Washington Post – New Bailout May Top $1.5 Trillion
Writers David Cho and Lori Montgomery outline the hidden costs of the bank bailout strategy that will emerge from the White House today.
Inside Secretary Tim Geithner’s four-part plan are expandable pockets of spending – both public and private – that will continue to drive the cost beyond the $700 billion sought by the Bush administration. And even so, more money may be required after the first trillion-and-a-half is used up.
“Both lenders and borrowers have been frozen by the perception that the government may continue to unveil new and better modification programs…”
Geithner Said to Have Prevailed on the Bailout
With superb sourcing inside the White House, Stephen Labaton and Edmund Andrews explain today’s bank bailout announcement as a big win for the new treasury secretary.
Labaton and Andrews say that while Obama insiders like David Axelrod wanted a package that would allow the president – beset by his nominees’ tax problems and resentment over a porked-up stimulus plan – to adopt a more populist tone and punish banks and bankers.
“But officials said Mr. Geithner worried that the plan would not work — and could become more expensive for taxpayers — if there were too much government involvement in the affairs of the companies.
Mr. Geithner also expressed concern that too many government controls would discourage private investors from participating.”
L.A. Times – “Joe Biden, the punch line?”
The best question at Monday night’s press conference came from FOX News’ Major Garrett about the recent assertion from Vice President Biden that there was only a 70 percent chance that the $827 billion stimulus plan would work. Writer Peter Nicholas capitalizes on Garrett’s question and provides a helpful roundup of all of the embarrassing things that Biden has said since taking office.
“At a time when Obama has made the stimulus his central focus, when he is racing around the country, staging campaign-style events to build support for the plan, Biden referred to it as ‘our so-called stimulus package.’”
Wall St. Journal – “Rendition Case Under Bush Gets Obama Backing”
At a time when Sen. Pat Leahy wants a panel modeled after the post-Apartheid commission in South Africa to investigate the Bush Administration, President Obama continues to find support for at least some of his predecessor’s controversial approach to fighting Islamic terrorism.
Writer Evan Perez explains how the new president still wants the right to ship the bad guys off to secret locations in foreign countries where American due process is not applicable.
“Liberal supporters of Mr. Obama are watching how the administration handles other polarizing issues, including calls for possible criminal prosecutions of Bush officials for tactics that critics say led to torture of terror detainees. Michael Ratner, president of the Center for Constitutional Rights, said the Justice Department’s move suggests that ‘the chances of bringing a criminal case are getting lower and lower.’ Mr. Obama has said he wants to look forward, not backward.”
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N.Y. Times – “Taking on Critics, Obama Puts Aside Talk of Unity”
In an analysis, Peter Baker neatly sums up the new “we won” approach of the Obama White House in dealing with Republican critics of his huge spending plan and anything else.
It’s a more comfortable approach for a president and a team that has been in campaign mode for two full years.
“In case Republicans doubted who was in charge, Mr. Obama wrapped himself in the mantle of his election victory. At Concord High School in Elkhart, he basked in the roar of a crowd that chanted, ‘Obama, Obama.’ To Obama aides nostalgic for the simpler days of the campaign trail, it had a familiar feel, even if the music had changed from Stevie Wonder
to ‘Hail to the Chief.’”
