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Pass rescue to stop meltdown
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A worker sweeps Wall Street this week as lawmakers work to clean up a financial mess with $700 billion.
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THU., OCT 2, 2008 - 10:01 AM
Pass rescue to stop meltdown
A Wisconsin State Journal editorial
Americans may be outraged about Washington's plan to put $700 billion in taxpayers' money at risk to rescue the financial industry.

But they'll be a lot more outraged if Congress fails to adopt it.

Failure to pass a rescue plan would put more than $700 billion at jeopardy. It would risk a far-reaching shutdown of credit, with catastrophic consequences for Americans' paychecks and jobs as well as the value of their homes and retirement accounts.

The risks should convince the members of Wisconsin's delegation in the U.S. House to vote "yes" on the rescue proposal -- despite its flaws -- passed Wednesday by the Senate.

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The House has already failed once. Monday, representatives rejected a similar plan, as knee-jerk reactions and petty partisanship prevailed over the national interest.

The majority of Wisconsin's delegation deserves credit for voting in favor of the proposal. Democrats Tammy Baldwin, Ron Kind, David Obey and Gwen Moore voted "yes" along with Republican Paul Ryan.

But three Wisconsin representatives -- Republicans James Sensenbrenner and Tom Petri and Democrat Steve Kagen -- voted against the plan.

The proposal calls for the federal government to buy up to $700 billion of bad debt, which the government could then hold and sell back into the marketplace later -- perhaps at profit, perhaps at loss.

It's a huge transfer of risk from the private sector to the taxpayer. Nevertheless, it's a reasonable response to a dangerous situation.

Businesses are threatened by an inability to get loans. Without loans, employers cannot buy inventory or pay workers.

American families will be the ultimate victims.

Some members of Congress correctly argue that the rescue does not solve problems that underlie the credit crisis. But that's no reason to reject the rescue. It simply mans Congress will have more work to do after the rescue.

Other opponents want Congress to wait for better alternatives. But further delay would not only make an economic collapse more likely, it also would invite Washington to taint the rescue with add-ons and pet projects.

Regrettably, the bill the Senate passed Wednesday has already been loaded with billions of dollars in "sweeteners" in an effort to buy votes in the House.

It's time for House members to do what's right for the nation. It's time to rescue the economy.


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