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    Bailing Out Massachusetts?

    Is the Bush Administration supporting yet another bailout? After seven delays and months of negotiations between Massachusetts and federal officials over the renewal of the state’s Medicaid demonstration waiver which supports its landmark health reform, State House News Service has just reported that a deal has been struck. While the … More

    The Real Fiscal Crisis

    This week, Heritage senior fellow J.D. Foster squares off with American Prospect’s Robert Kuttner over how Congress should address the economy next in The Los Angeles Times. First JD: The Paulson plan was certainly no cure-all; it was intended to keep capital markets functioning so they can resolve their own … More

    Detroit's Other Big Problem

    Last week the House approved a $25 billion loan for Detroit’s Big Three that, if signed into law, would cost taxpayers $7.5 billion. General Motors, Ford and Chrysler claim they need assistance to make the switch from gas-guzzling vehicles to more cars with better fuel-efficiency. We’ve broken down a few … More

    Addressing the Credit Rescue's Constitutional Problems

    Former Attorney General Ed Meese and Heritage ‘s Dr. Stuart Butler make their case for a financial rescue plan: While there are those in Congress who would push the role of government far beyond what is necessary in this crisis, the core technical parts of the negotiated package are acceptable. … More

    Text of the ACORN Related Provision in Bailout Bill

    By popular demand we are posting the text of the provision in the House bailout bill that requires Treasury to divert 20% of all profits away from taxpayers and to left-wing advocacy groups like the Association of Community Organizations for Reform Now (ACORN). SEC. 105. RIGHTS; MANAGEMENT; SALE OF TROUBLED … More

    Latest Bailout Draft Makes Constitutional Questions Worse

    After Secretary Paulson released his first bailout draft, we enumerated some threshold constitutional issues that the proposed legislation failed to pass. The latest House bailout draft not only fails to address these concerns, it actually creates brand new ones. The most glaring problem with the original proposal was the lack … More

    The Auto Bailout: What’s Behind the Wheel?

    As discussed in Senior Research Fellow in Regulatory Policy James L. Gattuso’s recent blog post, the House this week approved a new $25 billion loan program for Detroit automakers, and the Senate is expected to soon follow suit. The loans are to develop alternatives to conventional fossil fuel powered vehicles … More

    The Other Bailout: Is $7 Billion Still Real Money?

    Only in Washington can $7 billion dollars be considered a small amount.   But that seems to be the feeling among many in Congress, which is on the verge of approving a bailout for Detroit automakers.   As approved by the House on Wednesday, the program would provide for $25 billion in … More

    Protecting Taxpayer Profits While Minimizing Government Interference

    It is only fair for taxpayers to expect to benefit if hundreds of billions of dollars of their money is used to purchase poor quality debt from financial services firms. However, taxpayer profit sharing must be carefully structured to avoid endangering the economy’s recovery by discouraging firm’s to participate in … More

    Deal Breakers

    In the previous post we enumerated what any financial clean up legislation must have to earn conservative support. But as important as federal action is, there is a strong possibility that further government intervention will only make the situation worse. To make sure this does not happen, and deal must … More