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Experts say US bailout may help problemmakers


April Williams,CNN
Sep 29, 2008 at 12:42pm IST

Atlanta: After a long working weekend, lawmakers have put the fruits of their labor on the table. A tentative agreement on the $700 billion bailout for the beleaguered financial sector was put out online Sunday.

Since Treasury Secretary Henry Paulson announced the bailout plan, Conservatives have raised objections and have called for a privately-funded insurance program to be in place to protect taxpayers.

"I think the important thing that the Republican members in the House want to see is that taxpayers are not the ones left holding the bag," Congressman Eric Cantor said.

The top House Democrat involved in negotiations said an insurance plan, while not a bad idea, does not deal with the current problem of firms stuck with bad assets.

One analyst, who backs the bailout, does fear it could also end up helping those who contributed to the problem.

"Some people are going to be bailed out, who don't deserve to be bailed out. But most importantly people who don't deserved to be punished are not going to suffer from a real meltdown of the economy," said economic analyst Tom Friedman.

Lawmakers worked Sunday with hopes of getting an agreement out by the opening of Asian markets on Sunday evening and Wall Street on Monday morning.

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