Inaction by Congress Puts the U.S. in Grave Economic Peril

  Only two members of the Georgia members of Congress voted for the bailout for investment banks. They were Rep. Sanford Bishop of Albany and Representative Jim Marshall of Macon, both moderate Democrats.

  Both of Georgia‘s Republican senators, Johnny Isakson and Saxby Chambliss, were not happy about the vote.

  According to Atlanta Business Chronicle, Chambliss said, “The House vote today puts everything in a state of uncertainty and complicates the issue of whether or not the Senate will vote on a financial rescue plan,”

  And Isakson said, “Our country is struggling. Doing nothing is unacceptable. I hope cooler heads will come to the table so we can move forward with a proposal that is in the best interests of the American people.”

  Though it is a hard pill to swallow, using $700 billion tax dollars to buy bad mortgages to bail out Wall Street investment banks, not to do something will be disastrous. Hardly anyone is using the word “crash” because it brings back the specter of the 1929 crash, but when the market plunges more than 700 points, the largest drop in history, the term does come to mind.

  Congress is to reconvene Thursday. Let’s hope the plan presented then will have enough protection in it for the American taxpayer, including homeowners with mortgages that it can get enough support to pass.  To let election year political considerations take priority over saving this country from financial disaster is about as low as a member of Congress can get.

 

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2 Responses to “Inaction by Congress Puts the U.S. in Grave Economic Peril”

  1. Joann Locascio Says:

    Hi Dick,

    I think the republicans whining that It’s Pelosi’s fault the bill did not pass is pathetic at best. I thought I was for a bill last week ( know, classic flip-flopping) but as the weekend went on and I watched this all unfold on TV while I was at work, making money so I could pay taxes to bail out Wall Street, I became angrier and angrier. I actually felt as if Bush and Paulson et al were holding a gun to our heads. I have been talking to my 94 year old father in law who has a sharp mind. He lives with us and every day we talk about the depression and what it was like in the old days. He watches the market and news every day and we have some great discussions about the issues. As a veteran of two wars who lived through the depression, he can’t believe what is happening. I think the Democrats have a chance to lead here and not pander to the bill as it was written.
    The Democrats with their narrow majority should make this bill a vehicle for the kind of New Deal-style investments and regulations that are necessary to start rebuilding this country so I don’t have to fear for my children and grandchildren’s future. There should be more protections for Main Street, not Wall Street.
    No golden parachutes for CEO’s no matter what their contracts say. They should lose everything they have, just like the people who made the bad debts and lost their homes.

  2. Redoubt Says:

    If I may…

    “Hardly anyone is using the word “crash” because it brings back the specter of the 1929 crash, but when the market plunges more than 700 points, the largest drop in history, the term does come to mind.”

    The numbers are a bit deceiving because while a 777 point is indeed the biggest POINT drop in history, it is far from the largest percentage of total market volume drop. In truth, the crash of 1929 was far larger in scale to the actual size of the market at the time, than yesterday’s fall. In other words, 10 cents off of 1 dollar is ten percent, but even 70 cents off of 100 dollars is but seven tenths of one percent.

    Another noteworthy item would be that the markets have rebounded somewhat today… closing up almost 500 points (CBS News), even without $700 billion US taxpayer dollars.

    The outcome is going to be tough either way but, we only have ourselves to blame if we bankrupt the nation trying to save those institutions that, basically, created the mess to begin with.

    Personally, I’d rather see the money go to the consumer and those in peril of losing their homes, than to hand it over to those who held out the rotten carrot.

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