News for Some Glass Companies? House Votes Against Bailout Measures
The U.S. House of Representatives voted 228-205 today to not accept
legislation designed to prevent potential economic meltdown. Under
the Bush Administration's proposed $700 billion bailout plan, the
U.S. Treasury would have purchased difficult-to-sell assets, such
as troubled mortgage-backed securities, from banks and other financial
institutions. According to MSNBC.com, not enough House members "were
willing to take the political risk just five weeks before an election."
The House's vote against the bailout comes as good news for some
glass industry companies. Moments before the House's decision was
announced, Jack Carter, president of Carter Glass Co. Inc. in Springfield,
Mo., told USGNN.com that he saw the bailout as a mistake.
He said it seemed as though the government was attempting to follow
the same path it did in the 1920s and 1930s and the government should
learn from history.
And as far as the glass industry specifically, Carter said companies
have already been hit with price increases this year, "and
more are on the way."
"Historically, ¼-inch clear glass has cost $1.50-$1.75,
depending on the supplier. Right now it's running around $2.25 to
$2.46 from a price increase issued at the beginning of September,"
says Carter. "So we've seen huge increases in inflation there."
Other groups, such as the Aluminum Association, spoke out in support
of the proposed legislation. The group issued a statement today
saying, "The bi-partisan agreement
is an important step
forward to ensure market fluidity." The association had commented
that passing the legislation would safeguard the market's ability
to support businesses and consumers.
But for Carter, not passing the legislation is the only way to
"I don't know of any other solution then to let the failed
businesses fail," he says. "I see no reason to reward
greed, and that's what caused them to fail to begin with."
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