Valley politicians react to bailout

Local congressmen issued statements reacting to legislation the House passed Friday to stem an economic downturn many said could rival the Great Depression if Congress didn't act. Jim Costa, the incumbent representing Kings County, voted for the $700 billion package, as he had on Monday when the House initially failed to pass the package, a move that sent the stock market into its single biggest one-day decline ever.

The Senate passed its own version Wednesday by a wide margin, increasing pressure on the House to do the same in Friday's vote.

After blaming the "mess" on "seven-and-a-half years of the current administration's poor fiscal management," Costa said in a press release he supported the measure "not because it's the best, but because doing nothing with limited time is not an option."

Costa went on say that the "very foundation of America's financial system is in jeopardy."

Three of the four central San Joaquin Valley congressmen voted "yes" on the bill: Costa, Republican George Radanovich (Fresno) and Democrat Dennis Cardoza (Merced).

The fourth -- Republican Devin Nunes (Visalia) -- agreed that the situation is serious, but he wasn't willing to swallow what he called an "artificial choice (that) is in large part the result of panic created by government officials and Wall Street pundits."

Nunes said he wanted the bailout money to go directly to struggling banks, rather than toward buying "bad debt from Wall Street."

The main thrust of the plan is for the U.S. government to buy up rotten mortgage-backed securities held by investment firms.

Republican congressional candidate Jim Lopez -- a Bakersfield businessman challenging Jim Costa in November -- also opposed the legislation, saying that it was laden with "irresponsible spending."

"We are facing a financial crisis in this country caused by irresponsible lending policies promoted by liberal Democrats in Congress and now they want to add additional spending to this bailout legislation," Lopez said.

The reporter can be reached at 583-2432.

(Oct. 4, 2008)