Sep 30, 2008 1:34 pm US/Eastern
Clinton: 'It Sounds Dire, But Commerce Could Stop'
Says She Understands The Concerns Of 'Innocent Taxpayers,' But A Possible 'Recession Impacts Everyone'
WASHINGTON (CBS/AP) ―
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New York Senator and former presidential candidate Hillary Clinton acknowledges the audience as she takes the stage at the Democratic National Convention at the Pepsi Center in Denver on Aug. 26, 2008.
Paul J. Richards/AFP/Getty Images
Sen. Hillary Rodham Clinton says the U.S. Senate may have to lead the way in passing a $700 billion Wall Street bailout package, now that the House has rejected the measure.
"I certainly would support the Senate going first, so long as we have the votes ... as early as tomorrow if that's what would make this process successful," Clinton told reporters by phone Tuesday.
The New York Democrat, who nearly won her party's presidential nomination, said she believes public opposition to the bailout deal may be weakening after the market reacted badly to the failed House vote Monday and more businesses express worries about the future.
"It sounds dire but there is a risk that commerce could grind to a halt," she said.
After the deal failed in the House Monday, the Dow Jones Industrial average sank 778 points, or nearly 7 percent, to its lowest close in nearly three years. It was the largest point drop and 17th largest percentage drop in its history, but far less severe than the 20-plus-percentage drops seen in the stock market crash of October 1987 and before the Great Depression.
The market recovered somewhat in Tuesday morning trading, rising more than 200 points by midday.
Clinton suggested negotiators on the government bailout package should "maybe cool off a little from the emotion and the pressure of the last two weeks and get back to Washington starting tomorrow and do what we have to do to try to stabilize not only our nation but the entire world."
Voters furious over the proposal to have taxpayers foot the bill should understand that it's not just a problem facing bankers, Clinton said.
"They have to recognize that we are facing a very serious economic slowdown, a recession that could be of long-lasting and deep impact," she said.
Without a bailout, Clinton said, "I think it will be even more expensive and difficult to dig ourselves out of this deep hole that we're in."
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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