Senate Chooses to Bail Out Wall Street - Jeopardizes Correction Mechanisms Already in Progress

Statement

Senate Chooses to Bail Out Wall Street - Jeopardizes Correction Mechanisms Already in Progress

Democratic challenger Bob Conley, running for South Carolina's U.S. Senate seat, is strongly opposed to the 74-25 decision of the U.S. Senate to bail out Wall Street at the expense of Main Street. "The Senate has passed up an opportunity to introduce critically-needed fiscal discipline into the capital markets," said Conley. "Government intervention will introduce new market distortions that will come back to haunt us in the very near future and likely will have a crippling effect on future generations," Conley said.

"Wall Street is perfectly capable of working through the current crisis," said Conley. "Firms in trouble are already selling off their assets, scaling down operations, moving out of risky lines of business, and laying off personnel. This is what troubled companies have always done when faced with a crisis," Conley said.

"The Senate is interfering with natural correction mechanisms that have already proven successful. Offering to put up $700 Billion in taxpayer dollars so Wall Street can restructure itself actually perpetuates weakness throughout our economy and sets us up for another ‒ perhaps bigger ‒ crisis down the road," said Conley.

"With $700 Billion to look forward to there is less incentive for Wall Street firms and everyone else to make painful, yet necessary adjustments, like allowing home prices to fall to a true market level," Conley said.

"Instead, this bail out tries to stem falling prices, stimulate sales of new homes, plus keep the value of existing homes artificially high - all this while saddling taxpayers with debt so toxic it can never be collected," noted Conley. "This is a recipe for disaster."

"Letting Wall Street firms, banks and other financial institutions work their way out of the problems they created is not meant to be punitive," said Conley. "The results will be more meaningful, long lasting, and pose less risk of a greater crisis in the future. This bail out may make a lot of people feel good in the short run, but in the long term it will be looked upon as a mistake," Conley said.

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