Idaho Statesman Logo

Bailout vote an extraordinary risk for members of Congress | Idaho Statesman

×
  • E-edition
  • Home
    • Customer Service
    • Mobile & Apps
    • Archives
    • Buy Photos and Pages
    • Contact Us
    • Newsletters
    • Newspaper in Education
    • Subscribe
    • Subscriber Services

    • News
    • Boise
    • West Ada
    • Canyon County
    • Crime
    • State News
    • Nation/World News
    • Databases
    • Education
    • Environment
    • Idahoans in the Military
    • Weather
    • Traffic
    • Helping Works
    • In the Classroom
    • Our Community
    • Sports
    • Boise State Football
    • Boise State Basketball
    • Idaho Vandals
    • High Schools
    • Bronco Beat
    • Chadd Cripe
    • Varsity Extra Blog
    • NFL
    • NBA
    • NHL
    • MLB
    • Golf
    • Idaho Politics
    • Elections
    • Government and Business
    • Capitol & State
    • Letters from the West
    • National Politics
    • Business
    • Business Insider
    • Business Columns & Blogs
    • Personal Finance
    • Legal Notices
    • Opinion
    • Editorials
    • Bill Manny
    • Editorial Cartoons
    • Letters to the Editor
    • Guest Opinion
    • Submit a Letter or Opinion
    • Entertainment
    • Events Calendar
    • Restaurant Reviews
    • Arts and Culture
    • Festivals
    • Movie Reviews
    • Movie Showtimes
    • Music
    • Television
    • Books
    • Comics
    • Puzzles & Games
    • Horoscopes
    • Puzzles
    • Words & Deeds
    • ArtsBeat
    • Outdoors
    • Playing Outdoors Blog
    • Biking
    • Camping
    • Fishing
    • Hiking and Trails
    • Hunting
    • Winter Recreation
    • Living
    • Food & Drink
    • Health & Fitness
    • Home & Garden
    • Treasure
    • Pets
    • Religion
    • Travel
    • Best of Treasure Valley
    • Heart of the Treasure Valley
    • Margaret Lauterbach
    • Tim Woodward
    • Carolyn Hax
  • Obituaries

  • Contests
  • Advertise
  • Classifieds
  • Jobs
  • Cars
  • Homes
  • Place An Ad

  • About Us
  • Mobile & Apps

Business

Bailout vote an extraordinary risk for members of Congress

David Lightman - McClatchy Newspapers

    ORDER REPRINT →

September 28, 2008 02:46 PM

WASHINGTON — The vote this week in Congress on the massive financial rescue package will be as risky as pre-election votes get. Five weeks before an election, there's no easy way to know what's politically correct. And though the package is expected to eventually pass, no one can predict whether the margin of approval will be overwhelming or skin-tight.

"Everyone knows something has to be done, but they don't want to take the hit if everything blows up," said Dennis Goldford, professor of politics at Drake University in Des Moines, Iowa.

Lawmakers from both parties this weekend said their e-mail and phone calls have overwhelmingly conveyed the same message: Don't do anything that even hints of a bailout for Wall Street executives.

The deal reached on Capitol Hill Sunday would seem to address a lot of those concerns, notably by subjecting half the $700 billion to congressional action, and limiting pay for executives at troubled firms.

Sign Up and Save

Get six months of free digital access to The Idaho Statesman

SUBSCRIBE WITH GOOGLE

#ReadLocal

But here's the dilemma for members who vote for the bill: Will voters back home be convinced this is the best approach, and one crucial to stabilizing the markets? What if the unexpected happens and the financial world takes another dive in late October? What if layoffs rise and the markets plunge a few days before the election?

"This vote is like asking a patient if he needs...chemotherapy. No one really wants to give it to him, but they suspect the patient will die if he doesn't get it," Goldford said.

Chances are neither presidential candidate will be affected. Republican John McCain has taken credit for helping broker a deal — even though he never sat in on congressional negotiations and is not a member of the Banking Committee.

Barack Obama issued a statement of principles last week, and declared victory Sunday. He praised the tougher supervision of the rescue plan, aid to homeowners faced with foreclosure and the executive pay limits.

"They are identical to the things I called for the day (Treasury Secretary Henry Paulson) released his package," Obama said. "That I think is an indication of the degree to which when it comes to protecting taxpayers, I was pushing very hard and involved in shaping those provisions."

But Democratic staffers familiar with the congressional talks say that neither Obama nor his staff had any significant involvement in shaping the package, and that several Democrats as well as some Republicans championed the items he praised.

"I think voters will realize the candidates were peripheral to the process," Goldford said.

The bigger political risk involves members of Congress — the 435 House and 34 Senate seats up Nov. 4.

While a sizeable number of Senate Republicans are expected to vote for the package, Democratic House leaders have indicated they want at least 100 GOP House votes, about half the GOP membership.

It's a number that GOP leaders are suggesting is possible and perhaps likely. Strong GOP support will allow both parties to claim the package if bipartisan, and give everyone cover in case things go haywire in October.

Still, a lot of House Republicans have been ready to say, "I told you so" if that happens.

"I don't think the American people should have a financial gun put to their head," said Ted Poe, R-Texas. "If a mom and pop makes a bad financial decision, they go out of business."

"Every American who has played it safe and smart to avoid debt is being asked to spend the rest of his or her life paying off the debts of Washington and Wall Street," added Rep. Michele Bachmann, R-Minn.

Bill supporters have been fretting they aren't being given enough time to thoroughly examine the complex package, and Rep. Eric Cantor, R-Va., a member of the Republican leadership team and the renegade GOP members, warned Sunday, "We are not ready to say a deal is done."

Supporters are pushing for a House vote by Monday afternoon. If that does not happen, no votes are likely to at least Wednesday because of the Jewish New Year.

Skeptics warn that a rush to judgment will be financially as well as politically harmful.

"The irresponsible desire to meet a deadline solely for the sake of meeting a deadline will produce an agreement that does not protect taxpayers from this bailout," said Rep. Thaddeus McCotter, R-Mich., chairman of the Republican House Policy Committee.

Backers know they are taking a political gamble that stabilizing markets and providing some economic calm will cool such talk. And they were buoyed Sunday by a new USA Today-Gallup poll, taken Sept. 24, showing 74 percent of those surveyed thought economic conditions would "get worse" unless Congress acts.

But they also know that there are no guarantees, and with just a few weeks before an election, probably no second chance to do this over.

Or as McCain put it Sunday, "This is something all of us will swallow hard and go forward with."

  Comments  

Videos

Sassy? You bet. Cheekys’ country-girl chic clothing-and-accessories line is an Idaho business with national appeal.

Sweet Zola’s Candy Shop provides some with candy and others with opportunity

View More Video

Trending Stories

Vote now for the Treasure Valley athletes of the week (Feb. 11-16)

February 18, 2019 02:31 PM

Boise Hawks’ stadium to host big rock festival. Free beer in ticket price? Cheers, punk

February 19, 2019 11:58 AM

The million-dollar Boise home? Ho-hum. See who’s buying houses for $2 million and up

February 19, 2019 10:18 AM

Police said he was drunk in a crash that injured 17. He wasn’t. 46 years later, he tells his story.

February 18, 2019 03:03 PM

5A SIC all-conference girls basketball team: Where did your favorite player land?

February 18, 2019 11:55 AM

Read Next

Trump wants California to pay back billions for bullet train

Business

Trump wants California to pay back billions for bullet train

By KATHLEEN RONAYNE Associated Press

    ORDER REPRINT →

February 19, 2019 05:54 PM

The Trump administration plans to cancel $929 million in U.S. money for California's beleaguered high-speed rail project and wants the state to return an additional $2.5 billion it's already spent.

KEEP READING

Sign Up and Save

#ReadLocal

Get six months of free digital access to The Idaho Statesman

SUBSCRIBE WITH GOOGLE

MORE BUSINESS

Farmers market to move. Ski area up for sale. 10 business stories to catch up on

Business

Farmers market to move. Ski area up for sale. 10 business stories to catch up on

February 19, 2019 05:52 PM
Judge OKs suit aimed at halting Obama library in Chicago

Business

Judge OKs suit aimed at halting Obama library in Chicago

February 19, 2019 04:53 PM
The million-dollar Boise home? Ho-hum. See who’s buying houses for $2 million and up

Treasure

The million-dollar Boise home? Ho-hum. See who’s buying houses for $2 million and up

February 19, 2019 10:18 AM
How luck matters in your career advancement, and what you can do about it

Business Columns & Blogs

How luck matters in your career advancement, and what you can do about it

February 19, 2019 10:29 AM

Business

Diekman deal includes bonuses for games and games finished

February 19, 2019 06:04 PM

Entertainment

‘Fight Back!’ consumer reported David Horowitz dies

February 19, 2019 06:01 PM
Take Us With You

Real-time updates and all local stories you want right in the palm of your hand.

Icon for mobile apps

Idaho Statesman App

View Newsletters

Subscriptions
  • Start a Subscription
  • Customer Service
  • eEdition
  • Vacation Hold
  • Pay Your Bill
  • Rewards
Learn More
  • About Us
  • Contact Us
  • Newsletters
  • News in Education
  • Archives
Advertising
  • Information
  • Place a Classified
  • Local Deals
  • Place an Obituary
  • Today's Circulars
Copyright
Privacy Policy
Terms of Service


Back to Story