Emergency Economic Stabilization Act of 2008

EMERGENCY ECONOMIC STABILIZATION ACT OF 2008 -- (House of Representatives - September 29, 2008)

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Mr. RAMSTAD. Madam Speaker, I rise today to oppose the Bush administration's $700 billion bailout plan for Wall Street firms and banks.

The administration's bailout plan imposes great risk to taxpayers and no guarantee of success.

Because this bill was considered in such haste, without adequate hearings or debate, nobody knows what this complex financial scheme will produce so the final cost to taxpayers is uncertain.

Four hundred of the Nation's top economists signed a petition to Congress objecting to the bailout plan, as they are skeptical of the Federal Government buying up toxic mortgage-backed assets from banks and hoping the benefits trickle down from Wall Street to Main Street.

According to these economists, the long-term effects of this financial scheme--higher inflation, a weakened dollar and a greater National debt--will outweigh any short-term stabilization of the credit markets.

Rather than providing $700 billion of taxpayer money to buy frozen mortgage assets to solve the current problem, Congress should adopt the plan to insure mortgage-backed securities through payment of insurance premiums by the holders of these assets.

I urge my colleagues to oppose this bailout.

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