Presidential candidates give opinions on bank bailout

Thailand News.Net
Saturday 20th September, 2008

Republican presidential candidate John McCain has said the US Federal Reserve should get back to its core businesses of managing the money supply and protecting the strength of the US dollar, rather than bailing out banks.

McCain has made clear he is against the Government bailing out struggling financial institutions.

He has also asked for an assurance that the bailout will be the last time taxpayer dollars are distributed on such a large scale.

Senator McCain has told reporters: "In cases where failing companies seek taxpayer bailouts, the Treasury Department should follow consistent policies in deciding whether to guarantee loans. It must have well developed remedies for a financial crisis. With billions of dollars of in public money at stake it will not do to keep making it up as we go along."

At the same time, his Democratic rival Barack Obama has said he will support the Bush Administration taxpayer financed bailout of the banks, as long as it also shields American workers.

Democrats are concerned that those who have made bad decisions on Wall Street will be rescued without similar help being provided to ordinary Americans.

Senator Obama said he would present his own detailed recovery blueprint once the Treasury and Federal Reserve plan is known.

The Bush Administration is working on the
details of the enormous economic program to rescue banks from billions of dollars of bad debt.

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