Clyburn blames Republicans for defeat of bailout
Members of the House Democratic Leadership, from left, House Majority Leader Rep. Steny Hoyer, D-Md., House Speaker Nancy Pelosi, House Democratic Caucus Chair Rep. Rahm Emanuel, D-Ill. and House Majority Whip Jim Clyburn, D-S.C. meet reporters on Capitol Hill in Washington, Monday, Sept. 29, 2008. (AP Photo/Lawrence Jackson)
Media General News Service
Published: September 29, 2008
Updated: September 29, 2008
WASHINGTON—The House on Monday defeated a $700 billion plan to buy bad debt from Wall Street, despite the support of all but one lawmaker from South Carolina.
“We cannot allow the American taxpayers to become the insurance policy for financial decisions that did not turn out as planned,“ said Rep. Gresham Barrett, a Republican, on his voted against the plan.
But South Carolina’s three other Republican House members—Reps. Henry Brown, Joe Wilson and Bob Inglis—did back the measure. And so did both of South Carolina’s Democrats in the House, Reps. James Clyburn and John Spratt.
As the Democratic whip, Clyburn played the lead role in trying to get the rank and file of his party to line up behind the bill. Clyburn blamed Republicans for the failure of the package, despite the 95 Democrats who also opposed the measure.
The bill, which emerged from more than a week of delicate negotiations between the House, the Senate and the Bush administration, was defeated 228-205, leaving the fate of the plan in question.
Stocks fell sharply on Wall Street during the vote, which was held open for an unusually long time while Clyburn, the third ranking Democrat, and other congressional leaders worked unsuccessfully to convince members to change their minds.
Opposition to the bill came from both ends of the political spectrum.
Conservatives objected to the use of billions in taxpayer funds to buy bad debt linked to mortgages securities, while many liberals were troubled by the lack of substantial changes to the way Washington regulates Wall Street.
In all, 140 Democrats voted for the bill. Of Republicans, Of Republicans, 65 voted for it and 133 voted against it, with one not voting.
“Sixty percent of them (Democrats) put aside all of their individual feelings, emotions experiences and voted for it - this bill,“ Clyburn said. “Sixty-seven percent of the Republican conference decided to put political ideology ahead of the best interest of our great nation,“ he said.
Democratic leaders held the vote open an extra 37 minutes to lobby lawmakers to switch their “no” votes, pointing to the rapid drop in the market in an effort to change minds.
The Dow fell almost 800 points Monday - a one-day record drop.
Before the vote, Spratt, chair of the House Budget Committee, lobbied fellow lawmakers on the House floor to support the plan. He said congressional leaders had vastly improved the proposal put forth by the administration last week by adding layers of oversight.
Spratt cited a warning from Federal Reserve Chairman Ben Bernanke, who grew up in South Carolina, that failure to fix problems in the credit market could reverberate through the economy.
“When he warns the situation is dire, the cost of doing nothing could be catastrophic. We have to listen. Indeed, we ignore this crisis at our peril,“ Spratt said
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Reader Reactions
Thank you. You have renewed my faith in mankind ;o) . I will ask for clarification instead of assuming anything again. Thanks for the unconscious reminder to me that I do need to ask before I speak, which is something that, I think, people too often forget to do.
Looks like this is all a moot point now, as the bill has now passed the first phase. We will just have to wait and see now just how this will all play out; although, I must admit, that I am not very confident with this plan.
I certainly do believe you, and I’m glad that you take the time to read my posts, despite the fact that my posts do not always address some subjects with a very favorable or pleasant tone.
I too have read all of your posts and admire the way that you always present your views with passion and respect.
I have devoted a lot of years of my life to the subjects that I write about, and I always endeavor to be as accurate as possible when expressing my opinion, although I am not always as careful as I would like to be about provoking hostile responses.
Please, never hesitate to ask me for clarification on anything that I post.
All is forgiven and forgotten. You may not believe me, but I actually enjoy reading your posts. You are very well spoken and definitely know your facts. Thank you for your kindness.
No, it is I who should apologize to you, since it was my facetiousness that put you in such an awkward position.
Please forgive me.
Tanner:
I told you I wasn’t sure if your earlier comment was an insult or not, you have a way with words that sometimes I don’t get (my mind is too simple at times), I obviously misinterpreted it. I am truly sorry if I insulted you.
Do you really believe that I have no respect for Republicans?
Actually, I considered posting a “you’re right” response to your earlier comment, but I watch too much Comedy Central, especially the Daily Show, to act on my urge to slap people on the back, when it’s obvious that they’re right.
Think about this: Who stands to profit from the foreclosure of mortgages on homes in California, Florida, Arizona, Nevada, and Georgia, the areas of this Country hardest hit by this whole economical mess. Now, find a web site that breaks the House voting down to the representatives of each those states, and see how they voted.
Now consider how this economical mess will affect those employed in the industries surrounding this economical mess, and see how the voting affected them, specifically employees in New York, Vermont, etc., who commute.
By the way, I didn’t vote for Clyburn.
Ok Tanner, not sure if that was an insult to me or just to Republicans; but, can tell you have not one ounce of respect for Republicans. Well, since there were Democrats AND Republicans that voted FOR the bill and there were Democrats AND Republicans that voted AGAINST the bill, I would say the bill has problems. Now I did get an email this morning and I know it will never happen; but, I still found it interesting and maybe you will too Tanner. Please note, I did not research this person’s numbers or anything, it is just a fun email to make people think about a different way to handle the economic mess.
Have a blessed day.
“I’m against the $85,000,000,000.00 bailout of AIG.
Instead, I’m in favor of giving $85,000,000,000 to America in a We Deserve It Dividend. To make the math simple, let’s assume there are 200,000,000 bonafide U.S. Citizens 18+. Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up. So divide 200 million adults 18+ into $85 billion that equals $425,000.00. My plan is to give $425,000 to every person 18+ as a We Deserve It Dividend. Of course, it would NOT be tax free.
So let’s assume a tax rate of 30%. Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam. But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife has $595,000.00.What would you do with $297,500.00 to $595,000.00 in your family?
Pay off your mortgage - housing crisis solved.
Repay college loans - what a great boost to new grads
Put away money for college - it’ll be there
Save in a bank - create money to loan to entrepreneurs.
Buy a new car - create jobs
Invest in the market - capital drives growth
Pay for your parent’s medical insurance - health care improves
Enable Deadbeat Dads to come clean - or else
Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.
If we’re going to re-distribute wealth let’s really do it…instead of trickling out a puny $1000.00 economic incentive that is
being proposed by one of our candidates for President. If we’re going to do an $85 billion bailout, let’s bail out every adult US
Citizen 18+!
As for AIG - liquidate it. Sell off its parts.
Let American General go back to being American General. Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up.
Here’s my rationale. We deserve it and AIG doesn’t.
Sure it’s a crazy idea that can ‘never work.‘ But can you imagine the Coast-To-Coast Block Party! How do you spell Economic Boom? I trust my fellow adult Americans to know how to use the $85 Billion We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC.
And remember, This plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.
Ahhh…I feel so much better getting that off my chest.
PS: Feel free to pass this along to your pals as it’s either good for a laugh or a tear or a very sobering thought on how to best use $85 Billion!!“
We’re back to the point that we need to employ that old catch phrase: “lemon socialism.“
Calling all taxpayers of America, the Republicans want you to pucker up! Their crony pals in corporate America need your help. Pucker up!
How can he put the total blame on the republicans when 95 democrats voted no also? As the news said, when the vote came down, this was a bi-partisan decision, not just one group. Obviously there are democrats along with republicans who see that this bailout plan is wrong and I, personally, applaud them for standing their ground, knowing they are going to be ripped apart for it.
Why is it we taxpayers should be the ones bailing out Wallstreet. This was just a band-aid to slow the bleeding, let the thing bleed out and start over again. Let these CEOs lose their homes and their lavish lifestyle. If a small business goes belly-up, who bails them out? NO ONE that’s who. They have to face the consequences—do what they have to do: cut-back, sell off assets to pay debts, move into smaller homes or God forbid rent an apartment, some do file bankruptcy—and then they find a job and take care of their families and move on from their mistakes.
Just my opinion. I am sure many will find me small-minded and not “financially savvy”, but sometimes I think this world just needs to use good old common sense.
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