were Republicans.
But early Sunday morning it appears that an agreement was reached with concessions on both sides.
Officials said that Congressional staff members would work through the night to finalize the language of the agreement and draft a bill, and that the bill probably would be brought to the House floor on Monday.
The bill includes pay limits for some executives whose firms seek help, aides said. And it requires the government to use its new role as owner of distressed mortgage-backed securities to make more aggressive efforts to prevent home foreclosures. In some cases, the government would receive an equity stake in companies that seek aid, allowing taxpayers to profit should the rescue plan work and the private firms flourish in the months and years ahead.
The White House also agreed to strict oversight of the program by a Congressional panel and conflict-of-interest rules for firms hired by the Treasury to help run the program. As they approached a final deal, both sides appeared to have given up a number of contentious proposals, including a change in the bankruptcy laws sought by some Democrats to give judges the authority to modify the terms of first mortgages.
I guess we will see if the bailout helps to stabilize things or if this ends up with us throwing good money after bad. If it doesn’t work there will be a lot of finger pointing about whose grand idea this was. And most Americans will still be feeling like this: