Inslee votes ‘no’ on Bailout | Around the island

Published 3:24 pm Tuesday, September 30, 2008

Inslee votes ‘no’ on bailout

U.S. Rep. Jay Inslee of Bainbridge broke from fellow Washington Democrats Monday, voting against a $700 billion rescue package for financial markets.

The state’s five other Democratic Representatives, including Norm Dicks of Bremerton, voted for the bill, which failed by a vote of 228 to 205. Washington House Republicans opposed the package.

In a press release, Inslee said he had voted with his “conscience.” The proposed package did not contain enough safeguards for the investment of tax payer money, he said.

“If we authorize $700 billion in a bailout for Wall Street, we must ensure – and not just hope – that all the money gets paid back to the American taxpayer. The plan we were presented with did not do that,” he said. “Also, I saw no real provisions in the revised plan to help stem the real cause of the crisis, which is the collapse in our housing markets. We needed a pro-growth bill to stimulate the economy, and that was not what we got.”

Inslee said he supports congress staying in session until a comprehensive plan for addressing the financial crises is passed.

Bond market takes a hit

The controversial $1.7 million councilmanic bond that was passed earlier this month would have cost the city more if it were issued in the current market.

The unease on Wall Street has affected the municipal bond market, increasing rates on bonds such as those issued by the city.

According to Annette Sommer at Seattle-Northwest Securities, the group that sold the city’s bonds, approving the same deal today would have cost an additional $82,000 over the 20-year life of the bond.

The interest on municipal bonds has increased 40 basis points, or 40/100ths of a percent, since the council approved the bond sale on Sept. 10. An increase in interest from 4.47 percent to 4.87 percent.

Some council members were hoping to delay or kill the bond issuance by arguing for cuts to the $1.7 million bond.