Survey: 7 percent of U.S. voters back bailouts

Phoenix Business Journal
Sep. 21, 2008

There is little public support for the federal bailouts of Wall Street investment and insurance firms and growing worries the U.S. is headed for another Great Depression, according to new national poll by Rasmussen Reports.

Rasmussen said only 7 percent of U.S. voters surveyed supported the federal financial bailouts with 65 percent saying they'd prefer letting the firms go under or deal with bankruptcy filings and restructuring.

The Federal Reserve is helping insurance giant American International Group with an $85 billion bailout. The federal government has taken over mortgage giants Fannie Mae and Freddie Mac and promised to assume as much as $30 billion in Bears Stearns assets earlier this year to help with JPMorgan Chase's acquisition of the investment house.

The federal government has not yet acted in regard to Lehman Brothers Chapter 11 filing or Bank of America's acquisition of Merrill Lynch.

Congress is also looking at massive loans for General Motors, Ford Motor Co. and Chrysler to help the struggling U.S. auto industry.

Presidential contenders John McCain and Barack Obama have begrudgingly backed the financial bailouts and also back federal loans to car makers.

McCain likes a $25 billion plan while Obama supports a $50 billion auto industry bailout.

The Rasmuseen poll also showed 45 percent of U.S. voters say it is at least somewhat likely the economy could face another Great Depression, up from 38 percent who thought that in March. Forty-eight percent think a depression is unlikely.

Rasmussen surveyed 1,000 adults Sept. 15 and 16.