Bailout Bill: An Election Season ‘Stink Bomb?’

[babylonsister]

Bailout Bill: An Election Season ‘Stink Bomb?’
By Jonathan Allen, CQ Staff


There isn’t much political incentive for candidates, particularly those in close races, to support any of the several versions of a Wall Street bailout that are circulating on Capitol Hill. But with Election Day looming less than six weeks away, there may be danger lurking in inaction, too.

Since President Bush announced his plan to address a growing crisis in the nation’s financial sector with a massive government intervention, many average citizens have expressed anger — even though some polls show that a bailout plan is the right thing to do. A number of critics oppose the vast expansion of government and the huge proposed outlay to purchase bad loans run up during this decade’s mortgage lending spree. And many taxpayers fume that they are being asked to clean up a mess created by the irresponsible actions of many well-paid Wall Street executives and other involved in the financial industry.

“My constituents are angry and frustrated over the economy and are angry that this has become the crisis it has and that taxpayers are being forced to foot the bill,” said California Democratic Rep. Jim Costa , who is heavily favored to win re-election in his state’s 20th District. He conceded that Congress has to act on the $700 billion plan before it leaves for the fall campaigns, probably late this week. “The best thing we can do is put together a well-crafted package,” he said.

Constituent calls and e-mail messages to Republicans and Democrats alike are running so heavily against the plan that one Democratic lawmaker joked that the ratio is 100 against to zero in favor.

Democratic Party leaders are tacitly encouraging their vulnerable incumbents and challengers to steer clear of the legislation.

“I’m just urging all the candidates to listen to their constituents on this,” said Maryland Rep. Chris Van Hollen, who heads up his party’s House fund-raising and candidate-support efforts as chairman of the Democratic Congressional Campaign Committee.

Right now, that means voting against a bailout or working to stop it from coming to the floor until it is more acceptable to voters.

The risks of both action and inaction are clear.

more...

http://www.cqpolitics.com/wmspage.cfm?docID=news-000002958601