With the proposed $700 billion business bailout to rescue the national economy beginning to fall apart, political leaders from Massachusetts and New Hampshire weighed in yesterday on what they think the country needs to boost its struggling financial markets.
U.S. Rep. Niki Tsongas said the initial plan by U.S. Treasury Secretary Henry Paulson was "too much about Wall Street."
She said it is important to inject democratic values into the plan that would ensure accountability and ultimately protect the taxpayers.
"We have to look out for Main Street," Tsongas, D-Mass., said in a telephone interview from Washington. "There are different viewpoints, but in the long run, we have to protect our constituents and our country."
U.S. Sen. Judd Gregg, R-N.H., said the country must have a plan that offers immediate stability.
"What is needed is a quick, firm, bold, and clear response that provides the Treasury secretary with the necessary authority to quickly stabilize the U.S. credit markets in the best interest of the economy and taxpayers," he said.
Gregg, the ranking member of the Senate Budget Committee, was optimistic earlier in the day and said in a statement that the proposed plan "puts us well on our way to appropriately and aggressively responding to the ongoing credit crisis."
"While no formal agreement was reached ... I look forward to further progress as these discussions continue at the White House, and I will continue to work with all involved so that the final solution puts us back on track to financial security," he said.
Key Democrats and Republicans announced with fanfare earlier in the day that they had the outlines of a tentative bailout agreement. That accord would have given the Bush administration just a fraction of the money it wanted up front, subjecting half the $700 billion total to a congressional veto.
But things started to fall apart later in the evening.
It was apparently a Republican revolt that stalled the efforts made during a historic White House meeting yesterday attended by presidential candidates Barack Obama and John McCain — one of whom will inherit the injured economy in January.
Last night's chaotic turnaround also appeared to kill chances for the scheduled debate between McCain and Obama in Mississippi tonight.
Weary congressional negotiators, joined by Paulson, gave up after 10 last night and were expected to resume this morning.
Bush said the plan must be passed soon to restart the flow of credit that has begun to starve the national economy.
Conservatives have complained that the plan would be too costly for taxpayers and would be an unacceptable federal intrusion into private business.
Democrats blamed House Republicans for the stalemate.
"I'm feeling somewhat puzzled at this point," said Rep. Barney Frank, D-Mass., the Financial Services Committee chairman who has been leading negotiations with Paulson. "We're closer to a deal among the House Democrats, Senate Democrats, Senate Republicans and the administration. ... We seem further away with the House Republicans."
"Sen. McCain and the president, between them, ought to be able to get House Republicans back to the table," said Frank.
The day's White House summit had been aimed at showing unity in resolving a national financial crisis, but it broke up with conflicts in plain view.
Late last night, McCain's campaign issued a statement saying, "The plan that has been put forth by the administration does not enjoy the confidence of the American people as it will not protect the taxpayers and will sacrifice Main Street in favor of Wall Street."
When Tsongas campaigned for her seat last fall, Iraq was the issue that consumed her time. Now, less than a year from taking office, the Lowell Democrat said she is spending long hours in caucuses discussing the bailout.
"Well I haven't gotten much sleep, but Barney Frank has gotten even less," Tsongas said after leaving one such bailout meeting last night.
Material from The Associated Press was used in this report.
She said the magnitude of the situation hit home when a fellow legislator who has served 25 years, said this was the most important vote he's faced.
"You can't pick and choose when you come in," Tsongas said.
"Our hope is to resolve this," she said. "You don't want to go too quickly because the issues are so highly complicated, but at the same time we're told we have to do something soon."
She believes a deal will be reached.
"I imagine we'll stay through the weekend and into the next week," she said. "However long it takes."
