Graves voices bailout concerns
Pushed against a wall with a take-it-or-leave-it offer when negotiating for a car, Congressman Sam Graves said he knows to step back for more thought. The financial bailout proposal working its way through the U.S. House gives him similar reason for pause.
The high price tag and the heavily accelerated timetable have the Northwest Missouri lawmaker concerned.
“That tells me I better step away and take a closer look at this thing,” Mr. Graves said Saturday. “Seven hundred billion dollars, that’s an awful lot of money to risk on something that folks are very unsure about.”
Mr. Graves spoke by phone from Capitol Hill, where Congress may be asked today to approve what has been discussed as a $700 billion rescue of Wall Street institutions struggling under the weight of a financial crisis not seen since the 1930s.
Congressional and Bush administration negotiators worked into the early hours Saturday putting together a plan intended for long-term recovery but also to calm the stock market.
The Republican from Tarkio voiced his reservations, calling the legislation being discussed too big, too hasty, too onerous for taxpayers and too lenient for offenders.
Mr. Graves said he would like to see more private equity used in the rescue plan and wants to ensure no “garbage” makes its way into the bill’s final writing.
Finally, he remains unconvinced the plan will have its desired effect.
“I’m not going to risk my district’s tax dollars on something we’re not sure about without taking a look at all the other options,” he said. “This deserves a lot more study.”
While Congress went about other business in heading toward a pre-election adjournment, Mr. Graves described the atmosphere last week as tense because of the bailout talks. He lamented that alternative plans, such as one offered by Virginia Rep. Eric Cantor, got little consideration in the process.
The Cantor alternative, he said, focuses on insurance for bad mortgages, relieves some of the obligation on taxpayers and more properly puts the burden of recovery on those who created the problem.
The Missouri representative said immediate steps could be taken to ensure transparency in the financial system and update FDR-era regulations to include more modern market conditions.
“We may be back to status quo in six months, but we as taxpayers will pay for it for 20 years,” Mr. Graves said.
Kay Barnes, the Democrat opposing Mr. Graves in the 6th District House race, spoke in St. Joseph Saturday and said she had no inside knowledge of the negotiations.
She added, though, “I am confident that there will be measures in whatever is passed for oversight, for increased regulation and for transparency.”
Ken Newton can be reached at kenn@npgco.com.
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boo for kay barnes, can't even take a stand. Come on, you know you'd be for this albatrous of a corporate bailout.
Posted by StJoeMoe on September 28, 2008 at 6:47 a.m. (Suggest removal)Money addicts, and it is possibly time to cut off the supply.
Our government and business's have not shown the ability to manage money - why, oh why give them more?
I'm positive the high fuel costs have played a role in this, as well as the exportation of jobs overseas.
Back to fuel costs - do not point the finger at our oil companies, point the finger to OPEC, they control the pricing.
And guess what, they hate America and Americans, why oh why we have not been allowed to develop our own resources -
Time to quit with the bandaids, time to quit sticking fingers in the holes in the dam -
Time to fix the problem, but I've not seen a leader with the ability to do so come forward yet -
Could we be seeing the end of America as we knew it?
A lot of blame does directly on the higher educational system, they are who pumped this new generation of leaders out.
Dot.bomb played a role, heck, plenty of blame to go around - we need solutions!
Posted by 10377586 on September 28, 2008 at 9:03 a.m. (Suggest removal)I'm impressed with Graves for taking a closer look and with Barnes for not making it a political issue, we are fortunate to have two solid people running for this position. I feel John McCain really bumbled by getting in the middle of this and trying to play politics with it. Sam and Kay, with midwestern values, both know better and are apparently taking the high road on this one......about time.
Posted by MichaelH on September 28, 2008 at 9:54 a.m. (Suggest removal)I just don't see why they can't stand on their own legs, and since we have $700B to play around with, why not use it to develop a real, alternative energy source in 5 years.
We could hire the greatest scientists, and engineers tho make sure it happens.
I guess that would make sense though.
Posted by apmastrangelo on September 28, 2008 at 2:55 p.m. (Suggest removal)I am no happier than most about the upcoming bail-out plan.
Posted by StJoeMoe on September 28, 2008 at 3:12 p.m. (Suggest removal)Unfortunately the alternative of not doing something is going to result in a really ugly time for the country.
If our nation is prepared to accept an unemployment rate that could double or triple, relinquish the convenience of most retaining a credit card, and a further decline in the housing market by requiring a minimum down payment of 33% plus a credit rating above 720, then it will be okay for government to do nothing.
The reality and sad thing about this entire mess is that it hurts those least equipped to deal with the problem.
On the positive side, a bill properly structured can result in the tax payers recovering most if not all the money at a point in the future.
A must see video -
http://www.youtube.com/watch?v=H5tZc8oH--o
So the Democrats cause this recent little problem, fact....
Posted by joetowner on September 29, 2008 at 8:38 a.m. (Suggest removal)Hey 10377586, it was only a matter of time before Barnes turned this into a political talking point:
From the Politico in DC:
"Given the risk of a constituent backlash, candidates across the country have avoided taking a firm stand on the proposed bailout deal. Many don’t want to be seen as playing politics with such a consequential piece of legislation.
But in a handful of key congressional races, the partisan bickering has proved to be inevitable.
Former Kansas City mayor Kay Barnes, who had been trying to get Rep. Sam Graves (R-Mo.) to admit the country was in a recession, slammed the congressman for looking to “blindly fall in line with President Bush’s bailout plan with no questions asked.”
Graves responded: “At a time when our economy is in crisis all Kay Barnes has to offer are lies, distortions, and partisan rhetoric.” Late Thursday night, Graves came out in opposition to the proposed bailout package, saying he “has yet to see a proposal that will adequately protect taxpayers." "
Posted by joetowner on September 29, 2008 at 11:27 a.m. (Suggest removal)did ninjaman forget his password?
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