Congressman Joe Donnelly described his vote on a federal mortgage lending bailout bill by as a way to save retirement plans, homes and jobs.
He understands citizens' anger and concern over the federal government fixing Wall Street's woes, Donnelly said, but his vote was cast solely with the people of Indiana's 2nd District in mind. The bill failed 225-208.
Without a bailout, he said, there won't be any electronics made at Delphi in Kokomo, recreational vehicles made at plants in Elkhart County, or auto parts and modular homes made anywhere else in the district.
"This is about taking care of the 401Ks and the savings accounts ... of the families and people in Rochester," he said, adding the credit crisis was causing a credit freeze, so people couldn't borrow money to purchase houses, cars, recreational vehicles and modular homes. Without a market for those products, there are no jobs in those industries, Donnelly said.
"What this comes down to is the freezing of our economy, the freezing of our jobs," he said. "And we want to protect the small businesses, where the owners have put their hearts into it, so they can get credit and loans."
Donnelly said he understands citizens don't want their tax dollars going to the people who created the financial crisis, but at the same time, for congress to do nothing could be disastrous.
And, he said, he's angry too. Seething angry that greed has now put the U.S. square in the face of a potential economic depression.
LOAN BUYERS
WOULD PAY
Donnelly said taxpayers wouldn't pay a dime for bailing out America's failing mortgage lenders.
The U.S. government will purchase loans from the big lenders and resell them to private markets, thus making back its money over a five-year period, he said of the $700 billion proposal that Congress voted down Monday.
Of the loans being purchased, he said, at least 70 percent are active mortgages that will go to conclusion.
Donnelly represents Fulton County. He noted the failed legislation included: Executive compensation restraints, warrants of ownership to the government, reregulation of the industry.
The Dow Jones dropped 700 points and lost $1.2 trillion in value Monday, Donnelly said. If a bailout is not approved soon, things can only get worse, he said.
It will be taken up again lsoon, after Jewish holy days have concluded. He said he has no idea what the next proposal will contain.
"What we're trying to do is contain this damage to as little as possible," he said.
"There's nobody who wants to give a dime to Wall Street," Donnelly said. "There's nothing that would make me happier than seeing these guys walk out of there with their pockets inside out. I'd rather see them all go under because of their greed and their avarice."
Donnelly said greed, and deregulation of the mortgage lending industry in the late 1999s are to blame for the crisis. Any bailout bill should require more oversight of the mortgage lending industry, he said.
"The referees were taken off the field. We're putting the referees back on the field," he said.
He also saidd irresponsible consumers of credit didn't help by taking mortgages their incomes didn't support or racking up credit card debt.
"There's blame to go everywhere," he said. "There's no argument some irresponsible citizens made terrible decisions which now damage us."
When asked what he tells people who did everything right but still got caught in the crossfire, Donnelly said, he tells them there will be repercussions.
The FBI is trying to determine if any fraud occurred, Donnelly said.
Reader Comments
Posted: Wednesday, October 01, 2008
Article comment by:
Tom Murray
President Bush proposed bail out of Wall St..3 pages long. Congressional bail-out of Wall St..106 to 110 pages long....The Senate proposal to bail-out Wall Street...451 pages long. A ballot cast to throw all Washington D.C. incumbents out of office .....PRICELESS.
Posted: Wednesday, October 01, 2008
Article comment by:
Tom Murray
I urge voters everywhere to cast their votes for Independent and third party candidates. The Republicans and Democrats are not focusing on what's good for the country. They are focused on what's good for their party. I am voting for Mark Vogel for 2nd district congressman. It's obvious to me the Republicans and Democrats don't get it. It's time to give third party's a chance to see what they can do for our country. Face it, the odds of a third party doing worse are pretty slim, don't you think! This is America, home of capitalism and the free market economy. If things don't change this election cycle, the America I grew up in may well disappear.
