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House Republicans wary of 700b bailout
Some members of the US Republican Party are opposing to the bailout plan due to be signed by President Bush to save the country's economy. Republicans in the House of Representatives object to the cost of the president's bailout plan and they want an expanded insurance system to cover failing mortgage-backed securities, VOA reported Saturday.
Insurance makes no sense. You buy insurance for things that might happen, not for things that have already happened or are very, very likely to happen.
Though most Democrats and Republicans in the Senate signaled that they are willing to accept a modified version of the president's bailout and said they agree to the broad principles of the bill, a group of conservative Republicans insisted on significant changes to the USD 700b bill.

The US Treasury wants to spend up to USD 700b to buy broken mortgage-backed bonds from banks and dump them into a vast government portfolio, betting that the move will help thaw out frozen capital markets.

Some House Republicans argue that the plan is a risky approach that may rain down blame on the Republicans if the bailout collapses and the markets go sharply even further south.

The chief negotiator for the House Republicans Roy Blunt of Missouri said they still wish to see Wall Street pay more of the cost, adding they want to solve the problem as soon as possible.
The longer we wait, the more it costs. Keep the credit markets frozen and the investors panicked and on the sidelines, keep the banks sitting on cash, keep the money market funds from being able to roll over paper, and we'll see bank runs and pension fund collapses. Guess who'll get blamed for that?
One-third of the Senate and the whole House are facing re-election on the 4th of November and some US lawmakers said they were facing a grass-roots reaction to the plan seen as providing a safety net for powerful banks.

In a radio speech on Saturday, Bush said "the entire US economy is endangered" and added he understands why taxpayers may not want to foot the bill.

Many Americans are upset with the situation and feel it is unfair to pay for mistakes by Wall Street investors when many taxpayers are struggling to meet mortgage payments.

In New York, dozens of noisy fools rubes simpletons protesters rallied from Times Square waving banners that read "No Money for Wall Street, No Money for War, bailout the Workers and the Poor."

Posted by: Fred 2008-09-28
http://www.rantburg.com/poparticle.php?ID=251221