Heller: Bailout a bad deal

An overwhelmingly negative reaction was the reason Rep. Dean Heller, R-Nev., voted against the $700 billion bailout aimed at bolstering the nation's imploding financial industry.

"Since last week, I've received about 1,000 calls a day," he told those attending the Douglas County Critical Issues Conference at the Carson Valley Inn on Tuesday. "Fifty percent of the callers said 'no.' The other 50 percent said 'hell, no!'"

The plan, announced last week by the Bush Administration, was designed to remove troubled assets from the marketplace by using taxpayer money to buy the assets from struggling financial institutions.

Heller likened the deal to a garage sale.

"It's like spending $700 billion on junk and hoping it's worth something in five years," he said. "Wall Street is arrogant. They created this problem and everyone knows they created this problem.

Heller said those who voted against the plan on Monday knew it was not a good deal for the American people. Heller faulted the Bush Administration for rushing to economic judgment and scaring investors into turmoil.

"I knew the market was going to drop because of the way the president was talking," he said. "It was either this plan or nothing. Every alternative was rejected."

Heller acknowledged the dire condition of the economy, but said other options should be considered.

"I believe more options are available out there," he said. "The banks need time and capital."

Heller said bankruptcy courts could help failing companies remove the toxic assets from their books. He also encouraged the Federal Deposit Insurance Corp. to raise protections on small business accounts from $100,000 to $300,000.

Heller said both Republicans and Democrats helped cause the economic mess by removing barriers to subprime lending. He said even if the bail-out had passed, there would be no sure way to fund it.

"We don't have that kind of money," he said. "We can print more of it, or borrow it. I'm not sure where it would come from, but it would be settled on the backs of the next generation."

Heller said the amount of arm-twisting in the nation's capital over the last week was astounding. He said most Republicans who voted for the bail-out were either in leadership positions or were close to retirement.

"I wish I had a list of all the groups who wanted us to vote for this," he said. "You have to know why you are in Congress. If you don't know that, then you are in a wilderness."