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Examining the Senate's new bailout bill
The dome of the Capitol is lit up as the Senate votes on a new bailout package -- October 1, 2008
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TEXT OF INTERVIEW
Scott Jagow: The Senate has passed an economic rescue package worth more than $800 billion. The House may vote on it tomorrow.
We continue our coverage of the financial crisis with Congressman Bill Pascrell, a Democrat from New Jersey. Congressman, you were saying you wish there was more regulation in this bill to prevent future problems. Are you going to push for changes to the Senate version?
Congressman Bill Pascrell: I don't believe there will be any changes, because then it would have to go back to the Senate again. I don't think that's going to happen. I'm wishing -- I would like some changes, I'm going to be fighting for some changes in caucus. Now, I know all of this could not have been done in this bill. This is a difficult vote for me to make. I'm up to the task, I'm reading as much as I possibly can. Will America be more at risk if I vote no? Will America be less at risk if I vote yes? That's the thing I'm going to struggle it up at the time that I vote.
Jagow: Are Democrats going to wait until they have the votes to get this passed?
Pascrell: I don't think it'll come up unless they have the votes this time. Mr. Bainer, the leader on the other side who I have a great deal of respect for, wants us to believe that no taxpayer money is at risk here. The way the legislation is written, that is not true. The money that we're going to be spending we think we're going to be getting back because they're going to sell these assets. Who's going to determine the price? Which leads me to my second-nature problem: Who is going to administer this program? I've heard that this will be privatized beyond the Treasury Department. And what are we going to do, put our friends in charge here? Folks are going to have to decide tomorrow in the House of Representatives whether these are improvements or whether this is simply a little more icing on the cake.
Jagow: Right now, what's your sense, what are the odds of getting this through the House tomorrow?
Pascrell: Oh, I think that it will pass.
Jagow: Congressman Bill Pascrell, Democrat from New Jersey. Thanks for joining us.
Pascrell: Thank you!
The passing of this bill, once again shows that our elected officials vote for what the party tells them and not what the American taxpayer wants. I guess we must look like lemmings led to cliff and they will tell us how much this is for our good, even if the dollar will again be devalued, and our 401K, 403B, and IRA's fall in value daily. I for one will work hard to see that if anyone in my voting district voted for this bill that they wont go back to Washington.
With approximately 138 million tax payers in the US, that could potentially put us on the hook at about $5700 per person.
While legislators and business people like to say that the common person doesn't understand the importance of the stock markets and more complex economics; I think the more dangerous ignorance is that legislators and business people don't understand the financial well being of the "average" citizen if more important. There seems to be a misconception that people can make money out of money. That is incorrect. It flows from the bottom up. Any wealthy person or company has gotten their money from the average consumer. We have worked and paid bills and bought goods. This money, combined with millions of other consumers, funds ALL everything. It all starts with manual labor and moves up. While its good to not let the structure collapse, they are trying to fix the top of the building before the base. Stock exchanges were originally conceived as a way to build capital. Now they have far over-stretched their place. Greed is out of control and now are reaping the rewards of bad behavior. It's funny that something so basic as primary residence bankruptcy protection can be struck down when so much is being given to the wealthy at our expense.
I am truly amazed at how our elected politicians view the current economic crisis. The US House of Representativies rejected the emergency bailout bill because the $700 billion dollar price tag was too much and there was not enough Congressional oversight of the Secretary of the Treasury's authority on spending the $700 billion dollars. So in response, the US Senate increase the total package to over $800 billion by promising disaster relief funds to selected states and tax cuts to business? Where is the fiscal responsibility of our elected officials especially when attempting to correct a crisis brought about by fiscal irresponsibility on Wall Street? I can only hope that the US House of Representatives will again vote against the bailout legislation so we the people of the United States of America can address the problem from a perspective of true fiscal responsibility.
I believe increasing the FDIC insurance limit to 250,000 is a great idea to provide a calming peace of mind to everyone. Once there is a calm in the markets, then we could give the previous bailouts of FannieMae, FreddieMac, Bear/Stearns, and AIG time to work. By pushing the $800 billion dollar bailout down our throats, President Bush and our Congressional leaders are leading the rush to fear-mongering in the financial markets -- and this must stop!
