Bailout Media Wrap-up

While the $700 billion bailout seemed a certainty only two days ago, outcry from the public and bi-partisan concern about giving the Treasury Department carte blanche has put some speed bumps in the path of passing this historical legislation. Though there is some finger-pointing going on between the two parties about who caused this crisis in the first place, it appears that an equal number of Republicans and Democrats are now questioning the wisdom of Secretary Paulson’s bailout plan and are willing to take a deep breath, step back, and consider all the options before saddling the tax-payers with this enormous and unpopular government intervention. Observing that the urgency placed on passing this plan immediately is reminiscent of Bush’s insistence on funding for the disastrous Iraq War, lawmakers are showing trepidation about making the same mistake twice. These kind of high pressure tactics are normally reserved for the used car lot, and our legislators are wise to think twice before investing the American public’s money into another Bush Administration lemon.

Bailouts Will Lead to Rough Economic Ride

By: Dr. Ron Paul - CNN

The solution to the problem is to end government meddling in the market. Government intervention leads to distortions in the market, and government reacts to each distortion by enacting new laws and regulations, which create their own distortions, and so on ad infinitum.

Socialism in the Treasury Chest

By: Mark Hemingway - National Review

“If you believe that the best way to handle the current economic crisis is hurling gobsmackingly large amounts of money at it, all to be used at the discretion of the Treasury secretary and the chairman of the Federal Reserve, you may well be an idiot. That’s according to a rule of thumb devised by famed investor Warren Buffett.”

How the Democrats Created the Financial Crisis

By: Kevin Hassett - Bloomberg

“In 2005 Alan Greenspan told Congress: If Fannie and Freddie “continue to grow, continue to have the low capital that they have, continue to engage in the dynamic hedging of their portfolios, which they need to do for interest rate risk aversion, they potentially create ever-growing potential systemic risk down the road.  We are placing the total financial system of the future at a substantial risk.”

Who Created the Financial Crisis?

By: Amos Wright - Examiner

“There’s a claim going around now that says “nobody knew this was coming.  It’s simply untrue.”

Pointing the finger squarely at government regulation and the Democrats that allowed it to continue, Amos Wright writes about the efforts of Republicans in 2005 to fix the problem and the possible reasons Democrats had for allowing the status quo to continue.

Just 7% Favor Fed Bailout for Financial Firms

From: Rasmussen Reports

“Only seven percent (7%) of voters think the federal government should use taxpayer funds to keep a large financial institution solvent. Sixty-five percent (65%) say let the company file for bankruptcy.  These numbers are generally the same across Republicans, Democrats and unaffiliated voters.  But while fears of a new Great Depression are rising, most Americans still think their money is safe in a bank.”

Paulson’s $700 billion bailout of Wall Street is economic fascism

By: Richard Viguerie - Conservative HQ

Richard Viguerie - as expected - has taken a very hard stand against the bailout, especially the politics surrounding it, such as campaign contributions to legislators from executives of companies set to be bailed out by the tax payer.

“Congress must refuse to take up bailout legislation until a thorough investigation determines who is responsible for the financial crisis.”

Washington Must Heed Fiscal Alarm Bell

By: David Walker - Peterson Foundation

“The US government truly is too big to fail. However, there are disturbing parallels between the factors that led to the sub-prime crisis and the deteriorating financial condition and fiscal foundation of our federal government. These similarities ought to ring an alarm bell for Congress and the presidential candidates. The question is, will they hear it and wake up?”

Grave Threats

By: Chris Isidore - CNN

“I think President Bush did properly diagnose it when he said the problem was that Wall Street got drunk and has a hangover. The problem is the people who are asked to clean up all the broken furniture, they didn’t get invited to the party,” said Rep. Lloyd Doggett, D-Texas. “That’s why so many of the people that are contacting me are not just against this bailout, they’re very angry they’re even being asked.”.

Buyout Plan is for Wall Street is Hard Sell on Capital Hill

By: Mark Landler and Steven Lee Myers - NYT

“But after hours of back-and-forth, the committee’s leaders said explicitly what had seemed clear all day: that they rejected the administration’s plan. “What they have sent us is not acceptable,” the committee chairman, Senator Christopher J. Dodd, D- CT The panel’s ranking Republican agreed. “We have to look at some alternatives,” Senator Richard C. Shelby R- AL.”

Senate Democrats Grill Paulson and Bernanke

By: Daniel W. Reilly - Politico

“Many Democratic senators said they thought there was broad agreement with Paulson and Bernanke on the need for limits on executive compensation and on increased regulation and oversight of financial firms. However, the lawmakers cautioned that the details still needed to be worked out.”

U.S. Government Veers Away From Capitalism

By: Radley Balko - Fox News

“How much oversight in the bailout plan should we give an entity that doesn’t even follow the recognized accounting procedures it has placed on private companies?  They use a “cash accounting” practice that does not account for future liabilities.”

NBC’s Brian Williams and Chuck Todd discuss bailout politics-

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