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Monday, September 29, 2008
McCain, House Republicans win
The Atlanta Journal-Constitution
No question House Republicans did succeed in making the $700 billion bailout proposal better — and credit should go to John McCain for pushing their concerns to center stage.
One feature that could have turned into a major-league boondoggle and payoff to Democratic activists — the provision that would set aside 20 percent of profits for affordable housing — was stripped from the bill over the weekend.
Another potential show-stopper was a provision — also stripped away — that would allow bankruptcy judges to rewrite mortgages. Mortgage contracts would mean nothing and it’s certain that higher mortgages for everybody else would follow as lenders built in enough financial cushion to protect themselves from that uncertainty.
House Republicans won in part, too, on their insistence that financial institutions holding bad debt be allowed to buy government-backed insurance as an alternative to dumping that debt onto taxpayers. Treasury Secretary Henry Paulson predicts that not many companies will choose that option, but it does nevertheless encourage them to work out their own troubled loan problems.
It’s uncertain now House Republicans will vote yes on the bailout, but passing it is essential. And it’s unlikely to get much better.
McCain made the right decision in returning to Washington and speaking up for conservatives in the House. He won. They won.
The course now is to vote yes.
