Fast Talk in Washington: Fact Checking the Bailout Hysteria
Just what would have happened without the bailout?
I live in Congresswoman Carolyn Maloney’s district (D NY 14). She voted for the bailout on Monday and she voted for it today. I can’t prove it, but I have it on reasonably good authority that her constituents opposed it. So why did she vote in such a hurry (assuming my information is correct) against her constituents instructions?
Here is what she said on her website :
It is unfortunate that the debate about this rescue package has been solely characterized as a bailout for Wall Street without a full discussion of what this means for Main Street. Without passage of this legislation, there are legitimate concerns that we will see a constriction of credit that will make it difficult to refinance or purchase a home, obtain a car or student loan. Small businesses will struggle to make payroll and purchase inventory. With 65 million Americans with a 401K, we will see a reduction in retirement savings. On Monday alone, we saw the largest point drop in the history of the Dow, erasing more than $1 trillion in market value. We have also seen significant stresses on our financial institutions with the largest bank failure in our country’s history with Washington Mutual.
Legitimate concerns? What about legitimate concerns about the taxpayer who is being hustled into paying off debts for guys who are way richer than he or she is?
Significant stresses? Isn’t that what happens to my paycheck every payday?
Stock market drop? The stock market has never been prone to over-reaction has it?
Does anybody really know what would happen if we thought this thing through before we acted? Do we have any reason to think Congress has any idea what they are doing? Is it possible they are just covering their exposed behinds a few weeks before an election?
Sock market drop – 1987 was worse and 1987 actually closed up for the full year.
Credit crunch – I just got off the phone with a lending officer I know at my company’s bank. They are still willing to lend up to $250,000 with NO FINANCIALS with proof the lender has been in business for at least two years and a good credit report. He commented that they are just paying more attention to whether the buyer will actually be able to pay them back?
Getting paid back? Does that sound like such a bad idea? Too bad Government Sponsored Enterprises like Fannie Mae and Freddie Mac didn’t think of that. Oh right – they don’t have to worry about that sort of thing – that’s what taxpayers are for.
Oh – you say taxpayers won’t foot the bill? Does anybody really know?
So just why did Congresswoman Maloney vote for the bill twice in such a big hurry? Let’s try to get to the bottom of it. Just what are the facts? Congresswoman Maloney suggested we should have “a full discussion of what it means to Main Street”. For once I agree with the Congresswoman. Let’s do that. We know we are in for some economic difficulty – but why is it that this time we have to rush through $700 billion of taxpayer money. Just what is the evidence that persuaded her that Main Street is in jeopardy and that the bailout is going to fix it?
I suggest we call her office – here is her number in Astoria 718-932-1804 – and fax her – here is her fax number in Astoria 718-932-1805 and ask her for the missing “full discussion of what it means for main street” that she lamented. I think we should do it today because she will have 32 days to make her case before we have to decide whether to renew her contract.