Winner 2013 Webby Awards for Best Political Website
Top Banner, Site wide
Apr 19, 2014

 Choose a size
Text Size

Top Leaderboard, Site wide

Drought Adds to Syria’s Misery

The Divide

Truthdig Bazaar
The Bubble and Beyond

The Bubble and Beyond

By Michael Hudson

more items

Ear to the Ground

The Bailout: Take Two

Email this item Email    Print this item Print    Share this item... Share

Posted on Oct 3, 2008
Pelosi Happy, With Pen
The New York Times / Doug Mills

Nancy Pelosi signs the House bill on Friday calling for a $700-billion bailout of the financial industry.

On Friday the House approved, after initially rejecting, the $700-billion bailout package for the financial industry in what is likely to be the most expensive government intervention in the nation’s history. This, of course, only slightly surpasses another notable “government intervention”—the nearly $600 billion spent in the war in Iraq.

The New York Times:

At 1:21 p.m., applause and cheers echoed through the House chamber as the number of “aye” votes crossed the threshold needed for passage with just seconds remaining in the official 15-minute voting period. The vote was 263 to 171.

And in a sign of the urgency surrounding the package, Congressional staff rushed the newly printed legislation into a news conference where Democratic leaders gathered after the vote and Speaker Nancy Pelosi, Democrat of California, signed it, at exactly 2 p.m.

Within an hour, the legislation had been conveyed to the White House and signed by President Bush. Standing in the Rose Garden shortly before signing the document, the president thanked Congressional leaders of both parties by name and said they had achieved something “essential to helping America’s economy weather the financial crisis.”

Read more

More Below the Ad


Square, Site wide

New and Improved Comments

If you have trouble leaving a comment, review this help page. Still having problems? Let us know. If you find yourself moderated, take a moment to review our comment policy.

By LindaWest, October 6, 2008 at 8:25 am Link to this comment

In the celebration over getting our credit card limit raised by 700 billion dollars, let’s not forget what got us into this mess.  Anybody ever heard of “grammswaps?”

Report this

By Eric L. Prentis, October 5, 2008 at 10:47 am Link to this comment
(Unregistered commenter)

The House passing the banking bailout bill was a complete dud. After the vote on Friday the stock market dropped - 519 points, the market was up + 362 points prior to the vote, and the S&P;500 Index closed lower than when the House rightly rejected this terrible bailout bill on Monday. Congress got railroaded into supporting this giveaway to the rich because they didn’t want to get blamed for a market downturn, well we can certainly blame them now. House Speaker Nancy Pelosi and Sen. Majority leader Harry Reid, do your job next time, hold hearings to identify the best solution, damn it. It is much better to be correct than fast.

Report this

By Michael Shaw, October 5, 2008 at 7:13 am Link to this comment
(Unregistered commenter)

Well truther you believe what you want and you are not disappointing me. and yes I probably know as much about the Wall Street connection and bailout as you do. Perhaps even more. My question to you would be in knowing this, what do you intend to do about it? At this point the only stake I have is in knowing a republican will not sit upon the throne and their worst nightmare, a “liberal” black man will. Their arrogance and total disregard for the constitution, in particular the Bill of Rights, merits their defeat if only from a symbolic standpoint. For now that’s consolation enough for me. I would further add that nothing short of a successful revolution would destroy or unseat either party(and what on earth would we get after?), so all this talk about destroying the democratic party to make things right only gives us yet another republican victory. And that my friend ain’t right!

Report this

By Druthers, October 5, 2008 at 1:22 am Link to this comment
(Unregistered commenter)

Nancy looks as though she has botoxed or tatooed her snile in place..she came through for her President!
How Californians can continue sending that woman to the House is beyond reason.  As the first woman Speaker she gives women a bad name and reputation.

Report this

By truther3, October 4, 2008 at 11:17 pm Link to this comment
(Unregistered commenter)

Michael Shaw wrote:
“That’s right neocon shrubs! He’s as black as the goddamn ace of spades and he is kicking you right wing racist asses!”

I am sorry to disappoint you.  Your Obama is no different from McCain. Both of them are war
mongers and beholden to big Business/Finance and
not to the average Joe/Jane.
Do you see and hear what is really out there or you just see and hear what you hope to hear and see??!!
Did you listen to Obama’s speeches and read his books?
Your Obama got more campaign contributions from Wall
St. than McCain and he supported the bail-out bill which is nothing but a transfer of public money to fat rats of Wall St.

Report this

By Michael Shaw, October 4, 2008 at 10:01 pm Link to this comment

No my friends. Call me crazy, but after a bottle of wine combined with 8 years of harassment from my neocon relatives and this seemingly endless Bush nightmare, I can only say the revolution is already taking place. McCain is on the run and even Alaska is a battle ground state! In spite of this ill conceive bailout, McCain is on the run. I’ve waited 8 long years for this! 8 very long goddamn years! I shall savor every moment. A black man will be the next president of the United States, and I will have helped to have gotten him there! That’s right neocon shrubs! He’s as black as the goddamn ace of spades and he is kicking you right wing racist asses! I don’t give a damn what happens at this point! The neocons are getting their asses kicked and it is more well deserved than any other event in US history! Including VJ day! As much as I like Ralph, he sadly does not stand a chance at this point. That might change in the future and if it does I will embrace it. But for now my friends it is enough for me at least to see an end to what has seemed like a lifetime. An end to the GOP as a dominant force in American politics. Yes the road ahead will be long and rough, but it will have been a victory still the same, if only in spirit! The challenges ahead are the most difficult we have ever faced. But with an Obama victory, the beginning of that road in challenge seems far more palatable then another GOP victory! I will gladly face these challenges and continue to support the progressive movement, that will live and thrive I believe under Obama, rather than McCain. If you folks out there want to destroy a party, start with the republicans, then help rebuild the democrat party from the bottom on up.

Report this

By lichen, October 4, 2008 at 5:48 pm Link to this comment

If we switch to a proportional representation system for congress, take private money and advertising out of elections, and normalize the senate/house elections to every four years, then it will easily be possible to more tightly control who is in the house and throw anyone who we don’t want in there out.

Report this
RAE's avatar

By RAE, October 4, 2008 at 4:31 pm Link to this comment

Have I got this right?

At $700 billion we heard a resounding NO from Congress.

Sweeten the pot by a couple of hundred BILLION - and “IT’S A DEAL!”

I’ve “felt” for decades that our Western Capitalism would blow up in our faces but I was hoping it would happen after I was dead and incinerated. Now, dammit, I’m going to have to suffer through all the BS, lies, cheating, greedy-grabbing by those on the inside on my nightly news… which, by the way, I watch less & less. Talk about same old-same old!

I own my own home, free & clear, have NO debts, and a guaranteed income that covers the modest expenses necessary to maintain my shelter, buy food & other basic comforts (including a few bottles of wine from time to time). I intend to just sit back and watch all the RATS race themselves into oblivion. Greatest Show On Earth! LMAO!

BTW, am I smarter than most? Nope. Just not as GREEDY as most. I’m satisfied with having just what I NEED, not more, more, more… like all the losers out there.

Those into Wall Street finances who are losing their (completely unearned) shirts, TOUGH SHIT. Start living within some reasonable boundaries and I’ll see if I can find some sympathy for you. Until then, I hope you suffer BIG TIME.

Report this
Outraged's avatar

By Outraged, October 4, 2008 at 10:52 am Link to this comment

Ralph Nader in an interview with Pat Buchannan in 2004 in The American Conservative:

Well, that is what representative government is for, to counteract the excesses of the monied interests, as Thomas Jefferson said. Because big business realizes that the main countervailing force against their excesses and abuses is government, their goal has been to take over the government, and they do this with money and politics. They do it by putting their top officials at the Pentagon, Treasury, and Federal Reserve, and they do it by providing job opportunities to retiring members of Congress. They have law firms that draft legislation and think-tanks that provide ready-made speeches. They also do it by threatening to leave the country. The quickest way to bring a member of Congress to his or her knees is by shifting industries abroad.

Concentrated corporate power violates many principles of capitalism. For example, under capitalism, owners control their property. Under multinational corporations, the shareholders don’t control their corporation. Under capitalism, if you can’t make the market respond, you sink. Under big business, you don’t go bankrupt; you go to Washington for a bailout. Under capitalism, there is supposed to be freedom of contract. When was the last time you negotiated a contract with banks or auto dealers? They are all fine-print contracts. The law of contracts has been wiped out for 99 percent of contracts that ordinary consumers sign on to. Capitalism is supposed to be based on law and order. Corporations get away with corporate crime, fraud, and abuse. And finally, capitalism is premised on a level playing field; the most meritorious is supposed to win. Tell that to a small inventor or a small business up against McDonald’s or a software programmer up against Microsoft.

Giant multinational corporations have no allegiance to any country or community other than to control them or abandon them. So what we have now is the merger of big business and big government to further subsidize costs or eliminate risks or guarantee profits by our government….”

”....And conservatives are aghast that a born-again Christian president has done nothing about rampant corporate pornography and violence directed to children and separating children from their parents and undermining parental authority.

If you add all of those up, you should have a conservative rebellion against the giant corporation in the White House masquerading as a human being named George W. Bush. Just as progressives have been abandoned by the corporate Democrats and told,”You got nowhere to go other than to stay home or vote for the Democrats,” this is the fate of the authentic conservatives in the Republican Party.”

Again…this was 2004, and the evidence is alarming. We need to get together for the good of ourselves and this country, ALL OF US.
Vote Nader/Gonzales

Report this

By truthreader3, October 4, 2008 at 8:44 am Link to this comment
(Unregistered commenter)

You cannot sweeten a pile of shit by sprinkling sugar on it.
This bail-out bill is nothing but a bail out for the hustlers and fraudsters of Wall S. and the banksters.
It is more additional transfer of the public money to the super rich.
The average Joe/Jane will get nothing from that bail and will pay dearly and suffer severly to clean the mess and clear the wreckage left in its aftermath.
The people of San Francisco should throw out Pelosi and elect Cindy Sheehan.

Report this

By Michael Shaw, October 4, 2008 at 8:42 am Link to this comment

It will be impossible to vote out all of the incumbents who supported this bill. There aren’t enough third party candidates or progressives out there to replace them all and they know it. Also 2/3rds of the senate are not even up for reelection. As for Nader, where are his poll stats? It should be interesting to see if his numbers will climb now that this debacle has unfolded. If they don’t and I don’t believe they will, where does that leave us?

Report this

By chuck, October 4, 2008 at 6:59 am Link to this comment
(Unregistered commenter)

I’m no conspiracy theorist but, I think we just got peak behind the curtains of power. It’s like they all know a truth that we are not privy too, from Saddam’s invasion of kuwait to expand his access to oil fields, the tragedy of 9/11 for placing troops on kuwait soil,
our invasion of Iraq to Iran’s flexing of its muscle to co-opt Bush/Cheney’s plans(did we already have war by proxy with Iran and lose and is that why McCain keep insisting the front lines for the war on terror is in Iraq?) and now 800 billion dollar bailout, peak oil, petrodollar cycle broken, Irans Bourse to sell in euros…WTF.

Report this

By octopus, October 4, 2008 at 6:56 am Link to this comment

Vote all incumbents out every election.
This alone will solve a lot of problems.

Report this

By hippy pam, October 4, 2008 at 6:14 am Link to this comment

SOOooooooo….they voted…...and it will take 6 months[at least] for the committees and lobbies etc.etc.etc. to form a caucus etc.etc.etc. and then to put motions etc.etc.etc. on the table and then vote/amend/vote/amend etc.etc.etc…...AND HOW MANY MORE OF US WILL LOSE OUR JOBS-HOMES-SAVINGS-AND HAVE NO HEALTH CARE???OHhhh…AND BY THE WAY-THEY WILL HAVE TO VOTE ON PRINTING MONEY FOR THIS PLAN and THEY HAVE NO “GOLD” TO BACK UP THE PRINTING!!!!!!!

Report this

By Michael Shaw, October 3, 2008 at 7:08 pm Link to this comment

Every seat in the US congress is up for grabs and they decide to go ahead and support this travesty? It is as if they are daring us to go ahead and have a voter rebellion. Well perhaps we should accommodate them! To do otherwise would be to simply bend over and drop our drawers and take it where we usually do.

Report this

By Wily Trax, October 3, 2008 at 6:02 pm Link to this comment

They’re all smiling because now the bankers who will be jockeying for position will be wining and dining them.
On our money.

Report this

By samosamo, October 3, 2008 at 5:53 pm Link to this comment

***Representative John A. Boehner of Ohio, the Republican minority leader, had urged passage by warning that “if we do nothing, this crisis is likely to worsen and to put us into an economic slump like most of us have never seen.” ****

Wait until the loan comes due, the Federal Reserve will be the new government, then we WILL see the crisis worsen beyond anything yet experienced by an economic disaster, 1929?, a sunday school outing. And ‘doing nothing’ is not the only other option. Getting rid of the elite owned and operated Federal Reserve, World Bank, IMF and other central banking corporations would the best defense and create a stronger and more stable economy instead of falling for this garbage. I never in my life have witnessed a bigger stupider act. And check out czar paulson’s comment:

***Treasury Secretary Henry M. Paulson Jr. said agency workers were already working on details to put the rescue plan into effect, so that no time will be lost now that the president had signed the legislation. Mr. Paulson called the House action “a vote to protect the American people — and their jobs.”***

What jobs? And how goddamn crass can one get. Especially the one that will start sending this money to the incompetent and criminally responsible people who created this disaster. Not only will paulson give them the money but there will be NO oversight, NO investigations, NO regulations, NO accountability and NO free pass for the taxpayers that will pay for this yet another money give away to the least deserving from the least able to afford this legislation.
I would like to think that the people would see the error of their ways and vote these relentlessly irresponsible elected persons out of office, but because it has happened ASAP and any affects will not be felt until people will start wondering why the upcoming depression is getting worse and worse except for those crooks that saw this and convinenced the people to pass a piece of garbage like this.
This will saddle the taxpayers, that is what used to be the middle class taxpayers, with so much debt that the elite are getting their dream agenda of the feudal system of days of old in the european dark ages. And I see no other way out if one wants a better life than to take to them, go ahead and start the revolution. ‘Let them eat cake?’ hell, the people will wish it was cake when they start eating dirt and the next door neighbors kids to stay alive for another day. The $700,000,000,000.00 give away to the rich, again. Don’t blink because the next bailout is just around the corner.

Report this

By tyler, October 3, 2008 at 5:49 pm Link to this comment
(Unregistered commenter)

they’re smiling and laughing at you america.  stop enabling them.

Report this
PatrickHenry's avatar

By PatrickHenry, October 3, 2008 at 4:49 pm Link to this comment

Everyone in the picture should be cast out on election day.

Report this
Outraged's avatar

By Outraged, October 3, 2008 at 4:25 pm Link to this comment

Fire Them.

Report this
Outraged's avatar

By Outraged, October 3, 2008 at 4:08 pm Link to this comment

Well… there you have it folks, MOST of your representatives in the House and in the Senate could care LESS what you would like done with YOUR money.  Both major party candidates according to MSM sources were calling House reps. who had previously voted “NO”, pressuring them for a “YEA” vote.  But by all means, let’s just keep voting them in…. listening to their sorry ass excuses…. and let them sell ourselves and our country down the river. 

Thanks Obama.  Thanks McCain.  When Goldman-Sachs needs it’s ass wiped by ALL MEANS use a couple of twenties from the treasury.  We don’t mind…. WE MUST NOT, cause we’re the dumb fucks who keep supporting you…. remember us… the taxpayers.  Better yet, have Pelosi grab a couple of “big ones” so she can be ready to help with Paulson’s toilet travesties.

Vote Nader/Gonzales

While it is obvious, there were those “playing politics” with their “no” votes, and in so doing prove themselves just as corrupt as the “yea” voters. 


Really though, same MO they used to pass FISA, and save the asses of all those felons….remember…. same shit, different pile.

Report this

By Don Stivers, October 3, 2008 at 4:00 pm Link to this comment

Nancy is sooo happy to accommodate George W. Bush.  Look at that smile, would ya!? 

So happy to give away the tax payers money.

And Richard M. Nixon lied about knowing about a break in and got run out of office.  George W. Bush lies about a war and then screams we need 700 billion dollars to give to fuck ups and SHE smiles and gives it away.  Impeachment is off the table indeed.  They knew it was going to pass.

I am NOT going to vote for any incumbent who voted for this giveaway no matter what.

Report this

By Tim Kelly, October 3, 2008 at 3:45 pm Link to this comment
(Unregistered commenter)

So the Democrats fought and fought against it until they voted for it - no, wait, Pelosi and Obama fought and fought for it, so that when the _Republicans_ resisted bailing out Wall Street the Democrats stopped anyone from defeating the Republican agenda.

Dismantle the Democratic Party now!  A vote for Nader is a vote for democracy!

Report this

By troublesum, October 3, 2008 at 3:38 pm Link to this comment

I heard on the radio this morning that their idea of sweetening up the middle class consists of tax cuts for independent film makers in Hollywoodand and for Nascar racers.  There was also something in there about lower taxes on arrows which will be a real help to us all.  Is there something in the drinking water in Washington?

Report this

By Leisure Suit Larry, October 3, 2008 at 2:45 pm Link to this comment
(Unregistered commenter)

I can think of only one reason for congress and the President to get “bipartisan” during an election campaign. 

China called our note.

Report this

By Dakotaretread, October 3, 2008 at 2:32 pm Link to this comment
(Unregistered commenter)

Why are all these retards smiling? Out here in the heartland, we are learning to hate these jerks. Happy retirement to all.

Report this

By noscetepsum_, October 3, 2008 at 1:06 pm Link to this comment

We can all relax now! The apocalyptic meltdown was avoided just in time for everyone to sit down tonight and watch Dancing With The Stars…

Report this

sign up to get updates

Right 1, Site wide - BlogAds Premium
Right 2, Site wide - Blogads
Join the Liberal Blog Advertising Network
Right Skyscraper, Site Wide
Join the Liberal Blog Advertising Network

A Progressive Journal of News and Opinion   Publisher, Zuade Kaufman   Editor, Robert Scheer
© 2014 Truthdig, LLC. All rights reserved.