Skip to comments.DeMint Says He'll Oppose Government Bailout Plan
Posted on 09/23/2008 10:40:48 AM PDT by Jet Jaguar
(The Greenville News) - Saying that Americans can "no longer trust the economic information they are getting from this administration," U.S. Sen. Jim DeMint broke Monday with the Bush White House and will oppose what he calls its "irresponsible" bailout plan.
But fellow South Carolina Republican Sen. Lindsey Graham continued to lean toward some form of buying up banks' problem mortgages, although "it's too early to say" if he will support Treasury Secretary Henry Paulson's still vague plan, said Graham spokesman Kevin Bishop.
"The administration said the bailout of Bear Stearns would stop the bleeding and solve the problem, but they were wrong," DeMint said. "They said $150 billion in new government spending using rebate checks would solve the problem, but they were wrong again. They said new authority to bail out Fannie Mae and Freddie Mac would solve the problem without being used, but they were wrong again. Now they want us to trust them to spend nearly $1 trillion on more government bailouts. It's completely irresponsible."
DeMint placed the blame for the crisis on "misguided government policies" and said that "socializing an entire sector of the U.S. economy" could make matters worse.
Late last week, Graham hinted at support for a bailout, but had no additional 'comment Monday.
"Getting bad debt out our financial system may be the only way to recapitalize our nation and prevent an institutional collapse that would jeopardize the financial future of all Americans. I know the price to fix this problem is enormous. However, at the end of the day, it may be less than the price of doing nothing and risking a complete financial meltdown," he said Friday.
But Graham has said he thinks limits on executive compensation for corporate leaders whose companies will participate in the bailout should be on the table and would like to see it included in any package.
Instead of saddling taxpayers with "every asset some investor doesn't want anymore, DeMint called for reforming government policies that created the crisis, including what he described as the Federal Reserve's easy-money policy, the congressional charters of Fannie Mae and Freddie Mac, and the Community Reinvestment Act.
That should be followed by "permanent and proven pro-growth reforms to encourage capital formation and boost asset values," he said.
Rep. Gresham Barrett of Westminster is reading through the proposal and digesting it, said his spokeswoman, Colleen Mangone. Rep. Bob Inglis of Travelers Rest couldn't be reached for comment.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
Where is Failed Speaker Nancy Pelosi demanding an investigation of this whole thing? Something stinks and it looks like it’s the Democrats.........again. If there were anything to gain politically by pointing fingers at the GOP, the Dems would be demanding a full investigation ASAP!!!!!!!!!!!!!!!!!!
"I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. . . . Corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands and the Republic is destroyed."-- President Abraham Lincoln, letter to Col. William F. Elkins, Nov. 21, 1864
Night and day difference between Demint and McCain’s valet, Grahamnesty......
To the gov bailout.
Great, at least one in congress is opposed to this POS bill.
I'm still going skiing every day this winter (Insallah) no matter the value of my portfolio.
Good to know there are some conservatives around...this bailout stinks.
We would be better off with no bailout. There is not guarantee that a bailout would fix the problems with bad loans...and the whole bailout deal would be very inflationary.
Of course, its the liberal globalists who want the bailout...since most of that bailout money would be given to foreigners and foreign banks
Paulson and the banking committee speak in private only, and they offer NO real information. Notice just how many times that Paulson says uh, uh, uh, er, er. They know that if the American people really knew the truth, that they would be shaking in their boots. Paulson has not brought anything out into the open. All we know is that the “sky is falling”, if we do not do quickly, whatever Paulson says.
A year ago on this forum I asked why we can’t just convert people with ARMs to fixed rates, or have partial interest forgiveness, loan mods, etc. We did not. And now we are bailing out the stupid companies with perhaps 50% of the bailout going to foreign governments/investors.
Thank God for DeMint.
Kill the deal. If the Dow falls 2,000 then so be it. The buck stops here. America needs to get its financial house in order.
All of that has been available. People are just too stupid to do it.
“We would be better off with no bailout.”
Doing nothing is better? It pretty clear the pain of doing nothing will be greater. The credit system got into a meltdown mode. What’s your alternative?
“Of course, its the liberal globalists who want the bailout...since most of that bailout money would be given to foreigners and foreign banks”
This is mostly about bailing out the credit system itself.
“If the Dow falls 2,000 then so be it. The buck stops here. America needs to get its financial house in order.”
These statements are contradictory. We cannot and will not get our ‘house in order’ by going through another depression.
Cool video, but there are typically only (short) lift lines on Saturdays in MT. The singles line on Saturdays allows yet another day of yo-yo skiing.
Would there really be a depression if we didn't bail out Wall Street and implement McObama's great leap to socialism and regulated corporatism. Robert Higgs a distinguished economist challenges the Chicken Littles to provide some evidence. See here for this claim.
>>lift lines on Saturdays in MT.
>>The singles line on Saturdays allows yet
>>another day of yo-yo skiing.
The Colorado Plains are in my back yard - a resource to be developed and exploited by folks who’d rather not fight the traffic up into the mountains.
I see economic opportunity in kite-snowboarding. ;-)
DeMint is the man! This guy is going up the ranks of the party. I love DeMint!
Better yet, take $700 B and invest it all into upward mobility for the country, energy first, roadways, telecommunications, skilled job creation, exports and yes, domestic manufacturing. Reform the tax system and healthcare as well. Yes, we might have a depression but any would be short lived. If the bailout fails, you get a depression later in any event.
We won’t go into another great depression. A lot of the gloom and doom being spread and the cost of not doing the bail out are inflated and in many cases not talking real money but lost profits. Tell me why we should preserve the profits and investments of the people who caused this? I agree with DeMint, fix the problem don’t just throw money at it. Socialism is bad for everyone. Why the Bush admin is following Paulson, a liberal Democrat, into this and excusing people like Chris Dodd the head of the Banking Committee who has had his head up Freddie Mac and Fannie Mae’s skirt raking in the money through his relationship with them while opposing any reform perplexes me. Rushing into this pretending that the problems in the housing market are going to go away if we just let the government administer it and buy up every worthless loan out there is stupid. It also will drive housing costs up and prolong the problem of inflated housing costs. Some of these loans were never realistic to begin with and it was Easy high risk credit that caused the problem. Some shrinkage on the credit front would force people to deal in real cash and would drive costs of everything down. Sure it might hurt but this financial world of fiction we’ve been living in with too much credit and not enough backing will not go away if we continue with this bailout. This is a chance to offer a different solution. America does not want this Bailout.
“We wont go into another great depression.”
Probably not, but the better questions are:
1) Is the cost of doing nothing greater than the cost of doing the Paulson plan?
Answer: YES. Most people (including me) are convinced the meltdown will be serious if we cant get this assets disposed of in an orderly way.
2) Is there a better way to fix this than that plan?
Answer: Probably yes. For one suspend mark-to-market. For 2 move to regulate and privatize the GSEs. For 3 make Bush tax cuts permanent as a stimulus. See links from my posts,
“Why the Bush admin is following Paulson, a liberal Democrat, into this and excusing people like Chris Dodd the head of the Banking Committee who has had his head up Freddie Mac and Fannie Maes skirt raking in the money through his relationship with them while opposing any reform perplexes me.”
- It feels like lame duckery. The Bush administration is leaving this in Paulson’s hands. Bush has no other choice - these are the guys he hired to do the job of overseeing these areas and this is their call. For the President to diagree with a Fed chairman saying “this is serious” is begging for a stock market crash. So he has to be on board for the ‘greater good’. And Paulson’s a wall st jock and a Democrat as you say, not a free-market conservative ... whoo boy.
DeMint is solid....Graham is a toetapping cabana boy.
$700 Billion would pay for 400GW of nuclear power. 400 power plants. That’s enough to stave of recession and make us energy independent.
Go for it.
We won't get our house in order by putting another $2-4 trillion on the national VISA card.
DeMint is solid....Graham is a toetapping cabana boy.
I can almost vote for a Democrat over Graham, but then I start to loose it. As with the president, it’s a vote for the lesser of two evils. I’m not for, I’m just more against XYZ.
Where are you getting those wild numbers: It wont be that much. Work the numbers right and the paulson bailout will be net cost of zero. Like cost is $100-300 billion, about what 5 years of farm bill cost, and less than the housing bailout already passed.
I would prefer a free market approach but the predictions of cost are just wrong.
COmment on seeking alpha:
1.Mortgages that default are not worth zero.
2.Mortgages that pay are not worth ‘par’.
3.There is no real market for these mortgages.
4.Just because there is no market (today) does not make the assets valueless.
5.Mark to market pricing is a disaster. Your house is not always worth what you could get if YOU HAD to sell your house in 24 hours.
6. Yes, the taxpayers will take a hit. Some % of the bailout will not be recovered.
8.If 1/3 to 1/2 the financial institutions in America go insolvent, and business lending and consumer lending grinds to a halt, the tax payers will take a hit as well.
9.The plan is not perfect, but the alternative is mighty scary!
Yes! Some sanity — good work, DeMint!