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closeU.S. Sens. Johnny Isakson and Saxby Chambliss flew around the state Friday to make their case for the federal mortgage crisis bailout, stopping in Macon just hours before the House of Representatives passed the package by agreeing with Senate proposals.
Neither man considered the $700 billion bill, which grew to $810 billion once other tax and spending provisions were added, to be perfect legislation. But doing nothing wasn't an option, the two Republican senators said.
Both of them said using taxpayer money to purchase toxic debt from financial entities was key to stemming a credit crisis that threatens to cripple America's economy. So did U.S. Rep. Jim Marshall, D-Macon, who voted for the plan. In fact, the vote split party loyalties. Georgia's entire Republican delegation in the House voted against the package even as Isakson and Chambliss stumped for it across the state.
None of Georgia's leaders promised that the taxpayers will get all their money back as bad mortgages regain value and are sold off. But they said the cash infusion - beyond being necessary to get credit flowing again - is an investment that will show returns in the federal treasury's bottom line.
"I think there's a good chance that, over the long haul, that all of this money could be paid back," Chambliss said. "But we can't guarantee that."
Said Marshall: "The plan we passed ... should pay for itself. And even if it doesn't, if it works, will pay for itself a hundred times over in all of the damage that will be avoided."
The bailout has been a tough political issue for Chambliss, who is suddenly in what could be a tight race this year against Democratic challenger Jim Martin. Polling has shown Martin within striking distance of Chambliss recently, despite the fact that Georgia is typically considered a heavily Republican state.
It's also a potential liability for Marshall, who faces Republican Rick Goddard in November in the 8th Congressional District. It's hard to say what the coming weeks will bring as the legislation starts to affect the economy, but Chambliss said calls to his office have been overwhelmingly against the bailout plan this week.
Martin seized on that and criticized the plan as "a typical Washington solution" that "fails to address the fundamental problems created by the deregulation of Wall Street."
"My opponent said he's opposed to it," Chambliss said Friday. "So he's in favor of sticking his head in the sand, allowing the stock market to tank like it did Monday. I'm not in favor of that."
Rhetoric like that puts Goddard in an interesting position. He came out strong against the bailout, attacking Marshall for his yes vote earlier this week and sticking to his decision Friday.
"I would have voted against this bill," Goddard said in a telephone interview. "I see this issue as everybody's yelling crisis ... and all of a sudden it becomes a crisis. We have rushed to judgment ... all because a bunch of congressmen want to get out of Washington so they can go home and politic."
Shortly before Chambliss and Isakson took the podium in Macon, Houston County Commissioner Tom McMichael told Chambliss he supported his decision on the bailout.
"I'm mad at Rick," said McMichael, a well-known Republican in Goddard's home county.
"Talk to him about it," Chambliss replied.
Libertarian Allen Buckley also is facing Chambliss in the November general election.
"I would have voted against the bill, obviously," Buckley said Friday. "I think the thing could have been done so that the people who are responsible for this mess are the only ones potentially at risk."
Though some have characterized the government's move as socialism, because tax dollars are being used to purchase private assets, Chambliss and Isakson said the program doesn't represent a fundamental change in America's economic system.
"Every time we have taken action decisively when credit is in danger, it has worked," Isakson said. "Time and again, the practice of federal intervention in the equity market ... has always paid off."
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To contact writer Travis Fain, call 744-4213.
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