Congress is Asking Administration All the Right Questions: $700 Billion Bailout is Unbelievable

Democrats and conservative Republicans in Congress appear to be asking all the right questions about the Administration's plan to take over all of the "toxic debt" that Wall Street ran up.

The Secretary of the Treasury and the Federal Reserve Chairman appeared before Congress for a second day to push through the Bush Administration's bail-out plan. Congress gave the two a frosty reception again and started right in on the proposal, asking for modifications to the plan. And it appears that there has been a tiny bit of progress.

The Democratic position is that the plan should also help common people who are struggling with their mortgages and are in danger of foreclosure. They want to change the bankruptcy laws of the nation so that struggling homeowners can be thrown a lifeline too and restructure their mortgages.

Conservative Republicans think that this plan is financial socialism, which they don't agree with and won't support. They want everyone to stop and think this thing through before enacting a bad plan that gets rushed through just because the Administration wants it.

One of the committee members asked if it was possible to give Wall Street a fraction of what was asked for in the plan: $150 billion instead of $700 billion, with the possibility of the Administration coming back and asking for more. They got a big "NO!"

I'm still not convinced. I think that $700 billion is just the start and they'll come back and ask for another $500-$750 billion in six months. We can't afford that!