U.S. House: Don't like bailout? Give better option

Politics reared its ugly election-year head Monday when the House defeated a federal bailout of up to $700 billion for the nation's troubled financial community. The vote was 228-205.

A more meaningful number would be that all 433 of those House seats are up for election in five weeks, and opponents were obviously quick to note that the bailout package isn't being warmly embraced by the public.

Now we have a message for the 228 members who opposed the emergency compromise -- including the 4th District's Republican Rep. Doc Hastings : Let's see your better plan.

And soon, very soon, because that election-year drill on the floor of the House paved the way for more panic on Wall Street. The Dow closed down 777.68 points Monday, after wild fluctuations up and down before, during and after the vote. It was the largest single-day point drop in history. And what's even scarier is that this newest Black Monday is the third time this month that a closing number has been in the top 10 of worst days. On Sept. 15, the Dow closed down 504.48 points, now seventh on the all-time, single-day drop list. On Sept. 18 it was down 449.36 for eighth place.

Fear of fallout from the package crossed party lines, with more than two-thirds of Republicans and 40 percent of Democrats in the House opposing the bill. This in spite of the fact that President Bush started the bailout ball rolling last week and the compromise package voted upon Monday was backed by leaders in both parties in the House. Bush's own party deserted him.

As the Dow's downward spiral clearly indicates, doing nothing to address the financial meltdown and its threat to the national economy is not an option. Recession is an ugly thing, and we're skidding in that direction unless a massive correction is in the offing.

That said, let's admit to concerns. This is a huge intervention of government into regulation of the private sector and that's always cause for alarm. That's why any bailout plan has to be heavily dependent on accountability, oversight and transparency (meaning open to public view). The package must also include, as the compromise did, a parsing out of the government billions over time with expectations of an eventual return on taxpayers' investments.

The plan also attempts to limit outlandish CEO "golden parachutes," or benefit packages that belie common sense. Granted, the CEOs are cashing in on contracts fashioned when they were hired. But the American public cannot be expected to stomach watching leaders of failed institutions skipping away with millions of dollars in benefits as taxpayers are asked to pony up and fix the mess they created.

Hastings, who is being challenged by Democrat George Fearing, said in a news release explaining his vote:

I judged this bill on two primary grounds: What could the cost be to the taxpayers and is it good policy for the federal government to seize the financial markets in this way.

The final bill provides more taxpayer protections than the first proposal, yet it still potentially leaves taxpayers holding the $700 billion bag for the reckless actions of Wall Street and that is something I cannot support.

And on the question of increased government intervention in the marketplace, I am just plain opposed to such a massive intrusion into the economy and the marketplace.

OK, now what, Congressman? Lead us out of this thorny thicket with your alternatives to the bailout package. Let's see the details of your plan.

There are no winners in this scenario. The American people, struggling to make a living, keep their homes and raise families, stand to take the hardest hit if the bottom falls out of the economy -- not bankers, brokers or members of Congress.

It's one thing to decry, as we do, the unbridled bad decision-making on Wall Street and elsewhere that helped create this chaos. But it is also irresponsible to use that as an excuse to do nothing. And the failure of Monday's vote, until another plan is put to the vote, means nothing is being done. That's unacceptable.

Fixing this national crisis certainly rates a higher priority than members of Congress wanting to get home and hit the re-election campaign trail in the five weeks before the general election.

The American public deserves better than that self-serving scenario.

* Members of the Yakima Herald-Republic editorial board are Michael Shepard, Sarah Jenkins, Bill Lee and Karen Troianello.

EDITOR'S NOTE: The 433 House members referred to in this editorial are those who voted either for or against Monday's bill, not the total number of House members, which is 435.

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