Congress Nears Historic Vote on $700 Billion Bailout Plan for Wall Street
The measure, which could pass this week, would redefine the government's role in the economy
Senate Minority Leader Mitch McConnell of Kentucky took the floor Monday, saying that when your house is on fire, you don't want a smoke alarm or a lecture about the hazards of keeping paint in the basement. Instead, you put out the fire. He said inaction could trigger a credit meltdown and massive job losses. "This proposal was designed to control a spreading crisis, and urgent action is needed."
Thomas Mann, an expert on Congress at the Brookings Institution, says the good news is that lawmakers on both ends of Pennsylvania Avenue "understand the seriousness of the situation and have begun to talk frankly and constructively about what to do."
"It's great that they promised to move quickly," Mann says. "The trick is, when Congress acts very quickly, it runs the risk of getting it wrong."
That echoes one fundamental question, one only whispered now on Capitol Hill as the deliberations advance: What if the bailout doesn't work?
Reader Comments
Bail out
I have not heard one person offer up the solution of selling GOVERNMENT BONDS to raise the money. During WWII people bought WAR BONDS to fund the war, and GOVERNMENT BONDS are sold all the time to build highways, schools, etc. Government Bonds would be the guarantee taxpayerd money will be paid back-with interest. The sell of the bonds would also stimulate trading on Wall Street.
Bailout
I hope Barney Frank chokes on his own stupid, oversized, socialist tongue.
Bailout
Obviously regulation is needed to establish the rules of play. To use an example, in the game of football, you are free to chose any play you want...run, pass, punt, kick, etc. on any down with the intent of scoring points or preventing the other team from scoring. The game is not perfect, but if you take away the rules (that is, no offsides, no grabbing face masks, no hitting recievers before they touch the ball, etc.) the game decends into chaos. The deregulation that started with regan and continued right up thru this current President caused the problem we are expierening today. Our Government needs to establish rules and regulations to govern fair play to prevent against future decents into this financial chaos. One Candidate (Obama) suggests this, the other makes his claims on more deregulation (McCain). You can guess who I am voting for...
In regards to the bailout...it stinks. But if we do not allow this to happen, banks will no longer be willing to make loans. Banks will make loans based on the collateral offered to secure the loans. If what seems that almost every other piece of property on the street is foreclosed on because of the crisis, property looses value and banks will have a hard time calculating values to make loans. If there are no loans, the economy crumbles. Ask yourself, what if my employer can no longer access the line of credit they have to finance my payroll? Essentially, I am out of a job. I now cannot pay my mortgage. I loose my house too. The situation worses drastically. People spend less because of the crisis. If companies are not making money, they are not spending money. If companies are not spending, not only do we lose the house markets, we lose the job markets. And yes, this may very well mean you, your family, your friends, and anyone else who has made their lives what they are by working hard.
It is a 700 billion dollar bailout of Wall Street. It Stinks. But if it does not happen, the reality is that Wall Street will not be the only ones hurting. At least the people who caused this crisis already made their millions, so they should be pretty safe either way (sarcasm).
We will have this for a long time. Our children may have it. But is it worth the risk to chance not doing it? You decide. But rest assured, it is not only Wall Street that is going to be really hurting if the results go the way they seem to be going.
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