Actually, I should clarify something; also, an amendment drama

[solarbird]

Here's the thing:

If any of the governments involved overseas who will benefit from this fiasco actually are going to cut off T-bill purchases, and really mean it, that's their right; but if they plan to stop purchases and flood the market with the ones they already have, then this is extortion. In the latter event, it's a case where not paying the extortion money would, arguably, be worse. Pay it, and then next year's budget would have to be balanced, no matter what it takes, period, end of story.

Sadly, even if the former is true, the latter will not happen. So it's quite the mess.

Also, a quick update: a group of Republicans are trying to add this amendment in the Rules committee. It's apparently a big effort because reportedly it'd get the votes to pass the package in the house, but would also guarantee a White House veto. It's wild and wooly over there tonight.

eta: Brad Setser tallies out that the Fed is up to US$1.25T in liquidity injections already. He gives them credit for "holding things together" as long as they have.

Comments

[chipmunck.livejournal.com]

Normally I am stuck to the tv like some something.. but I find myself keeping far away because I just don't get it all. What it all involves (Thanks mass media for nothing)

Thank you for updating me on things, I do appreciate getting something more indepth.

If I may ask- Is there any particular program you would watch to get a better news? I hear some show... grrr. Bill Moyer? He has a good show to watch to be updated.

[solarbird]

Television news in the US is complete and utter garbage. Politically and economically, it's at best a propaganda operation. How long have I been going off on the complete refusal of them to cover, say, the illegal domestic propaganda campaign by the Pentagon that ran for years and in which they participated? I'm still waiting for it to be mentioned. Once. CBS's coverage (for example) of the FISA fight? What little there was was about how it was needed to "let the President eavesdrop on terrorists." It's garbage. It's part of the problem.

You want the best political coverage available in television form in the US? Watch The Daily Show. Seriously. Yes, the comedy/parody show is the best option you've got.

After that, in the US, on television, there's nothing. BBCA has a rebroadcast of BBC World News with an American news focus, that might not suck too hard - I don't know, I haven't tried it. On radio, NPR is less bad than most, domestically, and if you can get a BBC World Service feed that's less bad than many other options.

[silussa.livejournal.com]

As it happens, many NPR stations carry the BBC World Service Newshour. Not to mention I believe you can also get it online.

I have to admit, I haven't listened to the major networks for quite some time. Too shallow, and sometimes they've just been so plainly and obviously oblivious.

[peakoilchaplain.livejournal.com]

What, particularly, in the proposed amendment triggers the White House veto?

[solarbird]

Lots of it. There are hard limits in it and it requires money from the companies they're "bailing out." Most of 1, the second half of 2, a lot of 3, they won't like 6 but might live with it, probably the first part of 7 if Paulson thinks the actual language would exclude sovereign wealth funds. That's what I'd think from looking at the description language instead of the actual text.

[epawtows.livejournal.com]

The bit about limiting pay to the same as the president is almost funny; I can't wait to see if Colbert plays that one up. Would be even more amusing if it raised the president's pay.

[llachglin.livejournal.com]

What a stupid way to pay for the plan (by which I mean the proposed Republican amendment). First of all, ANWR isn't open to drilling. Second, it shouldn't be. Third, if it was, it wouldn't provide any revenue over the next 10 years.

The alternative of a 2% cut across the board in the budget is the exact wrong thing to be doing heading into a recession. Even exempting Social Security (but not Medicare!) it would amount to a transfer of wealth from the general public to the banks, and slow economic activity compared to doing nothing.

We need to pay for this with narrowly targeted tax increases--see Bernie Sanders' plan--and if anything we should increase spending in areas that produce long-term growth and attract additional private capital.

Of course, either course assumes that we can continue accumulating debt, which the rest of your post suggests might not actually be possible.

[solarbird]

Amusingly, that payment system is the only part I think Mr. Bush would actively like, because ANWAR ANWAR ANWAR DRILL DRILL DRILL. And yes, it's stupid.

And of course as you know I think the whole plan should be dropped. I rather suspect this amendment set is a poison pill.

[silussa.livejournal.com]

Fiscally, this one is a mess. If the bailout goes through, we're going to incur an ENORMOUS amount of additional debt.

Of course, one shouldn't cut spending in a recession/depression. But even what the government can do is limited; both business and personal consumers are cutting way back...either confidence needs to be restored, or we're going to have a humdinger of a depression.