This Week's Attitude

By Neil S. Friedman

Sure there are flaws in the financial rescue plan, which is a big gamble and has had tepid support. Of course, it's brazen corporate welfare. But the $700 billion is not just a bailout of Wall Street, it would help avert a chaotic economic disaster that would gradually trickle down to every street across the nation. It's an unpopular solution for the economic security of the nation.

So what did our representatives in Congress do? They rejected it. Afterwards, a few offered a bunch of lame excuses - while Congressional leaders, who failed to muster enough support, never uttered a word. Talk about a crisis of leadership!

Just when it appeared Congress and the president agreed on a practical rescue plan, the deal fell apart on Monday when a few miffed Republicans were dismayed by remarks made before the vote by Democratic Speaker Nancy Pelosi that were critical of the Bush Administration's economic policies. Some Republicans subsequently admitted their "Nay" votes had absolutely nothing to do with the speaker's statement.

Granted, Pelosi probably should have kept her mouth shut — at least until after the vote — but how juvenile was it for elected representatives to defy their own leaders and ignore urgently needed legislation that, at least, will stave off widespread economic panic for the time being?

In the days leading up to the vote, many Congressmen were bombarded by constituent hostility to bailing out unsound and shortsighted business practices of corporations that couldn't keep their heads above water. However, if those representatives would have reassured taxpayers that the bailout will stabilize the economy and that this clear-cut emergency requires immediate measures to be applied to avoid a total collapse of the nation's economic system. Perhaps that kind of guidance may have reduced the hue and cry against the bailout.

No wonder Congressional approval is at an all time low. The American public has little or no confidence in their elected representatives and is fed up with the whole lot of 'em!

Nonetheless, the nation's economy is on the brink of disaster and something has to be done NOW to keep the wolves at bay!

The last thing America needs at this critical junction is a Do-Nothing Congress!

Trickle down economics wasn't supposed to be like this. The theory is it increases the wealth of the rich with some of the additional funds eventually trickling down to the middle class and to the poor. But the recent meltdown of the financial markets almost caused a reverse effect and avoiding a widespread economic nose-dive is still not out of the woods.

Yet, it's doubtful any financial market executives are worried about where their next meal is coming from, whether they'll be able to afford college tuition for their children or make their next mortgage payment, while many middle and lower class families are already downsizing family budgets, if they haven't already been affected by the crunch.

Thanks to the irresponsibility of a few, the American Dream has turned into a nightmare for some! Something has to be done sooner to avert further economic failure and the possibility of a depression later.

Though it's unlikely we'll see bread lines or Hoovervilles (makeshift camps where the homeless and destitute lived sparingly in the Depression) sprouting up or tens of millions of jobless Americans with their hands out asking others to spare a dollar (inflation you know), those who distinctly remember the Depression, can tell you it's not something they wish on their enemies, much less their families, friends and relatives.

When they finally get around to it, Congress needs to establish new rules, including regulatory firewalls and the elimination of the open-ended policies that caused the subprime mortgage crisis that led to the meltdown.

Here are a few more items that should be considered:

•Fragile financial markets need stricter oversight of the financial institutions that took too many risks.

•Bad lending practices, fueled by irresponsible loans to irresponsible borrowers must not be permitted with innovative safeguards and a directory of checks and balances.

•Limit future bonuses and executive salaries that had gotten out-of-hand, while making sure they pay a fair share of taxes. (The former head of Washington Mutual Bank, which was taken over last week, was only in office for three weeks, but he walked away with an $18 million severance package!)

•Contain the failure so it doesn't have a rippling effect on the rest of the economy and restores confidence domestically and internationally.

As long as we're rescuing companies that got us into this mess, it's reasonable to bail out some of those whose homes were lost in the foreclosure crisis and prevent it from happening to others in the coming months.

If we can help rebuild what we destroyed in Iraq, to the tune of tens of billions of taxpayer dollars, to which the Iraqi government has not contributed enough, we can certainly lend a hand to fellow countrymen who foolishly got in over their heads in the mismanaged foreclosure crisis.

Some might even take a softer line when they think, "There but for the grace of God, go I."

Nevertheless, more than just bailing out large companies and homeowners is at risk. Small businesses are, too, and so are the jobs they offer to millions. Family incomes are also at stake.

For the sake of the nation, our elected officials must put aside bipartisan politics (are you listening Nancy?) and make what they may deem as unacceptable compromises until America's economy is back on track

Will the plan, when passed, actually work? In the short term, it ought to calm down fluctuating financial markets as a temporary bridge to recovery and infuse some degree of confidence. But, in the long term, the rescue plan must stabilize and restore integrity to the weakened economy. If the plan fails — and banks and businesses along with it — it will be equivalent of an economic 9/11 and the most expensive "bridge to nowhere" this country has ever seen.