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What should Congress do with the $700 billion bailout bill?

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There is a well-known joke in political science that shows an elected public official sitting in his office, suddenly running to his balcony when he hears a large group of citizens heading off to a rally in the distance. He looks at them and says: "There go my people. I better go out there and lead them."

If the initial analysis of the U.S. Treasury's $700 billion bailout plan is any indicator of public sentiment, it looks like the people may be way ahead of their public officials -- or public officials are way behind -- depending on your perspective.

There's a sense that the people who will pay for the potential bailout/intervention -- typical citizens -- aren't getting enough in return. These critics say the U.S. taxpayer should get an equity stake as collateral for the loans they may make to various banks/companies, and that the taxpayer should also share in the profits, should they occur.

Further, some question why the taxpayer is being used to bailout the very institutions that were factors in the start and growth of the financial crisis in the first place.

Still others argue why the U.S. Treasury is clamoring to secure hundreds of billions of taxpayer money to prop-up financial institutions and isn't doing more to help homeowners refinance their mortgages to lower rates, and in the process prevent foreclosures that were a major factor in the development (and continuation) of the financial crisis.

And others are wondering why CEO/executive salary caps can not be put in place. If a CEO or an executive doesn't want to participate in the bailout program for fear of not getting a large payout or golden parachute, even though it's in the public interest to do so, why should it be in the public interest to grant his/her company a loan?


U.S. Treasury Secretary Henry Paulson argues that the bailout must be large -- $700 billion large -- and passed quickly to avoid a financial system catastrophe and keep credit markets functioning.

And as Congress began to critically review the bailout plan, the dollar has dropped some, overnight interest rates have risen, and the stock market has meandered.

But here's some news for the Bush Administration: prior to the bailout plan, dollar was dropping, overnight interest rates were rising, and the stock market was not exactly confusing anyone with the 'Roaring 20s' bull market.

Keeping in mind that Congress is not likely to approve a policy the public does not support, it makes sense to find out what U.S. taxpayers / readers think.

In your view, what should the U.S. Congress do with the $700 billion bail-out plan? Should Congress:

a) Change it -- The U.S. taxpayer must get collateral or equity for the loans being offered.

b) Defeat it -- It's a lousy plan and no U.S. taxpayer money should be spent on it.

c) Approve it -- It's the best the U.S. taxpayer is going to do.

d) None of the above/something else.



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Let us know what you think.

Reader Comments (Page 1 of 6)

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Last updated: November 27, 2009: 11:05 PM

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