By an overwhelming majority, the U.S. Senate passed the Wall Street bailout bill by a vote of 74-25.
Among those voting against the bailout measure were 2 of the Carolinas' most popular Senators--Jim DeMint, R-SC, and Elizabeth Dole, R-NC.
DeMint has insisted from day one that it is Constitutionally wrong for the government to be giving money to bad businesses and that it is even worse for the government to be in the mortgage business, such as with FannieMae and FreddieMac.
Both Dole and DeMint have heard an overwhelming outcry of protest from voters in the Carolinas who are against the bailout.
The bill, which was originally 3 pages in length, has now grown to over four hundred pages with sweeteners added to it so that both sides of the aisle can feel placated.
But the really bad news is that the Senate retained the original request of 700 billion dollars of taxpayers' money that will be funneled into Wall Street.
The question is, what will the House do with it when it returns from recess tomorrow? House Republicans are dead-set against the Senate version.
But President Bush has said he will oppose the House Republican alternative bill, and Nancy Pelosi has already referred to House Republicans as 'unpatriotic' for refusing to support the massive bailout.
Thus, the pressure will be on.
Thursday, October 02, 2008
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2 comments:
You know, we need to turn the power off to Washington DC and send these people home — from the President on down. Then we need to start over.
I wrote my Arkansas Senators and Representative, and I called their bluff. I really would rather have a severe depression that have the government engage in a further socialist behavior. Needless to say, the Senators didn't listen. Perhaps the Representative will. After all, it was Washington's meddling that got us into this mess in the first place. The following is what I sent them:
Rep. John Boozman
Sen. Mark Pryor
Sen. Blanche Lincoln
Dear Gentlemen and Lady,
Let me be clear about the events in the financial system and your response to it. I have noted that the Federal Reserve and the Treasury have already bailed out several institutions of late, effectively nationalizing them. I also have noted that the Legislative Branch has passed legislation that bailed out U.S. automakers, effectively making them wards of the Federal Government. I am also well aware of Rep. Boozman’s vote in favor of the massive bailout package on Monday, Sept. 29th.
Let me be clear also as to my knowledge of how we arrived at this situation.
You cannot make loans to individuals who have a demonstrated inability to repay them, and not expect to lose every dime lent. To think that, that money is not “thrown down a rathole” verges on insanity. Moreover, it cannot be done on the grand scale that we have seen over the last several years, and not have it come home to roost with a vengeance.
I am well aware these inadvisable lending practices were a direct result of unwarranted government intervention in, and encouragement of the financial institutions that engaged in such practices. As usual, such intervention was short-sighted and politically motivated without regard to future repercussions. As anyone can now observe, the repercussions are unfolding on a daily basis.
Now, it is true that any number of things could be done by the Federal Government to attempt to rectify the situation. However, reason dictates that since it was Federal Government meddling in the financial sector that got us into this situation, it certainly cannot be rectified by further Federal Government meddling. Reason also dictates that the individuals most directly affected by this are the ones who ought to determine how to resolve it without the assistance of the Federal Government.
I do not state this lightly, and I am well aware of how devastating a depression will be. However, this country, and specifically the Federal Reserve, the Federal Government and the financial sector have built the proverbial house of cards on nothing more than empty promises. We need, and by that I mean it is utterly necessary, to return to a far more sane monetary policy. Our monetary policy must be built on hard assets, which it is not at the moment, and has not been for quite some time. The road to returning to a sound fiscal and monetary policy does not, I repeat, does not begin with any sort of bailout or other “rescue” package. To engage in such an activity is to throw even more money down a rathole, and does not start this economy and nation on the road to recovery.
Additionally, since it is my money, and the money of future generations you are going to use for any supposed bailout, I have to ask: By what right are you allowed to sell all of us into financial ruin and endless debt? Sooner, rather than later, the rest of the world is going to refuse to fund the insanity you folks call a fiscal policy. Sooner, rather than later, the vast majority people in this country are going to realize the foolishness with which you all have acted, and the results will not be pretty.
Do not compound the egregious errors that have been committed already, by bailing out those who are irresponsible. At this point a painful depression would be, and is, far more preferable to the alternative. The alternative is to end up as a socialist nation like most of the nations of Europe. This is entirely unacceptable to me, and I am certain it is unacceptable to the vast majority of Americans.
Let me repeat: Any bailout or any other “rescue” package of any sort is ENTIRELY UNACCEPTABLE.
Let me also repeat: I WOULD RATHER GO THROUGH A DIFFICULT, PAINFUL DEPRESSION THAN ENGAGE IN THE ALTERNATIVE.
Sincerely,
Paul W. Davis
Fayetteville, AR 72701
I would hope they would get the message — but I doubt it.
Mr. Davis,
You comments on monetary policy are well-founded in solid principle. The 'house of cards' scenario is exactly what led to the first depression in the 1930s.
Sound monetary policy is needed which has the foundation of solid assets and not paper.
Good post!
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