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Ellen Belcher is the Dayton Daily News opinion pages editor. She writes about state government, education, the environment, higher education and all things Dayton.
Martin Gottlieb is an editorial writer and columnist for the Dayton Daily News opinion pages. He focuses on the political process itself and does such national issues as war, the economy, taxes and Social Security, as well as a hodge-podge of local and state issues.Home > Blogs > A Matter of Opinion > Archives > 2008 > September > 25 > Entry
Rush on Bailout Doesn’t Foster Trust
At the writing, the news has just come across the wires that the leading Democrats and Republicans in Washington think they have agreement on the broad outlines of a bailout package for the nation’s financial system.
On the one hand, it’s good to see some cooperation. Rep. Barney Frank, the brilliant and unapologetically liberal chairman of the House committee on financial institutions, deserves some credit for getting Democrats on board for a proposal that looks a lot like a great big favor to Wall Street. But the Republicans have compromised, allowing, for example, for some sort of limit on payments to the CEOs who head up the failing institutions.
In testimony before the Frank committee on Wednesday, the two authors of the $700 billion plan for the government to buy debt it can later sell, Treasury Secretary Henry Paulson and Federal Reserve Board Chairman Ben Bernanke escaped largely unscathed. Economists and others have written made arguments against the bailout, but the members of Congress couldn’t muster any, at least any that were very compelling. Every time a committee member pointed to the problems that result from bailing out businesses that have made bad business decisions, the two men said, essentially, “Compared to what?” Their point was that the alternative now is letting the system collapse, which would hurt millions of regular people.
Still, compelling answers to the cases made against this particular approach in oped pieces and elsewhere are hard to come by. So is a really convincing argument that it all has to be done this week. The politicians’ top goals seem to be to make sure they can’t be blamed for any collapse and to get out of town and back to the campaign trail.
Permalink | Comments (10) | Post your comment | Categories: National politics
Comments
By joy schwab
September 25, 2008 2:47 PM | Link to this
This rush to stick the taxpayers with a $700 billion debt to bail out greedy companies who were allowed to do whatever they wanted because Republicans didn’t want to regulate business is too familiar. Five years ago we were told if we didn’t act immediately to invade Iraq the result would be a mushroom cloud from WMDS. There was no time to let sanctions work or even find out if the WMDS actually existed (which they didn’t). We were also told the war would be over in a matter of months and would be paid for by grateful Iraqis with their oil revenues. So far more than $557 billion has been spent in Iraq with more than 4,000 American troop casualties because Congress was afraid to stand up to Bush. Now Bush says if his Wall Street buddies aren’t immediately bailed out, the country will plunge into economic chaos. Is he telling the truth now? Perhaps Congress should think it through more clearly this time before plunging us even deeper into a debt that our grandchildren will be paying off because Bush just continues to borrows the money from China and other countries while wrecking our economy and our credibility.By bill
September 25, 2008 3:20 PM | Link to this
I agree that this was awful ‘soon’ for an agreeement to be reached when at this time yesterday an agreement was so far away that the President ‘had’ to plea to the American public. But what is in it directly for me? the person who is finding ways to pay my mortgage. Why not ‘forgive’ my mortgage payment for the next 6-12 months so I can bail myself out of debt. Ive done it right and get nothing, financial companies did it all wrong and they get saved.By Raoul
September 25, 2008 3:26 PM | Link to this
Martin, can you add a little clarity to your description of Barney Frank as being “brilliant”? In my view,it is not possible to be both “brilliant” and “unapologetically liberal” at the same time. In fact, there is no evidence of brilliance anywhere in Washington, ever since Newt Gingrich left. I tried to get you to look into this Fannie/Freddie scandal years ago, when you, Paul Krugman, and every other liberal Op-Ed writer was dragging Enron through the mud. To make the point that this crisis goes well beyond Enron is to state the obvious. I guess you don’t see it that way because, well, you are a Democrat, and no amount of government greed, largesse, and waste ever can stack up to the greed of the free market. I think you might have to re-consider that view now. I only wish the brilliant Barney Frank had been a little bit more brilliant so he could have seen this coming when I (being decidedly un-brilliant) did years ago. This problem was first and foremost the fault of stupid first time home buyers that did not understand what they were getting into. Unfortunately, they were taught more about their ‘victimization’ than they were about how to balance a checkbook and do a family budget. I keep hoping for a political leader to emerge that puts the issue sqarely on the backs of those who deserve it the most; over-spending under- achievers who do not understand ‘caveat emptor’, and greedy politicians who gorge themselves on the largesse of a benevolent, productive society of tax-payers that can, and do, manage to pay their bills no matter how much of their taxes goes to the undeserving.By Jeri
September 25, 2008 3:47 PM | Link to this
The American people do not need to be handing more money to the companies that caused all this to begin with. Those mortgage companies and banks that cry because they have had to foreclose are the same ones who charge us outrageous fees and interest rates for the credit cards. They are not hurting. If you want to stop the mortgage meltdown the government needs to put an end to the mafia style lending these companies are using when they call you and offer you credit. Put a limit on the interest and fees they can charge so people do not get caught up in the web of credit that brings them to their knees. We do not want to owe the company store anymore. I am for abolishing credit cards forever.By mwm
September 25, 2008 4:30 PM | Link to this
The republicans have failed the united states. They have used lies, deceptions and propaganda for almost eight years. They used lies in order to start the war in Iraq. They are joined at the hips to the oil, energy, insurance, pharmaceutical and other industries. The republicans attempted to privatize social security, they attempted to have the FDA disuade citizens from purchasing medications from Canada, which were cheaper, they failed the people of New Orleans during Katrina, they failed our military, they protected their own by covering up the criminal activity within the Bush administration. We americans have been screwed. And now, we are going to have to bail out their inept and criminal behavior. Take notice, Boehner. Take notice, Voinovich, Take notice Turner…. You all are PUBLIC SERVANTS. That means you work for the people of Ohio. WE DO NOT WORK FOR YOU!!! The three of you should be fired.By investoutsideus
September 25, 2008 5:47 PM | Link to this
invest in companies outside the us. too much corruption inside the us, bad leadership of the country and of the financial institutions, oh yeah and take all your money to a credit unionBy Raoul
September 25, 2008 8:35 PM | Link to this
MWM, you have swallowed every drop of kool-aid passed out by the Democrat mainstream media. Your blogs are nothing more than a re-reading of the boring, hallucinegenic, propaganda spewed out by the New York Times, DDN, Vanity Fair, et al. Barney Frank, the Brilliant, is one of the guiltiest in this whole mess. It was he that championed the notion that banks should grant loans to people who could not afford them during the Clinton administration. Your blog does not even speak about the current crisis, it reads like another rant against Republicans for all your perceived grievances for everything under the sun. Make a point and provide some facts to support your views. Follow the money trail regarding the Freddie/Fannie debacle and then get back to us on how the Republicans are to blame. Either that or save your comments for another topic more fitting of your partisanship.By navy vet
September 25, 2008 8:57 PM | Link to this
Bill your right. We have to clean up a party, we wasn’t invited to. Im glad i don’t have kid’s. Their screwed.By edgar
September 26, 2008 1:30 AM | Link to this
Frank is not brilliant.Both sides need to compromise for the good of the country. McCain has shown real leadership.Obama says call me if there is a agreement,Iam busy studying for the debate.By Leslie
September 26, 2008 9:36 AM | Link to this
investoutsideus. Yeah that’s a real good idea. There is no corruption in any country except the US., NOT!!! This problem is the fault of democrats and republicans together. Both parties sold us out. The democrats feel everybody should own a home whether they can afford it or not. They feel the American dream means everybody gets a home you don’t necessarily have to work and earn that home, and even if you are an illegal alien the dems want you to have a home. The dems pushed for it and the repubs let them so they could get what they wanted which was probably more foreign investors in our country. Wake up people the dems and the repubs have sold us out and our country. The dems want to bail out the poor people and the repubs want to make sure the CEOs get payments. Remember the poor don’t pay taxes. So once again the middle class is screwed by the government. They don’t care wake up they are replacing us.