At sundown, the United States Senate is set to vote on the $700 billion bailout proposal that is aimed to rescue Wall Street and institutions such as Fannie Mae and Freddie Mac. Democratic Presidential nominee Senator Barack Obama of Illinois, Obama VP running-mate Senator Joe Biden of Delaware, and GOP Presidential nominee Senator John McCain of Arizona are due to participate in the Senate vote. We can expect Obama to be active in the vote.
Last Thursday, Obama and McCain had met with US President George W. Bush at the White House to come up with a deal for the bailout proposal. However, talks had broken down. So far, House Republicans were not warm to the idea. Two days ago, the US House would vote on the resolution. Again, the bailout proposal was shot down.
McCain had attacked Obama and his allies as a result. However, a majority of House Republicans voted against the bill. Thursday of last week, Obama said that neither he nor McCain should be active in the negotiations going through the House. He explained that it would be putting presidential politics into the negotiations. Obama said that doing so would be problematic. Obama was not active during the negotiations. So far, Obama has benefited.
Once again, Texas Representative and former GOP Presidential hopeful Ron Paul
has voiced his criticism on the bailout. It was not long before Bush made his televised address to Congress, that Paul said the bailout deal was a bad idea. Paul said that this is another example of the government butting in.
Paul had given his input with an interview with John Roberts of CNN. Paul also serves on the House Financial Services Committee. Unlike the last time, Paul gave both his criticism of the bill and his solution to the financial crisis.
So far, he said that the bailout is bad for taxpayers and that the government is doing the same thing that led to such problems. Paul has recognized and acknowledged that he has little clout and influence in Washington DC. He said that you go to people that do have the influence. Paul implied that Congress underestimates how much influence the American people have.
Then Paul would give his solution. First, he said that the root of the problem needs to be recognized. He cited too much debt and too many bad investments. Paul said that they have to be liquidated. In addition, Paul said that the market needs to be allowed to adjust the prices downward.
According to Paul, one big mistake is the encouragement of more housing yet keeping the prices high at the same time. He said that we should be doing the opposite. Paul adds that the debt needs to be liquidated. But, he admits that things would be tough for at least a year.
This is what Paul proposes for his solution. However, Paul gave criticism to the stipulations that the Senate wants to add onto the $700 billion bailout bill. He said that the government is only thinking short term and not long term.
The Senate should be voting on the bill right now. It was agreed that the voting would take place at sundown in accordance to the Jewish holiday.