Saturday, October 4, 2008

Hooray for the Economic Bail Out Plan!

I know many of you will want to smack me for posting this but for those of us that are in the middle of buying and selling houses, it is our only hope. We are so grateful that this passed the house of representatives.

“This isn’t 9/11. We know how we got into this mess. What we need now is leadership that gets us out. I’ll provide it. John McCain won’t. And that’s the choice for Americans in this election.”
Barack Obama

The Story Behind the Story on the Economic Bailout

HAI has learned House Democrats, citing assurances from Senator Barack Obama (D-Illinois) switched votes in large blocs today, Friday October 3, allowing passage of the financial rescue package. Several freshman Democrats and members of the Congressional Black Caucus who helped defeat the initial version of the measure earlier in the week said Senator Obama won their support by pledging to push an economic stimulus package, change bankruptcy law to allow foreclosure relief, and strengthen the regulatory framework for Wall Street if he is elected president next month. In total, 32 Democrats and 26 Republicans switched votes. Within the Congressional Black Caucus, 31 members voted yes while eight voted no.

It is being reported on Capitol Hill that several freshmen Democrats said they trusted Obama more than President Bush to implement the bill. Some Democrats also said the FDIC increase, extensions of tax breaks, and other changes to the bill helped swing their votes, in particular tax breaks for Iowa residents who faced flood-related property damage and the newly cited California dire budgetary announcement Thursday.

On the GOP side, Republicans who switched cited the increase in the FDIC's deposit insurance cap, extensions of tax breaks and furious lobbying by small business groups. The FDIC increase and the Security and Exchange Commission's decision to loosen so-called mark-to-market accounting regulations were big inducements for Republican members to support the bill. Changes in the calls inundating lawmaker's offices in the past few days went from overwhelmingly negative last week to favorable in recent days. Much of the shift was likely driven by business groups like the U.S. Chamber of Commerce, which mobilized its members to call their representatives.

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