GOP senator on mortgage bailout: ‘Socialism is alive and well in America’
This article was originally on a blog post platform and may be missing photos, graphics or links. See About archive blog posts.
Republican Sen. Jim Bunning of Kentucky today slammed the Bush administration’s proposal to bail out Fannie Mae and Freddie Mac, declaring, ‘socialism is alive and well in America.’
‘When I picked up my newspaper yesterday, I thought I woke up in France,’ Bunning said in a statement today. ‘But no, it turns out socialism is alive and well in America. The Treasury secretary is asking for a blank check to buy as much Fannie and Freddie debt or equity as he wants. The Fed’s purchase of Bear Stearns’ assets was amateur socialism compared to this.’
In a news conference this morning, President Bush (pictured) defended the rescue plan for Fannie and Freddie, saying, ‘I don’t think it’s a bailout.’
‘If your question is, should the government bail out private enterprise, the answer is, no, it shouldn’t,’ Bush said. ‘And by the way, the decisions on Fannie Mae and Freddie Mac -- I hear some say ‘bailout’ -- I don’t think it’s a bailout. The shareholders still own the company. That’s why I said we want this to continue to be a shareholder-owned company.’
Relatedly: The Securities and Exchange Commission is taking emergency action to protect Fannie and Freddie in the stock market. Bloomberg News: ‘The U.S. Securities and Exchange Commission will take emergency action today to the limit the ability of traders to bet on a decline in the shares of Freddie Mac, Fannie Mae and brokerages, the agency’s chairman said.’
Analysis: Under the president’s proposal, the government could become a shareholder of Fannie and Freddie. That’s not what most Americans mean when they talk about a ‘shareholder-owned company.’ The government is taking extraordinary and unprecedented steps to protect and support Fannie Mae and Freddie Mac.
Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com
Photo Credit: Getty Images.