Bush signs US$800B bailout but What about Accountability

Bush signs US$700B bailout bill into law

Oct. 3 2008

With fears mounting of a deep recession that could spread to global markets, U.S. President George Bush signed into law a historic bill Friday afternoon which provides a US$700-billion lifeline to waning financial markets.

Bush said the law was essential in getting the country’s sputtering economy back on track.

“We have acted boldly to help prevent the crisis on Wall Street from becoming a crisis in communities across our country,” he said just after the vote.

Bush noted that the U.S. economy still faces “serious challenges” despite the massive fund.

“I believe government intervention should only happen when necessary,” Bush told reporters in Washington on Friday.

Bush signed the bill into law on Friday afternoon, not long after the House of Representatives passed it by a count of 263-171.

He also worked to reassure taxpayers that they won’t be picking up the final tab.

“In this situation, action is clearly necessary and ultimately the cost to taxpayers will be far less than the initial outlay.”

Bush noted that while the government will soak up the financial sector’s debts on Friday, those assets will go up in value as the economy recovers.

“And overtime, Americans should expect as much, if not all … of the tax dollars back.”

However, he warned that the bill’s positive economic effects would take time.

“We’ll take the time necessary to decide an effective program,” he said, saying the bill’s importance and timeliness are underscored by slumping job markets.

Though the plan, which was designed to renew investor confidence, is now law, the market reaction was mixed.

In Toronto, the S&P/TSX composite index lost 97.19 points to finish the day at 10,803.35. The late-day fall came after commodities helped push the index up by more than 400 points.

Meanwhile, the Dow Jones industrial average in New York dipped 157. 47 points to close the week at 10,325.38, and the Nasdaq composite index fell 29.33 points to 1,947.39.

The falling stock numbers were underscored by discouraging numbers from the U.S. job market and falling car sales.

According to the U.S. Labour Department, nearly 160,000 jobs were lost in September alone, marking the biggest drop in half a decade.

Before the vote, House Speaker Nancy Pelosi called it a vote for “Mr. and Mrs. Jones on Main Street.”

The measure will let the government spend billions of dollars to buy bad mortgage-related securities and other devalued assets from troubled financial institutions.

Earlier on Friday, a 223-205 vote paved the way for the bailout to pass by preventing members from offering amendments that could slow the proceedings.

Democratic and Republican leaders spent Thursday convincing their colleagues to vote ‘yes’ on the plan.

The American public has also been given repeated warnings that the economy faces a grave future and action must be taken.

“We all know that we are in the midst of a financial crisis,” said House Republican leader John Boehner moments before he cast his vote to support the bill.

“And we know 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.”

Both candidates for the U.S. presidency, Barack Obama and John McCain, were busy trying to secure support for the deal by phoning reluctant lawmakers to ask for their help.

The Senate gave the plan a second life on Wednesday by voting 74-to-25 to approve the bailout.

They also attached extra measures to the bailout bill in an effort to sweeten the prospect of soliciting a ‘yes’ from some of the lawmakers who voted ‘no’ on Monday.

While the bill was a bi-partisan effort, some politicians still professed outrage over the bill.

According to Republican Representative Jeb Hensarling, the bill is tantamount to hypocrisy.

“How can we have capitalism on the way up and socialism on the way down?”


Bush signs $700bn economic bail-out plan approved by Congress

The Bush administration’s $700bn emergency bail-out for the banking industry finally became law today after a week of persuasion, negotiation and horse-trading prompted Congress to reverse its opposition to the plan.

In a vote watched anxiously by traders on Wall Street, the House of Representatives backed the financial rescue plan by a comfortable margin of 263 to 171. The vote overturned Monday’s shock result in which lawmakers opposed it 228 to 205.

The bill, which allows the US treasury to clean up banks’ balance sheets by purchasing distressed mortgage-backed securities, was signed by President Bush within hours of congressional approval.

But it came too late to prevent the worst week on Wall Street for seven years which ended with a fresh slide in stocks as the Dow Jones Industrial Average dropped by 157 points to 10,325.

President Bush acknowledged that it had been a tough week: “There were moments this week when some thought the federal government could not rise to the challenge.”

Thanking leaders of both parties for rallying support, Bush said: “By coming together on this legislation, we have acted boldly to prevent the crisis on Wall Street from becoming a crisis in communities across our country.”

Business leaders hope that the rescue package will thaw out the frozen credit markets and restore confidence in struggling banks. It includes measures to limit pay for senior banking executives and to increase the insured limit of US bank balances from $100,000 to $250,000. The treasury is likely to begin buying banks’ assets this week.

The Federal Reserve’s chairman, Ben Bernanke, welcomed the plan’s approval: “The legislation is a critical step toward stabilizing our financial markets and ensuring an uninterrupted flow of credit to households and businesses.”

The US Chamber of Commerce, which represents business leaders, said: “With the American economy on life support, Congress took the necessary step to stop the bleeding.”

About 40 members of the House of Representatives changed their vote to support the plan, alarmed by jittery markets and by deteriorating economic conditions. Official figures released today showed the worst drop in US employment for five years as 159,000 people disappeared from payrolls during September.

John Lewis, a Democrat who switched sides, said: “I have decided that the cost of doing nothing is greater than the cost of doing something.”

Both presidential candidates – Barack Obama and John McCain – expressed support for the package in spite of an estimated $100bn of controversial tax credits added to win support from waverers. These included aid for special interests including Hollywood film studios and for the manufacturers of children’s wooden arrows.

The Democratic leader in the House, Steny Hoyer, said: “The American people expected us to act, to respond to the best extent we could, to stop the downward flow in the markets and to restore the flow of credit in the economy.”

There has been a dismal flow of negative financial news throughout the week including a slump in factory orders and a steady decline in house prices. John Silvia, chief US economist at the banking group Wachovia, said all the indicators pointed to a likely shrinking in the US economy in the final quarter of the year: “You put the whole package together and basically, we’re in a recession. What more can you say?”

Wall Street’s close eye on Congress has caused difficulties in recent days. The leader of the Democrats in the Senate, Harry Reid, caused a sell-off in insurance shares by suggesting that an unnamed “major insurance company” was “on the verge of going bankrupt” because of delays to the bail-out, which is designed to aid the financial sector by mopping up toxic securities from struggling banks.

Critics of the bail-out still have strong reservations – some have pounced on an apparent admission by the Treasury that the figure of $700bn to buy up securities was arbitrary. Forbes magazine quoted a treasury spokeswoman saying that it was not based on any particular data point: “We just wanted to choose a really large number.”

Such is the freeze on funding that the governor of California, Arnold Schwarzenegger, said his state may need a loan of up to $7bn from the federal government to plug a short-term financial gap caused by the credit crunch.

“California and other states may be unable to obtain the necessary level of financing to maintain government operations and may be forced to turn to the federal treasury for short-term financing,” said Schwarzenegger in a letter to the treasury secretary, Henry Paulson.


U.S. bailout plan becomes law but markets still fall

There definitely needs to be more over site of Banks. They have been running wild for too long.

Total amount of bailout is actually $800 billion but I could be wrong.

Seems like Hollywood benefits, Why?

Oh and little arrows are such a necessity for kids.

How about food for the kids living in poverty?

Increasing the insured limit of US bank balances from $100,000 to $250,000, helps only those who make enough to save that much and the Americans on minimum wage will benefit How?

Seems the $100 billion handout is not for the people who need it most.

I guess this is what one could call slopping the hogs. Sweetening the pot for who? Seems for those who need it the least.

When is the American Government going to do anything to help those who need it most?  Like the those who have lost their jobs, seems US job cuts are at a five year high

Jobs are either outsourced or eliminated so a company makes more profit. Heaven forbid those purchasers of stock and the CEO’s don’t get their cut. Considering those “underpaid????? pathetic” CEO’s who skimmed off over $60 billion in so called Bonuses are just hogs feeding from the trough. I call them Crooks. That is what they are.

CEO’s  then had the nerve to scream we are poor, we need help, we are bankrupt, feed me. Hello does anyone else have a problem with this.

Well personally they should have to pay back what they stole. Gee I wonder if there was anything , in this new and improved bill they just passed to address the bonus feasting? So it seems maybe the thieves got away with “Grand Theft” yet again.

CEO Compensation So after you discover how much they get paid one has to wonder are they really worth it? Well probably not.

If I stole even a $100 from my own bank account I would be charged. Yes this has happened.

I won’t tell you how it’s done. Heaven forbid I teach people how to steal, but it is considered theft. Basically you are fraudulently taking money from your bank account that isn’t there. What was really interesting about all of that one, is the BANKS could have prevented this crime from ever happening and didn’t bother.

They were quite willing however to recruit the Justice System to charge the thieves. So they cost the Justice System a fortune enabling people to do something that was totally preventable. At a great cost to taxpayers to I might add.

Interesting I must say. Talk about Double standards.

Then there people like this bank manager who stole £200,000 from customers’ accounts, including a woman who was at the bedside of her dying husband, has been jailed for two years (a slap on the Hand).

Well at least he was caught. Now that’s what I call a bonus (getting caught that is). I hope they got the money back.

Now this is not the first time a banker has ripped off a bank or their customers. I bet it won’t be the last.

Now we get to this little tantalizing tid bit.

US Senate Passes $612 billion Defense Spending Bill

So One has to wonder how this money is disbursed?

Who gets what?

How much goes to soldiers in action?

How much goes to building weapons of Mass Destruction.? ETC ETC ETC

I don’t know about everyone else but, I sure would like to know where every penny goes.

I can bet the money given in Foreign Aid is not included in this package either. Considering Aid money given to other countries usually has, amounts earmarked to buy weapons and war toys from, Who American companies. Good for business maybe, but still for WAR.

I think all Americans have to right to know exactly penny for penny where all their hard earned money goes. Still is there any real accountability? No there isn’t.

Of course with this there seems to be little or no oversight as to where the money goes.

In 2001 the day beofre 9/11if we all remember there was about 2.3 Trillion lost some where, but of course it just vanished and they didn’t have any idea where it went to. Gee did they ever find it?

Well where is the accountability.

Where is the money?

Who’s pockets were lined with it?

How can anyone be so stupid as to loose this amount of tax payers money?

When in the name of the American people, are they going to look for it?

Inquiring minds would like to know.

So I wonder how much goes to contractors? Like Haliburton or Blackwater. This list is pretty long.

There are loads of them. Of course these contractors have been found to waste a great deal of money and are never held accountable. Well there needs to be accountability.

List of United States defense contractors.

Accenture Ltd.
Aerospace Center Support
Aerospace Corporation
Advanced Integrated Systems
Alliant Techsystems
Allied Container Systems
Allied-Signal Inc.
AM General Corporation
American Petroleum Institute
Anteon International Corporation
Applied Research Associates Inc.
Argon ST
AV-Optimal Defense Consultancy Service
BAE Systems plc (U.S. subsidiary is BAE Systems Inc.)
Ball Corporation
Ball Aerospace & Technologies Corp.
Bath Iron Works
Battelle Memorial Institute
BBN Technologies
Bechtel Corporation
BDM Corporation
Blazeware Inc.
Boeing Company
Boeing Sikorsky Comanche Team
Boeing SVS
Booz Allen Hamilton
British Nuclear Fuels Limited
CACI International Inc.
Carlyle Group
Carnegie Mellon University
Charles Stark Draper Laboratory
CNA Corporation
Concurrent Technologies Corporation
CSA Engineering
Computer Sciences Corporation
Decibel Research Inc.
Defense Technologies Inc.
DHB Industries
Digital System Resources Inc.
DRS Technologies
Earth Class Mail
East/West Industries, Inc.
Edison Welding Institute
EDO Corporation
Elbit Systems of America (the United States division of Israeli-based Elbit, operating through subsidiaries IEI, Kollsman, and EFW)
Electronic Data Systems Corporation
Electric Boat (division of General Dynamics)
Environmental Tectonics Corporation
Evergreen International Aviation
Exxon Corporation
F M C Technologies
Foster Wheeler Ltd.
Foundation Health Systems Inc.
Gemini Industries Inc.
General Atomic Technologies Company
General Dynamics
General Electric’s Military Jet Engines Division
Geo-Centers Inc.
Goodrich Corporation
Georgia Tech Research Institute
Harris Corporation
Halliburton Corporation
Health Net, Inc.
Hughes Electronics Corporation
Humana Inc.
Infotech Aerospace Services (a Pratt & Whitney joint venture)
Institute for Defense Analyses
International Resources Group
ITT Corporation Inc.
ITT Research Institute
Jacobs Engineering Group Inc.
JGB Enterprises, Inc.
Johns Hopkins University
JPS Communications (wholly owned subsidiary of Raytheon)
Kaman Aircraft
Kearfott Guidance & Navigation Corporation
Kellogg, Brown and Root
Kongsberg Protech
L-3 Communications Holdings, Inc.
Lockheed Martin
Longbow Limited Liability Inc.
M7 Aerospace
MacGregor Group (part of Cargotec corporation)
Maersk Line and Patriot Contract Services
Marconi Corporation PLC
Massachusetts Institute of Technology
Maytag Aircraft Corporation
McDonnell Douglas Corporation (wholly owned subsidiary of Boeing)
MITRE Corporation; also see ANSER Institute for Homeland Security
Mitretek Systems Inc.; see MITRE Corporation and ANSER Institute for Homeland Security
Motorola Inc.
NASSCO Holdings Inc.
Nichols Research Corporation
Northrop Grumman Corporation
Northrop Grumman Electronic Systems
Northrop Grumman Information Technologies
Northrop Grumman Integrated Systems
Northrop Grumman Mission Systems
Northrop Grumman Newport News (formerly Newport News Shipbuilding & Drydock Company)
Northrop Grumman Ships Systems
Northrop Grumman Space Technology
Northrop Grumman Technical Services
Ocean Shipholdings Inc.
Olin Corporation; also see John M. Olin and John M. Olin Foundation
Omega Training Group
Orbital Sciences Corporation
Pennsylvania State University
Pratt & Whitney (division of United Technologies)
Private Military Corporations
Private Federal Corporations
Rockwell Collins
RONCO (de-mining operations Horn of Africa)
Science Applications International Corporation (SAIC)
Shell Oil Company
Siemens AG
Sikorsky Aircraft Company
SFA, Inc.
Spectrum Astro
SRI International
Stanley, Inc.
Standard Missile Company LLC
Stevedoring Services of America
Stewart and Stevenson
Sverdrup Corporation
SYColeman (subsidiary of L-3 Communications)
Textron Inc.
Bell Helicopter Textron
Tri-Star Engineering, Inc.
Tyco International Ltd.
University of Texas System
Unisys Corporation
United Industrial Corporation
United Technologies
URS Corporation
USmax Corporation
Verdian Corporation
Verizon Communications
Vinnell Corporation
Vinnell Brown and Root
Washington Group International
Westinghouse Electric Corporation
Worldcorp Inc.
Wyvern Technologies, Aerospace & Defense Contractors

The Sort list Compliments of Wikipedia

This is a more Extensive list

Of Course Blackwater is not on either list so there are also a few that are “missing”.

It’s all rather interesting however. War is a profitable business and with little accountability.

When contractors waste money it is the American tax payer who have to pay for it.

Published in: on October 4, 2008 at 1:51 am  Comments (1)  
Tags: , , , ,

One Comment

  1. Despite the stats, I still see high paying jobs posted on employment sites –

    http://www.linkedin.com (networking)
    http://www.indeed.com (aggregated listings)
    http://www.realmatch.com (matches you to jobs)

    good luck to those searching jobs.

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