
At 10:00pm on 9/30/08 Fox News is covering the congressional bailout negotiations between Democrats and Republicans and the Bush administration. The House of Representatives failed to pass the bill on Monday by a vote of 205-228. The Senate was slated to act following the House is they passed the bill Monday but they did not. House and Senate negotiators have been working throughout Monday evening and Tuesday.
Senator Chris Dodd (D-CT) and Senator Judd Gregg (R-NH) have announced that they will include some business tax provisions and raising the deposit insurance level from $100,000 to $250,000 in an effort to shore up the struggling economy. The only thing that raises doubt on if this proposal will pass the House is that House Democrats want to raise taxes elsewhere. Senate leaders are fairly sure that they have the votes to pass this measure in the Senate but the uncertainty still remains in the House of Representatives.
I think that Fox News is showing that this issue is going to be a big drag on the Federal checkbook. Most media sources are not covering the fact that these mortgages will be sold back and most if not all of the money will be recovered after the market has time to adjust. Fox News is not the only source that is leaving this information out but I think that the American people need to understand that the $700 billion price tag is a large amount of money but the bulk of that money is recoverable.
President Bush is providing leadership on this issue. He made this statement today from the White House and said, "I recognize this is a difficult vote for members of Congress, but the reality is we are in an urgent situation and the consequences will grow worse each day if we do not act."
I believe that Congress needs to get to work and quit stalling and act quickly so that the American economy does not sink further into a recession or even depression for that matter. Our economy is on the cliffs right now and the blame can be laid on the doorstep of the Congress and the President for not acting quickly enough and the media for using "scare tactics" to make the economic situation seem worse and more pressing than it is.
