Kerry predicts Senate will take lead on bailout

The Massachusetts Democrat warned that without a package like the $700 billion one defeated this week by the House, more average consumers won't be able to get business or personal loans. He predicted the Senate will take up the issue as early as Wednesday and vote soon thereafter.

"What we have here more than anything is a crisis in confidence," Kerry said during a news conference.

The senator said he planned to vote for the bailout to help restore consumer confidence. He added: "This is not about a big Wall Street firm; this is about credit flowing to small businesses, to community banks, to people who need to keep their doors open."

While saying there was time for blame later, Kerry also told reporters he warned President Bush and Treasury Secretary Henry Paulson in January about the need to relax home foreclosure rules in an attempt to reduce the number of non-performing loans that hit banks.

"I don't like this, folks," he said. "You think I like having to come back and fix something 7 1/2, 9 months after I said there was an easier solution? You think I like come back after I said in '04 when I ran for president, 'We have to strengthen Fannie Mae and Freddie Mac?'"

And the senator said House Republicans broke their promise to deliver at least 50 percent of the votes needed to pass the bailout in their chamber. In the end, Democrats provided about 60 percent of the "yes" votes, while Republicans provided only 30 percent.

"It failed, sadly, because there are some people who place ideology, and a rigidity in that ideology, or some other interests, ahead of this larger interest," said Kerry.