Chris Dodd, Chairman of the Senate Finance Committee is going to save the Republic. He is not going to be rushed into passing some bill written by Paulson on the back of a napkin in four days.
“I suggested strongly to him (Paulson) that he leave this door open, or he is going to find himself facing some significant problems,” Mr. Dodd said at a briefing with reporters on Sunday at the Capitol. Mr. Dodd, who met with several of his Democratic colleagues, said that reaching a deal could keep Congress in session past this week, when leaders had hoped to adjourn for the fall elections. “This is of such import that if it takes a little longer to get it right, so be it,” he said.
Dodd is not running for re-election and so he can continue to hold hearings right through October. The market players will try and spook him with 300 point down days, but as long as the hope of a bailout is out there, credit will not collapse. He should call the smartest minds in our country into an open hearing and come up with some regulations with teeth and some downside protection for the American Taxpayers. His colleague Jack Reed has already adopted our call for Warrants.
Senator Jack Reed, Democrat of Rhode Island, has proposed a provision that would grant the government warrants to purchase stock in companies that participate in the bailout plan, so that taxpayers might be able to profit should the firms flourish after selling their bad debts to the government.
Dodd and Reed cannot be bullied. I’m feeling better already.