No deal reached at White House, officials say

by politisite | September 25, 2008 at 02:16 pm | 501 views | 27 comments | 79 recommendations

Alabama Senator Richard Shelby came out of the meeting and said there is NO Deal.  He also raised his hand holding 5 pages of copy that related that this plan wont work.  He related to reporters that the statements he was holding came from top economists from Major Universities that don't have a dog in the fight figuratively speaking. 

 Both Obama and McCain left the meeting without speaking to reporters.   One within the talks stated that the meeting, "did not end well". 

 Will McCain make the debate?  Well, based on his commitment to work toward a resolution on the Bail-out plan, McCain may be in Washington for awhile.

Update: 8:18 pm ET- (I am writing as I am listening to the News confernce via satellite, I will fill in the quotes once I get all the names) House GOP law makers are doing an interview in Capital.  They do not think that 700 billion dollars is nessessary.  GOP wants Wall Street to pay for Insurance for this bail out.  Wall street should pay for this bail out not the American people.

Wall Street is reponciple, not the American People.  The American people do not want to foot the bill.  Why did not the government work to know this was going bad.  The American people feel like, if the Government couldn't know about the problem, how can they know that a bailout will work.

GOP says, it should not be a Paulson Plan or no plan.  There is very little reaching over party lines as has been stated. 

Update: 8:02 pm ET- Congressman Barney Frank stated in a news conference minutes ago,  in the Capital, that John McCain's presents at the meeting today is causing problems that will delay furition of a bailout deal.

WASHINGTON (MarketWatch) -- President Bush was unable to seal a deal between Republicans and Democrats on his $700 billion mortgage rescue plan, officials said. "It was not a negotiating session," said House Democratic Leader Steny Hoyer. The two presidential candidates, Sen. John McCain and Sen. Barak Obama, attended the meeting but left the White House without talking to reporters. A revolt among House Republicans appears to have emerged as the key stumbling block. Hoyer said that some plans have recently been put on the table that even Treasury Secretary Henry Paulson hasn't seen. "On our side, there is a consensus on how to go forward, we'll have to see if that consensus can grow," Hoyer said. It was up to Bush to talk to Republicans, he added

Blame it on the White House

Dodd Says Rescue Plan Talks Snagged After White House Meeting

By Ed Chen and Julianna Goldman

Sept. 25 (Bloomberg) -- Negotiations on a $700 billion financial-rescue plan hit a snag after a White House meeting that included presidential candidates John McCain and Barack Obama.

Senate Banking Committee Chairman Christopher Dodd said early this afternoon that he and a group of Republicans reached an agreement in principle on a financial rescue plan.

Following the meeting at the White House, Dodd said an alternative Republican plan was being floated that threatened to set back the negotiations.

The White House meeting ``looked like a rescue plan for John McCain for two hours, and it took us away from the work we were trying to do today,'' Dodd said on CNN.

Biden: McCain ‘posturing’, Obama showing Leadership

"Unlike all the rest of the people talking," said Biden, "[Obama's] demonstrated that he's changed the tone. He will prepare to change the tone in Washington. Ladies and gentlemen, this is what we mean by leadership, not posturing."

The Delaware senator said McCain's proposals for the bailout don't sufficiently address middle class concerns, notably the housing crisis.

"He laid out what he thought the package should include," said Biden. "I looked it over and what's notable is what's not in the package. The silence on issues relating to the middle class is deafening in the package John has put forward. There is no help in his package for families struggling to stay in their homes."

Other NowPublic Coverage:

World's Biggest Robbery - $700 Billion Disguised As 'Bailout' - 1929

Paulson Pleaded for McCain to Save Bailout

"Fundamental Agreement" Reached On Bailout

US Bailout Deal Is Near as Bush to Meet Lawmakers

 

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Tina Kells
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Tina Kells
flagged this story as Good Stuff

at 14:35 on September 25th, 2008

politisite, I like this story. It's good stuff.

René
René
flagged this story as Good Stuff

at 14:59 on September 25th, 2008

No deal? What was the deal-breaker?

0
politisite

Dodd was using language that made it sound like they had a deal.  What he really said was, We have agreed on some principles.  What it looks like to me is that the Democrats did not want McCain to get involved, so they made sound like the process was further along then it really was.  The meeting with the President was very heated.  Now Dodd is saying that the presidents meeting has derailed the process.  Sounds like a congress who has nothing in Ink.  I am not surprised.  It is all political posturing.  The Blogs are calling mcCain a liar because he didn't go on letterman but went on CBS news instead.  What would any political animal due in crisis go on letterman?  No way.  You nix letterman and go to the world in a serious way.  No matter what this guy does, the bloggers and press call Obama the leader and McCain posturing.  Letterman was so livid that he gets Keith Oberman to take McCain's place.

SOLARLIFE
SOLARLIFE
flagged this story as Good Stuff

at 15:24 on September 25th, 2008

politisite, I like this story. It's good stuff. The average American wanted just a Home, the Others wanted to get rich. Both on the way to get poor. To bail out the FatCats creates no Innovation for American Middle class. do they get justice, no, the middle class gets the loss.

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politisite

The lenders were giving loans to Ninjas (No job No income)  nothing down.  Baloon payments.  Folks want a home so bad they will sign anything.  Guess who in congress pushed these loans???  The democrats calling the American dream should be realized by everyone.  How about 20% down and payments 1/4 of ones income... naa  lets finance 120%.  The Democrats get more money from Banks and finaces then anyone.. But it is all Bush's fought.

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iraqivetwifeforchange

I am a licensed Realtor, having also majored in finance. I got out of the biz. 

We have not heard from federal investigators yet as to how rampant the fraud and abuse was in Fannie Mae and Freddie Mac and I think in order to say dfor sure, we will have to wait and see what they find. I will share some of my experiences on loans and real estate that may shed some light on this subject as I think they all contributed to the collapse.

 Many contracts to purchase are not promulgated. In simple terms, they are contracts written up by legal council/lawyers that often only they themselves understand. Worded in such a way the average consumers have no clue what it means.

There is no Federal guideline as to what a contract says, it varies from state to state. Some states still honor verbal agreements. So you may not even need a written contract. Some states are lax, others are not.

Secondary lenders and brokers are not regulated like banks and primary lenders.

Most people have no idea how to renegotiate their loans, and many preditory practices involved people qualifying for one interest rate, but then given another to create profit.

There are some that think they can afford it, but didn't take into account taxes, insurance, and repairs or closing costs. Some are simply not prepared with no savings.

Preditory lenders also cooked the paperwork to make consumer incomes seem larger unbeknownst to them.

And what about the many who have been laid off in the last 2 years? Or the rise in the cost of living in this last year in gas, electric bills. Sometimes a few extra hundred dollars a month can make the difference between being able to pay a house note or not.

A HUGE problem we had here was appraisors who cooked the value of homes to favor who they were paid by. If they represented the seller, they valued it higher. If they were paid by the buyer, they valued it lower. Or sometimes they would get with the realtor to see what the offer price was so they would magically come up with a number that met that need. Failure to disclose is also a huge problem still in many areas.

It goes on and on. But part of the problem is not just oversight, or lack thereof, but the fact that so many new homeowners are not councelled on home buying, contracts, financing, and negotiating, and their rights. People put a lot of trust into others who have been mortgaging for years and they trust they will be taken care of and not ripped of by those who are supposed to represent them.

I think that we should require 2 things in school that we don't teach our kids in order to arm them with the tools they will need to be productive and informed. The first is how to manage their finances, including learning about mortgages and what to avoid. The other thing we should have is a relationship/communication class on teaching kids compassion and how to live with others well, and later on marriage (and no religious beliefs, or views on sexual preferences interjected into that so everyone is welcome to learn) like they do in Japan from the age of 3 and up. But I will save that discussion for another time.

0
politisite

Thanks for your knowledgable comments.  I admit, school did not help me know about how to buy a home.  It is an area of finance were I lack knowledge.  I only own one home but have a stock portfolio I developed from reading Investors Business Daily every week (I buy the Monday Issue)  Schools would do well to make education practical.

moonwolf
moonwolf
flagged this story as Good Stuff

at 15:30 on September 25th, 2008

politisite, I like this story. It's good stuff.

Christina 123
Christina 123
flagged this story as Good Stuff

at 15:42 on September 25th, 2008

politisite, I like this story. It's good stuff.  Mad world: we have the ardent capitalists BEGGING to nationalise banks!  In a true free market, just let the deadwood crash!  So what's happened to all the fine libertarian prinicples now?  Bush goes Communist!  Schadenfreude.

UK Banks will now be panicking like mad, too, if the deal is not agreed.

0
politisite

The reason Dodd Called this the Democratic plan is that is what it is.  Many fiscal conservatives are dead againt this bailout.  So the Dems and Bush agree on something.  McCain is working to get a workable deal.  Obama is making the TV rounds.  Sen Shelby from AL says that many economists say this bailout won't work.  I agree let the chips fall where they may.  I guess that is why I am a mean spirited conservative.  I havent seen anyting the government does well.  Do they really think that they can do this well?

mtippett
  • super editor
mtippett
flagged this story as Good Stuff

at 16:00 on September 25th, 2008

This is getting hairy.

0
politisite

Thanks Mike

Jarrett Martineau
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Jarrett Martineau
flagged this story as Good Stuff

at 16:10 on September 25th, 2008

politisite, it just keeps getting crazier!

0
politisite

The Dems made it sound like they had something ready to be voted on.  Bluff.  They has agreed on principles not policy

Rachel Nixon
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Rachel Nixon
flagged this story as Good Stuff

at 16:18 on September 25th, 2008

politisite, I like this story. It's good stuff.

World_Groove
World_Groove
flagged this story as Good Stuff

at 16:41 on September 25th, 2008

When I was young they used to make the kids who couldn't play nice together sit alone in the corners of the room. Looks like a few politicians could use that treatment.

Our economic crisis is massive. It will not be "solved" over the weekend, but we need to agree to at least an outline and plan of action, and that means bi partisan support. Both nominees should have an interest in the process as one of them will be left to deal with the outcome.



0
politisite

You ever let your sibling get blamed for something you did?  Maybe congress should do NOTHING.  Maybe the bail out should be from wall street itself. 

rahul
rahul
flagged this story as Good Stuff

at 16:45 on September 25th, 2008

politisite, I like this story. It's good stuff.

0
iraqivetwifeforchange

I watched an interview with McCain where he said h had not even read Paulson's proposal today. Wow.

It was no surprise to some of us that a few, not most, but a few die hard ideological Republicans, said from the get go they were against a bail out no matter what. They did not even participate in the negotiations, by choice. Dems and Reps had agreed to the proposal they had worked on and both made the announcement that they had reached an agreement both sides could enact. In fact, the representative from Utah said he felt that there were enough votes on both sides to get it passed.

They announced a bit ago on MSNBC that the plan will not halt and it will go forward. Especially in light of the proposal set forth by the few who are in disagreement. Their proposal has the following:

1. No bail out what so ever, for Wall Street or for tax payers, except businesses who purchase the failing companies. This is despite the fact that there has been no interest made to buy out some of these companies on Wall Street. They are trying to push their ideological tax cut agenda that has helped to contribute to our national debt by trying to wage wars for free or borrowing money from China.

2. No protection for single home people in foreclosure and bankruptcy but continued protection for those who own 7 homes.

3. They want less regulation to "help" stimulate solutions to the problems.

Wow. I am amazed at how dim some elected officials can be. Dems and Reps bent over backwards to keep their agendas out of this proposal. Both sides worked hard on this for 7 days, night and day. To come along at the last minute and say "we are going to determine what goes on here" is ludicrous.

I am also amazed that so many "officials" from the Republican side spend so much money to get a job in an entity that they tell us is bad, unmanagable, and inept. They spend 10's of millions of dollars every 2 years so they can make $150,000 a year at a job that they  themselves say is horrible. My question is, why do we need them if we are capable of doing everything without them, according to their own ideology?

McCain couldn't even get his own party to support many of his own proposals, like the immigration reform. He had said 7 days ago that the fundamentals are sound. He was also against a bailout at the beginning. He said dergulation had helped the economy. He stated he would fire a man he could not fire, and then he called for a committee to determine how this happened when everyone knew what happened. Don't forget that he said this was all Obama's fault, after months of saying Obama has no experience and was not in office long and had done nothing at all. He is reading from cue cards on his podium and looks like he is about to have a heart attack at his unease on this who subject.

America looks to see what McCain will do because his party is devided on his issue, and he has not been very successful in bringing them together on many issues. He is in a pickle. Does he do what is best for the nation, or does he do what the far righ want knowing that moderate Republicans and Democrats have already agreed on what needed to be done?

 

djermano
djermano
flagged this story as Good Stuff

at 17:19 on September 25th, 2008

politisite, I like this story. It's good stuff.

Well it is good they won't get a deal... They are punishing the tax payers with this, instead of the banks who did this... If they want to help the homeowners the banks need to change how they do business... Here is how it should be solved...

http://www.nowpublic.com/world/separate-housing-market-workplace-economic-market-part-i

http://www.nowpublic.com/world/separate-housing-market-workplace-economic-market-part-ii

Banks only need to change operating procedures by creating the 2 loan mortgage policy. Banks are assured they will get their money because they control the payback. So this frees up the banks to trust each other and their lending to each other... Homeowners are helped and the Banks are helped as well....

I just wish people would listen to me on this....I wasn't born yesterday.

Barbara McPherson
Barbara McPherson
flagged this story as Good Stuff

at 17:27 on September 25th, 2008

politisite, I like this story. It's good stuff.  I know this is serious stuff, but I couldn't resist thinking that maybe a Pat Paulson Plan would be the deal maker.

Emilio Lizardo
Emilio Lizardo
flagged this story as Good Stuff

at 18:23 on September 25th, 2008

Q : How much does the last nail in America's coffin cost ?

A : About 700-billion bucks ...

0
bill hicks

The reason they did not want McCain back.  Barney slipped in a clause: 20% of all the money goes to ACORN.  John McCain believes in all Americans not the crooks and bums.

drrexdexter
drrexdexter
flagged this story as Good Stuff

at 19:04 on September 25th, 2008

politisite, Now the plan and our Washington Reps have something in common...they neither one work very well.

0
politisite

Thanks for the comment.  How correct

amyjudd
  • super editor
amyjudd
flagged this story as Good Stuff

at 21:32 on September 25th, 2008

politisite, I like this story. It's good stuff.

0
politisite

Thank You Amy. 

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September 25, 2008 at 02:16 pm by politisite, 501 views, 27 comments

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