Tuesday, September 23, 2008

"We don't have the money to wipe out poverty. We can't do it. But all of a sudden, yeah, we do have $700 billion for a bailout of Wall Street."

From Democracy Now, a non-Ron Paul perspective :)

JUAN GONZALEZ: It’s being described as the largest government intervention in private markets since the Great Depression. The Bush administration has asked Congress to swiftly approve a massive $700 billion package to rescue the crippled financial institutions on Wall Street.

But Congressional Democrats have begun to draw up their conditions for the proposed bailout bill. Their terms include limits on the salaries and severance packages of executives at firms participating in the bailout. They also call for increased assistance to distressed homeowners across the country and greater congressional oversight of the Treasury Department. House Speaker Nancy Pelosi warned against giving Wall Street a $700 billion blank check.

The bailout plan was drawn up by Treasury Secretary Henry Paulson and would set up a fund that uses taxpayer money to buy out the bad debt on Wall Street. The plan would also give nearly unlimited powers to the Treasury Secretary.

Meanwhile, the last two major investment banks—Goldman Sachs and Morgan Stanley—have changed their status from investment banks to bank holding companies. This change, approved by the Federal Reserve Sunday, allows them to create commercial banks and also gives them access to the Fed’s emergency loans.

AMY GOODMAN: Speaking on NBC’s Meet the Press Sunday, Paulson admitted he was humbled by the crisis but added Americans would “work through this.”

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