Editorial: Facing our bailout fears

Congress makes progress in protecting interests of taxpayers.

Last update: September 25, 2008 - 7:33 PM

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The Mayo Clinic website says there's no sure way to prevent panic attacks, but fast treatment can keep them from getting worse or becoming more frequent. The website makes no mention of crippling fear caused by mortgage-backed securities.

Congressional leaders were working at what in Washington amounts to warp speed Thursday to give Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke most of what the two say they need to avoid an economic catastrophe. It's reassuring to see true bipartisan cooperation in this week's dealmaking, along with some intelligent additions to the blank-check proposal that Paulson and Bernanke wrote as a starting point for the negotiations.

Details of a tentative deal drawn up by House and Senate negotiators were still emerging late yesterday. A number of news reports said the legislation would include limits on executive pay for firms participating in the rescue plan, independent oversight of the program and provisions that would give the government an ownership stake in the rescued firms. The $700 billion would be made available to the Treasury in installments, giving Congress the ability to stop the program before the final $350 billion appropriation. Those measures are the least the government can do on behalf of taxpayers who will soon become the reluctant owners of billions of dollars in bad debt.

Those same taxpayers continue to ask the key question: Will a bailout stabilize the economy? There are no guarantees. Mayo's advice might be to practice deep breathing, consider meditation and focus on the positive.

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