The bailout bill that the U.S. Senate passed late Wednesday night is not the remedy for what ails this nation's economy. While we are all anxious to take action to help America recover from it's current financial crisis, it does us no good to pass a bill that does not address the underlying problem before us, and that's the credit crunch.
After the defeat of the original proposal in the House on Monday, Congress had an opportunity to really address some of the shortfalls of the failed bill. Instead they loaded on millions of dollars in pork barrel spending and a couple of other "treats" to lure members of Congress who voted "Nay" the first time around to reconsider their vote. From tax incentives to mental health parity (which, by the way, deserve their time to be considered and voted upon), they should not be strategically placed into a bill of this magnitude that is supposed to specifically address the credit crunch facing our nation. It is irresponsible, and proof enough that Congress deserves its 10% approval rating. Instead of being a source of calm in the eye of a storm, a good many lawmakers have lost their good sense and jumped overboard to back a bill that does nothing to really address our current financial crisis, other than give Americans a false sense of economic security.
There are simple steps that we can take to make the problem in front of us much smaller, and much easier to handle. The Free Market Protection Act (H.R. 7223) is an alternative economic rescue plan that puts us on a better path to attack the roots of the current crisis. Among other things, it would suspend the capital gains tax, schedule the government-sponsored enterprises (Fannie Mae and Freddie Mac) for privatization, and suspend mark-to-market accounting requirements.
Take a look at it in more detail here .
And, there are steps that the SEC, FDIC, and FASB can take already within their regulatory authority to make a real difference.
We must be calm, and while we should work speedily, we must not work hastily. Sadly, the bill passed by the Senate that is now in the House is a result of the "urgent" need to pass "something," rather than the "right thing."
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