Good news: Bailout rejected by gutsy House (including Mark Udall!); bad news: if you own stock, Wall St.’s Dow Jones just dropped 777!

Via on Sep 29, 2008

The good news: the House refused to rush as per Paulson and Bush’s crazy ‘let us take your $700 Billion in taxes and run with it.’ The bad news: if you own stock, the floor just caved in. NY Times article excerpt:“The vote was a catastrophic political defeat for President Bush, who had put the full weight of the White House behind the measure and had lobbied wavering Republicans in intensely personal telephone calls on Monday morning.

“We put forth a plan that was big because we got a big problem,” the president said afterward. “And we’ll be working with members of Congress, leaders of Congress on the way forward. Our strategy is to continue to address this economic situation head on.”

The president was described as “very disappointed” by a spokesman, Tony Fratto. Mr. Bush’s disappointment may have been deepened by the fact that members of his own party voted against the package by more than 2 to 1.”

 

From my homestate of Colorado’s Mark Udall, whom I greatly admire:
-
Dear Citizen,

Today I voted “No” on the $700 Billion bailout package.
 
My first responsibility is to Colorado families and taxpayers. I take very seriously the warnings about how conditions in the credit markets could affect the overall economy.  However, the cost of this bailout was too high and the return far too uncertain for the American families who were being asked to bear the burden.

I’ve always said that any response to this economic crisis must adhere to four core principles: no blank checks for the mistakes of Wall Street and the Bush Administration; a real crackdown on excessive executive compensation; help for small businesses and Main Street America; and strong taxpayer protections.
 
Unfortunately, while today’s bailout proposal came closer to satisfying these principles than the blank check originally sought by the administration, it remains an incomplete response. 
 
This bill does nothing to begin the fundamental reform that is needed to fix the broken financial system that led us to this crisis.  Washington is painfully slow to make fundamental reforms except in times of extreme duress and real public outrage, so we must make sure this opportunity leads to real reforms to the laws governing our markets, financial institutions, and their regulation.
 
I cannot accept a solution that risks $700 billion to bail out the boat, but does nothing to patch up the hole.
 
I have listened to the warnings of many people in the last week about the condition of our credit markets, and I understand that we are in a grave situation.  But these happen to be the very same people who not long ago rejected government intervention and told us that our financial sector was in good order.
 
We must take more time, work together, and bring forth a measure that garners broader support in Colorado and across the country. We must respond to the economic crisis with a bill that offers more relief for homeowners facing foreclosure, develops a better oversight structure, and institutes stronger reform measures to prevent such a crisis from happening ever again.
 
I look forward to continuing to work with Democrats and Republicans in Congress towards this end.
 
Sincerely,


Mark Udall Get all your Udall for Colorado gear at: http://store.markudall.com

About Waylon Lewis

Waylon Lewis, founder of elephant magazine, now elephantjournal.com & host of Walk the Talk Show with Waylon Lewis, is a 1st generation American Buddhist “Dharma Brat." Voted #1 in U.S. on twitter for #green two years running, Changemaker & Eco Ambassador by Treehugger, Green Hero by Discovery’s Planet Green, Best (!) Shameless Self-Promoter at Westword's Web Awards, Prominent Buddhist by Shambhala Sun, & 100 Most Influential People in Health & Fitness 2011 by "Greatist", Waylon is a mediocre climber, lazy yogi, 365-day bicycle commuter & best friend to Redford (his rescue hound). His aim: to bring the good news re: "the mindful life" beyond the choir & to all those who didn't know they gave a care. elephantjournal.com | facebook.com/elephantjournal | twitter.com/elephantjournal | facebook.com/waylonhlewis | twitter.com/waylonlewis | Google+ For more: publisherelephantjournalcom

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7 Responses to “Good news: Bailout rejected by gutsy House (including Mark Udall!); bad news: if you own stock, Wall St.’s Dow Jones just dropped 777!”

  1. elephant journal admin says:

    Some perspective [via Dave Query]

    If you had purchased $1,000 of Delta Airlines stock one year ago, you would have $49 left.
    If you had purchased $1,000 of Fannie Mae stock one year ago, you would have $2.50 left.
    If you had purchased $1,000 of AIG stock one year ago, you would have $15 left.
    But, if you had purchased $1,000 worth of beer one year ago, finished all of the beer, and then deposited the cans, you would have $214 cash.

    Based on the above, my best current investment advice is to drink heavily and recycle.

  2. [...] as Waylon has just commented upon, some of you out there may be hurting quite a bit from the Bailout Bubble-Bursting.  Some of you, [...]

  3. Ben says:

    Yet another sound decision by Boulder Liberal, Mark Udall.

    Is “Boulder” a dirty word here in Colorado?

  4. [...] would hate to be share a beer with Bob Schaffer—he acts like a bully with ADHD. I’ve like Mark Udall for years, since interviewing him for elephant journal a couple years back at The Spot [...]

  5. [...] VP Debate crowd of 50+ million, nationwide) who filled the bars and living rooms of the tough, wounded, on-the-edge United States of America, you already know what [...]

  6. elephant journal admin says:

    As you know, I voted against the bailout package on Monday, because I took a hard look at it through the eyes of Coloradans, and I didn’t see what they needed to see.

    What I saw was a $700 billion bailout for Wall Street banks that didn’t do enough to reassure taxpayers that they’d get their money back, didn’t have a sure process for holding CEOs accountable and limiting taxpayer-funded golden parachutes, and didn’t address the mortgage crisis that is at the root of our economic problems and is forcing hard-working Coloradans out of their homes.

    Just as important, what I saw was a “rescue” for Wall Street that did nothing to begin fixing the broken financial system that led us to this crisis.

    I’m deeply disappointed to say that this remains the case with the legislation the House of Representatives approved today.

    The Senate sent us a bill that added a single improvement to the package the House rejected, plus hundreds of pages of “sweeteners” intended to win over those of us who opposed it the first time. Many of those “sweeteners” are things I support — the people of Colorado know I have worked long and hard for middle-class tax breaks and have spent my entire career as a champion for investment in the new energy economy.

    But no amount of “sweetener” changes the fact that Americans deserve a better solution to our economic crisis than the one we’ve already rejected. That’s why I voted “No” on today’s bailout package.

    I have no interest in making the perfect the enemy of the good. Anyone who knows my work in Congress knows that I am not a “my-way-or-the-highway” legislator. Because of the greed and lack of oversight on Wall Street, we face an unquestionably grave economic situation that requires Congress to act. But a better solution was still within our reach — one that took immediate action to get our economy back on stable footing while providing the protection, oversight, and fundamental reforms American families deserve.

    I was still guided by the words of the legendary basketball coach John Wooden, who told his players, “Boys, be quick. But don’t hurry.”

    My hope was that after the House rejected Monday’s bailout package, we in Congress would be quick to work together, improve the legislation, and bring forward a revised version that would deserve and obtain broad support in Colorado and across the country. We had that opportunity until the Senate acted to re-package the old bailout bill in new clothing. We owe the taxpayers more than to hurry a deeply flawed package out the door at such tremendous cost to them.

    I believe we could have added provisions that (1) provided independent oversight of the Treasury’s program, (2) strengthened the equity position of taxpayers in purchasing mortgage-backed assets, (3) required the government to help responsible homeowners refinance their mortgages, and (4) insured that taxpayers will not be on the hook for irresponsible compensation packages for CEOs. This bill claims to address these problems, but the exceptions in this bill swallow the rule. In short, the bill doesn’t do what it claims to do.

    On Tuesday, stronger provisions were within our reach and we should have worked to secure them.

    I hope — for the sake of all those people who have worked hard and played by the rules, only to see their retirement whittled away or their homes’ values plummet — that this package does what its supporters promise us it will.

    But in the end, my responsibility is to Colorado families, and I continue to believe as I did on Monday, that I could not ask them to foot the bill for a bailout that costs so much, with so little accountability, so little reform, and so little protection for them.

    Sincerely,

  7. [...] we’ve featured him before. We’ve blogged him. But Mark Udall is in a tough Senate race against big jerk Shaffer, so we need help from the [...]

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