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Financial Crisis Meeting on Capitol Hill

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September 18, 2008 9:38 PM

ABC News' Dean Norland reports: Following a 90-minute meeting at the Capitol Thursday night, bi-partisan congressional leaders and administration officials emerged and vowed to work together to pull the nation out of its financial crisis.

Treasury Secretary Henry Paulson outlined the goal of the administration’s plan:

“What we are working on now is an approach to deal with the systemic risk and the stresses in our capital markets.  We’ve talked about a comprehensive approach that will require legislation to deal with illiquid assets of financial institutions of the United States, on their balance sheets.”

Paulson repeated what he has said before, that the root cause of the stress in capital markets is the correction and the price declines in the real estate market.

He said that the Congress and the administration are coming together to work for an expeditious solution aimed at the heart of the problem: illiquid assets on the balance sheets of financial institutions.

Speaker Nancy Pelosi said the relevant congressional committees will get to work once they see the administration’s proposal.  “We hope to move very quickly, time is of the essence,” she said.

Sen. Harry Reid, the Senate Majority leader, said he was anxious to get the administration’s proposal and that he hoped to see it in hours, not days.

Rep. John Boehner, the House Republican leader, explained why it was important for partisan differences to be put aside.  “This crisis isn’t about solving the problems with banks or people who hold commercial paper -- this is about saving our economy, saving American jobs, making sure that people's retirement security is secure as they think it is and protecting people's savings.”

Also attending the meeting were Fed Chairman Ben Bernanke, SEC Chairman Christopher Cox, other congressional leaders and committee chairmen and ranking members.

September 18, 2008 | Permalink | User Comments (24)

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This really started to cave after gas prices started to drop; tell me that investment banks and the like weren't driving up futures to compensate for the bad mortgage debt.

Once gas prices caved, their ability to generate funds dried and they died.

Posted by: Mr. Coffee | Sep 18, 2008 10:18:14 PM

Just like the Democrats, they make it go to extremes and wait until things get to the breaking point, before they do anything.

So you know they had their hands in the cause of it all.

Posted by: seah | Sep 18, 2008 10:43:54 PM

Breaking news!! Palin resigns as vp reason personal, McCain to name bloomberg his vp choice.

Posted by: Adams | Sep 18, 2008 11:18:12 PM

go home people .... it is just a mental recession. stop yer whining.

the economy is fundamentally sound

Posted by: Omentum | Sep 18, 2008 11:18:14 PM

seah?

lol the democrats?

ummmm do you know whos in power for the last 8 years? republicans

do you know whos party is currently holding the president who appoints all these committee members? thats right republicans

do you know who has only taken over congress in the last 1 and a half years?
democrats, so we are suppose to fix in 1 and a half years what you broke over hte coarse of the last 6?

the republicans came into power with a surplus and a booming economy, what did they leave with? tahts right economic crisis, biggest debt in our history, a war, other wars brewing, a tattered image around the world

do you know which party constantly calls for smaller government with less regulations in these markets? thats right republicans

do you know who caused the deregulation of the morgages? phil gramm

phil gramm is a what? republican

see the pattern here sean?

you are a republican, so i blame you, i blame you for voting for bush twice, i blame you for ruining america for our kids, and i blame your party and john mccain for the constant lying and bs that you guys pull

obama is a democrat, democrats will fix this mess

mccain is a republican, mccain has no idea what is going on, economy is strong, to economy is hurting, no the fundamentals are strong, no i meant the workers

aig bailout shouldnt happen, oh i meant it should happen, we hsouldnt bail out anymore people, oh wait yes we should

mccain puts campaign first not country


thanks but no thanks republicans

im voting democrat

Posted by: bhrandon | Sep 18, 2008 11:45:12 PM

Republicans are nothing but a bunch of incompetent greedy jackasses who LOVE to SPEND and BORROW.

They shoot people like this in China.

Posted by: Jerry | Sep 18, 2008 11:54:32 PM

I hope Ron Paul is running the show. He predicted this mess nearly a decade ago.

Posted by: Huh | Sep 19, 2008 12:19:02 AM

Earlier this week, Obama made an early attempt to attack Governor Sarah Palin on the earmark issue. He claimed that Palin is responsible for taking many earmarked funds for her state as she sat in the Governor’s office in Juneau and that her attack on him for earmarks is, therefore, illegitimate.

“I know the governor of Alaska has been, you know, saying she is change and that is great. She is a skillful politician. But when you been taking all these earmarks when it is convenient and then suddenly you are the champion anti-earmark person. That is not change, come on. I mean, words mean something. You can’t just make stuff up. You can’t just make stuff up. We have a choice to make and the choice is clear.”
But, this return fire on Palin’s ridiculing of Obama for his many earmarks is not very effective. While Obama is pointing fingers at Palin, news came out this week that Senator Obama had unsuccessfully tried several times to get multi-million dollar earmarks for one of his biggest Chicago contributors. So, his attack on Palin seems more like smokescreen than cruise missile.

Obama twice attempted to direct more than $3 million dollars in taxpayer funds to the Adler Planetarium Museum in Chicago. It just so happens that the Adler’s chairman is one of Barack’s biggest Chicago fundraisers.

The planetarium’s chairman, then and still, is Frank Clark, chief executive of ComEd, a unit of Chicago-based Exelon Energy. He has pledged to raise more than $200,000 for Mr. Obama’s run for the White House.
Even more cozy, this earmark would have benefited a Joe Biden supporter.

Moreover, the Adler Planetarium is represented by the lobbying firm National Group LLP, co-founded by William Oldaker, who helped launch Sen. Joseph R. Biden Jr.’s political action committee in 2005. Mr. Oldaker, a partner with the Delaware Democrat’s son in another Washington lobbying and law firm, is no longer involved with Mr. Biden’s PAC, Unite Our States.
On the other hand, it must be pointed out that taking earmarked funds that someone else arranged for is a little different than actually being the one creating the diversion of funds. Obama criticizes Palin for taking funds that Congress offered her, but Obama is responsible for being one doing the offering.

Palin’s record on reform is clear, of course. But, Obama’s record on over spending is also clear. His finger pointing is hollow rhetoric.

Posted by: Loves this country | Sep 19, 2008 12:26:47 AM

John McCain's economic solution is to sent Phil Gramm out with a black American Express Card every two days to deposit 3 trillion dollars at a different ATM machine and hope the banks and American Express don't catch on until his first term as President comes to an end.

Posted by: doug | Sep 19, 2008 1:57:28 AM

McCAIN CAMPAIGN ATTEMPTS TO COVER UP PALIN'S TROOPERGATE SCANDAL!!!

Didn't Palin learn the lessons of Watergate? The break-in to Democtatic Party headquarters by the NIXON Campaign to look at a few papers was really nothing...

It was the ensuing COVER-UP that killed Nixon! Since Palin is clearly a student and understudy of Nixon, she and McCain should both know that...

Everyone in America knows a cover-up when they see one now! The only thing that is "tainted" about that bi-partisan investigation is PALIN!!!

Something smells fishy (or Moosey) here...........

Ha, ha, ha, ha, ha, ha, ha!!!!!!!!!!!

Republicans are cheats, LIARS and crooks!! Always have been, always will be!! The last honest Republican was Abraham Lincoln...

Posted by: Davis | Sep 19, 2008 2:08:32 AM

Wow, can Obama get any luckier with the recent financial woes....it's playing right into his hands, so it appears, but Americans will never take a chance during soft economic times with this newbie, nothing....AND DON'T CALL ME UNPATRIOTIC BECAUSE I DON'T WANT TO PAY FOR THE POOR AND PITIFUL DO NOTHING LIBS....WHY DON'T THEY CALL THE HOLLYWOOD ELITE LIBS WHO CAN HAND OUT $30,000 A PERSON FOR A MOMENT WITH OBAMA AND STREISAND.

Posted by: Emma | Sep 19, 2008 2:14:42 AM

Let's face it,

Bush is the Jimmy Carter of this century!

Posted by: LOL | Sep 19, 2008 3:16:49 AM

Congress was bullied and intimidated into setting up the process (Research the Community Redevelopment Act) by community organizers, activist groups and that familiar outfit called ACORN to make loans to unqualified borrowers – subprime mortgages. Barack Obama did a lot of community organizing for ACORN. The Democratic plan of wealth redistribution began as the sub-prime lending era which is now the biggest disaster in economic history of the US. It is as simple as that folks. So what do the Democratic Party and Barack Obama have in store now---another “change” we can count on.

Posted by: Mike | Sep 19, 2008 5:56:06 AM

This election is probably over anyhow. Obama WILL win because of the VOTER FRAUD in several states, especially the "swing states, like mine, WISCONSIN, that is unwilling to check fraudulent voter lists from groups like ACORN, because of the Democratic Governor crook we have here. In the last couple of Presidential elections, the Democrat won by less than 5000 votes.
Investigations like those done by the Milwaukee Police Dept. have shown rampant voter fraud, and that goes along with studies in other parts of the state. Right now our state attorney general is suing the state group that oversees elections to try and get them to do their job mandated by the FED election laws, which they are refusing to do. (The group is appointed so guess which party appointed them.) The DEMS have fought EVERY attempt to check voter ID. It's a disgusting story that should be investigated by the media, but won't be because they're in the tank for the Democrats. Investigating voter fraud???..CBS..no way...ABC...no way..NBC..LOL...you've GOT to be kidding...hmm...maybe FOX

Posted by: Jack | Sep 19, 2008 7:58:58 AM

01-20-09 The END of an ERROR...

Posted by: pt | Sep 19, 2008 8:14:08 AM

Palin said no to bridge to nowhere after shw was for it.
SHE KEPT THE MONEY TO BUILD THE ROAD TO NOWHERE CONNECTING THE BRIDGE SHE SUPPOSEDLY KILLED. The road is almost complete with our money.
Also her Wasila sports complex left her hometown in the red big time.
This is what happens with 1 hour vetting & not taking real questions.

these questions cannot be answered by attacking Obama anymore.

Posted by: watching | Sep 19, 2008 8:17:50 AM

Vote out congress! They just laid down while their banker buddies robbed your children's future right out from under both of you. Just vote 3rd party, or vote out the incumbent. Then you CAN call, write, and email them into doing what YOU want. These ol' faces don't listen to you. They listen to the people who can give them and their familes cash and perks while they are in power, and when they leave office. They don't represent YOU, dump 'em NOW! Democrat/Republican Bush/Reid/Pelosi... They ALL did this! Nobody said a thing or tried to stop them except people like that "kooky, wacky, crazy Ron Paul guy." Funny that he was talking about this back in 2003. But thanks to your freinds in the media who are looking out for you (i.e THEM!) you never heard about it. Did you???

Posted by: hmn | Sep 19, 2008 9:58:28 AM

bhrandon - i'm sure you know what a filibuster is, how many times did the liberal's through THEIR leader's in power take that position, not all democrats agreed to filibuster! how many year's have they been doing that!
pay back is hell, especially when the American people have to suffer through this. so, raising taxes is off the table period! average people need to keep as much of their money as possible to eat and pay bill's! whether you like it or not, people who run their own business, whether small or big, need to keep as much money as they can to keep the company going and not lay people off! it's not about republican or democrat right now, it's about commonsense, and raising taxes for more goverment program's is not what we need right now! whether you like it or not, obama's stimulus package proposal will not do anything right now, his move is just a political move once again. because how would that work if he wins and turns around and raises taxes, that's just plain stupid, it's a waste of money because the taxpayers still flip the bill on filing, printing, etc... donald trump is now endorsing McCain because McCain will not raise taxes, especially right now! donald, as we all know is a very smart and well to do investor with inside conection's to many market's. now, if he say's obama would be disasterous to our economy, you better listen. by the way, donald was endorsing hillary until now! as we all know, he's a man not a woman, who is now endorsing McCain, what does that tell you! now, i can very easily sit here typing number's and big sophisticated words but that does not fix anything, let alone show how intellegent someone is! even though yes, i'm voting for McCain, we all need to stop throwing out each other's side's talking point's period! although i do blame both side's for this mess(financial institutions too)the real democrats really do need to take down their liberal leader's and replace them with true blue democrat's who care more about their country and party rather than their own self-interest!

Posted by: timmaaa7 | Sep 19, 2008 12:13:05 PM

Why is the government spending my tax dollars reinforcing the financial groups without rolling some heads in the process, and i don't meant to be mean but NO SEVERANCE PACKAGE if they cannot do the job fire them and get someone in there that can. I work hard for my money and i invest my money just like everyone else should but if they make over 100,000 a year why should the tax dollars of people making 20,000 a year go to build back up what they lost.
it does not make sense to me. Some peoples jobs should be lost. and from the sound of it a lot of them on wall street should be heads rolling down wall street. thanks for letting me vent.

Posted by: wayne50050 | Sep 19, 2008 12:51:03 PM

I am asking everyone to email a note to Senator Boxer who is the head of the Senate Ethics Committee to ask him to investigate Sen Obama breaking the Logan Act in his attempt to get Iraq to not withdrawl troops until he took office. This is a well known story with Iraqi saying he requested it. Here is the note I sent. you can put your name in place of mine at the bottom. Please make sure you include your name and state and county at the bottom. You can exclude pumapac if you desire. Please do a bcc or blind copy if you can to prowl@pumapac.org

The more people who do this the better chance we have of getting some action on this terrible act of treason and selfishness allowing people to maybe die in a war so he could be elected. Everyone is invited to come to blog.pumapac.org a place where the common person is trying to have his voice hear. A super friendly place. please pass this around to other blog sites that might attract people to join in this effort.

Senator@boxer.senate.gov

SUBJECT: Obama in violation of Logan Act!

9/19/08
PumaPac.org
Contact: Murphy@pumapac.org

Dear Member of the Senate Ethics Committee,

I am writing to request that you open an investigation into the actions of Senator Barack Obama with regard to his July visit to Iraq. News reports, as well as the statements from Senator Obama's own campaign, confirm that Senator Obama attempted to negotiate a plan for troop withdrawals and a framework for the American presence in Iraq in such a way as to benefit him politically. This is clearly an unethical way for a member of the United States Senate to act, using his status and leverage as a Senator and prominent candidate to undermine the Administration and to benefit his own political career. It also appears to be a direct violation of the Logan Act.

From the Logan Act:
"Any citizen of the United States, wherever he may be, who, without authority of the United States, directly or indirectly commences or carries on any correspondence or intercourse with any foreign government or any officer or agent thereof, with intent to influence the measures or conduct of any foreign government or of any officer or agent thereof, in relation to any disputes or controversies with the United States, or to defeat the measures of the United States, shall be fined under this title or imprisoned not more than three years, or both."

I am a member of Puma PAC, People United Means Action (http://pumapac.org). We are the Voice of the Voters in the Democratic Party and we strongly oppose Senator Obama's selection as our Party's nominee. We believe he is an unethical politician, disloyal to the fundamental values of our democracy.

Thank you for your consideration and time.

Sincerely,

first initial and last name and county state
Puma PAC Democrat

Posted by: Democrat No More | Sep 19, 2008 2:30:04 PM

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