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Nelson will back bailout package

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By NELSON LAMPE / The Associated Press

Wednesday, Oct 01, 2008 - 01:16:34 pm CDT

OMAHA — Nebraska Sen. Ben Nelson says he’s not happy about it, but he intends to vote for the $700 billion financial bailout package.

The Senate measure faces a crucial vote Wednesday night.

The Democrat said during a teleconference with reporters that his choice isn’t a pleasant one.

Story Photo
U.S. Sen. Ben Nelson, D-Neb.

“It’s like putting a pretty bow on a skunk. The skunk still stinks,” Nelson said.

Although Nebraskans and their banks have been prudent and generally avoided the excesses elsewhere in the country, Nelson said, the credit crunch is already affecting the state and its businesses.

“It is a domino situation any way you look at it,” Nelson said. “We’re an island, and the waters are rising.”

Nelson recounted a letter he said he’d received from a Gering company owner who was worried about access to operating capital, money he needed for payroll and other operating expenses as he awaited payment for his products.

“When credit disappears, let me tell you, that’s when jobs are lost,” Nelson said.

The senator said he doesn’t want Nebraskans to have to “feel the pain to understand why the remedy is important.”

He said he understands the public outcry against the bailout package.

“I understand there are those who are not sympathetic to Wall Street, and I’m one of them,” Nelson said.

“If it only ended with them ... I’d say, ’Write off your losses. You deserve it.“’

But he repeated his concerns about the immediate credit crunch and the investment and retirement fund losses that hit hard at middle Americans. He said immediate action was necessary, if lamentable.

“For those who think we have a choice, I wish they could be right,” Nelson said.

The legislation would let the federal government buy bad mortgages and other deficient assets held by troubled financial institutions. Advocates of the plan say it would help lift a major weight off the already sputtering national economy.

On Monday, Republican Sen. Chuck Hagel of Nebraska said he intended to vote for the measure, too.

“It will not solve all the problems,” Hagel said, “However, it will be important in helping our markets regain new confidence, which is the essence of economic stability.”


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DOC wrote on October 1, 2008 12:23 pm:
" Goodbye Ben. When you give our money to the people that stole the money, then it's time retire to your turkey farm. I don't know who you have been listening to, but it isn't the Nebraska voters. You have just given us billions of reasons to vote you out. "
also wrote on October 1, 2008 12:35 pm:
" Your vote for the bailout guarantees my vote against you, Senator Nelson! I wrote and called to tell you so. Obviously you're not listening! "
BPete wrote on October 1, 2008 12:40 pm:
" You and many others are screaming very loudly that if this bailout proposal is not passed then banks will stop loaning money (a “credit crisis”). I wish you or someone would explain how a bank stops loaning money and survives. I have deposits in banks and the banks are committed to pay interest on those deposits. The only way my banks can get the money for that interest paid to me is to loan money and to use part of that interest income generated by the loans to pay me.

Senator Nelson, your implication that banks will stop loaning money is like saying that Wal-Mart will stop selling their goods because of the recession. It makes no sense to me and should make no sense to any one in the media that is at all informed about how banks work. I can guarantee you that if banks stop loaning money (their primary source of income) they will all go belly up.

I have no doubt that banks will make the terms of loans tougher and they will increase interest rates to reflect a more realistic assessment of risk after the uncertainty of this bailout is done; but that is to be expected in a recessionary environment. After all the cause of this recession is partly the result of idiotic credit policies at banks. That does not mean that credit won’t be available as you seem to be trying to convince people.

I guess the money from the banks and insurance companies into your “campaign fund” is money well spent by them – too bad you aren’t running in November. "
Ditto wrote on October 1, 2008 12:45 pm:
" If its no good, don't vote for it, period. You wouldn't buy a car or mutual fund if it was no good, especially if you're told 'hurry up'. Very disappointed in you Ben. Consider yourself gone. "
marcel killsenemy wrote on October 1, 2008 12:54 pm:
" nothing better then making sure all your rich friends get richer. they had a article today about the CEO of WaMu getting paid 19 million dollars for the 3 weeks was in his job when the government bought and then sold WaMu. but of course its the taxpayers responsibilty to prevent banks from carelessly lending money. think about the future...what kind of world would we live in when we cant buy things we cant afford to pay for? please dont take away my ability to get so far in debt in one year, that i wont ever be able to pay back the money i owe in my entire lifetime. "
Bob wrote on October 1, 2008 12:55 pm:
" You people need to get a clue. Without the bailout we're in deep doo doo. "
NS wrote on October 1, 2008 1:05 pm:
" This is very disappointing to hear. I have voted for you before Senator, I will not make that mistake again. These banks that made high risk and ridiculous investments on speculation should be allowed to fail. The market should be allowed to adjust on its own, and life should proceed as normal. That's how business works, they made bad investments and the cost to them is failure. Credit will tighten, but it was way too loose to begin with and has needed to tighten for some time. I'm very disappointed to hear you will be voting yes, and I hope it fails again. "
stignob wrote on October 1, 2008 1:08 pm:
" Mr. Nelson should have voted for the "The Housing Enterprise Regulatory Act of 2005" along with all the other congressmen co-sponsored by John McCain and we wouldn't be in this mess. "
Lisa wrote on October 1, 2008 1:09 pm:
" I actually wrote to Ben Nelson last night asking him to vote no. If he isn't going to vote for what the people want done, then what's his purpose???

Could you please explain to people, the people who did vote for you, what this bill means once it is in place? We deserve that at least.


And another question - please tell my why my vote counts? "
mTm wrote on October 1, 2008 1:23 pm:
" No vote again from our household. Clearly the Washington Democrats are more important that the voting constituants. "
the failure of representative democracy wrote on October 1, 2008 1:35 pm:
" With our system of government the legislation that is passed doesn't have to reflect the will of the people. We elect these people who "represent" our wishes, then they typically don't even inform us of the decisions that they are facing in order to seek our consultation. Then when we hear their plans and tell them no, they can choose to disregard our will. A direct democracy would be far superior. Unfortunately that system cannot work in a nation the size of ours... "
Troy at UNL wrote on October 1, 2008 1:37 pm:
" How many votes do we need to gather for a recall of Senator Nelson? It sure doesn't sound like he is doing a good job of representing his constituents. "
Steve wrote on October 1, 2008 1:39 pm:
" Sounds like his usual double talk. "I'm going to vote for it but I don't like it." Did you ever notice that when votes really matter he comes down on the liberal side? That way Nebraskans are fooled into thinking he is moderate or even conservative. "
Sarah wrote on October 1, 2008 1:59 pm:
" BPETE nailed it. Banks are in business to make money. No loans, no profit. Yes money will become tighter. Only those capable of repaying loans will probably get them in the future. What a concept that is! Vote NO and force these financial institutions do business the right way again. "
not happy either wrote on October 1, 2008 2:42 pm:
" It is very simple if banks don't have money they will not lend it out. Right now they are not lending to each other on a national and international scale. Sooner rather then later this will trickle down to the everyday consumer and small business owner. Even McDonalds cannot get a loan. This bill is going to take the bad investments off the books of these large banks. They will then start loaning money to each other instead of hording every bit they get. This is the best of a bad situation, but needs to be done regardless. Check how the great depression started, this could be a repeat if this action is not taken. "
Efrain wrote on October 1, 2008 2:48 pm:
" Wow! They say we should study history so that it does not repeat itself... Now I'm not saying we would go into a great depression again, but if we look at some of the contributing factors to the economic event of the 20th century... and I'm not even going to scrape the surface here but...

The 1929 stock market crash seems to be the date many agree on as the onset of the depression. (Black Tuesday) So maybe we should be concerned with wall street... ya think?

When a bank fails deposits up to $100,000 are FDIC insured, but what about the rest of the money??? Where does it go? That money disappears from the economy, which has a negative effect on prices and can bring business activity to a stand still. Business customers are unable to finance their activities and so everyone linked to the bank or its customers is economically paralyzed in some way. Like the Gering company owner. If he can't finance payroll what's he going to do? He's going to have to let some people go! Where will they find jobs if other companies are having the same problem? We could go on and on about how all this is related but hopefully you start to get the picture.

The Great Depression saw a number of bank failures in the US and in other countries... much like what we are starting to see right now.

The banks messed up! YES! I hate the idea of having my tax dollars bail them out but it's like this. Let's say hospitals all across the nation mismanaged their facilities and were shutting down. Now we no longer have any hospitals in Lincoln because they all went down the drain. But there is a hospital in Omaha that managed to stay open. So ok, we go to Omaha. But now that hospital is overwhelmed with patients from all over... and again we can go on and on about the domino effect here.

Sen. Ben Nelson! Thank you for having the wisdom and insight to look ahead instead of just focusing on the now. It takes a great deal of integrity and courage to make a decision in the face of so much opposition. But you are right.

IF WE DON'T LEARN OUR HISTORY, WE ARE DESTINED TO REPEAT IT!!! "
Geronimoooo...... wrote on October 1, 2008 3:01 pm:
" The term 'Bailout' describes the act of willfully jumping from an airplane with a parachute. This unprecedented act by the government is not a bailout, it is the 'coach class' passengers, (American public) being dragged kicking and screaming to the door and being thrown out without a parachute to lighten the plane so the first class passengers and their expensive baggage to fly higher. No one who supports this should ever be re-elected. "
Gee Bob wrote on October 1, 2008 3:31 pm:
" Gee Bob, define do-do. My 401K hasn't had a decent return in seven years. Why knee-jerk now? You worried a few million or billion-aires going to lose out on something? Stocks were up and down before this and don't sell today, otherwise this doesn't affect us little guys. Don't buy the fear crap - think it thru. Read Ron Paul. Or even Paula Poundstone. They're making way more sense than "its bad, real bad, but won my vote." "
Sorry Ben wrote on October 1, 2008 3:33 pm:
" Sorry Ben, can NEVER vote for you again. "
i was taught wrote on October 1, 2008 3:49 pm:
" I was always taught that if you can't afford to buy it then you probably really don't need it. It's "credit" that has gotten this country into problems because to many people weren't responsible enough with their use of credit and go out and charge, charge, charge and then can't pay it back and then the rest of us responsible people end up having to pay for their credit mistakes. The banks and mortgage companies should have done a lot better job of making sure they were loaning money to responsible people years ago during the housing boom and then they wouldn't have gotten into this mess that the taxpayers will now end up paying for. Guess the responsible people get the shaft twice by first having to take on those added costs for irresponsible people with their credit and then now bailing out the banks, mortgage companies and insurance companies since they couldn't handle business properly in the first place. Credit card companies are something else this country should eliminate. Hey Ben, guess if I knew I there was a skunk then I sure wouldn't being trying to put a bow on it....especially if it stinks. Wonder how much money of this $700 billion bailout goes to bailout companies Senators have money/stock invested in? Crooks all over no matter where you look and they all seem to be at the top. Who should we as taxpayers believe and trust in anymore? "
Independent wrote on October 1, 2008 3:50 pm:
" Nelson understands the public feels betrayed by this bill, what the public denies is that there is a credit crisis. Many people who have checking accounts linked to money markets have gained a little interest. But now that has changed, money markets even posted losses. Cities, like Omaha and Lincoln, rely on selling of bonds to meet short term obligations, like paying salaries. So do health insurance companies who pay claims. If these entities don't have credit, then evryone is affected. Many people don't understand the effect each closing bank has on the broader financial stability of the state and nation. Lenders, developers, and mortage lenders helped create this mess as much as real estate speculaterors. The problem is real, it stinks but is also affeccting the financial system in ways Greenspan denied would be a problem. "
Ignignokt wrote on October 1, 2008 3:59 pm:
" Good grief people, use your brains! How can banks stop loaning money and stay in business?? Well, I suppose they would survive on the loans they already hold, wouldn't they?! They would continue to be able to hold existing loans, just not grant any new loans...does that make sense? And without the ability to grant new loans, people can't buy new vehicles...or get a mortgage for a home. This IS about protecting the everyday citizens, whether you realize it or not.

All you folks complaining about the way Ben Nelson is voting now are the same ones who come to Chuck Hagel's defense when he doesn't vote the way his republican supporters want. He's not put there to be your mouthpiece, he's there to represent the best interests of his constituents...and believe it or not, this bailout is in ALL of our best interests, lest we watch our economy take a nose-dive the likes of which few of us have seen in our lifetimes. "
Roger wrote on October 1, 2008 4:06 pm:
" None of you economic experts and self-appointed geniuses have a clue as to what you're talking about - but it's very entertaining. "
jon wrote on October 1, 2008 4:47 pm:
" Ben lost my vote "
RussianMike wrote on October 1, 2008 6:05 pm:
" A number of senators have reported the deafening scream from constituents in opposition to this bill as the primary reason for voting against it. I suppose that's all good and well in a representative democracy. On the other hand, I am disappointed that our representatives would go against their better judgment in simply order to keep their seats.

And let's be fair, folks. Your representatives have been stuck between a rock and a hard place. The bailout is wildly unpopular, and they may well lose their seats if they vote for it. However, if they cannot come up with a more popular solution to get our economy back on track, they will probably be blamed for sitting idly by, and be sent back where they came from anyhow - and still be in the middle of a depression.

If the bailout, however unsavory, is indeed necessary to keep the country from sliding into a depression (and this does look uncannily like the beginnings of The Depression of the last century), then we, the average Americans, may need to weigh our options. Shall we make everyone suffer through a depression, lose jobs and retirement funds, in hopes of making irresponsible Wall Street gamblers suffer along with us?

I do think that if a bailout is truly what we need, Washington ought to do more to convince the average American of the gravity of the predicament we are caught in. Screaming "credit crisis" has no effect on me at all. "
Waste of Time wrote on October 2, 2008 12:04 am:
" I also took the time to write and csll our Senators and Congressmen from Nebraska to strongly encourage them to represent the majority voice of the voting public in saying NO to this proposal. Yet again, it will be proven to me that irregardless of who we send to Washington, they can not be trusted to accurately represent our voice. "
Tara wrote on October 2, 2008 8:22 am:
" Unfortunately, its not as simple as giving billionares and huge companies billions of taxpayer dollars. These huge companies employ lots of middle class people, lend money to middle class people, and lend money to other business who employ middle class people. A prime example of "don't cut off your nose to spite your face." It just needs to be done. "
NASCAR wrote on October 2, 2008 10:42 am:
" Good job senator! You just approved a bailout bill for our economy that gives $128 million in earmarks to NASCAR tracks and $6 million to wooden arrows!!!! (among other things!)

When does an economic bailout for our economy turn into such a disgrace of a bill!!!!! I'M JUST TIRED OF IT ALREADY!!!! Everyone should readup on the so called "bailout bill". It's a joke! "
Just a thought wrote on October 2, 2008 11:14 am:
" Senator Nelson and Hagle have millions invested in the market. Do you think they want to see it crash? Of course they voted yes. They're looking out for #1. "
Mark wrote on October 2, 2008 11:42 am:
" When you lose your jobs, I hope you don't use the bailouts of unemployment benefits or welfare. I say if you guys are so willing to risk our economy's future just to punish some people who took a risk, you guys should be punished when your risk fails. "
Fouracres wrote on October 2, 2008 1:47 pm:
" Does anyone really believe that the bailout will prevent a financial meltdown on a level of the Great Depression, or merely postpone it for a short while and shift the burden of loss more broadly upon the shoulders of the ordinary citizens and off of those directly responsible for causing the mess? Our national debt has nearly doubled to over 10 trillion dollars since G.W. Bush assumed the Presidency. What the heck, let's tack on another billion dollars (more or less). It seems inevitable that a meltdown is coming and that this debt "based upon the full faith and credit of the United States Government" will eventually be defaulted. Also lost will be Social Security, Medicare, and government pensions. And before you accuse me of having a Chicken Little attitude, please explain how lasting prosperity can possibly be achieved through a program of constantly expanding borrowing and spending. "
you have my vote wrote on October 2, 2008 1:56 pm:
" Senators Nelson and Hagel. Thanks for doing the right thing even though it wasn't the easy thing to do. I will vote for you again and again and again. "
Ned wrote on October 2, 2008 2:40 pm:
" Why does he not explain that without this bailout no one will receive a paycheck and the economy is headed over a cliff and even Lincoln people will be in extreme economic pain. It aint wall street its main street getting bailed out. If its not passed all you folks who think it wont touch you will be living out of your car. "
Lisa wrote on October 2, 2008 3:58 pm:
" I'm not in panic. There are ups and downs in the stock market. When you invest in the market - you MUST know that.

We've been handing out houses to people who haven't earned them, or think it's just another purchase to put on their credit card to worry about later.

I for one, will take advantage of the low market prices and BUY BUY BUY!! Look at what Mr. Buffett is doing! "

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