President-elect Obama is about to make his first major mistake.

[kentuck]

And it will be a doozy! The Treasury Dept and Slick Henry Paulson have requested the help of the Obama transition team in helping to convince Congress to release the remaining $350 billion dollars. That will be a calamitous decision if they go along with it. They will need that money for other more productive purposes and if they hand it over, they will find that they have been lied to once again by Slick Henry Paulson. Please do not do it.
====================================

http://www.washingtonpost.com/wp-dyn/content/article/2008/12/05/AR2008120502533.html?hpid=topnews

<snip>
With lawmakers on both sides of the aisle expressing heated opposition to such a request, Treasury officials have come to realize that they need the president-elect's help to obtain the rescue money, the sources said.

The Treasury aired the possibility of seeking the second half of the funds with transition team officials, who said they would attend a meeting with lawmakers and the Bush administration if the department pulled one together.

...more

[polichick]

1. Doesn't make sense for Obama to go along with this.

[TomInTib]

3. The decision has been made for him.

There's nothing he can do about it.

[polichick]

9. So it's a done deal? Hope not.

[JackRiddler]

23. Oh really? Who made the decision? Why is there nothing he can do?

[rhett o rick]

34. I think Paulson is holding the ecomony hostage. Make a wrong move and crash.

Obama can't fire him now. Paulson is going to ransom all the trillions he can in the mean time. I think that Paulson's buddies got themselves leveraged out to the tune of tens of trillions. Paulson wants to ease their crash. IMHO he can't prevent the crash only postpone it while his buddie steal what they can. Obama is currently powerless. Even if he was President he either postpones the crash or takes it immediately, IMHO either way we crash.

[TomInTib]

36. I agree.

But I believe it is much bigger than Paulson.

Like everyone else whose name actually appears in print, he is just another marionette.

[kentuck]

37. You may be right Tom.

They are intentionally holding back all the credit, it appears. As in the Chicago workers taking over the workplace, Bank of America is withholding credit from the employer. Why? What did they do with the money we gave them? That should be the question asked.

[JackRiddler]

44. The second $350 billion is subject to a Congressional vote.

This is not in Paulson's hands.

As for the crash, that is happening and will continue to happen in inevitable fashion, regardless of the bailout, which represents a tiny fraction of the derivatives creating the insolvency of the banks, but represents a gigantic and criminal haul in plunder for at least the recipients.

The Congress is free to vote against part II of the plunder plan. Obama is free to voice opposition to it. No one is held hostage, as the process now underway is inevitable and certainly not being solved but exacerbated by the plunder plan. Paulson is free to claim otherwise and try to blame others, of course.

Let the blame efforts begin. I think those who advocate withdrawal fromt the plunder plan now will win this game. Paulson's only chip is an unfounded fear that not listening to his gangster crew's recommendations will make things worse. The majority rightly will blame him, the bankers and Bush for the crash, if only Obama and the Democrats are smart enough to disassociate themselves from the plunder plan now.

[rhett o rick]

45. I agree that Congress is free to vote against Part II, but it's the same damn Congress that was free

to vote against the Iraq war and didn't, free to vote against the Patriot Act and didn't, free to vote against the MCA and didn't, and I can go on and on. IMO Congress has relinquished their power. Their is going to be a crash, a big one, but I think you and I agree that it might as well happen now rather than in 6 months. And don't give the looters another nickel. When I said Paulson is holding the economy hostage, I mean he might be able to postpone the crash and that's what he is using as ransom. Does Obama want the crash now? or later?

[marshall]

54. When the boat's leaving the dock you either get on or you get left behind

It makes sense to make the best of the inevitable.

[David Zephyr]

2. I agree. Anyone that trusts the "word" of Henry Paulson & his boss, GWB, is insane.

When they say "emergency", it's a lie.

When they say "you are safe", it's a lie.

When they say "economic catastrophe", they can not be trusted.

When they say "the economy is sound", they can not be trusted.

They are the boys that cried "wolf" far too many times.

Let the $350 Billion remain in Congress' hands until the REAL President is in power.

We can wait 40 days and 40 nights.

Paulson just wants his greedy hands on that money.

That money now belongs to the Obama Administration who Americans trust.

[polichick]

4. I didn't believe a word Paulson said when he came begging...

It's shocking that our Congresscritters were such dimwits. They'd have to be brain dead to fall for it again.

[bertman]

7. Dimwits? Nah. They just did what they do best: look out for themselves.

They're all in hock to the financial industry for gazillions in campaign contributions, including our new President-elect.

it's another variation on the "don't bite the hand that feeds you." We the people JUST vote for them. We don't sustain their campaign coffers like the big boys and girls do.

[polichick]

8. Well, if that's the case, they've sold out the country.

[bertman]

16. You are correct, polichick. Of course, we remember that public opinion was something like

90% against approving the $700,000,000,000 giveaway that became $850,000,000,000. Millions of Americans made their feelings known to their Senators and Representatives via phone, email, letter and in person, yet OUR PARTY LEADERS Reid and Pelosi came through for Bush and the financial elites once again.

Makes me sick to think about it.

[polichick]

20. And it wasn't just Reid and Pelosi - Obama was all for the bailout...

He didn't listen to us any more than they did, just made a list of protections that should be included ~ which in the end were not.

[tomp]

22. finally catching on? nt

[polichick]

27. The part that surprises me is Obama selling out.

[rhett o rick]

30. Obama's decision is do you let the economy crash now or later. That's his only choice. nm

[polichick]

42. Caving to bullies is not the way to go.

[rhett o rick]

49. So you say he should not accept anymore bailouts? I agree but he may look pretty

bad.

[kentuck]

6. You are right David...

We will just have to wait 40 more days and 40 more nights. If there are some banks that fail between now and then, we will have to address them as they come up. They would be outright fools to give this money to Henry Paulson and George W Bush.

[NashVegas]

24. They Aren't Going to Fail

Two Nashville area banks - Pinnacle and, I *think*, First Tennessee - are tapping into that money, and they're tapping in for growth funding, not emergency bailout.

[spanone]

11. time after time after time the bu$hits have screwed any democrat they could in any way possible

:shrug:

[NOW tense]

5. They are going for the bank and the

Biggest Heist in history

[tom_paine]

10. Probably gonna get it, too.

I am trying very hard not to be so cynical. After all, Obama hasn't even taken office.

But the signs...ALL of them...are NOT good.

[wildbilln864]

12. To the greatest page! nt

[stillcool]

13. Be like Nancy Reagan, and just say no..

Christopher J. Dodd (D-Conn.), chairman of the Senate Banking Committee, has said he is opposed to approving any more bailout money during the Bush administration because he thinks the funds have been misused. And House Financial Services Committee Chairman Barney Frank (D-Mass.) said yesterday that he has told Paulson and Obama that they won't get the money unless a substantial part of it goes toward reducing residential foreclosures, which continue to skyrocket.

"I have said to both parties that the key here is to get some money into foreclosure diminution and if they don't get that done, then they can forget about the second $350" billion, Frank said in an interview.

[dsc]

14. There is a simple solution to this

Paulson quits and Obama's choice for Treasury gets named. Geither is already head of the New York fed so he must have been confirmed and thus has been vetted. He could be voted on in a day and installed. Then release the money as he sees fit.

[On the Road]

19. Is There a Reason You Think Geithner and Paulson

are at odds with each other or handle the money differently? I don't have any reason to think so. Paulson has seemed very willing to work with the Obama team.

[rhett o rick]

32. Paulson knew years ago that this had to come. He postponed it best he could. He is complaisant in

this the greatest of all highway robberies. He should be fired and held as a terrorist under the Patriot Act. Bernake also. They both know that this latest bailout is only a slight delay in the economic collapse. Their friends want to steal all they can before the collapse.

[On the Road]

40. Paulson Knew Enough to Protect Goldman Sachs

against the worst exposure. But he also knew the financial sector had to be kept from going under. The equity injections of TARP should enable the feds to make money if it's held for long enough. Bernanke has could probably have induced a collapse if he had wanted to by simply following the Fed Chair rule book, but instead did the opposite by being expansionist.


And as far as the "coming economic collapse," our president-elect obviously disagrees.

[rhett o rick]

46. The PE can't "think" otherwise. What can he say? We are going to have an economic collapse. nm

[On the Road]

48. Do You See Any Indication That Obama Buys Into the

economic collapse scenario so popular on DU? Or are his statements to the contrary merely proof that he really believes it but fells compelled to deny it?

[rhett o rick]

51. Do you think there will be an economic collapse? nm

[On the Road]

53. Not in the Way Being Bandied About Here

We're certainly in a recession now and going deeper at the moment. I personally think we'll have another year or two of high unemployment accompanied by very high deficits. After that there will either be a strong rebound or a Japanese-style stagnation for a few more years.

In other words, something more serious than the recession of the late 80s but less serious than the Great Depression, probably on the order of the early 80s.

Some of the things being discussed in the economic collapse scenarios seem to be based on apocalyptic fantasy thinking. Many did not even happen during the Great Depression. The biggest danger is the financial Big 4 failing, but the feds seem determined not to let that happen.

Since the early 80s, we have such a long boom with such minor breaks that recessions seem foreign. They are scary but they are to be expected. Even minor recessions always feel like the end of the world at the time, and yet they are forgotten a few years later. This one is worse than the last few, but it will be temporary and within the range of economic troubles various countries have experienced in the last century.

[rhett o rick]

55. In the past we have had things to fall back on, like natural resources and a skill workforce, and

wars to bring us out of our recessions and depression. But this is different. Unless we take drastic steps to protect our standard of living, it will be factored into that of the rest of the world. There is a lot of cheap labor out there and now companies are no longer American companies, they won't keep any factories here. I see the middle class being drained dry. Unless someone can explain to me how this trend will turn around, I believe we are looking at a economic system like a third world country.

[On the Road]

56. That Trend Has Been Going on

for awhile. The US is still close to the leading exporter in the world with by far the largest economy.

Right now, the danger is less from the US losing out to other countries than from the entire world falling into a depression. I am much more optimistic of plan to get out of that now that Obama is taking charge.

[rhett o rick]

57. It appears to me that this country is a plutocracy and many of the other countries of the world

are moving in that direction, including China.

[rhett o rick]

28. The "That-makes-too-much-sense police", are going to come and take you away.

Common Sense is not allowed. Where is Thomas Paine when we need him??

[TexasObserver]

15. He should hold it all back until January 21st, and go right to work.

[rhett o rick]

31. Paulson and Bernake aren't that stupid. They have leverage now and want their ransom now.

They won't wait until Jan. 21st when they loose their leverage. They are terrorists and should be treated as such.

[TexasObserver]

39. They should be reminded that Justice will be examining their actions in another 6 weeks.

[rhett o rick]

50. LOL, like they will ever get punished. They are members of the ruling class, nothing will happen to

them. Poor people go to prison, the rich can get away with murder literally.

[bemildred]

17. Money is not real anymore, it's all bullshit.

But I still would not give Paulson the time of day in a clock shop.

[Joe Fields]

18. Paulson can't tell us where the first half of the money went.

And now he wants the second half, but I haven't seen a detailed report on how he wants to spend it.

[Gin]

21. when I first heard about the bailout...I knew he would get it all before Jan.20.

this is the last BIG heist of this mis-administration....his base.. will be rewarded and the treasury will be drained. MISSION ACCOMPLISHED

[SemiCharmedQuark]

25. The article says that Obama only agreed to meet with Paulson, not give him the money

It also said that Obama has his team looking over what has been done with the money that has been given out. I guess at this point, we'll just have to wait and see. I'll be extremely disappointed if Paulson gets one more dime and Obama backs him on it.

[malaise]

26. Please do not do it

I agree 100%

[rhett o rick]

29. Paulson and Bernake are terrorists. They are threatening to let the economy collapse

if we don't pay the ransom. You can't deal with terrorists. This most recent ransom will not solve anything. Why would they stop asking, for more and more. They need to be fired and imprisoned as terrorists under the Patriot Act.

[elkston]

33. Your title is misleading - nothing has been decided yet.

You're going apeshit just because Paulson is ASKING Obama to do it. He's going to be the President, of course people are going to make requests of him.

He's already expressed concern about how the bailout is being handled so I doubt he'd just hand over the rest of the money at this point.

You need to have more faith in our leader.

[WillieW]

38. Ditto - Obama will make the right decision - I trust him

[undeterred]

35. I thought the US was made of money.

Or maybe that's just the impression I've been getting the last 8 years and especially the last 8 weeks. Just print some more.

[99th_Monkey]

41. Is Paulson playing the "MARTIAL LAW!!" card again? Like he did with Congress?

"Hey, Obama .. you'd best play ball with my heist on the US Treasury or we'll see martial law and the end of
democracy in America before you take office (i.e. you WON'T take office on Jan 20)" see NSPD #51

[robinlynne]

43. It kills me when something is so obvious. Fro god's sake, I knew there weren't

any weapons of amss destrcution in Iraq/ This is exactly the same kind of crap. How can anyone NOT know they are stealing money?

[kentuck]

47. Maybe there is still hope?

That they won't agree to it?? The pressure must be immense??
=============================

Obama Preserves Political Capital for Stimulus Plan

By JONATHAN WEISMAN and DEBORAH SOLOMON


WASHINGTON -- Barack Obama's transition team is resisting Bush administration overtures to coordinate more on the financial-sector rescue, convinced that neither the lame-duck President George W. Bush nor the president-elect has the clout to win a smooth congressional release of more bailout funds.

With the first $350 billion of the bailout money nearly allocated, transition aides are pressing Treasury officials to convene a bipartisan meeting on Capitol Hill this week. Obama aides say the Treasury needs to sound out congressional leaders and rank-and-file lawmakers on what information they need to release the second, $350 billion tranche from the government's Troubled Asset Relief Program, or TARP.

Senior transition officials said they would attend the meeting, but they made clear they would neither lead it nor lobby for approval of the funds. Their focus is on passing a separate, half-trillion dollar stimulus program that Mr. Obama said Sunday would be the largest infrastructure program since the Eisenhower administration's construction of the interstate highway system.


more...

http://online.wsj.com/article/SB122866009874385877.html

[agincourt]

52. The whole purpose of the bailout,

was to run up the deficit and enrich smirking rat's cronies. The democrats fell for it unfortunately. The Dow Jones crashed anyway. They never should have been fooled.