$838 billion stimulus bill passes Senate

[Steve9347]

Looks like Obama's words last night carried enough meaning.

 

link

 

Senate passes $838 billion stimulus bill

Posted: 12:45 PM ET

 

WASHINGTON (CNN) — The Senate voted 61-37 to approve President Barack Obama’s proposed $838 billion economic stimulus bill Tuesday.

 

The measure will now have to be reconciled with an $827 billion version the House of Representatives passed on January 28.

 

link 2

 

Senate Passes $838B Stimulus Bill

WASHINGTON, Feb. 10, 2009(CBS/AP) The Senate has approved the $838 billion stimulus bill, which has solid Democratic support but is backed by only three Senate Republicans.

 

"That's good news," President Obama said of passage when told about it during a town hall meeting in Fort Myers, Fla.

 

But he also noted: "We've still got to work to do."

 

The bill now faces what could be contentious negotiations with the House, which passed a different version of the legislation, one that includes fewer taxes and more spending than the Senate version.

 

Just three Republicans helped pass the plan on a 61-37 vote and they're already signaling they'll play hardball to preserve more than $108 billion in spending cuts made last week in Senate dealmaking. Mr. Obama wants to restore cuts in funds for school construction jobs and help for cash-starved states.

 

Those cuts are among the major differences between the $819 billion House version of Mr. Obama's plan and a Senate bill costing $838 billion. Mr. Obama has warned of a deepening economic crisis if Congress fails to act. He wants a bill completed by the weekend. (Read more about what's next)

 

The three Republicans who voted for the package are Sens. Susan Collins and Olympia Snowe of Maine and Arlen Specter of Pennsylvania. They joined all Democrats and Independents Joe Lieberman of Connecticut and Bernie Sanders of Vermont.

 

Republican Sen. Judd Gregg of New Hampshire, who Mr. Obama has nominated to be Commerce Secretary, did not vote on the package. There is also a vacant seat in the Senate due the ongoing recount battle between Al Franken and Norm Coleman in Minnesota.

 

Not a single Republican voted for the bill in the House.

 

"I'm reticent to get into the negotiating," White House press secretary Robert Gibbs told NBC's "Today" show Tuesday. "I will tell you this, the president is willing to do whatever it take with Democrats or Republicans to get something on his desk." He said the American people need the help "right now."

 

Meanwhile, the Treasury Department announced an enormous plan to strengthen ailing banks.

 

Mr. Obama also kept up his dawn-to-dusk efforts to sell his news administration's rescue plan, flying to Fort Myers, Fla., a city especially hard hit by mortgage foreclosures. He was in the air early Tuesday, the morning after he told his first prime-time news conference the nation's economic downturn had grown into "a full-blown crisis."

 

Treasury Secretary Timothy Geithner, who was spelling out new bailout details for the nation's lenders, said in remarks prepared for the announcement, "Right now, critical parts of our financial system are damaged.

 

That plan includes a public-private partnership of over $1 trillion to help strengthen banks. Added to the congressional stimulus plan, which aims to get Americans spending again, the total of the combined efforts could easily pass $2 trillion.

 

Geithner said the bailout plan would lead to "cleaner and stronger" bank balance sheets by imposing tough new standards and using government and private incentives to get the banks lending again.

 

The Treasury Department announcement also was to detail how it will spend the remaining $350 billion of the $700 billion financial rescue program started by the Bush administration last fall. But the plan goes well beyond that, envisioning big investors buying more than $1 trillion in troubled assets from the banks.

 

The Treasury Department plan called for a stepped-up role by private investors.

 

It would greatly expand an effort to unclog credit markets that provide loans to consumers and businesses. Up to $100 from the bailout fund could be used, according to administration officials.

 

That would be enough to support an additional $1 trillion in lending support through a Federal Reserve program that was announced in November but has yet to begin operations.

 

The administration also announced that the program would be expanded beyond consumer and small business loans to provide aid to the troubled commercial real estate sector.

 

The administration also announced a program to create a partnership between the government and the private sector to get private investors to buy toxic mortgage-backed securities that are currently infecting the balance sheets of banks.

 

Congressional aides who were briefed on this plan said that Treasury officials said it could involve between $250 billion and $500 billion in government support.

 

In his prime-time news conference, Mr. Obama depicted his administration's rewrite of the bank bailout effort as a template for "restoring market confidence."

 

"The credit crisis is real, and it's not over," Mr. Obama said.

 

He said failure to act quickly "could turn a crisis into a catastrophe."

 

He placed the blame for this squarely on former President George W. Bush.

 

"But as we've learned very clearly and conclusively over the last eight years," Mr. Obama said, "tax cuts alone can't solve all of our economic problems, especially tax cuts that are targeted to the wealthiest few Americans. We have tried that strategy time and time again, and it's only helped lead us to the crisis we face right now."

 

The administration is counting on private investors to help rescue banks by buying up some of the bad assets held by banks. Hedge fund managers and other big investors are counting on the government to sweeten the deal before they open their checkbooks.

 

Mr. Obama criticized the way the first $350 billion was spent by the Bush administration: "We didn't get as big of a bang for the buck as we should have."

 

But he brushed aside a question on whether his administration would seek more funds for the Troubled Asset Relief Program. "We don't know yet if we'll need additional money, or how much additional money we'll need," Mr. Obama said.

Edited February 10, 2009 by lostfan

[southsider2k5]

The market is now down over 300 points in a sign of what they think of the bill and our Sec Tres's latest boost of confidence in the banking crisis...

[Balta1701]

The market is now down over 300 points in a sign of what they think of the bill and our Sec Tres's latest boost of confidence in the banking crisis...

Given that the plummet was directly correlated with Geithner's speech (200 points within 1/2 hour of Geithner's speech starting), and the market has actually been going up the last few days as this bill has approached passage, I'd say government by DOW suggests that we should pass a better version of this bill and bury Timothy Geithner alive.

[Steve9347]

Someone could add Senate to the title for now.

[NorthSideSox72]

Illinois may not get as much money as they could from the stimulus for roads projects, because the Feds feel that IDOT is too understaffed to handle them anyway.

 

[BigSqwert]

Huh? I thought part of the money was to create jobs so that work can get done.

[NorthSideSox72]

Huh? I thought part of the money was to create jobs so that work can get done.

That could be part of the game here. Feds trying to get the states to staff up, create jobs, and be able to handle the work.

 

[Cknolls]

That could be part of the game here. Feds trying to get the states to staff up, create jobs, and be able to handle the work.

 

 

You mean increase the members of AFSCME so the DEMS can pay back in spades their lapdogs.

[Texsox]

You mean increase the members of AFSCME so the DEMS can pay back in spades their lapdogs.

 

So what would you suggest?

[Cknolls]

So what would you suggest?

 

I would suggest cutting State payrolls by at least 20% because the legacy costs of these stiffs is unrealistic. I love the people who say gov't jobs are real jobs. Police Fire etc. Yes they are real jobs, and Clinton put 100,00 cops on the street, great. But after the initial outlay by the gov't, who supports these positions? Local and state taxpayers, right. The last thing we need now is an increase in state and local taxes to pay for more gov't workers.

 

Re-work the pensions of these people and you have real reform and REAL cost savings. One pension for every gov't employee, not one for each level of gov't you served.

[Texsox]

I would suggest cutting State payrolls by at least 20% because the legacy costs of these stiffs is unrealistic. I love the people who say gov't jobs are real jobs. Police Fire etc. Yes they are real jobs, and Clinton put 100,00 cops on the street, great. But after the initial outlay by the gov't, who supports these positions? Local and state taxpayers, right. The last thing we need now is an increase in state and local taxes to pay for more gov't workers.

 

Re-work the pensions of these people and you have real reform and REAL cost savings. One pension for every gov't employee, not one for each level of gov't you served.

 

Cool. The only disagreement I have is if it is earned, I see no problem in someone getting what they earned. My dad receives multiple pensions based on multiple private sector jobs he held, I see no reason why the same would not be fair for public sector. Now if you wish to say that some of those individual pensions are unfair, I'd love to take a look at them.

 

But it seems that the trend is lower pay and retirement for Americans. Perhaps it is necessary.

[Cknolls]

Cool. The only disagreement I have is if it is earned, I see no problem in someone getting what they earned. My dad receives multiple pensions based on multiple private sector jobs he held, I see no reason why the same would not be fair for public sector. Now if you wish to say that some of those individual pensions are unfair, I'd love to take a look at them.

 

But it seems that the trend is lower pay and retirement for Americans. Perhaps it is necessary.

 

 

The private pension system is not supported directly by my taxes. The public system is and is absolutely in need of reform. The problem is the people who would reform the system have a direct investment in the system itself. Hence, no reform anytime soon.

[Cknolls]

Talk about clawbacks? Here is the largest clawback waiting to happen. But do not hold your breath.

[Texsox]

The private pension system is not supported directly by my taxes. The public system is and is absolutely in need of reform. The problem is the people who would reform the system have a direct investment in the system itself. Hence, no reform anytime soon.

 

If a person earns two pensions from two different positions, why is that a problem? What am I missing?

 

Let's use this example,

 

A person works 20 years for the Highway Department, then 18 for the DMV and receives two pensions. How would you fix that?

[Cknolls]

If a person earns two pensions from two different positions, why is that a problem? What am I missing?

 

Let's use this example,

 

A person works 20 years for the Highway Department, then 18 for the DMV and receives two pensions. How would you fix that?

 

 

I would give them one pension for 38 yrs of service. Not two pensions. And there should be a minimum amount of time you have to serve in a position to receive a pension or a kicker to a pension(aka. BOBBI STEELE and the rape of the Cook County taxpayer).

[StrangeSox]

I would give them one pension for 38 yrs of service. Not two pensions. And there should be a minimum amount of time you have to serve in a position to receive a pension or a kicker to a pension(aka. BOBBI STEELE and the rape of the Cook County taxpayer).

 

Steele's a great example of problems with the current system.

 

http://archives.chicagotribune.com/2006/no...0611280003nov28

[Texsox]

I would give them one pension for 38 yrs of service. Not two pensions. And there should be a minimum amount of time you have to serve in a position to receive a pension or a kicker to a pension(aka. BOBBI STEELE and the rape of the Cook County taxpayer).

 

I agree there should be a minimum number of years served.

 

Would one 38 year pension be smaller than the two 18 + 20 year pensions?

[Texsox]

Steele's a great example of problems with the current system.

 

http://archives.chicagotribune.com/2006/no...0611280003nov28

 

Exactly. I would think anyone looking at that would realize the loophole needs to be closed.

[Balta1701]

FWIW, a compromise appears near on the stimulus bill. The rumor is the bill will get slightly smaller and will probably improve substantially; with some of the Senate-added tax cuts and the "Flip your house" credit either weakening or removing, with some portion of the spending on education that the Senate cut going away. The total price tag will drop slightly below $800 billion.

[NorthSideSox72]

FWIW, a compromise appears near on the stimulus bill. The rumor is the bill will get slightly smaller and will probably improve substantially; with some of the Senate-added tax cuts and the "Flip your house" credit either weakening or removing, with some portion of the spending on education that the Senate cut going away. The total price tag will drop slightly below $800 billion.

I hope they keep the new home buyer credit in.

 

[StrangeSox]

Could do me some good, depending on how things play out the rest of the year.

[Balta1701]

I hope they keep the new home buyer credit in.

There's a big difference between a new home buyer credit and the any home buyer credit the Senate put in.

[mr_genius]

I hope they keep the new home buyer credit in.

 

I thought it was first time home buyer credit? There needs to be a limit even if it's not first time buyer. like you can only get this credit once every 10 years or something.

[mr_genius]

There's a big difference between a new home buyer credit and the any home buyer credit the Senate put in.

 

Ah I see, it's any home buyer now. Well I hope they put limits on it.

[NorthSideSox72]

Ah I see, it's any home buyer now. Well I hope they put limits on it.

Yeah, I'd be good with it being just first timers, or once every 10 years as you said. Just to keep the speculators away from it.