Administration Official: Bailout Likely, McCain Lost PR Battle

Concerned that the public relations battle had turned against their favor, John McCain and the group of conservatives who opposed the outlines of the compromise financial bailout package will likely back away from their recalcitrance, an official close to the Administration tells the Huffington Post.

The Republican source, with direct knowledge of the negotiations, said that GOPers and McCain were "scared about the press perception" that they were at fault for "blowing the thing up." The takeover of Washington Mutual on Thursday combined with the continued downturn in the futures and credit markets "also scared them," to the point that a bailout deal seemed within the realm of possibility "over the weekend."

The official's tone - more optimistic than that of key figures just last night - signals an end may be in sight on a bailout negotiations. McCain has generally avoided taking a stance on the set of compromise principles agreed to by the administration, Democrats and many Republicans in Congress. But talks stalled during a White House meeting last night, in large part, sources say, because of a power struggle within the House Republican caucus.

McCain had left the campaign trail mid-week with a promise to force a consensus. But it seems, at this point, that he will have done relatively little during the negotiations - save for possibly killing the earlier arrangement and providing an opening for the opposition.

"I do think that John McCain was very helpful in what he did. I saw him this morning, we've been talking with his staff," House Republican Whip Roy Blunt told Andrea Mitchell on MSNBC. "Clearly, yesterday, his position in that discussion yesterday [at the White House] was one that stopped a deal from finalizing that no House Republican, in my view, would've been for."

According to one Democratic aide familiar with the negotiations, House GOP leadership was hoping to save face with more conservative members on Friday by forcing consideration (at the very least) of some of the alternative proposals - primarily, having the government sell insurance to companies that buy mortgage-backed securities. The leadership would then turn around and praise McCain for greasing the wheels on this front. But the course is problematic. McCain has left town. And during the White House meeting on Thursday night, Barack Obama reportedly brought up discussion of the conservative counterproposal only to have Treasury Secretary Hank Paulson declare it wouldn't work.

Comments

[PT6]

DO NOT LOWER TAXES OR REMOVE ANY REGULATIONS!

"FAIR MARKETS" NOT "free markets" are WHAT MADE AMERICA GREAT!

GET BACK TO "FAIR MARKETS!"

[booksnmore4you]

Instead of giving $700,000,000,000 to Wall Street, let's do this:

The U.S. population is 300,000,000.

Let's give $2,333,000 to each person in the United States.

Every person in the middle class and the poor can pay off all their mortgages and credit cards and medical bills, and buy a new house and send their kids to college, begin businesses, etc.

It would be the greatest economic recovery the world has ever seen.

[Ping]

Your math is totally whacked. You are 3 zeros off in the wrong direction.

[the964kid]

McCain got exposed for putting his political gain FIRST and country SECOND.

McCain would rather win an election then do what's right for american citizens and our economy.

[Ping]

This comment is pending approval and won't be displayed until it is approved

John McCain "Career First"

[CaliBoy145]

McCain is trying to take credit for a bill he had nothing to do with in the first place.

[imsosure]

SOLVE THE PRESENT ECONOMIC CRISIS.

I'm against the $85,000,000, 000.00 bailout of our bankrupt lending industry.

Instead, I'm in favor of giving $85,000,000, 000 to America in a "We Deserve It Dividend."

To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up..

So divide 200 million adults 18+ into $85 billon that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a "We Deserve It Dividend".

Of course, it would NOT be tax-free.

So let's assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes.

That sends $25,500,000, 000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket.

A husband and wife has $595,000 .00.

What would you do with $297,500.00 to $595,000.00 in your family?

Pay off your mortgage - housing crisis solved.

Repay college loans - what a great boost to new grads.

Put away money for college - it'll be there.

Save in a bank - create money to loan to entrepreneurs.

Buy a new car - create jobs.

Invest in the market - capital drives growth

Pay for your parent's medical insurance - health care improves.

If we're going to re-distribute wealth let's really do it...instead of trickling down which has never worked.

ECONOMIC PROBLEM SOLVED!!!!

[Amalek]

Sarah, is that you blogging here?

[KillTheMessenger]

Sounds like someone who has failed math class for sure.

$85 billion divided by 200 million is a mere $425.

So what would you do with that? Have a couple of good dinners with the family. Maybe a nice weekend off. Maybe you could pay back a couple percent of your credit card debt? Or it's just enough to buy a new set of tires for the car.

On the other hand, if we hand out 85 TRILLION dollars, we can as well smoke the dollar in our pipes, it will be worth about as much as old, dirty newspaper.

I think everyone can go from here and judge the quality of the US education system by the utter nonsense of the post above.

[debkamaine]

I am not kidding, that idea needs to go to a Democratic leader. You are BRILLIANT!! I think that you should be our Director of Treasury.............I don't know enough about you to vote for you for president.

[MargaretO]

Except that it's totally incorrect in figures and math. No different than our current President's math skills, though, so he has a chance of getting elected.

[debkamaine]

oh man, one HUGE problem with this plan.......it helps people, repubs would go crazy, they would rather have it go to bankers and CEOs

[aflyinyoursoup]

imsosure, Are you SURE that you're so sure?
The figure that I've heard so many times over the past several days is 700 billion.
That's a 7 with 11 zeros behind it..........700,000,000,000
If you devide that by 200 million.............200,000,000
You Get
700,000,000,000 / 200,000,000 = 3,500
I do however agree that any "bailout vehicle" should be FIRST driven directly through the population to the greatest extent possible.
ENOUGH CORPORATE WELLFARE!

[aflyinyoursoup]

Oh, and I forgot to note that KillTheMessenger is right about your math.
As for your attempt to couch your post as some sort of "satirical" lesson on the effectiveness of misinformation....nice try...but no cigar.
ADIOS.

[imsosure]

My math is off? Even still the point is we as citizens ought to have a say in where the money goes. And as usual there's a flaw even in my plan but I'm not running for office. I'm also not supporting a dingbat for my vice-presidential candidate. So I guess my little somewhat intentional mistake out to demonstrate that ust how easy it is to assume what looks good on paper at first might require more analysis before sending out the door. I wonder though if
GW and John Bo understand the same. The need to consult with some specialists in their field and get their advise but for no we are doing it my way or no way at all, damn you.
I don't think people understand like I do so just let me handle it.

[SShaw490]

Go buy some new batteries for your calculator and get back to us. 85 billion divided by 200 million equals $425, not $425,000.

[DrDemon]

LOL - But cruel!

[Ping]

The banks need money today. You do not understand the seriousness of the crisis.

[MyVoiceHere]

Well...there you go again. Republican scare tactic based on lies.

http://www.reuters.com/article/topNews/idUKTRE48O8XE20080925?virtualBrandChannel=10112

[ewa]

I'm a Veteran Veteran that was the Commander of one of the largest VFW post in the State of Washington and was involved in the POW/MIA issue at it's highest levels,and McCain claims that he resolved the issue and got a full accounting of our POWs is just one of the biggest lies he has ever told,The truth is he was one of the biggest obstacle and stone walled all attempts to get a full accounting of are POW/MIAs.He openly attacked us in the halls of Congress and went as far as to physically assault one member in a wheel chair and brought many of the mother of the missing to tears.This guy is the biggest phony in the Senate and one of the least like Senators my Veteran,his rated at the bottom of Senators who have stood up for Veterans rights.Don't be fooled by this country first garbage puts out it's always been McCain first nothing has changed.He was a collaborator during the time he was a POW and received special treatment.The guys is a fraud.

[MargaretO]

I hope you are getting this message across to all your buddies, even the old vets.

[NicoleAnon]

I think people on her campaign who are saying "SP is a disaster" and "we don't know why to do because we tried to have a debate with her and it was horrible" and "she should just quit" are lying.

They're saying that intentionally because they want people to lower their expectations for the debate and she won't be as horrible as they're expecting so they will think she did better than she did. She is not stupid at all.

[JahLenin]

We got beat tonight, NA.

We're gonna lose again, aren't we? We're righteous and we lose again....

[35Echo]

Dem are too chicken to pass their OWN bill with their OWN votes! But the RePubs are 'blocking' them! How's that?

[PADebbie]

That is because the Dems want the Reps. hands on it so they can say, "See they keep voting against everything we are doing" (while they are adding on funds for acorn to the bailout plan) If the Reps. are going to be a part of this then the Dems. will blame them for whatever back fires and our media (unbiased media ROFLMAO) will have a hayday and their talking points will all be in lock step to get the word out that the Reps. are at fault!

I say, Let the Dems take care of this on their own! Let them show us what they are made of! LMAO!

One thing is for sure they better let the citizens of this country be able to view what is going to be passed before anything is set in stone!
I want to KNOW WHERE MY MONEY IS GOING!

[aflyinyoursoup]

Because of the GOP, starting with Reganomics, your money IS GOING to the Global Corporate Till!
Get used to it!
This nation was sold down the crapper in the name of the "unregulated free market" decades ago.
The current "crisis" and subsequent "bailout" is just the beginning of the well planned and orchestrated sacking of this once great nation.
McBozo and Bullwinkle Barbie will accelerate this process and you and your ilk will usher them into position to do so without so much as a clue.
Stay tuned.

[MargaretO]

Heck, we already know what the Repubs are made of. Repubs have run this country into the ground. Paid their rich corporate buddies, used up a huge surplus and have gotten us into deficit and debt H E L L, got us into a needless war with no funding, no practical strategy, no exit strategy and much more. I wouldn't be so cocky, if I were you. The truth is a biotch, isn't it?

[sonoffestus]

Are you concerned that YOUR money is being flushed down the toilet called the Iraq war? Are you concerned that your money is paying off war criminals and war profiteers?
Are you concerned that OUR treasury is in hock to the Chinese government, and your kids and grand children will be on the hook for years to come?

If so, you can write a letter thanking GWB and his crooks and cronies for a job well done.
Republicans misleading and bleeding America........................

[JenMI]

Would you like a personal copy?
Get a grip and do some research..instead of nonstop blogging.

[TovSquirrel]

Put the Bailout on the Ballot in November in all 50 states (and outlying territories).

[35Echo]

Dems add pork to "bail out" plan - $$$ to ACORN, National Urban League and LaRaza

http://sharprightturn.wordpress.com/2008/09/26/dems-add-pork-to-bail-out-plan-to-acorn-national-urban-league-and-laraza/

[azakayaks]

35echo:
I especially liked this line from that link: "Henry Merritt Paulson Jr.,the Democratic-leaning Treasury Secretary".
You ARE referring to Henry Merritt Paulson Jr., former Chairman and Chief Executive Officer of Goldman Sachs, aren't you. A stellar democratic, a true man of the people. You are, that is, referring to the plan Dubya and Henry Merritt Paulson Jr., former Chairman and Chief Executive Officer of Goldman Sachs tried to foist off as vital to "main street" as opposed to his former Wall Street cronies..
If so, sir, I suggest you get a clue, instead of parroting whatever "drivel of the day" you pick up from the rightwingnut websites.
Oh, and yeah, I'm a Democrat.

[MargaretO]

True to form the Repubs tried to add a pork extra tax cut for the rich. At least the Dem's try to help the poor and middle class.

Get lost.

[PADebbie]

They better do it before the elections.........and I want to see it!

[Pupster]

Between now and November, you will see maybe another 50-100 banks fail if the bailout doesn't happen.

You think I'm exaggerating? WAMU went down Thursday, and Wachovia is next. And there are an untold number of regional banks that have already failed and are about to fail. (Including a bank in Nevada that recently failed that John McCain's son sat on the board of.)

[PADebbie]

Dodd's add-ons have many of the populist ideas that will appeal to skeptical Democrats.

[simkmer]

What is transparent about McCain?
How does he put Country First?
How does he show that he is Presidential?
What has he done in the past that shows he supports the middle class more than the super rich?
And with all his deregulations in the past, how can we trust him now?

[Diogenis]

Ohio fans of McCain are squirming...! Will they finally see through their folly?

OBAMA/BIDEN 08

[springsm]

OHIO, SEE? Nope they won't. They don't really care who the candidate is and what that candidate stands for as long as it is a republican. I just don't get it.

[DieHardObamaSupporter]

That's what happens when you cry wolf.

[FlyTheBlueSky]

We don't need drama queens like McCain, we need solutions to problems.

[PADebbie]

No we need leaders like Obama that gets his talking points briefed to him from Paulson before he gets to Washington and then he starts CHAOS in the senate..........no wonder he scrambled for the News stations last night to get the word out before anyone could rip him for blowing everything to smithereens.........Man that Axlerod you have to give him credit for putting the rock star image into Barrack..(we all know Barrack can't do this on his own)..........cant wait for him to fumble tonight (Barrack).......Mr. call me anytime and I'll be there!

[MargaretO]

You are full of balogna. McCain's grandstanding P.R. smokescreen didn't work. Nobody fell for his urgent need to get to Washington to cure a "fundamentally strong economy". Bwahahahahaha!

[sonoffestus]

Debbie, my wife and I lived in PA for about three years when we were first married.
My wife experienced medical problems that were eventually traced to a toxic ground water. After we moved her condition improved.

I would suggest you get your water checked. Things might clear up in your case as well.

[fnygy]

Gee whiz - so much for conservative "principles." These guys are just comical, aren't they? Has anybody noticed that "free market" has become "free enterprise" in the jargon world of the GOP? It would be funny if it weren't so damned insidious. The word "evil" is what comes to my mind.

[Shadow08]

Evil is the result of being consumed by the lust for money and power.