Arkansas Lawmakers Address Financial Bail-Outs
In case you’re wondering where your elected Congressional representatives and senators land on the federal bail-out proposal for the financial sector, rest assured that all six members of the Arkansas delegation are more or less on board for some sort of federal action, the Arkansas Democrat-Gazette reports.
Among the various members, kudos to Rep. Vic Snyder for sounding the most like an adult in attempting to offer a cogent explanation for why action may be needed:
Speed is of the essence, said Rep. Vic Snyder, a Democrat. Congress needs to “lance the boil,” he said, in order to avoid a prolonged economic slump.
He noted that Japan faced a similar situation in the 1990s. Failure by that country’s government to act as companies began to sink resulted in what Snyder referred to as “the lost decade,” when Japan’s economic might withered.
But he worried that Congress would get hung up on executive compensation, which he considered “a detail,” of much broader legislation.
While he argued that it “would not be helpful” if financial services industry executives weren’t frugal, he said the overall aim of preventing a prolonged financial slump was too important to get derailed over a fight on executive pay.
“We need to be sure the tail doesn’t wag the dog,” Snyder said.
Sen. Mark Pryor and Rep. John Boozman both emphasize that while something needs to be done, Washington can’t just “throw a bunch of money at it.”
Meanwhile, Sen. Blanche Lincoln calls for “more oversight and accountability” in a letter to Senate Banking Committee members, the AP reports.
9 thoughts on “Arkansas Lawmakers Address Financial Bail-Outs”
“Speed is of the essence, said Rep. Vic Snyder, a Democrat. Congress needs to “lance the boil,” he said, in order to avoid a prolonged economic slump.”
What in the world would he know about lancing a boil? He’s a congresman for petes sake. The way he carries on you would think he is a attorney. What has this guy ever accomplished in his life?
I am just saying……..he does not seem very bright.
Well, he is a physician, though I can’t speak to exactly how many boils he may have lanced in his day. Still, I imagine he has a better sense of that particular metaphor than most of the rest of us, when it comes right down to it.
Snyder’s an M.D., I think. The problem with the analogy is that the financial turmoil we are in seems to be somewhat more significant than a mere boil that needs lancing. And I suspect that few in Congress, including the Arkansas delegation, have a clue what to do.
In fairness, I’d suggest that you read the responses from the other members of the Arkansas Congressional delegation in the context of the story before you blast Snyder. Lincoln complains about executive pay, a tangential issue; Marion Berry preens about “standing up for the little guy” or something; Mike Ross blathers like an idiot. In context, Snyder comes off sounding like a grown-up.
Kudos to Snyder. And Bryce, he is an Attorney…and a MD. So I guess if he talks about medical procedures like an attorney…he has good cause.
Let them all go bankrupt and stockholders sue the execs who raided the companies. THE MARKET will hold them accountable. Blank Lincoln is schizo on this: She wants to SHIELD them from the accountability of the market while INCREASING their “accountability” to the federal government.
Thieving idiots! THEY (Dem and Repub alike) brought this on by 1) loose FED policy 2) leaning on banks to give risky no-down loans to people who historically were poor credit risks and 3) repealing the Glass-Steagall Act.
Synder SOUNDS like a grown-up. Real “sophisticated”, too much so for my tastes. Just like he is too “sophisticated” to protect innocent unborn human life, he is too “sophisticated” to let it bother him that he is putting every tax payer on the hook for 5 grand while the CEO’s who messed up walk away with millions.
I’m just not that “sophisticated”. I actually get upset when innocent people get screwed over by corruption with the aide of the government. I guess I’m just not cool like Vic!
Guys I know he is an attorney and M.D. Trying to bring a little humor my favorite blog. As a matter of fact law school in Little rock was his only tie to Arkansas. His background, values, belief structure, and education, all from the good ole state of Oregon.
Yes, Snyder is correct in saying we must do something, but I’m disappointed none of them are questioning the method Paulson has chosen. The essential problem is the collapse of bank equity brought about by the sub-prime mortgage mess, which itself has been amplified by the mark-to-market accounting rules imposed after Enron. We can fix the problem by suspending the accounting rules, or by using the $700 billion to buy new equity in the banks in exchange for an ownership share. Do that, and you fix the problem without screwing the taxpayers in the process. But the Paulson plan fixes the problem by both screwing the taxpayers and enriching Wall Street even more in the process.
Contrary to the earlier comment, the “Market” can’t fix this problem alone. This mess is the direct result of a decade of government misfeasance and malfeasance; the market distortions wrought by past government action are too deeply imbedded to be fixed by the market alone. Government created the problem, now government has to fix it. Otherwise, we face a repeat of the Great Depression.
Rep. Thaddeus McCotter has offered a ten-point plan that would resolve the crisis at little or no cost to taxpayers. He’s definitely on to something. Read more here: http://www.spectator.org/dsp_article.asp?art_id=13933