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Bailout deal breaks down; Bernanke back to Capitol

WASHINGTON (AP) - Urgent efforts to lash together a $700 billion rescue plan for the national economy broke apart Thursday night, hours after key lawmakers had declared they had reached a deal. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke sped to Capitol Hill to try to revive or rework the proposal that the administration says must be quickly approved by Congress to stave off economic disaster. Congressional leaders were to meet with the economic chiefs into the night. THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below. http://www.breitbart.com/article.php?id=D93E28NG0&show_article=1
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Re: Bailout deal breaks down; Bernanke back to Capitol

  • Last I read was this:

    But one of the authors of the new plan, Virginia Republican Rep. Eric Cantor, said McCain had not endorsed it. "This is not part of his campaign," Cantor told reporters.

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  • Thank goodness the House Republicans have spines. Everything I've read about the Dems plan makes me cringe. I hope they can reign it in.

    ETA: this is why I was surprised yesterday when someone posted the deal was 98% done. I had heard the house republicans were going to stand their ground?

  • imagezoegirlTX:

    This was dodd's take on it from a D persepctive.

    WASHINGTON (MarketWatch) -- Sen. Chris Dodd, the top Democrat on the Senate Banking Committee, said Thursday that bipartisan meeting with President Bush at the White House on the mortgage rescue plan was nothing short of a disaster. In an interview on the CNN cable news network, Dodd described a meeting in which Democrats were blindsided by a new core mortgage proposal from House Republicans, with the tacit backing of Republican presidential candidate John McCain. "I am not going to sign on to something I just saw this afternoon," he said. Dodd said Republicans and Treasury Secretary Henry Paulson had to decide what they wanted to support. The whole meeting "looked like a rescue plan for John McCain," Dodd said. He said he was simply going to pretend that the meeting had never happened

    Dodd overestimated how much support the Dems' bill had. There was no consensus. I still maintain the worst bills are the ones in which the Congress rides the Unity Horse all the way to the White House. This bill is too huge to just rubber stamp. Paulson's plan was ok but needed major changes in a few key places (example: exempting the RTC from oversight). Dodd's plan was pretty awful (example: using revenues from the bailout to fund?"affordable housing programs" meaning Acorn),?but it also had 1 or 2 decent points that should make the final version. I hope by debating the good points from both plans make it into the final version. I was not under the impression real debate had taken place until late today.?

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