Steve Forbes on Bailout Bill Failure

" So we have more days like today does that actually speed up the possibility of a deal another would scare folks in the thinking -- something -- there's an -- Who better dressed -- Steve Schwartz of course the billionaire publishing magnate. Steve would get more days like today in a moment. I hope so because I do believe two weeks ago this financial system almost had cardiac progress until the Treasury Department announced it was going to do something extraordinary says -- they've been engaged -- for months but it's expensive -- an enormous -- and I doubt -- but look at -- today the market lost -- trillion dollars more than the 700 -- so -- bailout bill this is not about Wall -- this is about saving America's financial system it is -- up the bank -- she talked about earlier. Those are companies taking down their credit lines they're probably not going to get the cash. Credit lines are being cut for individuals businesses are finding it hard to borrow and just and this government throwing seven out of date of assignments opposite. It what it does this start to take this toxic assets all of the books which has been artificially. Mark to market we've talked about that. Which is preventing banks from making loans they should it's starting that healing process had a nice time to do that you know what I know is -- we don't do anything we're going off a cliff I've been around along time I've never seen the financial system as precarious as it is today but this is and I don't -- not to -- more off the -- to ignore one day -- human you know markets opened on the daily swings in the Soviet. Are you telling me that even a -- you have problems of this. Is okay as long as get something -- it shows the world yet we got a crappy deal but it's something hey what the Republican house Republican to achieve this weekend getting some of this lot of them jumped out of the bill like -- stuff you need packing boards and things like that. Was a huge step forward. This isn't perfect but we don't have a lot of time you saw what happened in Europe. You've seen it start to happen Asia but what happened in Europe Steve happen regardless of -- optimism that this thing would pass today. He's still at fort banks folder gives -- hope that the financial system is starting to -- there's not enough but that was built on optimism the -- was going to go through Leo this is already been in motion -- credit crisis is now there's a month an old Steelers that back -- on this thing. If that happened on expectations this thing would go through. What the -- would have happened had it. Not god knows we had the four deals you're saying. That these -- we would have at 812 deals twelve bank is you know -- when the patient's seizes up we just look at the stock market trillion dollars lost today. Look at what's happened to the credit markets look at the spread between treasuries they're just rhetoric and and bank one think we haven't seen that in decades. The system is seizing up the question is how do you stop this thing from spiraling out of control right now to get to borrow money to borrow car. And many dealers now 720 rating that would cut car sales in this country in the normal -- what you're assuming that today it's meant you know even years of and it banks and financial institutions and needs to attack in advance that putting in a pot. And now they have only good stuff is going to spurred them to lend more. And that's what the other thing makes it possible to land yet but it doesn't -- you're gonna happen I don't know what's I think what people doing it wondered likes people for -- thinking this is it is going to do it. Just like they said -- 86 they announce -- he was going to do it to division for Freddie Fanny was going to do it. The rest -- this time and each time it's temporary -- Steve yet but this is the first time they try to systemic approach instead of an ad hoc approach. And you know we've talked about this but also got to make clear that in the shore up the dollar set of treating it like that's not part of the steel -- to a couple of dollars in -- part of this deal yet but this deal without the steel you know can have the opportunity to shore up the dollar now -- of the opportunity to make the mark to market changes they should make the SEC changing the crazy rules they have on short selling. That we got a first stop the street from you when mr. capitalist your magazine is all about apple wants it market cap and now when things hit the fan. When I finally it is every market cast -- comes back -- government we need to deal. The government helped create the problem they created Fannie and Freddie in congress resisted and you're fighting the institutions that created title has to have having started to kill the patient. It -- well get in to save the patient because of it takes a hands off attitude now. We're back in 1933. Just read history what happened there bottles of Reading history of what happens with the government involves itself in the areas it is shaky past. Well the government created the problem and it that we don't get the banking system working again. With the fear toxic assets on the books denying credit the credit worthy borrowers companies grabbing any dollar they can clutching it for dear life. That's a severe recession we can avoid that you've been and I -- to close. I think eventually Pelosi today -- she did she -- about what time but I got a justice if we go that route that you're saying we go then. We -- not what we say we we've we've just you know of the new deal as you know Steve stayed that. Eighty years later it's still the deal. So so what we really -- trust corporation created in the early ninety's ceased to exist in 1995. So actually I cut classes aren't like that enough the new deal have you seen what they're kicking around -- congress. I thought they had this bill -- originally what the house Republicans cut out this weekend and in this crisis continues they're gonna -- put that jump back in. The 1930s happened because of mistakes Hoover made. So ended up Franklin Roosevelt and violent behavior that you soldier capital of Seoul where Steve I'm trying to save it capitalists all from the idiots in Washington. Including some members of congress. Steve Forbes who is this particular."