It's the same bill from Monday with some extra marshmallows (green industry tax breaks, FDIC limit raises) that got rejected Monday.
What's different? Suddenly every press outlet has launched a full-scale attack on the American people for daring to oppose this. In the last 48 we've seen every major news outlet predict dire, unspeakable consequences if this bill is not passed this week, like "not being able to get money at the ATM" or "companies not being able to meet payroll" or "not being able to get a loan for anything."
That's not going to happen. You will not fail to get your paycheck. Your world will not shut down overnight. You will not be thrown out into the set of Max Max Beyond Thunderdome. It's the same play made with the same media assist as the Iraq War.
That's not to say we don't need SOMETHING. There are real problems with our economy as I have explained time and time again. But THIS bill is NOT it. This bill simply will not work. It will dump the problem in the next President's lap in a few months, and give whoever it is a massive problem down the road.
Passing this bill will not fix the credit crisis. Period.
There ARE alternatives out there, like the No BAILOUTS Act from Democratic House members Pete DeFazio, Donna Williams, and Macy Kaptur, which proposes a 5-step plan:
1. Require the Securities and Exchange Commission (SEC) to require an economic value standard to measure the capital of financial institutions.At least the Senate did crib some stuff from this act, but other then that Senate bill is full of delicious pork, rule changes, and smoke and mirrors for Wall Street to pull the wool over America's eyes.
2. Require the Securities and Exchange Commission to restricting naked short sells permanently.
3. Require the Securities and Exchange Commission to restore the up-tick rule permanently.
4. "Net Worth Certificate Program"
5. Increase the FDIC Insurance limit from $100,000 to $250,000.
We're not going to get a better bill unless we demand one. It's not going to come from the Senate. The House vote has been moved to Friday from what I understand.
[UPDATE] 74-25 passage, all the usual suspects voted for it. How much porkified crapola is in this bill with the intention of making it palatable? Another $110 trillion worth, bringing the total to $810 trillion.
In a historic vote, the Senate approved a massive $700 billion rescue plan for the nation's finance system Wednesday night, but only after tacking on another $110 billion in tax breaks to lure votes from both parties.If anything, odds are now worse among Republicans.
A strong bipartisan majority rallied behind the controversial Wall Street bailout package, passing it by 74-25.
The vote sends the measure to an uncertain fate in the House of Representatives, where lawmakers rejected the original version on Monday, 228-205. A new House vote is expected on Friday, and many lawmakers in both parties there remain opposed to it.
Many lawmakers voiced disdain for the extra tax breaks the Senate added to the financial-rescue package. They ranged from a one-year fix to prevent the alternative-minimum tax from hitting more taxpayers to extending the research credit for business to allowing rural utilities to issue tax-exempt bonds for use of renewable energy.Democratic conservatives too may be far less likely to support it in the House now.
Also included were more obscure terms extending tax breaks for motor-sports racing tracks, makers of wooden arrows for children, and the rum excise tax for Puerto Rico and the Virgin Islands.
The tax breaks added to the Senate bill would cost the Treasury an estimated $110 billion over 10 years, according to Congress’ Joint Committee on Taxation.
"It's garbage," said Rep. Devin Nunes, R-Calif. "They’re trying to put more decorations on the Christmas tree, but the problem is the Christmas tree."
"The bailout legislation that the Senate is sending back to the House is a fraternal twin to the one I voted against on Monday _ meet the new bill, same as the old bill," said Rep. Joe Barton, R-Texas, who led efforts to kill the House bill. "I'm kind of an old- fashioned guy, and I think we ought to pay for what we do as a government, but instead we’re talking about adding $1.5 trillion to our national debt and forcing our children to pay the cost."
Dole echoed that sentiment.
"Because of unrelated spending additions, this bill now comes at a cost of over $800 billion, and it is still a government takeover of our economy with no protection for taxpayers. It raises the debt ceiling to $11.3 trillion. It bails out foreign investors before American homeowners struggling to pay their mortgages. And it does nothing to address the root cause of this mess, the housing crisis," Dole said.
Sen. Jim DeMint, R-S.C., echoed many angry constituents.
"It forces innocent taxpayers to bail out government policies and Wall Street mistakes. It asks the American people to take a leap of faith and trust people who have consistently misled them," DeMint said. "Our own government appears to be leading our country into the pit of socialism."
In particular, the additional tax extensions meant to persuade some House Republicans to switch their votes in favor of the bill could cause some fiscally conservative, or "Blue Dog," Democrats to drop their support because the tax cuts are not paid for and will drive up the federal deficit.This bill is even worse than before. Short of putting the Paulson "No legislative oversight, no judicial recourse" idea back in this I cannot see how this bill can be any worse.
Hoyer, the No. 2 Democrat in the House, said he wasn't pleased the tax exemptions were added to the bill and admitted they may result in fewer House Democrats supporting the proposal.
"There's no doubt the tax package is very controversial. The Senate, in my opinion, is adding that on because they think that's the only way they can get it passed," Hoyer told NBC on Wednesday.
Again, something needs to be passed, but not this bill. This bill is now up to $800 trillion in bullshit that does not solve the core problem, and we're running out of time.