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Updated 10/06/2008 06:44 AM

Local Democrats disagree over bailout

By: Curtis Schick

Local Democrats disagree over bailout
COLONIE, N.Y. – Last Monday, with family cheering, retiring Congressman Mike McNulty came home, many thinking for the final time. However, even then, McNulty knew he'd be back in Washington, waiting for a new bill bailing out Wall Street.

The waiting ending Friday with the House passing the revised Senate plan. A relieved McNulty touching down at Albany International Airport after voting yes again.

"It will open up the credit market that is almost frozen right now," said McNulty.

The bill also includes a few pieces of pork. But McNulty said additions like Alternative Minimum Tax reform and stirring up regional banks, kept his support with the Senate's plan.

"You could make arguments not to do it. I disagree, but that is the political process," said McNulty.

"I think it is a bad bill and could be dangerous," said Congresswoman Kirsten Gillibrand.

Gillibrand didn't change her mind either. The freshman rep, voting no again, says the Senate's plan put all the power in Treasury Secretary Henry Paulson's hands.

"This bill has basically one strategy. He is going to overpay for bad assets and then hold them and overtime, the tax payer money comes back. I don't know if that is going to work," said Gillibrand.

Gillibrand said the risky investments that led to the economic crisis need regulation not included in the bill and said you can get that by trading them like stocks are traded.

"They should be on an exchange they shouldn't be off over the counter. They should be on an exchange," said Gillibrand.

As for McNulty, he might not be home for good. He said the House could be back for a lame duck session after Election Day.