Bailout passed
But I will vote again for Kenny Marchant. Though I’m not happy with the results of the vote, I am happy to report that voices were heard and spoken for. A major reason why we live in the greatest country in the world.
Now that the damage is done, I just hope the markets get what they wanted… a boost of confidence. In my opinion, that’s all the problem was in this situation. Everybody on Wall Street let their emotions get the best of them. The sad fact is that greedy people will always be greedy and we will see other issues arise similar to this one.
I just prefer to not have the government try and bail us out every time. Sometimes you have to pay the piper…
And if you care, the note from my representative Kenny Marchant:
Rep. Marchant Votes “Nay” on HR 1424
Today, I voted no on legislation to give the federal government a check for $700 billion and raise our national debt limit from $9.8 trillion to $11.3 trillion this year alone. I worked for and would have supported a free-market alternative plan to provide reassurance to the American people, restore confidence in the financial markets, and provide checks and balances.
The alternative legislation I supported was not allowed to be considered or even debated. This alternative called for an increase in the FDIC limit to $500,000, a change in mark-to-market accounting rules, and, most importantly, a mandatory “Illiquid Asset Insurance Program” that would work as an alternative to the $700 billion buyout program at NO COST to the taxpayer. This program would be funded by premiums collected by participating companies. This proposal is based on the premise that the value of many of these “illiquid assets” is extremely low only because of the panic in the market, and that these fire sale prices have no relation to the true value of the underlying securities. An insurance program such as this would help restore confidence and bring the prices of these securities back up to their true values.
Fifteen days ago, Treasury Secretary Henry Paulson met with Members of Congress and outlined his need for a $700 billion rescue package for our troubled economy. And since that time, I have received 2,975 letters, emails, and phone calls on this issue. If you wrote an email or a letter, please know I read every one. The country is divided on this issue, not as Republicans or Democrats, but on what each of us believe is in the best interest for the United States of America.
I have always said we must do something. Inaction was never an option, but we needed to make sure we did the right thing. After I was informed alternatives would not be considered, I advocated, pushed for, and fought as hard as I could for a stepped approach rather than committing $700 billion up front. Secretary Paulson stated publicly and under oath that he could only spend $50 billion per month, therefore a total outlay of $700 billion up front was risky and premature.
Today’s vote was without a doubt the most important vote during my career in public service. The bill passed 263-171 and became law minutes after passage with the signature of the President. Though I sincerely believe this is not the solution to the problem, it is my hope that the plan will work.
As a member of the House Financial Services Committee, which has jurisdiction over financial institutions, consumer credit, capital markets, insurance, and housing issues, and the House Oversight & Government Reform Committee, I will continue to fight for stringent oversight and accountability as this legislation is implemented.
I have also included a link to an accurate and critical analysis that explains the situation our economy is in and invite you to thoroughly read it through at your convenience. The link is: http://www.house.gov/budget_republicans/press/2007/pr20081002econ.pdf.
I am honored to represent the 24th District of Texas, and appreciate your interest in my e-newsletter. Please contact my District or DC office with any further questions you may have or visit my website at www.marchant.house.gov.
Sincerely,
Kenny Marchant
Member of Congress
Good on ya, Kenny