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McHenry speaks on bailout decision

Rick Fox | The News Herald

At the Reagan Dinner held Friday evening at the Community House Jim Jacumin (seated) listens along with a room full of Republican supporters as Congressman Patrick McHenry explains recent activity in Washington.

By Julie N. Chang | The News Herald

Published: October 4, 2008

MORGANTON - "It's been the most challenging two weeks in the four years I've been (in Congress)," Congressman Patrick McHenry told county Republicans Friday night at the annual Reagan Day dinner.

On the heels of voting no for a second time on the government's bailout for Wall Street, McHenry arrived at the Community House in time to deliver the keynote speech.

Dinner attendee Elinora Miller said she agreed with McHenry's votes against the bailout.
"I'm very worried (about the economy)," Miller said. "I don't think the bailout is going to work."

"I've been in Washington the past two weeks ... It's nice to hear something positive," McHenry said of the welcoming applause he received.

He swiftly turned towards the $700 billion bailout package Congress passed on Friday afternoon.

"I didn't go to Washington to frivolously spend your dollars," McHenry said.

"The challenge here is figuring out what is actually happening with the financial industry."

He then launched into a short explanation about mortage backed securities and their effect on Wall Street.

The congressman railed against the bailout and advocated a free market solution, citing the Federal Deposit Insurance Corporation as a model.

The FDIC was created in 1933 in response to the bank failures of the 1920s and 1930s. The organization does not receive Congressional appropriations; instead it relies on banks to pay premiums for insurance coverage and investments in U.S. Treasury securities.

"It's clear we have to take substaintial action to address our economic challenges," McHenry said. "This (bailout) was the wrong approach."

A representative for Sen. Elizabeth Dole read a letter from the senator addressing the financial crisis and bailout (she voted no) as well.

The state of the economy is also on local minds. N.C. Sen. Jim Jacumin argued for free trade on a local level to stimulate growth and job regeneration.