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Alaskans speak out on financial bailout

by Lori Tipton
Thursday, Sept. 25, 2008

ANCHORAGE, Alaska-- U.S. lawmakers from both parties are considering a fundamental agreement on a $700 billion bailout of the U.S. financial sector.

But not everyone agrees with that decision.

Alaskans from all different positions have strong feelings about the issue and what should be done.

 "One thing the American people have to know is all of us around this table take the issue seriously," said President George Bush in an address to the country. "We know we have to get something done as quickly as possible."

The future of the country depends on Congress acting quickly to pass bailout legislation, Bush said. The federal government could potentially spend $700 billion in hopes of fixing the problem.

Financial advisor Garrett Wong says the U.S. economy could get worse if the federal government doesn't step in.

"We're involving government in areas that they've never been before, and the problem that sits before us is a new problem that hasn't been before," Wong said.

But Wong doesn't consider the legislation a bailout.

"We're not bailing out anybody, I don't think. We are trying to put legs back under a system that was working," he said.

Some Alaskans disagree.

"I don't want an economic depression or an economic turmoil. However, I don't feel like the American people should bail out corporate America due to their wrongdoings," said Steven Jones.

Margaret Auth took it one step further.

"I think that we should have an interest in the companies, just like we did with AIG last week, and I think that the tax payer should be the first ones refunded once they start selling off the mortgages," she said.

But Greg Kolean saw it as a necessary, if unfavorable, step to take.

"I think it's the lesser of two evils. If we do it, then we're bailing out private business, which I don't think we should be doing with tax dollars, if we don't, it might be a big step toward recession," he said.

Some constituents are going as far as voicing their opinions to their elected officials, including Sen. Lisa Murkowski.

"I'm hearing from a lot of constituents who say, 'Lisa, for heaven's sakes, make sure that you address the issue of executive compensation -- those who have failed should not be rewarded,'" Murkowski said. "And I agree with them."

Murkowski says it is not the federal government's intent to bail out those who made risky business decisions, but instead, bring back confidence in the U.S. financial system.

"This is what we're trying to do here is re-establish a confidence in the financial systems that make this country move.  That's what we need to be getting to. Not just willy-nilly spend $700 billion and hoping that it will make a difference," Murkowski said.

Top lawmakers are trying to decide whether to approve the legislation.

Under the proposed bailout, the government would buy mortgage-based assets from strapped financial institutions to keep them from failing.

The government is hoping this will prevent a ripple effect that could hurt retirement accounts, raise the foreclosure rate, and shut down businesses, which would lead to an increase in job layoffs.

Lawmakers have not struck a deal at this time, but President Bush says he is hoping that happens soon.

Alaksans are wondering how the financial bailout package could affect Alaska.

Despite our distance from Wall Street, the Last Frontier could feel the impact.

Financial analysts say it is still too early to tell, but they say the plan could provide major relief for consumers trying to get loans.

Meanwhile, President Bush says he hopes lawmakers can reach an agreement soon.

Democrats, Republicans, and the presidential candidates met with President Bush at the White House Thursday afternoon, but they still came out on two sides.

The president said the nation faces a serious economic crisis if legislation is not passed.

"All of us around this table take this issue seriously. We know we've got to get something done as quickly as possible. This meeting is an attempt to move forward," Bush said.

Thursday morning, the few Democrats and Republicans who've been negotiating announced they'd agreed to include oversight, help for homeowners, limits on executive pay, and taxpayer reimbursement

But others are skeptical about the rush to get the plan done quickly.

"We focused on solving the problem, rather than posturing politically," said Utah Sen. Bob Bennett.

"We spent more time in congress on steroid charges and baseball than on this $700 billion rip-off of the American people," said Texas Rep. Ted Poe.

Late Thursday afternoon negotiations broke down and the chairman of the Federal Reserve and treasury secretary went back to work with lawmakers trying to reach an agreement.

Contact Lori Tipton at ltipton@ktuu.com