Senate Passes "Bail Out" Bill, On to the House

Opponents are deeply concerned that it will be the American taxpayer who bears the burden for poor business practices engaged in by some lenders.

WASHINGTON, DC (Catholic Online) - In an unusual procedure, Wednesday evening the United States Senate became the initiating body for a piece of Federal legislation. By a vote of 74-25 they passed a substantially revised "bail-out" or "rescue" bill, sending it to the House of Representatives.

That deliberative body, which rejected a prior bill, is still engaged in a rancorous debate over whether the new measure will receive majority support as the members continue to receive overwhelmingly negative input from their constituencies at home.

Word on the Hill was that House supporters of both Parties were already engaged in efforts vote to persuade doubting members to support the legislation when it comes for vote on Friday morning. Thursday will be a day of high intrigue, both on Capitol Hill and on Wall Street as Americans wait to see what the final outcome of what has now become a piece of legislation the length of a novel.

The new legislation has several new provisions. It appears that they will secure the dozen or so extra votes necessary to ensure passage this time. They include a raise in the threshold of FDIC insurance for individual bank accounts and substantial tax incentives and breaks for small businesses and middle class voters.

This legislation still allocates billions of taxpayer dollars which allow the Treasury to buy bad mortgage loans and troubled notes. Proponents say that this will enable the removal of these assets from balance sheets and thereby enable the credit market to again be free to provide resources for consumers and move the stalled American economy.

However,opponents are deeply concerned that it will be the American taxpayer who bears the burden for poor business practices engaged in by some lenders. In addition, there is a growing suspicion concerning the lending practices of Fannie Mae and Freddie Mac whose behavior may soon become the subject of Federal investigation.

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