Reid Says `No One Knows What to Do' to Solve Crisis

Discussion in 'Wall St. News' started by S2007S, Sep 17, 2008.

  1. S2007S

    S2007S

    Of course there is no way to fix this crisis, as I have saying all a long, the only thing that can fix this crisis is TIME, alot of TIME.




    Reid Says `No One Knows What to Do' to Solve Crisis (Update1)

    By James Rowley and Brian Faler

    Sept. 17 (Bloomberg) -- The U.S. Congress is unlikely to pass new legislation to overhaul financial regulations this year because ``no one knows what to do,'' Senate Majority Leader Harry Reid said today.

    ``We are in new territory. This is a different game,'' Reid said at a briefing in Washington. Neither Federal Reserve Chairman Ben Bernanke nor Treasury Secretary Henry Paulson ``know what to do but they are trying to come up with ideas,'' Reid said.

    Bernanke, speaking to lawmakers last night, called for a review of government regulations to address the current financial crisis, according to those who attended the meeting. Bernanke and Paulson met with lawmakers to describe the Fed's plans to take over American International Group Inc.

    White House spokeswoman Dana Perino said today the Bush administration is willing to consider a suggestion in Congress to have the U.S. buy distressed mortgages, akin to the role the Resolution Trust Corp. played in disposing of bad debts of savings and loan associations in the late 1980s and early 1990s.

    Federal Reserve

    The Federal Reserve Board, with the support of the U.S. Treasury, invoked emergency powers last night to lend as much as $85 billion to AIG to save the firm from collapse. At the start of the week, Lehman Brothers Holdings Inc. filed for bankruptcy. That followed the bailout of Bear Stearns Cos. in March, and the takeover of Fannie Mae and Freddie Mac earlier this month.

    Illinois Senator Dick Durbin said in a speech on the Senate floor that President George W. Bush isn't in a position to propose regulatory overhaul legislation because he is close to leaving office ``and the Congress is not in a position to pass it.''

    Congress is planning to adjourn Sept. 26 and other Democratic leaders have said they hope to avoid a session after the Nov. 4 presidential election.

    Reid said that Paulson ``recognizes that nothing is going to be done this year.''

    ``It is a multitrillion dollar issue that's facing America and we can't do it on some timeline that is unrealistic,'' Reid said.

    He said the Congress would remain in a so-called pro forma session leading up to the elections so that the Banking and Financial Services Committees can continue to look into the matter. ``The committees is where the action is anyway,'' Reid said. ``If there is a need for us to come back, we stand ready and willing to do that.''

    He also called for a second economic stimulus package this year, saying if the federal government can put up billions to help companies such as AIG, it can afford to help out struggling Americans.

    Reid said lawmakers have decided to keep a proposed $25 billion loan to the auto industry out of the stimulus package, leaving that instead to a stopgap spending measure needed to fund the federal government while Congress wraps up its annual budget work.
     
  2. That makes it a "Crisis of Incompetence". :cool: