Senate Votes YES on the Bailout

Watching the Senate testimony and voting on the Bailout Bill via C-Span.  I hear that Maria Cantwell and Patty Murray are coming out against the bill from statements posted on their website. Hat tip perfectfire at SB.

Democrat Majority Leader Harry Reid is making a speech pleading for passage.

So far the Ayes are adding up very fast.
Cantwell votes NO.
Murray votes YES.

McCain: YES
Obama: YES

Yes: 74
No: 25

Now the bill will go back to the House.

22 thoughts on “Senate Votes YES on the Bailout

  1. I guess something needed to be done, and who else to trust but the guys who got us into the mess and thought there was no problem at all a month ago?

    National Debt reached a historic 10 trillion today, reported by calculated risk and noted in another thread by Jillayne. Soon to be 10.7 trillion. Who thinks it reaches 11 trillion by year end?

    Hopefully Congress does some real research now on how to fix the systemic problems that led to the crisis. Would it be too much to ask for them to consult some of the economic geniuses in academia who actually saw this coming?

  2. Hi cautious buyer. Maybe 11 tril by the time Bush leaves office in January.

    Instead of real research I’m thinking we should be prepared for more federal laws governing mortgage lending, securitization, and more.

    The real problem here is that the bailout bill does nothing to stop the rising tide of defaults and foreclosures. There are just way too many bad loans still in the system that must work their way through the system.

    There are also billions in bank losses still un-realized.

    I read this morning that the new version of the bill gives the FDIC insurance fund UNLIMITED ACCESS to the U.S.Treasury.

    So taxpayers are going to be paying for insolvent banks.

    From CR this morning:

    “From the WSJ: Revised Bill Lets FDIC Borrow Without Limits

    The Senate financial market rescue bill would temporarily allow the Federal Deposit Insurance Corp. to borrow unlimited amounts of money from the Treasury Department in connection with the larger government deposit coverage that would extend until the end of next year.

    This is important because it would increase the backstop that the FDIC has to make sure that insured depositors can be repaid if their bank fails.

  3. Section 112 of the Bailout plan is a mystery. Reading between the lines, it seems to allow the Fed to purchase crap TARPs from foreign Central Banks on case by case basis.

  4. I bet Oregon senators Ron Wyden and Gordon Smith voted for the bailout plan.

    Rose City Archery Inc., an Oregon company that makes arrows used by children, hit a bull’s-eye with Senate legislation that would rescue Wall Street banks.

    Senators attached a provision repealing a 39-cent excise tax on wooden arrows designed for children to an historic $700 billion financial-markets rescue that passed tonight by a vote of 74-25. The provision, originally proposed by Oregon senators Ron Wyden and Gordon Smith, will save manufacturers such as Rose City Archery in Myrtle Point, Oregon, about $200,000 a year.

  5. Bombay:

    There’s more to the wooden arrows story. Complicated explanation, involving peculiarities of the legislative system.

    Ron Wyden voted against the bailout bill.

    It’s so easy to catch the first media wave and get dashed against the rocks. I’ve been fooled before, too.

    Let’s keep this tiny item from being the story. It is not.

    The masters of the universe want to keep us distracted! 🙂

  6. “Here ’s an alternative solution to the bailout from a RMBS trader that WANTS to buy them.”

    No – he wants to buy provided the government is willing to support the price.


    “Just because a Seller doesn’t want to hit a buyer’s bid doesn’t mean there is no market for his assets.”

    This guy is nuts. It means exactly that – there is no market for it !! It works both ways – there are sellers markets and then there are buyers markets.

    A few months ago, my friend purchased Google shares at 625. Today, a buyer is willing to pay only $390.
    By this RMBS trader’s logic it seems there is no market for it !! 😉

    Is the US headed towards Zimbabwe or Argentina … that is the question I ponder.

    Think deeply, trade well,

  7. i believe not only our generation but our children’s have to pay for the price for this tremendous bailout in the history, or I would rather say, the lack of ethics in our generation.

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