Completely going against the natural order of the Free Market, The House of Representatives just passed the $700+ bazillion dollar bailout, the most expensive government intervention in history. Read a few posts below to see what the package will include, because I don’t feel like retyping it– because well bitches, it’s Friday. Well…here’s a quick summary. CNN reports:
- Allow Treasury Secretary Henry Paulson to buy up to $700 billion in bad mortgage-related securities and other bad assets.
- Allow the Treasury Department to modify mortgage terms to help homeowners avoid foreclosure.
- Permit the government to receive equity in companies it helps so taxpayers get a share of any future profits.
- Restrict executive pay for companies aided by the program.
- Create an independent oversight board to oversee the Treasury Department program.
The votes took about 15 minutes, with 262 yays to 171 nays. Everyone in Washington is optimistic that the new plan will turn around America’s shitty economy for the better. Of course, democrats who love spending money favored the bill (172-63) while Republicans straight up weren’t into it (91-108).
Another case of damned if you do, damned if you don’t. The NY Times reports:
‘”Supporters said the bailout was needed to prevent economic collapse; opponents said it was hasty, ill-conceived and risked too much taxpayer money to help Wall Street tycoons, while providing no guarantees of success. In the Senate, lawmakers who opposed the plan on Wednesday warned that it still did not address the root problems in the American financial system, including lax regulation. “‘
Taxpayers will have protection, and if this bill sucks and money is lost, then the new president will have to submit a plan to Congress for recouping the losses from the financial industry, through fees or taxes on security transactions. So what is to come of this new legislation, and how will it affect Americans? No one can be sure. It’s pretty hard to even google that information, trust me.