|
McConnell: Package 'entirely about Main Street'
(Messenger-Inquirer (Owensboro, KY) Via Acquire Media NewsEdge) Oct. 4--During a stop in Owensboro on Friday to talk privately with Greater Owensboro Chamber of Commerce members, U.S. Sen. Mitch McConnell offered his take on why the $700 billion bailout bill was necessary.
In an interview with the Messenger-Inquirer before his meeting with the chamber, McConnell said he had heard from small-business owners and farmers who were facing their loans being recalled or a lack of access to credit following the defeat of a first version of the bailout package Monday.
"It is entirely about Main Street and not about Wall Street," said McConnell, the Senate Republican leader. "This is about getting the credit markets unfrozen so people can buy homes, buy cars, so businesses can meet payrolls."
After the initial version failed in the House, the financial markets took a sharp drop, and McConnell said that help sway public opinion toward support for the financial relief package.
"We're now hearing from people who are beginning to understand the full impact of this," McConnell said.
McConnell also noted that the new package includes limits on executive compensation if a company wants to receive assistance from the government.
Kentucky's senior senator has made comments previously in support of a smaller government role in the financial markets. He said that although he's not happy about having to take these steps, they are necessary.
The major component of the plan calls for the government to purchase what McConnell called "toxic" assets from financial companies that threaten the stability of the market and then resell them at a time when the market is more stable.
"I would have a lot of problems if the government was going to continue to be in these businesses," McConnell said. "It's not. It's going to buy these assets and sell them."
When asked for a timeframe for the government to divest itself of these newly acquired assets, McConnell said he didn't know how long it would be.
Meanwhile, two western Kentucky congressmen were again split Friday on the bailout proposal.
In an e-mailed statement to the Messenger-Inquirer, U.S. Rep. Ed Whitfield, a Republican who voted against the Emergency Economic Stabilization Act, said the legislation "gives a whopping $700 billion of taxpayer money to bail out the irresponsible decisions of a handful of individuals on Wall Street. I don't think government should bail out bad decisions, whether made by individuals or large companies -- that isn't fair to those who have more carefully managed their own resources. Furthermore, this package sets unprecedented regulations on our financial institutions and markets that many leading economists believe might do more to hinder our economy than help it.
"We need to reform our financial markets, not put a $700 billion Band-Aid paid for by taxpayers on the problem. On Monday, I voted against a similar version of this bailout package. While a few of my concerns have been addressed in this new bill, my reasons for opposing this bailout package remain the same," Whitfield said.
"As the people of the 1st Congressional District continue to face tough economic times, I remain committed to doing everything I can to get our economy back on track and promote job growth in our area. However, I fear the bailout package passed today is nothing more than a wrong response to a complicated problem, paid for by American taxpayers," he said.
U.S. Rep. Ron Lewis voted for the bill.
"Today's passage of the Emergency Economic Stabilization Act is an important step to restore confidence in our financial markets and protect taxpayers from all walks of life from the severe financial consequences that have begun to ripple through the economy as a result of irresponsible business practices. Though far from ideal, decisive action was necessary on this important legislation. Critical protections were added prior to the vote to mandate Wall Street to share the burden so that taxpayers and future generations aren't saddled with additional debt. As we move forward, lawmakers must directly address the root causes of this crisis, and identify those responsible, so that this situation may never occur again," Lewis, a Cecilia Republican, said in an e-mailed statement.
To see more of the Messenger-Inquirer, or to subscribe to the newspaper, go to http://www.messenger-inquirer.com.
Copyright (c) 2008, Messenger-Inquirer, Owensboro, Ky.
Distributed by McClatchy-Tribune Information Services.
For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
[ Back To TMCnet.com's Homepage ]
|
INDUSTRIES
INDUSTRIES
Find Solutions for Enterprises, SMBs & Service Providers at the INTERNET TELEPHONY Conference and EXPO East, February 2-4, 2009. Miami, Florida.
