Conservative Politics Today

John McCain just gave his morning update on the failed bailout bill. He says he spoke with the President this morning and gave his suggestions as to what he believes should be done immediately while waiting for a new act of Congress.

“I have talked to the President this morning and recommended an increase from $100,000 to $250,000 FDIC insurance on deposits. I also strongly recommended that we use the exchange stability fund that the Treasury has available — $250 billion — to shore up these institutions. Also, the Treasury has at its disposal about $1 trillion that they could begin without Congressional authority buying up some of these terrible mortgages and help stabilize the situation.

If the treasury can spend, without congressional authority, 1 trillion dollars then no new legislation is necessary- except maybe to require congressional authority before the treasury can spend 1 trillion dollars without permission.