Revival Hopes for Bailout/Rescue package?
Intrade Bailout contract:
US Congress to approve a government bailout of banks on/before 31 Oct 2008
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"This is much too important to simply let fail."New York Times:
—Henry Paulson, the Treasury secretary, on the $700 billion economic rescue plan rejected by the House.
For Stocks, Worst Single-Day Drop in Two Decades -- Even before the opening bell, Monday looked ugly.
But by the time that bell sounded again on the New York Stock Exchange, seven and a half frantic hours later, $1.2 trillion had vanished from the United States stock market.
What had started 24 hours earlier, with a modest sell-off in stock markets in Asia, had turned into Wall Street’s blackest day since the 1987 crash. The broad market, as measured by the Standard & Poor’s 500-stock index, plunged almost 9 percent, its third-biggest decline since World War II. The Dow Jones industrial average fell nearly 778 points, or 6.98 percent, to 10,365.45.
Across Wall Street, no one could quite believe what was happening on the floor — the floor of the House of Representatives, not the New York Exchange...
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David Brooks / New York Times: Revolt of the Nihilists — In 1933, Franklin Roosevelt inherited an economic crisis. He understood that his first job was to restore confidence, to give people a sense that somebody was in charge, that something was going to be done. — This generation of political leaders is confronting …
Discussion:Lambert / Corrente: The Village reacts — Pravda on the Potomac on the House …Dave Winer / Scripting News: Brooks hits it out — David Brooks is not one of my favorite …Ian Leslie / marbury: GOP self-loathingKevin Drum / Mother Jones: David Brooks is Unhappy with the Republican PartyRobert Stacy McCain / The Other McCain: Worst. Column. Ever.Ross Douthat: Three Scenarios — The best case: This is an example …
New York Times:
With Deal's Collapse, the McCain Camp Attacks — WEST DES MOINES, Iowa — Besides stockholders whose portfolios were ravaged Monday afternoon, the one person with the most riding on the bailout bill that collapsed in Congress may have been Senator John McCain.
Discussion:Hindrocket / Power Line: WAS THE BAILOUT VOTE A PARTISAN SET-UP?Duane R. Patterson / Hugh Hewitt's TownHall Blog: Nancy Pelosi Had Help - Barack ObamaReliapundit / THE ASTUTE BLOGGERS: THE AVOIDABLE CRASH: HOW AND WHY THE DEMOCRAT LEADERS IN CONGRESS …Robert Stacy McCain / The Other McCain: Did Democrats blow the bailout on purpose?
Jackie Calmes / New York Times:
In Bailout Vote, a Leadership Breakdown — WASHINGTON — The collapse of the proposed rescue plan for the teetering financial system was the product of a larger failure — of political leadership in Washington — at a moment when the world was looking to the United States to contain the cascading economic crisis.
Discussion:Phil Singer / The Marathon Blog: Bailout: The Senate Should Have Voted FirstDemFromCT / Daily Kos: 9/30 Daily Kos R2K Tracking Poll: Obama 51, McCain 41A.L. / The Anonymous Liberal: A Party in Complete Disarray
Jennifer Parker / Political Radar:
Stephanopoulos: What's Next? Congress Mulls Four Options — ABC News' George Stephanopoulos reports: There are meetings going on right now on Capitol Hill to try to figure out what to do about the $700 billion Wall Street bailout bill that failed to pass the House today...
Discussion:Carolyn Lochhead / San Francisco Chronicle: Anger, disarray as bailout plan goes down in unexpected defeat in HouseJoe Gandelman / The Moderate Voice: Wall Street Financial Meltdown: So Who Bailed On The Bailouts?Lambert / Corrente: Stephanopolous on strategic behavior, partisan behavior, and voter behaviorBig Tent Democrat / TalkLeft: Dem Option 4 — Share This: Digg! — Via Atrios, Dem option 4:
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Basic Accounting Issue Sinks Bailout LogicJohn Hussman / Hussman Funds:
You Must Be Able To Read a Balance Sheet - the government is taking on financially non-viable securities and warrants on common equity, while failing to improve the capital position of these financial companies at all (unless it overpays).
Taxpayers will not make money here. As Congressman Scott Garrett noted to taxpayers on Sunday, "This morning we should be very much alarmed. Obviously, Washington is not listening to your wishes. Those who used to work for Goldman Sachs will support this deal. Those who have blocked reform in the past will support this deal. I will not support this deal." I couldn't agree more. This is not a good deal, because it will waste taxpayer money without addressing the fundamental solvency problems...
Discussion:
Paul Krugman:
People I agree with, part one [laying out the balance sheet issues] -- [John Hussman] explains why the Paulson plan as originally sold didn’t provide any real answer to the problem...
comment: So how can the United States be a Banana Republic if the Congress votes to not do something dumb?
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Paul Krugman: OK, we are a banana republic — House votes no. Rex Nutting has the best line: House to Wall Street: Drop Dead. He also correctly places the blame and/or credit with House Republicans. For reasons I've already explained, I don't think the Dem leadership was in a position to craft a bill …
Discussion:Washington Wire: House Republicans Blame Pelosi's SpeechIan Welsh / Firedoglake: The Danger of Wall Street Blackmailing Us Back Into a Bad BillLiza / culturekitchen: How to run a neobanana republic in 10 easy stepsLambert / Corrente: I Hate To Even Think Somebody Kidnapped Paul Krugman...Chris Bowers / Open Left: You Can't Regulate The Bush AdministrationAbout.com US Liberal Politics: Middle-Class Says NO to Flawed “Welfare for Wall Street” BillJosh / Raising Kaine: Bailout Bust - Another Massive McCain FailurePrairie Weather: A big mess we've noticed probably twenty years too lateMaha / The Mahablog: Holy Bleep — The NYSE down 777 bleeping points today? Bleep.Matttbastard / Comments from Left Field: The - 777.68 Point Plunge — Bailout compromise bill fails.Ben Smith / Ben Smith's Blogs: McCain blames Obama, not House GOP, for House votePamela Leavey / The Democratic Daily: Banana Republic — There's a lot of finger pointing …Sandy Levinson / Balkinization: “OK, We Are a Banana Republic”Greg Hitt / Wall Street Journal: Bailout Bill Fails in House Vote Amid Defections in Both Parties
Wall Street Journal:
The Beltway Crash — Congress lives up to its 10% approval rating. — America has survived a feckless political class in the past, and it will again after this week. But Monday's crash and burn of the Paulson plan on Capitol Hill reveals a Washington elite that has earned every bit of the disdain that Americans have for it...
Discussion:Steve Benen / Washington Monthly: CRY BABIES.... When the Wall Street Journal's editorial page …
Washington Post:
An Appeal and a Blame Game — Nominees Link Each Other to Crisis, Urge Action on Hill — Reacting to the House's defeat of a $700 billion economic rescue proposal Monday, Sens. Barack Obama and John McCain called on Congress to pass a new bill and then sought to blame each other for the deadlock on Capitol Hill...
Discussion:Ian Leslie / marbury: flailing — From the Washington Post: — McCain found himself …
Washington Post:
How the Numbers Failed the Leaders
How the Numbers Failed the Leaders
Discussion:Matt Lewis / Townhall.com: Analysis: Suspend Mark-to-Market & Lift Cap on FDIC's Guarantee …
Charles Babington / Associated Press:
Analysis: House vote against bailout wounds McCain
Analysis: House vote against bailout wounds McCain
Discussion:Larry Kudlow / The Corner: The End of the U.S. Financial System as We Know It?Mac Ranger / Macsmind: Thoughts on the Bailout DefeatMike Allen / The Politico: McCain takes credit for bill before it losesEzra Klein / American Prospect: A FAILURE OF POLITICS. — The final vote was 205 in favor, 228 against.
Rex Nutting / MarketWatch:
House to Wall Street: Drop dead
House to Wall Street: Drop dead
Discussion:Myglesias / Matthew Yglesias: The Solution — This from Rex Nutting seems a little over-dramatic to me:Stephen Grocer / Deal Journal: Bailout Bill Fails: Reactions From Around the WebThe Moderate Voice: The Bailout Bill & Playing The Blame GameLambert / Corrente: No deal — [UPDATE Can we have the Incredible HOLC now? — lambert]
Jared Allen / The Hill:
The bailout implodes — The historic $700 billion bill aimed …
The bailout implodes — The historic $700 billion bill aimed …
Discussion:Peterr / Firedoglake: Cloakroom Conversations — Cries from the House GOP leadership …
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Home Prices Still in Decline
Bloomberg:
Home Prices in 20 U.S. Cities Declined 16.3% in July -- House prices in 20 U.S. cities declined in July at the fastest pace on record, signaling the worst housing recession in a generation had yet to trough even before this month's credit crisis.
The S&P/Case-Shiller home-price index dropped 16.3 percent from a year earlier, more than forecast, after a 15.9 percent decline in June. The gauge has fallen every month since January 2007, and year-over-year records began in 2001....
Case-Shiller 20 Metropolitan Area Price Index still in decline
Bloomberg:
Home Prices in 20 U.S. Cities Declined 16.3% in July -- House prices in 20 U.S. cities declined in July at the fastest pace on record, signaling the worst housing recession in a generation had yet to trough even before this month's credit crisis.
The S&P/Case-Shiller home-price index dropped 16.3 percent from a year earlier, more than forecast, after a 15.9 percent decline in June. The gauge has fallen every month since January 2007, and year-over-year records began in 2001....
MarketWatch:
U.S. home prices down 16.3% in past year, Case-Shiller -- "There are signs of a slowdown in the rate of decline across the metro areas, but no evidence of a bottom" said David M. Blitzer, chairman of the index committee at S&P ...
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Case-Shiller 20 Metropolitan Area Price Index still in decline----
David Kurtz / Talking Points Memo: THAT MEAN, NASTY NANCY PELOSI — Here's the Pelosi floor speech that Republicans claim so enraged them that they decided to change their votes on the bailout: — And here is the Republican House leadership laying all the blame at Pelosi's feet:
Paul Krugman:
Bailout questions answered — I'm being asked two big questions about this thing: (1) Was it really necessary? (2) Shouldn't Dems have tossed the whole Paulson approach out the window and done something completely different? — On (1), the answer is yes.
Discussion:Phoenix Woman / Firedoglake: Rashomon 2008 — Warren Buffett thinks the bailout is necessary.Patrick Edaburn / The Moderate Voice: House REJECTS Bailout BillBuck Naked Politics: House Rejects Bailout Plan; Markets Tank; House Goes for a Do-Over?Kevin Drum / Mother Jones: Owning the Debate — OWNING THE DEBATE....Ezra Klein on the Paulson rescue package:
SilentPatriot / Crooks and Liars:
Shorter House GOP: We killed the bailout bill because Pelosi hurt our feelings
Shorter House GOP: We killed the bailout bill because Pelosi hurt our feelings
Discussion: Politics Blog
Washington Wire:
House Republicans Blame Pelosi's Speech
House Republicans Blame Pelosi's Speech
Discussion:Greg Hitt / Wall Street Journal: Bailout Bill Fails in House Vote Amid Defections in Both PartiesMatt Lewis / Townhall.com: Why Blaming Pelosi is a Stupid StrategyRobert Reed / The Huffington Post: GOP Fallback: When In Doubt Blame PelosiJulie Hirschfeld Davis / Associated Press: House nixes $700B bailout bill in stunning defeatBetsy Newmark / Betsy's Page: Come on, House Republicans, grow up!Financial Times: Markets reel as 11th-hour pleas failSteve M. / No More Mister Nice Blog: NANCY PELOSI INSULTED REPUBLICANS? HOW? …Phil Singer / The Marathon Blog: The Cry Baby Strategy Is Back...Neil D / Harry's Place: US rejects George W Bush's socialist planSteve Benen / Washington Monthly: THE WRONG FRAME AT THE WRONG TIME.... I can appreciate …
CNN:
Bitter finger-pointing on Capitol Hill after bailout bill fails
Bitter finger-pointing on Capitol Hill after bailout bill fails
Discussion:Ed Kilgore / Democratic Strategist: Desperate GOP SpinChris Isidore / CNNMoney.com: Bailout plan rejectedAlex Thurston / The Seminal: More Republican Lies Exposed: Fiscal Conservatism Dies, and …
David Kurtz / Talking Points Memo:
IT HURT THEIR FEELINGS? — Rep. Barney Frank (D-MA) …
IT HURT THEIR FEELINGS? — Rep. Barney Frank (D-MA) …
Discussion:Stuart O'Neill / The Democratic Daily: The Bail Out Bill Has FailedThe Poor Man Institute: Grand Emo Party
Ben Smith / Ben Smith's Blogs:
McCain blames Obama, not House GOP, for House vote
McCain blames Obama, not House GOP, for House vote
Discussion:Matttbastard / Comments from Left Field: The - 777.68 Point Plunge — Bailout compromise bill fails.Pam Spaulding / pandagon.net: Market crashes at nearly 800 down as McBush's Mighty Mouse trip to the Hill fails
Marc Ambinder: A Failure To Communicate (What We Have Here) — John McCain has a fundamental problem.
Jesse J. Holland / Associated Press:
Obama: McCain's deregulation too risky for economy
Discussion:Pamela Leavey / The Democratic Daily: Banana Republic — There's a lot of finger pointing …
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Jeff Macke / Minyanville:Welcome to Crazy Town, Population: Us --
Hello from New York where I’m officially starting to get flat-out hostile towards both parties working in Washington DC. I understand the kabuki theater nature of politics. I both forgive and have a grudging appreciation for a well-turned political barb. But when demonstrably clueless folks come into my house and start bringing “daughters” into the argument for doing nothing while financial markets seize; I get a little revved up. “Wall St. vs. Main St.” is a lie. Pitting Wall against Main is akin to starting a blood feud between your right leg and left leg; neither side can actually win and just engaging in the fight guarantees winding up on your ass...
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Jeff Mathews is not making this up:Nothing to Fear but Irresponsible Words --
"This sucker could go down."
—George Bush
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The Irish Deposit Guarantee
Irish Times:Irish Government statement on guarantee arrangement:
The Government has decided to put in place with immediate effect a guarantee arrangement to safeguard all deposits (retail, commercial, institutional and interbank), covered bonds, senior debt and dated subordinated debt (lower tier II), with the following banks: Allied Irish Bank, Bank of Ireland, Anglo Irish Bank, Irish Life and Permanent, Irish Nationwide Building Society and the Educational Building Society and such specific subsidiaries as may be approved by Government following consultation with the Central Bank and the Financial Regulator. It has done so following advice from the Governor of the Central Bank and the Financial Regulator about the impact of the recent international market turmoil on the Irish Banking system. The guarantee is being provided at a charge to the institutions concerned and will be subject to specific terms and conditions so that the taxpayers’ interest can be protected. The guarantee will cover all existing aforementioned facilities with these institutions and any new such facilities issued from midnight on 29 September 2008, and will expire at midnight on 28 September 2010...
Discussion:
Minyanville:
Ireland's Solution: Better Than a Bailout?
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- Loose Money, and the Roots of the Crisis - Judy Shelton, Wall Street Journal
- Bailout Rejection Invigorates Democracy - William Greider, The Nation
- Without Passage, Major Banks Will Fail - Anatole Kaletsky, Times of London
- The Bailout Failed: What's Next? - Chadwick Matlin, The Big Money
- Don't Blame Market Dive on House Vote - Editorial , New York Sun
- We Have Yet to Hit Bottom - Mark Hulbert, MarketWatch
- Lack of Confidence, Not Capital, Is Issue - Editorial, Investor's Business Daily
- Deregulation Not to Blame for Financial Woes - Peter Wallison, Bloomberg
- How to Run a Government Rescue - Paul Light, Washington Post
- Blame Government, Not Market Failure - Wesbury & Stein, Forbes
- Economic Crises: 'The Health of the State' - John Tamny, RealClearMarkets
- Reassurance Goes Before a Fall - Andrew Ross Sorkin, New York Times
- Cutting Off Your Nose to Spite Your Face - Vinny Catalano, Market Musings
- With Rate Cuts, Can We Save Ourselves? - Douglas McIntyre, 24/7 Wall St.
- Next on the Takeover To-Do List: Sovereign & National City - H. Blodget
- Maybe Short-Selling Isn’t So Bad, After All - DealBook
- Why This Bailout Can't Work--And What Will - J. Eriach, Seeking Alpha
- House Rejects Bailout Proposal 228-205 - C. Hulse & D. Herszenhorn, NYT
- What Happens If/When The Bailout Gets Done?- Randall Forsyth, Barron's
- Gov't Hand in the Economy Is as Old as the Republic - Robert Shiller, WaPo
- Main Street Turns Against Wall Street - Nina Easton, Fortune
- Shorting Financial Stocks Should Resume - Arturo Bris, Wall Street Journal
- Magic Ring To Save Us: Accounting Overhaul - Kevin Hassett, Bloomberg
- How To Estimate Value of U.S. Mortgage Assets - Daniel Gros, VoxEU
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