|Stark's Vote Helps Quash Bailout|
Published: Thursday, 02 October 2008 21:34
"There is no denying that we are facing an economic crisis of enormous proportion, but this bailout was not the right approach," Rep. Pete Stark said in a press release issued after the vote.
Stark, whose district in-cludes Alameda, voted against the measure.
"Today's vote is a clear signal that we must work together to provide a solution that is more focused on the families and homeowners who are being hurt by this recession," Stark said after the vote.
Had the bill passed; it would have gone to the Senate floor for a vote.
The bill's designers wanted the federal government to use $700 billion of taxpayer money to purchase troubled mortgage-backed securities created before March 14, 2008. The first $250 billion would have been available immediately; another $100 billion would have been spent at President George Bush's discretion and another $350 billion would have been subject to congressional review.
According to CNN, party leaders on both sides of the aisle told members that the only way to protect the economy from a spreading credit crunch was to vote for the difficult-to-swallow measure.
Stark apparently did not see things that way.
"The bill before us today is basically the same three-page Wall Street give-away first put forth by President Bush," he said.
"President Bush tells us that we face unparalleled financial doom if this $700 billion bailout is not approved today," Stark said on the House floor before the vote.
He reminded his colleagues that Bush's dire outlook "sounds like the disastrous rush to war in Iraq and the subsequent stampede to enact the Patriot Act."
Stark pointed out that the nation finds itself in a crisis that "has been building over the past eight years of the Bush Administration."
"Lax oversight of the financial industry ballooned into a house of cards," Stark said.
He pointed out that homeowners have seen property values decline and that millions have already lost their homes to foreclosure. Many more (foreclosures) are on the way, Stark warned.