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Editorial: Bailout back in House's court Friday, Oct 3, 2008 On Tuesday, we praised the members of Arkansas' congressional delegation for their votes in support of the bailout legislation. Ditto for the state's two U.S. senators. Wednesday night's Senate vote was 74-25, which included "for" votes from Sens. Blanche Lincoln and Mark Pryor. The Senate bill has some additional "sweeteners" that may appeal to Republicans in the House, which defeated its own bailout bill on Monday. The bills in both houses have been called Wall Street bailout measures, but after the market collapse on Monday following the failed vote in the House, the depth of the economic maelstrom that is facing all of America was apparent. If the country was to do nothing and allow the financial institutions to fail en masse, which assuredly is what would happen, it would not be long before the whirlpool that took them down would also bring down a multitude of businesses and jobs and 401-Ks far, far away from Wall Street. Recovery could take years. These are not easy pills to swallow for lawmakers, and that is why we wanted to make a special point of applauding their courageous votes. As Pryor states on his Web site, if this was simply about greedy Wall Street tycoons going down the tubes because of their poor decisions, he "would oppose this incredibly expensive package." But "the risk of doing nothing is too high for Arkansas' citizens, businesses and farmers," Pryor said. "Retirement savings, student loans, and credit cards could dry up in a matter of weeks. Arkansans will not be able to mortgage a home, finance a car, or purchase farm equipment." The senator said he thought also that the country could see jobs lost and wages reduced because businesses would be unable to get credit. Sen. Lincoln expressed some similar irritation over the cause of the financial crisis but reached the same conclusion as Pryor. "The reckless actions of those on Wall Street may have caused this crisis," she said in a statement, "but it is now Main Street's problem as well. When Arkansas small businesses can't make payroll, students cannot get loans to fund their education, and consumers cannot secure home or car loans, it will be too late. "Time is of the utmost importance. Not taking action will lead us on a downward spiral, and that is why I decided to vote for this legislation." This new legislation again provides for a $700 billion bailout of Wall Street, meaning the money will be used to buy problem assets and invest in faltering financial companies. But added to that provision is language that prevents excessive pay to executives at companies that benefit from the bailout money, establishes oversight and auditing of the process, and requires a plan to recoup the money. There also are several tax breaks and extensions for businesses and individuals, tax relief for victims of natural disasters and an extension of tax deductions for state and local sales taxes, among other additions, as well as the popular increase from $100,000 in federal bank deposit insurance to $250,000. Now, today, the bailout bill is back in the House's court. The vote on Monday was close, but not quite close enough for passage. We encourage the Arkansas delegation to stand tall and vote again for it and encourage their cohorts to do the same. House members, like the rest of us, can all be outraged about what led to the collapse on Wall Street, but they should not let that state of mind stop them from doing what's right for the country as a whole. -Times Record of Fort Smith |
