Statement on Wall Street Bailout from Democrat Congressional Candidate Barry A Welsh

By Barry Welsh

Right now our economy is suffering from poor decisions by those in Washington and on Wall Street, and the people here in East Central Indiana are paying the price for it.  The last thing we need is a $700 billion dollar knee jerk reaction.  Many in Congress voted against this bill last week because they knew it would not bring serious reform, but now have abandoned their principles and voted for it because of partisan pressure, and lobbying interests.  What we need in Indiana are long term solutions to a slumping economy, and reform that can benefit everyone.

I have watched the debate in Washington over what to do with amazement.  One of the key elements missing is input from the public.  I know what I have heard from my constituents over these past few days, and it is not support for this legislation.

As an economist and a citizen and a tax payer, I oppose the Wall Street bailout plan, and if I were serving in Congress I would vote NO.  It is well intentioned, but it remains terribly flawed.  The current 451 page plan does nothing to offset the cost of this proposal, leaving taxpayers with the burden of picking up the tab for serious lapses of judgment by private financial institutions.   Those that should have been regulating, and those in Washington who allowed this to happen, did so by removing the safeguards that had protected consumers and the economy since the Great Depression.

It is clear that something needs to be done to stabilize our economy; I don’t believe that this bill is it.  Without mandated relief for homeowners there is no guarantee the money will go where it is supposed to. Without serious reform this bill will not protect us from a repeat of this crisis in the future. 

The important thing right now is that we stabilize our banking industry and our credit markets.  We need to give people with savings and investments a reason to keep their faith in American banks.  That is why I support the part of the legislation that increases FDIC insurance to $250,000.  I would like to see a package a third of the size of the one currently passed, this is taxpayer’s money, and we have already released 400 billion to the banks through the US Treasury. I think that an additional $250 billion should be used now to stabilize the markets, so that banks are able to extend credit and loans to small businesses and individuals. Congress should call for an immediate freeze on all bankruptcies and foreclosures, until a long term solution can be put in place.  This legislation should be about saving jobs and homes, and there is no guarantee the current bill will do either. There should be oversight to make sure this money is used the way it was intended, for the public good, not the corporate bottom line. All of the “extras” need to be stripped from this legislation.  This is too serious of a problem to play politics, and we need straight answers, not more of the DC two step.

Future legislation by the next Congress should address mortgages, savings, investing, and trade policy, and what regulations need to be in place to make sure this does not happen again.   This isn’t about placing blame, but finding our mistakes from the past, learning from them, and forming lasting solutions.  As part of the next Congress I pledge to support legislation that provides real solutions for average people, because that is who I represent, the average people of the Indiana 6th Congressional District.

Barry Welsh

Indiana 6th District Congressional Candidate

barry@barrywelsh.org

765-465-7020

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