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Theron criticizes Baldwin's vote for bailout
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MONROE - Rep. Tammy Baldwin, D-Madison, says her congressional district's residents should be worried after Monday's defeat of a $700 billion bailout of financial institutions.

Her Nov. 4 general election opponent, Madison Republican Peter Theron, says people should be thankful.

The candidates in the 2nd Congressional District race weighed in Monday after the financial rescue package failed in the U.S. House of Representatives by a 228-205 vote. Baldwin was one of five in the Wisconsin delegation to vote in favor of the legislation, including Democrats David Obey (Wausau), Ron Kind (La Crosse) and Gwen Moore (Milwaukee) and Republican Paul Ryan of Janesville.

"Today's defeat of legislation designed to prevent a collapse of our banking and credit systems creates greater uncertainty in already troubled times," Baldwin said in a news release after the vote. "Wisconsinites are understandably worried about the state of their pensions, student loans, mortgages, jobs and ability to draw credit."

She said the bill voted on Monday "was not perfect, but it was a significant improvement over the unacceptable blank check requested by President Bush a week ago."

Theron was critical of Baldwin's support of a "bailout of Wall Street's most irresponsible businesses."

"Baldwin voted for a bill that failed to protect taxpayers while shoveling a bailout to the biggest failures on Wall Street," Theron said in a news release.

He blamed Congress' approval of the Community Reinvestment Act - passed in 1977 and requiring banks to lend in low-income neighborhoods where they take deposits - for forcing banks to "lend to unqualified borrowers."

"Now the failure of these mortgages is at the heart of this financial crisis," Theron said. "An unregulated and reckless Congress got us into this problem. Their solution is to concoct a bill overnight that spends billions of taxpayer dollars. We should not expect a bill written in a breakneck fashion by those responsible for the problem to get us out of this mess."

Theron said he supports eliminating capital gains taxes and cutting "bureaucratic red tape to facilitate more liquidity in the financial market" as solutions to the crisis.

"Any solution to the current hardship also must dismantle Fannie Mae and Freddie Mac," Theron said. "This bill did nothing to address how Fannie Mae and Freddie Mac contributed to this problem."

Baldwin, however, said the bill was a "first step in addressing inadequate legislation, lax enforcement, limited oversight and unrestrained greed of corporate executives." She said the bill would have provided help to those facing foreclosure on their homes.

Baldwin said it was "stunning" to see markets drop Monday as it became clear the House would not pass the plan.

"I certainly think that Congress and representatives will be heavily influenced by what happens next in the markets and lending and banking," Baldwin said.