Looks like President-elect Barack Obama is headed for a throw-down with the Democratic-controlled Congress. Obama wants lawmakers to serve up another $350 billion to help stimulate the economy, saying that this is what’s needed to ensure that the average American feels the impact of the recovery plan. Even Republican President Bush asked Congress to honor Obama’s request. But the Republicans in the House and Senate appear to be locking in for battle. “If we all thought that throwing in an extra $350 billion would solve all the problems in the economy, that would be one thing,” said Rep. Jeb Hensarling (R-Texas), a member of the House Financial Services Committee. “But last time I looked, there’s still a lot of questions about whether this plan has been effective.” And both John Boehner (R-Ohio) and Senate Minority Leader Mitch McConnell (R-Ky.) have said it is unlikely that they will support the request, which would make the $350 billion available to the Treasury Department about two weeks after Congress OK’d the deal. But Republicans aren’t the only ones who have expressed doubt about the plan. Obama has been working overtime to convince the American public that he is doing more than throwing good money after bad money.  It would be “irresponsible for me to enter into the administration without any potential ammunition should there be some sort of emergency or weakening of the financial system,” he assured, noting that the shaky economy demands that they act “both quickly and wisely. My commitment is that we are going to fundamentally change some of the practices using this next phase of the program.” Said Sen. Dick Durban (D-Ill.): “We’re not going to presume that we’re in a strong position because we’re not. There are a lot of people who are critical … of the first $350 billion spent by the Bush administration.” Senate Majority Leader Harry Reid (D-Nev.) signaling that he might stand by the incoming administration on the bailout plan, said that “the American people have a right to be wary of this request,” but he is encouraged by Obama’s plans for the money.

Rev. Jackson: Help autoworkers. It’s a good idea to bail out automakers, but any good plan must protect the jobs of autoworkers, says the Rev. Jesse Jackson. “The terms of the loan are unfair to UAW [United Auto Workers], said Jackson of the Bush administration’s $17.4 billion loan to car manufacturers – financed with taxpayers’ dollars. Ultimately, said Jackson, who was in Detroit Sunday, the loan could force members of the union, who already made serious sacrifices on their contracts over the past three years, to be squeezed even more. It’s “unconscionable that they must sacrifice once again,” Jackson said, adding that “automakers, suppliers, dealers, bondholders and unions” must work together to save the industry.

Black lawmakers split on bailout. Black lawmakers found themselves evenly divided over the $700 billion rescue package, which was defeated Monday.  The bill’s failure sent shock waves from Washington to Wall Street.  The stock market dropped an alarming 700 points by its close on Monday. Get more at Pamela on Politics.

$700 Billion BS? If the government is so broke, where is the $700 billion bailout money coming from?

http://blogs.bet.com/news/youthvote/700-billion-dollar-bs/

Is the Bush administration doing the right thing?

How many of the American people understand the word “bailout” or what President Bush is asking Congress to do?  While both parties are concerned with the dire reality of the U.S. economy, the Bush administration is asking lawmakers to move quickly and  approve what is being called the “mother of all bailouts.” Get more at Pamela on Politics.