For Many Americans, Fear and Distrust Run High

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Reactions: House Rejects Bailout

Just across the river from Capitol Hill, reactions varied as news of the bailout bill failure hit Arlington.

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To a degree that few Americans could have appreciated just a few weeks ago, the economy runs on credit. But politics runs on a form of credit, too, generically known as trust, and trust has been a scarce commodity recently in Washington.

President Bush, burdened with historically low approval ratings, was slow to try to sell to the American people what he called a "rescue." Academic economists frowned upon the legislation, and radio talk show hosts railed against it.

The bailout lacked a sympathetic character at the heart of the narrative. And many Americans simply did not believe that the government had the basic competence to do the right thing.

"You've got massive public distrust and dissatisfaction, with the bailout specifically, with government in general, and George Bush and the entire political establishment," said Doug Muzzio, professor of public affairs at Baruch College in New York.

In a USA Today-Gallup poll conducted Friday and Saturday, 39 percent of respondents said they approved of the way Democratic leaders in Congress responded to the financial crisis, 31 percent approved of the Republican congressional leadership's response, and 28 percent approved of Bush's handling of the situation.

"This vote is a reflection of a lack of political capital, not of financial capital," said Mitchell Moss, a professor of urban planning at New York University. "The bankruptcy exists in our political leadership, not on Wall Street. We need to bail out Nancy Pelosi and George Bush."

For some, this was not just an unwise bailout but also an outrageous one. Geoffrey Cotter, 65, a real estate broker in Henderson, Nev., who has seen the housing market collapse, said yesterday: "I work hard for my money. Why should I be giving it to these big banks?" He added: "Instead of having a bailout, why don't we have indictments?"

Some people said they support some kind of rescue package, because they see no alternative. In a Panera restaurant in Skokie, Ill., Yvonne Fogerty, 59, a retired federal probation officer, said that if Congress does not act to solve the problem, lawmakers will be voted out of their jobs. "The government has a role in keeping the economy going. If they don't do this, there's going to be a big crash. The economy could go down the drain."

Alberto Tumitati, 47, a maitre d' at an Italian restaurant in downtown Washington, said he found the House vote unsettling.

"The government should be helping the economy in any way it can -- big guy or small guy," he said, leaning against his Humvee near 19th and L streets NW. "If the big companies are in trouble, then we're all in trouble. We need a strong economy. Why do they want to screw it up?"

At a Manassas dry cleaner, Fauquier County resident Dana Conners, 51, said she feels conflicted about the bailout plan. On the one hand, she is outraged by the idea of a taxpayer rescue for financial executives. Then again, she is worried.

"We have to bail them out," said Conners, an insurance agent. "I don't want to work until I'm 85."