John Makridis, owner of Big Fred's Roast Beef on Center Street in Bangor was asked about the U.S. economy bail-out plan. "This is the end of the rope for me between my health and my finances, " said Makridis. " It's going to take a long time for us to get out of this."
BANGOR, Maine - For John Makridis, it’s a sobering thought knowing that politicians in Washington, D.C., are deciding how to address perhaps the biggest financial crisis since the Great Depression.
“Why doesn’t the government bail out little people like me?” Makridis asked Friday in the doorway of Big Fred’s on Central Street, a variety store he has owned for the last seven years. “I’m in danger of going under, too. If I don’t do business, I close my doors, but they won’t let doors close on [Wall Street]?”
Richard Bellows, who owns a pair of businesses in Pittsfield, had similar concerns.
“Who knows what the credit situation is going to look like and how many of my customers will disappear,” he said.
Even as “don’t panic” reassurances have been made en masse, Mainers seem uneasy about putting their faith in an unpopular president and a Congress that hasn’t exactly inspired confidence.
“We voted these people into office to take care of these things, and so far they haven’t,” Stephen Iwaniszek, 47, said Friday outside the post office in Bangor. “I don’t blame one side; I blame them all.”
“To be in politics usually means you have to have some sort of money to get started,” added Melinda Whelan, 35, of Brewer outside Bank of America in downtown Bangor. “So how can they really know the middle class?”
In other words, she said, the same lawmakers who helped get the country into this economic mess are attempting to fix it.
“I think it is an injustice to the taxpayers to bail out these companies that have richly paid CEOs who didn’t run their companies properly,” David Roberts of Dover-Foxcroft said. “It’s bad business to have Big Brother sorting out the ineffectiveness of these individuals who are paid handsomely to run those businesses.”
Politicians and economic leaders spent most of the day Friday continuing their discussion of how to remedy the crisis, including a $700 billion financial recovery plan proposed by President George W. Bush. No deal had been reached as of Friday evening, but negotiators expressed optimism, if not urgency, that common ground could be found.
“It’s important for people to take a deep breath and recognize the seriousness of the situation,” Gov. John Baldacci said. “This is not just a Wall Street crisis; this is a Main Street crisis that affects everything from mortgages to student loans to business investments. We just had a $50 million revenue bond pulled from us [the State of Maine] because of this. It hurts all of us.”
State Senate Minority Leader Carol Weston, R-Montville, was confident that the federal government would find a solution but worried about the precedent the bailout could set.
“What I am hearing from my constituents is ‘I am struggling as it is now, and I am going to have to struggle even more to help people who were reckless?’” she said. “We do not want to reward people for bad behavior and we want to make sure that we send a message that if you’re going to be reckless, there will be consequences.”
Assistant Senate Majority Leader John L. Martin, D-Eagle Lake, was more critical.
“I think that clearly the [Bush] administration saw this coming a long time ago and never told anyone and then threw it at Congress at the last minute,” he said. “I have to have some confidence in the secretary of the Treasury and the Federal Reserve Bank and I suspect [the bailout plan] is necessary. What I think is unfair is that the administration is incapable of doing anything to help the average citizen, but not afraid to come forward and help those with deep pockets.”
While many banks and other local financial institutions have spent the last week trying to downplay the crisis and offer suggestions, most Mainers are simply scared.
“I’m worried about my retirement,” said Stephanie Graves, 58, of Bangor. “This is a huge bailout, and it seems like it’s being rushed into.”
Graves also wondered whether the Bush administration is trying to scare America into supporting the bailout before considering all options.
Retiree Milton Kirk of Pittsfield said he had put away $20 every paycheck all his life for retirement and had expected his nest egg would last him into his 90s. Now, he’s not sure.
“This situation could very well ruin me … Frightening is a good word to describe the situation now,” he said. “I am scared. Who wouldn’t be?”
Rebecca Martin, 46, of Bangor recently went on disability and is worried her benefits might be cut to help ease the economic burden.
“You never know what they might have to start cutting,” she said.
Amid all the talk of a federal bailout, though, no one seems to have come up with a viable alternative.
“Clearly, people think the economy is in a pickle, and they see it overwhelmingly as the top issue facing the country,” said Amy Fried, a political science professor at the University of Maine. “The polls that are out there show that people want some action. They want some sort of oversight, even if they don’t want the amount of money that comes with it.”
John Colson, 39, a Rockland native who now lives in Orme, Utah, said the bailout would work if the politicians were willing to make everyone accountable and everything in the agreement transparent.
He deplored the idea that so much of the money could be used to bail out executives.
“Bailing out executives does not go down well with the American people,” he said. “A lot of people in the industry have lost their jobs. Who’s going to bail them out?”
Many are critical of the Bush administration, and by extension Republicans, for creating the mess, which Fried said is normal.
“Some of it is simply the party in power when there is an economic crisis that gets blamed, but Democrats have been viewed more positively on economic issues,” she said. “There is probably a strong majority that doesn’t want government to be involved in this at all, but they also have come to believe that it’s necessary.”
As much as people want to see a quick fix, most Mainers are realistic.
“If there is going to be any solution, it’s going to take a long time,” said Cory Gagnon of New Canada.
“We need to start concentrating on our own country and not so much on everybody else,” said Scott Robichaud of Fort Kent. “The [financial] situation is horrible, but it can be solved with the right leaders.”
Glenn Cummings, Maine’s Speaker of the House, agreed that now more than ever is a time for parties to unite.
“What I am seeing down in Washington right now is a phenomenal need for both parties to come together,” he said. “The implications for this are not just national but international. The government is moving in the right direction if they can get this agreement approved. I think that will help us here in Maine because the implications for credit are so important.”
BDN reporters Sharon Kiley Mack, George Chappell, Nick Sambides Jr., and Diana Bowley, and freelance writer Julia Bayly contributed to this story.
On 9/27/08 at 9:10 AM,
nezimaine wrote:
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Our enterprise system will work, just not overnight. To do nothing is the correct response. JP Morgans/Chase's purchase of Washington Mutual shows the system works. Listen to Allan Meltzer.
On 9/27/08 at 10:34 AM,
nurse54 wrote:
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I have a news flash for John Martin- President Bush DID warn Congress, on several occasions, beginning in 2003. He repeatedly requested that Congress pass legislation to increase regulatory oversight of entities such as Fanny Mae and Freddie Mac. Barney Frak (D-N.Y.) ridiculed him and stated that there was no need for such regulation. Much of this dates back to the Clinton administration, which threatened banks unless they made these sub-prime loans to people they KNEW could not repay them. My fellow citizens and I are fed up with the mud slinging and finger pointing. There is more than enough blame to be layed at the feet of BOTH parties. I agree with nezimaine- the markets will correct themselves and the only thing the government will do is prolong the inevitable. Does anyone know of any situation in which the government swooped in to save the day and actually did? The frightening thing to me is that neither of the two presidential candidates has a clue as to how to fix this.
On 9/27/08 at 11:09 AM,
David889327 wrote:
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Well said, nurse54. This is what troubles me about the prospect of Obama winning. Think of all the IRRESPONSIBLE Democrat hangers-on that would come along with him - people who either don't have a clue, or DON'T WANT to have a clue.
On 9/27/08 at 1:12 PM,
JJacob wrote:
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The current crisis can be traced to Fannie Mae and Freddie Mac. Congress guaranteed home loans to anyone; even if they had no way to pay the loan back. Democrats Barney Frank and Chris Dodd (Banking Committee) presided over this mess for years. It all goes back to Jimmy Carter, but it grew in scope under Bill Clinton, Jamie Gorelick, and Chuck Shumer. Janet Reno even threatened to INVESTIGATE any back that did not provide these bogus loans for the ‘underprivileged’. To add insult to injury, the very people who should be prosecuted for these crimes, (Frank and Dodd), are now in charge of the bailout!
And the first thing that House Republicans discovered in the new bill the Dems wrote was a staggering 20 PERECENT of the $700 billion was slated to go to more give-away housing programs including ACORN, which Obama worked for as a street organizer in Chicago.
Republicans including Bush and McCain were blocked by Dem party-line votes from addressing this problem for years.
Now the chickens have come home to roost. Frank and Dodd should be arrested and investigated.
On 9/27/08 at 1:42 PM,
MaineNYC wrote:
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As a Mainer who lives in NYC and litterally walks by Wall St every day I will be the first to admit that the banks and the overpaid CEO's are greatly at fault in all of this. However what bothers me equally is that the so called "little guy" isn't willing to take any responsibility for any of this. Again, I'll be the first to admit that banks shouldn't have issued subprime mortgages or other suspect loans, but if you make $50,000 a year you have no business trying to buy a $500,000 home. Why were all of these people lined up at their banks asking for loans for houses they couldn't afford to begin with? It's not the banks fault you can't afford the home, it's your fault for trying to buy a home that's outside your income level. If you bag groceries at Hannaford you shouldn't be trying to drive around in a BMW and live beyond your means. The banks should have known better then to issue these loans but at the same time we as consumers should have known better then to ask for them in the first place. This is nothing more then a case of too many people trying to keep up with the proverbial Jones's and live beyond their means. Yes the banks enabled people and made it easier for home owners to fall over the proverbial cliff but if people had just stayed within their means and not tried to more then they could afford this situation wouldn't be as bad as it is. My apartment isn't as flashy as some of my friends, but I know I can afford it, I know I can save a little bit of money each month and to me that's more important then impressing everyone around me. I wish more people had taken that attitude.
On 9/27/08 at 1:43 PM,
forpeace420 wrote:
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How are we going to fix these problems? I think the first step is to stop pointing fingers and start listening and learning people!
On 9/27/08 at 2:53 PM,
amanda wrote:
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who ever you are MaineNYC...well said!!!
On 9/27/08 at 4:08 PM,
bicycle1 wrote:
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Why would anybody blame this on the little guy. The housing bubble was created by wall street manipulation. The value of living within your means has been grossly inflated. That five hundred thousand dollar home is actually worth far less. There was so much money out there that a poor man could not find the means to live within. The house or rents all cost to much. The poor man's house goes into forclosure, the CEO who created the bubble takes a goverment backed bail-out. Seems like the only looser is the working poor trying to gather the means to keep up.
On 9/27/08 at 5:37 PM,
ilovebama_37129 wrote:
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If our representatives, no matter what political party, have not been fisical conservatives on spending with our tax dollars, I say vote EVER one of them out of office......................
On 9/28/08 at 9:54 AM,
Bangorian wrote:
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Yeah - please don't let an irresponsible Democrat into the White House. We should stick with the responsible Republicans, because they've done a fine job with our money for the last 8 years. Huge budget deficit, national debt growing at an alarming rate, Iraq war disaster.... All of you foolish Maine republicans need to turn off FOX News and WVOM long enough to get a clue. You're running us into the ground.
On 9/29/08 at 7:46 AM,
safedman wrote:
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House Financial Services Chairman Barney Frank, D-Mass., House Speaker Nancy Pelosi, D-Calif., Secretary of the Treasury Henry Paulson, and Senate Majority Leader Harry Reid, D-Nev., Should all be held personally accountable for this situation. Each and every one of them failed to do their job. You fail to do your job...you are fired. They will be allowed to stay in office, the tax payer will continue to pay them a salary the do not deserve and they will get richer and richer with the Pork they sign into this bail out bill. Read this bail outcarefully, eject everyone in congress with over 200,000 in their bank account and vote in the mortal man. Once you become a multi millionaire you (in your own mind) a God believeng you know what is best for the small people and do not listen to what they need or want.) Nancy Pelosi said how all of them feel when she made the statement they are saving the world. It is time for all of them to leave, cut their numbers in half to save the tax payer money and make them work for their pay. Support bills that prevent lobbiest from donating to any branch ov government
On 9/29/08 at 8:10 AM,
ckc1996 wrote:
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Top 10 Recipents of Fannie Mae and Freddie Mac Contributions
1. Chris Dodd D-CT $133,900
2. John Kerry D-MA $111,000
3. Barack Obama D-IL $105,849
4. Hillary Clinton D-NY $75,550
5. Paul Kanjorksi D-PA $65,500
6. Robert Bennett R-UT $61,499
7. Tim Johnson D-SD $61,000
8. Kent Conrad D-ND $58,991
9. Tom Davis R-VA $55,499
10. Chris Bond R-MO $55,400
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