Zeldin Blasts Bishop on Bailout - Village Beacon
Press Release
Zeldin blasts Bishop on bailout - Village Beacon
Challenger lays into congressman over support of $700 billion plan
By Gregory Zeller
Add the $700 billion economic bailout package to the long list of disagreements between U.S. Rep. Tim Bishop (D-Southampton) and Republican challenger Lee Zeldin.
Zeldin, a Shirley resident hoping to unseat the congressman after three terms, issued a press release Monday "demanding that his opponent vote against the misguided plan for main street's bailout of Wall Street." Despite this demand, Bishop voted in favor of the stimulus package, which was ultimately nixed by the U.S. House of Representatives (the bill, with added provisions including raising the FDIC insurance cap to $250,000, was slated for a Senate vote Wednesday evening, after press deadline).
In his customarily strong-worded release, Zeldin noted that Bishop "has voted lockstep with his party 99 percent of the time" and that "now is the time for him to show some intestinal fortitude."
For his part, Zeldin wrote that he has "reserved [his] support or opposition" of the bailout plan until he has "assessed all of the advantages and disadvantages of the various alternatives." However, he already believes the proposed bailout is "a short-term fix, not a long-term solution," and while it could lead to a quick spike in national markets, "the culture of corruption in Washington ... will continue to drive us deeper into debt nationally until challenged."
Bishop said Tuesday he supported the bailout plan defeated by two-thirds of House Republicans and a third of all House Democrats because it was "the most responsible vote."
"It's been represented that this is a bailout of Wall Street," the congressman said. "What this really is is protecting main street. We're trying to provide some economic stability to get the economy moving again and get people back to work, and keep people in their homes.
"What we tried to do ... was give the market the two things it needs right now: Confidence and liquidity," Bishop added. "The package would have done both."
As an alternative to the bailout plan, Zeldin suggested tax cuts designed to pump capital into the faltering markets. "Private capital should bail out Wall Street," the candidate said in his release. "By suspending the Business Tax and the Capital Gains Tax, we will free up private capital, which is a better alternative."
Bishop called that prescription "naive, or just wishful thinking."
"Actually, it's hopelessly naive," the incumbent added, "and typical of the right-wing doctrine on the economy: There's no economic problem that a tax cut can't fix."
The congressman predicted that a revamped bill would come before the House before the end of this week, suggesting that Tuesday's Wall Street rally was predicated on the belief that Congress would create and enact a new plan quickly. Bishop expressed hopes this second attempt would contain critical provisions missing from the first he predicted a provision allowing bankruptcy judges to adjust mortgages on principal residences would land 50 more Democratic votes while maintaining "strong language giving the Treasury secretary the right and obligation to re-configure mortgages ... so people could have more affordable monthly payments."
"What this needs to be about more than anything else is helping people stay in their homes," Bishop said.
Whatever Washington does with a new stimulus package, Zeldin said "enough is enough" when it comes to federal bailouts. Treasury Secretary Hank Paulson predicted a stabilized economy after rescuing Bear Stearns, Fannie Mae, Freddie Mac and AIG, Zeldin noted, and "a trillion taxpayer dollars toward bailing out our economy is entirely unacceptable."
"Where was Tim Bishop and his colleagues when oversight of Fannie Mae and Freddie Mac was most needed?" Zeldin said. "I agree that Congress must take action, but the current bailout plan is not the answer. Congress must look further into market reform as the best solution."
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