The $700 billion bailout was rushed through Congress as a way of pumping liquidity into the financial system by letting the Treasury buy up so-called toxic assets, the most troubled loans on lenders' books.
Well, that's not what the Troubled Asset Relief Program is any more. Not too long after it passed, Treasury decided that it could put money into the system more effectively by purchasing bank stock directly.
For all the change supposedly blowing into Washington in this election, the face of the new Congress, aside from having around two-dozen more Democrats, won't change all that much.
To be sure, there will be new people around the U.S. Capitol -- about 60, in the House and at least nine in the Senate.
And based on victories declared for all but a dozen or so contests around the nation, Democrats will outnumber Republicans by 80-some votes in the House, the biggest majority since 1992, while holding a solid majority of at least 56 in the Senate.Read More
Alaska Sen. Ted Stevens was convicted of seven corruption charges Monday in a trial that threatened to end the 40-year career of Alaska's political patriarch in disgrace.
The verdict, coming barely a week before Election Day, increased Stevens' difficulty in winning what already was a difficult race against Democratic challenger Mark Begich. Democrats hope to seize the once reliably Republican seat as part of their bid for a filibuster-proof majority in the Senate.
Congress and the Bush administration are beginning to agree on the idea of a second stimulus package but right now that's as far as the agreement goes.
Congressional Democrats have been pushing for a second round of stimulus -- although now it's called "economic recovery" because "stimulus" sounds so wasteful. They got a big boost this week when Fed chairman Ben Bernanke endorsed the idea but in carefully couched terms -- "consideration of a fiscal package by the Congress at this juncture seems appropriate."Read More
If there were any doubts the House would pass the revised $700 billion bailout package, they were quickly resolved when the unemployment figures for September came out in advance of the vote.
The rate was unchanged at 6.1 percent but that masked the real damage to the economy -- a loss of 159,000 jobs last month, the most in five years and far more than analysts expected. It was the ninth straight month that the economy shed jobs, bringing the total for the year to 760,000, a number the Associated Press called "staggering."Read More
Bloated with pork, the massive $700 billion bailout bill passed the House Friday and President Bush immediately signed the legislation into law, turning to taxpayers to save government and Wall Street from themselves.
The pork added at least $120 to the final tab and victory from the same House that turned it down earlier in the week proved that all it takes is arm twisting, promises and outright bribes to turn controversial legislation into law.Read More
On Capitol Hill, they call it "sweetening the pot." Out in the real world, it's called bribery.
Whatever you call it, proponents of the $700 billion bailout of Wall Street, banks and the financial industry are loading up the legislation with pork, inducements and favors for members of Congress in exchange for the votes needed to pass the bill when it hits the floor of the House of Representative on Friday.
At last count, the bribes will add at least $120 billion to the cost of the bailout.