I heard both Congressmen Paul Ryan and Jim Sensenbrenner interviewed on Jay Weber's radio show this morning. (Hour 4 Part 2). Since I trust the opinion of both of these men, I was curious as to why Ryan voted YES and Sensenbrenner NO on the latest bailout bill. 

First Congressman Ryan, who does have a degree in economics. The following are some notes I took from the interview--they are not direct quotes. Listen to the podcast if you can.

Ryan said the bill yesterday was the Paulson plan with quite a bit of tweaks.

The original Paulson bill was 3 pages: Give me a blank checkbook with $700billion.

We wrote a [Republican] alternative. Ours said, Let's make the firms buy insurance.

We rewrote the bill, added stock options--warrants to taxpayers, so the taxpayer is first in line to get money back (if there are profits--that means ACORN would not be getting funding as the orig. Paulson bill stated.) Executives won't get a Golden Parachute.

This bill was $350 billion: $250b immediately and $100b later. An additional $350b would need to be voted on in the future.  

Over the weekend, credit markets went crazy. The problem is not just on Wall Street. Credit markets are shutting down. [That means cash flow for payrolls is unavailable.] There is a fear of recession.

"I'm now sincerely worried this could lead to recession."

Jay Weber: Can we move slowly or do we need to move quickly?

Ryan: Tax money goes out the door either way, this way (bailout) or from FDIC (if banks fail.) Paulson mishandled this so badly.  We added 107 pages to his bill. 

I have never seen things like this [credit freezing up]--ever. Businesses won't be able to cash flow payrolls.

Weber: There is a deep distrust of Congress.

Ryan: 2,300 calls [to my office] almost all against the bailout. [That is changing a little now.] We have to corral Wall Street so it doesn't spill to Main Street.

Weber: Why aren't Republicans hammering this?

Ryan: I am. Since 2002 I have voted against Freddie and Fannie every time.

I think Paul Ryan voted for this measure because he is genuinely worried about our economy shutting down. He knows that if businesses cannot get credit to meet their payrolls, that means workers do not get paid. With many Americans just a paycheck away from being broke, we cannot afford to let that happen. Businesses also use credit to purchase supplies and equipment for future production.

Then it was Congressman Jim Sensenbrenner's turn:

Paulson [Barney Frank] plan fatally flawed from the beginning. That money all came from taxpayers.

The word was, $700billion would not be enough.

America can't afford this. We are wealthy, but there is a limit. 

All of this is inflationary. Interest rates will shoot up. [Remember] 20% prime rates during Carter? 

We should go back to the regular order [of crafting legislation] with committee meetings, rather than Paulson saying we have to do this.

Weber: We're racing against the clock.

Sensenbrenner: When markets opened [today] they were up 200, so hopefully the markets have calmed down.

Paulson is pushing for now. It bailed out the people who caused the problem.

I'm prepared to go back when Pelosi calls us back.

This is a case of Congress serving the people. 

Weber: What angers people is Frank and Dodd in charge of the fix. Is there any mechanism to say when you failed the people, get off the committee!

Sensenbrenner: The Community Reinvestment Act was a significant factor [to what is going on.] 

The process worked yesterday. The speeches like from Pelosi need to stop. She also knew there were not the votes to pass. Why did she bring the bill to the floor? [To fix blame on the Republicans]

Weber: Would you change the Community Reinvestment Act?

Sensenbrenner: Repeal of that law should be in the new package now.

The Security and Exchange Commission dropped the ball--enforcement was not vigorous. 

The Justice Department should investigate if any fraud was committed. [Imprisonment would serve as a deterrent.]

So there you have the Yea and the Nay. Where is Solomon when you need him? 

Conservatives would hope the next version of the bailout bill would be better for taxpayers, that it keeps money from ACORN and repeals the Community Reinvestment Act. With this crew I don't have much hope.

My fear is that the next version will included ACORN funding again or worse. The Democrats will vote for it, and President Bush, who is really over a barrel here, will have to sign it.

Calls from Americans running 500 against, to 1 in favor, of the bailout might be the only thing that saving us from an UGLY pig of a bill.

Post Script: Along the lines of Sensenbrenner's request that they craft this bill carefully, 165 Economists rip bailout plan:

The economists say they are well aware of the current financial situation and agree there's a need for bold action but ask Congress "not to rush."

They urge lawmakers to hold appropriate hearings and "to carefully consider the right course of action." 

Right now the market is up 307 points from yesterday's close. You can check anytime on USAToday. (If you leave it open, it automatically refreshes.) 

Please, comment content should relate to the subject of the post. Although I try to respond to many, do not interpret my lack of a response as agreement.

Links: 

It has happened again. Tainted Chinese made baby formula* has caused 3 infant deaths in that country. More deaths will probably follow since 1,253 babies are already sick, and at least 10,000 infants have been exposed. (In 2004, 13 babies died from "drinking fake milk powder.")

Now the Chinese government is cracking down. China arrests 12 in milk scandal:

Suppliers are believed to have added melamine, a banned chemical normally used in plastics, to watered-down milk in order to make it appear higher in protein.

The additive is blamed for causing severe renal problems and kidney stones.

...Tests have shown that 69 batches of formula from 22 companies contained the banned substance.

If that chemical sounds familiar, it is because melamine was the same culprit in last year's dog food recall that caused thousands of American pets to die. It is not included by mistake; the toxic chemical is added because it is cheaper than producing the product properly. In other words, they do it to cheat. (I don't believe the Chinese have the same ethical prohibitions to cheating that Americans do.)

China's track record on producing safe products is shaky at best. 

It has also raised questions about China's ability to police its food production industries after a series of health scares - and fatalities - in recent years.

These have ranged from the contamination of seafood to toothpaste and, last year, to pet food exported to the US.

Not only are food products in question, but the lead paint on toys scandal last year makes me doubt their veracity on other fronts too.

My advice is to start reading labels--including mainstream American company brands. When you start, you may be as surprised as a family member was to see American Co. juice boxes marked, "Made in China." 

The tilapia I so enjoyed was also marked, "Made in China." Since tilapia is pond raised, I had to wonder, what are the Chinese feeding them? Do I trust them to do the right thing? No. I suddenly lost my appetite.

On non-food products with a more personal connection, such as sun screen, mouth wash, baby bottles and pacifiers, make-up, medications, toddler toys--anything that goes in the mouth or on the skin--I would avoid "Made in China" or made in the 2nd or 3rd world too. (Reputable countries such as Canada, Germany, UK, France, etc. would be probably be OK.)

It is one thing to purchase a pair of "Made in China" shoes that fall apart in a month, quite another to give a toddler a toy with lead paint! I don't mean to suggest that the Chinese are the only people motivated by greed, but your chances of getting what you pay for are higher when you buy "Made in USA."

Not only will you be protecting your family from possible harm by buying American, but you will also be helping our own economy. 

*OK, here is my chance to pitch breastfeeding, which is by far the best method for feeding an infant. La Leche League helps women worldwide to learn how to breastfeed their infants. Nursing provides better nutrition and immune defense to infants, be they in the USA or 3rd world country--and no worries of tainted, improperly, or inadequately configured formulas.

Brookfield District 7 Info meeting, Wed., Sept. 24, 2-3 or 6:30-7:30pm

Please, comment content should relate to the subject of the post. Although I try to respond to many, do not interpret my lack of a response as agreement.

Links: 

Brookfield7, Fairly Conservative, Betterbrookfield, Mark Levin,  Vicki Mckenna