The IUSB Vision Weblog

The way to crush the middle class is to grind them between the millstones of taxation and inflation. – Vladimir Lenin

Second District Congressional Candidates Speak on the Bailout

Posted by iusbvision on September 30, 2008

Statement by Luke Puckett

“The $700 billion taxpayer sponsored bailout bill that was voted on this afternoon did not provide the right solution to our economic needs. Congress must act quickly to put in place solutions that address the grave nature of the current economic problem. This must be done without imposing the cost of such a solution on the taxpayer or future generations of Americans. We cannot do the wrong thing and we cannot do nothing, we must do the right thing.

“The right approach to this challenge is one that maximizes freedom and personal choice while bringing stability to the marketplace. In order to stimulate the economy and generate a much needed sense of certainty, we need to increase the cap on FDIC insurance. We must also develop a plan based on the FDIC model that allows banks and investment companies to purchase insurance for their most vulnerable mortgage-backed securities. This solution would require accountability and restore trust and confidence at a time when both of those commodities are much needed.

“I call on Congress to act in a bipartisan and responsible manner.”–Luke Puckett, Republican Candidate for Congress, IN/02

Statement by Joe Donnelly

“When there are serious people discussing the possibility of another economic depression, it is time to act. The rescue plan was not perfect, but it was necessary. And while no one took any pleasure in voting for it, the alternative — doing nothing — is potentially disastrous and therefore unacceptable.” — Rep. Joe Donnelly, Democrat, IN/02

Our Take: As we have said that bill that was shot down by the House was too flawed. 97 Democrats and 133 Republicans said no. While some of that was purely political, some of it expressed the same concern the American people have; the bill wasn’t good enough. Luke’s FDIC and insurance idea is a good one and I like how he adds that the solution would require accountability. That is nice-nice talk for using REAL banking regulators in the mortgage industry. However, low interest loans or some other vehicle is needed to kick SOME solvency into the market. These tools with a number less than half the $700 billion number should be more than adequte in my view…. again as long as REAL bank regulators under Treasury or the Fed take over regulation enforcement.

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