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McIntyre: Democrats never had votes for bailout

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Rep. Mike McIntyre's wife, Dee, surprised her husband by showing up at a Pender County school Tuesday to see him before he heads back to Washington for more debate on an economic bailout. Monday's surprise came when McIntyre was among 95 Democrats who joined 133 Republicans to vote down the $700 billion plan.

While visiting Cape Fear Elementary in Rocky Point McIntyre said he voted against the bailout because it did not adequately protect taxpayers. He also told NewsChannel 3 Democratic leaders never took a whip count of their members to see if they had enough votes to support the bill. He said any new plan must have support from both parties.

"We saw in the vote that occurred on the House floor that there was not that kind of bi-partisan cooperation that was previously thought," McIntyre said. "And I think... you're gonna have to have a package that people feel like protects the homeowner in a practical way."

McIntyre said it looks like the House will reconvene Thursday to discuss new options. He hopes they will include oversight to make sure investors are accountable to the government and taxpayers, as well as assurances companies bailed out will pay the government back. McIntyre said this time around, House leaders will like take a count of support before any vote.

"There were some assumptions made last time," McIntyre said, "but there were no definite counts made on how many votes were going to be for or against and ended up being a surprise on the floor for both parties."

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For those of you who don't believe we have a problem...

...three examples. GE capital has just suspended credit to a Midwestern regional chain. That effectively stops growth and new hiring for that chain until credit eases up. The largest Chevrolet distributor in the country, owner of thirteen Chevrolet dealerships, is going out of business. GMAC cannot provide adequate financing for them to continue operations. (Also stuck witha huge inventory of unsellable SUVs and pickups.) Caterpillar, one of the strongest companies in the world, with worldwide sales in the billions, just issued new bonds. It wasn't that long ago that their bonds were set at 5%. The underwriters of the new bond issue forced Caterpillar to offer the new bonds at 6%. Now, you know what 1% difference in your mortgage can make over thirty years. Figure out how much 1% over thirty years is on a $500 million bond offerring. Then think of what that additional cost WON'T provide for Caterpillar. Employees will see fewer and smaller pay raises. Those additional men they desperately need in assembly won't be getting hired. Stockholders will see slower growth in both value and dividends. That likely means YOUR retirement savings are affected - on Monday, when the House voted down the $700 billion relief package, the collective values of all the 401k's in America lost $850 billion. Credit is evaporating or costing much more than it did last year, last month, and last week. If you think that Congress can sit back and do nothing you're sticking your head in the sand and denying reality. The relief package in its current form still stinks, but there MUST be a relief package.

It's past the time we operate within our means...

GE credit probably has many other issues with the chain as to why they will not issue credit. The large Chevy Distributor you mentioned had numerous law suits against them and major customer service complaints. They were in trouble long before now and probably need to go. It's time for our large corporations to be more accountable and to be less reliant on credit. And better yet, watch their executives.

and

your solutions are?

We're not talking about your credit card

Just for a moment, step outside your world of "Gee, I charged too much on my Visa card last month." Now I want you to place yourself in the CEO's office at John Deere. You're meeting with your VPs of Finance, R&D, and Production. The new series of tractors is ready to go into production. Initial market analysis indicates they will sell like hotcakes. However, to re-tool the assembly line in Moline and frontload the parts required for assembly, it's going to require $176 million. Now, do you think John Deere has $176 million just sitting around in a desk somewhere? Do you think they have that sitting in the bank? No. So they issue bonds. They go to the major commercial banks and say, "We need $176 million dollars, and we want you to underwrite a bond issue." The banks decide how much they need to make and what interest rate the bonds should pay, and they work up the entire deal. John Deere gets their money, the banks sell the bonds, millions of Americans buy a "piece of the action" and in the end, millions of people have an IOU from John Deere. Every six months they receive an interest payment and at the end of thirty years (or the term of the bond) each bonds pays out face value, $1000. Or, they may choose to sell them on the secondary market if the bond rises and commands a substantial premium. Without corporate bonds, the economy grinds to a screeching halt, because the ONLY industry that routinely sits on huge piles of cash is the banking industry.....and golly gee whiz, guess who is running out of the huge piles of cash? The American Governmnet helped create this mess and they d**n sure have an obligation to get us out of it.

Who said anything about credit cards????????/

Save your lesson on economics I am a small business owner and I, (maybe one of the few) operate within my means. I put money aside during the good times to weather the bad. You would think that traditional succesful companies such as the ones you have mentioned could have operated more efficiently and provided for new product developement thru profits. But you make my point. Companies and lot of the public have become to complacent on easy credit, after all, we didn't get into this mess by being prudent.........

What part of this confuses you?

As a small business owner, do you ever have to shell out $150 million dollars to build a new facility and production line? Has it occurred to you that there is a difference between how you operate a small business and a multi-billion dollar industrial giant? Do you truly believe that John Deere can operate like you do? You may need a larger compressor. So you save your money until you can afford that compressor. Bully for you. Meanwhile, Boeing needs to retool to switch an immense production from 757 production to 777 production. Do you think they should save up until they can pay cash for the new facility? The first 777 will roll off the line in 2038! I'll gladly save the economics lesson. You have already made your mind up and don't want to be confused by the facts. The entire system of global finance that has existed for well over a century is obviously wrong, in your mind.

No it's not wrong, just broke

You make a lot of excuses for slack and waste-ful business practicing........

Slack and wasteful???

Caterpillar is slack and wasteful? Boeing is slack and wasteful? In your mind, selling corporate bonds is "slack and wasteful?" Not to worry, Einstein. I'm sure you know far more about pumping out a septic tank or selling shrimp from the back of your pickup truck than either of them...

Good Points

I mentioned many of the same in general terms; you made specifics. without credit, virtually every retail enterprise will cease to operate at some point when they do not have the credit to replenish inventories. If a 13 location Ceverolet distributor has to shut its doors due to credit for the buyers, think how a multi-hundred location like Hendrick will be affected. And when the layoffs begin, watch foreclosures commence anew. The plan may not have been perfect; it likely would have been modified by the Senate before voting approval. The time for action is now. John McCain is on the front line in this fight. Senator Obama seems to be MIA or call me when the decisions are made so I can criticize them. Is that what we need for the next 4 years?

Good Job Mr McIntyre

Please continue to vote no on the bail out....

Wer'e being subjected to the CON Job of the Century

First; great job by Mr. McIntyre for voting "NO" on this "Bail out" Plan.. As He goes back too DC, I hope He has read the "entire" Bill, Especially Section 112, which reads. SEC. 112. COORDINATION WITH FOREIGN AUTHORITIES AND CENTRAL BANKS. The Secretary shall coordinate, as appropriate, with foreign financial authorities and central banks to work toward the establishment of similar programs by such authorities and central banks. To the extent that such foreign financial authorities or banks hold troubled assets as a result of extending financing to financial institutions that have failed or defaulted on such financing, such troubled assets qualify for purchase under section 101. Note that, Rep. Robin Hayes, (R-NC), took issue with the provision that would allow foreign banks and investment firms to qualify for assistance from U.S. tax dollars. "The initial draft of the proposal that came from the Treasury was fundamentally limited to U.S. financial institutions," Hayes said. "During the course of negotiations, this changed, and now foreign banks and financial companies are just as eligible to receive U.S. taxpayer dollars as an American company." "Paulson and Bush threatened to veto the legislation if there was an explicit prohibition of transfers from foreign banks to an American subsidiary." THE ASSETS DO NOT EVEN HAVE TO BE AMERICAN MORTGAGE ASSETS - THEY CAN BE AN OFFICE TOWER IN SHANGHAI, CHINA! YOU ARE GOING TO GET FLEECED FOR HUNDREDS OF BILLIONS OF DOLLARS IF THIS BILL PASSES - THAT MONEY IS GOING TO GO IMMEDIATELY OUT OF THE COUNTRY! Folks; what this means is, King Henry Paulson, is in effect, giving away 700+ billion dollars to banks and FOREIGEN Investors! With OUR Tax Payer Dollars! Are you MAD YET???!!! The thought of the United States Bank of America buying assets--like dead-beat houses in Detroit, Michigan, or California--makes me sic- but I can deal with that, for maybe a few people that are local in that economy will secure some work in re-building the Nation. And I would look forward to getting behind that and actually swinging a hammer. I can accept that as the consequences of all this waste and want. But, to actually see our Government support the continued ponzi scheme of buying MBS, and CDO's, and god-knows what else from the "Bank of Shanghai" as Congressman Sherman (D-CA),AND Rep. Robin Hayes, (R-NC), spoke of, and place that debt on our backs--with no real tangible assets to procure, I say : [B]GIVE ME LIBERTY OR GIVE ME DEATH.[/B] That is DEBT SLAVERY TO THE GLOBAL FINANCIERS. I will not stand for it. [B] WILL YOU? [/B]

Please educate yourself

Do you have any idea the scope of operations that HSBC, Royal Bank of Scotland, UBS, Barclay's, and other have in this country? Deny them the same package you offer the American banks and you will be sending the same message that Russia gave the world during the Yeltsin default: "This country is no safe place to invest your money." Turn the world off to American investments and see where our economy heads. As far as giving our money to foreign investors, I'd suggest you also take the time to see just WHO invests in these banks; it's not only foreigners. All four that I mentioned are listed on the NYSE under the symbols HBC, RBS, UBS, and BCS. Millions of Americans own stock in those companies. The relief package is still far from perfect and needs a lot more work. But perhaps instead of mindless bluster and rhetoric, you and Congressman Hayes should both break out a modern Economics textbook and try to gauge the scope of the global economy.

McIntyre: Dems Never Had the Votes

I hadn't realized one of the most important pieces of legislation was political. If the Dems had the votes he would have voted for it? Mr. McIntyre voted against it to protect the voters because it didn't provide adequate protection. What about the sense of urgency. The bill can be tweaked later with some refinements and most likely it will. The more important aspect is to show the American people and the international economic communities that the USA will take decisive action to bolster and support our basic economic system. This was a main street issue as much as a wall street issue. If Mr. McIntyre is uncertain have someone show him his 401K statement and explain it to him. Obviously he doesn't know economics. The frustration builds when I hear the Dems blame the Republicans and vice versa. There is enough blame and shame to go around for both parties. Throw the rascals out! Whoever said that was right on target. Lets cut the staffs of our Congressmen and Senators so they stop relying on polls and sit down and do the work they were elected to do. Yesterday was a pitiful disgrace for Congress.

Never Had the Votes

Of course the Dems never had the votes. "Pit Bull" Pelosi, the Speaker of the House never did her job. She must have been revisiting her long lost youth when her Dad was Mayor of Baltimore and all he had to do was call a few of the City Ward bosses to get the vote out. The Majority and Minority Whips never did their jobs. Leaders like Lyndon Johnson, Sam Rayburn would have known before the vote was taken whether it would pass or not. They would have met with or called every menber of the House or Senate to ensure they knew the vote's outcome. They would have persuaded and explained the necessity for the vote. They would not have stood in front of the cameras and laid the entire blame at President Eisenhower's feet for failure to pass before the vote was even concluded. Study history; it repeats itself. Anyone who tries to lay the blame at the Republican side of the House should really go back and review the past 5 or 6 years worth of history. Among others, Senator McCain forewarned this would occur. He fought in the Senate to make changes to prevent this. Meanwhile his oponent, Senator Obama, has been more of an MIA when tough Senate votes have been required. One showed, and continues to show "Leadership". Senator Obama shows a lack of Leadership when it comes to taking strong positions to correct the problems our Country faces. .

His talk today on Unemployment

In his talk on helping employment in the Wilmington Area he MIGHT have mentioned that his vote AGAINST the bailout MIGHT possibly add to unemployment in Wilmington and nationwide

McIntyre: Democrats never had votes for bailout

Thanks to Mike McIntyre for being such a fine House Representative.