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Facing mutiny Obama threatens veto
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AP Photo/Charles Dharapa
Not even president yet, Obama delivered his first veto threat to fellow Democrats unwilling to allow Obama to spend the remaining $350 billion of the big financial bailout Congress passed last October.
Watch the following video report from CNN's Candy Crowley:
Obama is looking to spend $1.2 trillion on the Obama economic bailout:
The $350 billion comes on top of Obama's demand for an economic stimulus package that has grown to about $850 billion. A vote on the stimulus could come by mid-February. Altogether, Congress could give the new president a whopping $1.2 trillion to spend before he's had a chance to change a single White House drape.
Under safeguards adopted by Congress when it passed the bailout bill in October, the House and Senate can reject a request to spend the second $350 billion in the fund.
The Senate plans to vote today, on a resolution to block the release of the remaining $350 billion. If a majority votes no, Obama gets to spend the money. If a majority votes yes, the House will vote on the resolutopn next week. If House also votes to not release the money, Obama will have to veto the resolution to spend the money. According to the Associated Press, Obama says he would do that:
Obama has warned that he is prepared to do that, but it would be a remarkably awkward first act for a Democratic president to rebuff a Democratically controlled Congress.
Congress should block any more spending of the blank check they voted to bailout the financial. If the Obama administration comes up with a plan that convinces folks it will actually resolve the housing related credit crunch then President Obama can ask Congress to approve the necessary funds after Congress reviews the plan. No more pig-in-a-poke blank checks.
