President Bush's speech leaves Club for Growth cold

Expectations will be high when President Bush convenes his White House meeting today with congressional leaders, Barack Obama and John McCain that the session will produce at least the framework for a government plan to ride to the rescue of the financial sector.

But Bush and the others could work all night and into the weekend and not bring some critics of their efforts on board.

That includes the Club for Growth, an anti-tax group known for helping fuel bedeviling primary challenges to Republicans deemed soft on strict fiscal conservativism. Following Bush's nationally televised speech Wednesday night, the club's president, former Pennsylvania congressman Pat Toomey, had this to say in a statement:

We understand the political temptation to take quick and decisive action, but a multi-hundred billion dollar taxpayer-funded bailout is the wrong answer. President Bush is predicating the need for a government bailout on the assumption that the credit markets are ‘frozen,’ but we see no evidence of a general freezing of credit markets. ...

While certainly some financial institutions are under great stress, 18 months into this financial crisis their problems have not spread widely. The economy continues to grow; productivity growth is strong; and unemployment, while increasing, is not close to levels it has routinely reached in past recessions.

The bailout plan is fundamentally unfair to American taxpayers and responsible borrowers and lenders. The bailout misallocates capital, risks massive inflation, invites political manipulation, and sets a bad precedent for future bailouts down the road. Already we are witnessing other industries lining up for their share of the government’s handouts.

Instead of acting rashly, Congress needs to take a deep breath and enact pro-growth policies like a stable dollar policy and lower taxes on capital gains and corporate income.  ... We encourage all members of Congress to reject a massive bailout plan.

Some Republican lawmakers, to be sure, will take note.

-- Don Frederick 

Comments

[Sherry Wang]

This is how we can fix with less than $700B but got the result fast. Start with $100B, buy bad mortgage asset at deep discount, hire people on unemployment construction workersto fix them up (save on umemployment), put the house to sell and hire unemployeed Realtor (at deep discount) to sell them (save more on unemployment), while they are on market to sell (will take some time to sell) rent them to people on government support (in lieu of wellfare payment) and make trashing the place a federal crime (Tresspassing on federal property), sell to people who cannot afford a loan elsewhere, and allow applying the $7500 tax refund (wasn't that already in effect) as down payment and make default on the loan a federal crime (you mess with Fed's money, you are due in federal court). And the profit goes back to the pot and replenish the $100B funds. We don't need $700B, the right solution could have fixed the problem much cheaper.

And government has no money for SS payment, right, how about giving that out in vouchers and let our senior citizens rent theses homes with their vouchers. The government can't afford to take bad assets without a way to manage them. If any SS receiptants trash the places or does not pay rent, take it out from their future benefit. We again save 2 problems in one.

Then, reduce capital gain for people who buys homes now and hold it for over 5 years. That eliminate the flippers and encourage R/E investment. And then allow same owner occupied rate on mortgages as for investors. Investors are the only buyers with 20% down payment the banks felt comfortable lending $ to, but the current restrictions (Fannie Mae) disallow such purchase. Then government can allow withdraw of 401K $ without penalty to buy homes. Critics will say these actions hurt tax base, well, what tax base? We have no tax base now, and the $700 B in talk is yours and mine money. Do these things wont' cost Fed money, but will inject some live to the current economy. (I have been saying these for months and sent these comments to about 50 out of 100 senators, but no one listened). People in power, please do something. I challenge anyone to pick problems on my suggestions. Maybe they are not perfect, but these will work. Or at least better than handing blank $700B check.

[vegasgirl]

So, the Club for Growth is somehow surprised that Bush isn't dancing to its unrealistic tune?
(Although I'm actually inclined to agree with them on one point.)
Newsflash to the Club and other absolutists: Bush doesn't give a damn about what you think. His goal is to get McCain elected, and keep himself out of court.

[BS]

There are only 50 federally insured depository institutions in the country that own CDS. That leaves about 8500 banks & S&L's that don't.

About 48% of the banks reported earning more this year than last year as of 6/30/08. Only 16% are losing money.

This isn't to baliout the banks!

http://www.fdic.gov/index.html

[Robert Reincke]

I'm a social liberal and have to say I completely concur with the fiscal conservatives response. Can it be that this crisis is finally bringing some harmony between the Cultural War that has been raging for so long in this country? Is this the beginning of common ground from which this country can start working together?

[cort]

The war in Iraq was shoved down our throats, the real estate bust was shoved up our butts and now we are asked to digest a $700 Billion cost for who knows what? Talk about mass destruction, this administration has destroyed America and so many ways. We must Just Say NO. Not this time. Let the next president fix it....

[ralph tyler]

I agree, but don't waste your breath. The big winner here will be Wall Street financials. The bailout will perpetrate the bad fiscal mechanics we are currently experiencing, with more inflation.

This is a done deal.

It's hard to know what to think about this country. I suppose we are just on the way to second-nation status.

[john n. perez]

Never thought that "Socialisim" of our capitalist system would come under the watch a a staunch Repblican administration! Can anyone impagine the chorus of damnation were the current administration Democrat controlled! It would gernerations before Democrats could even open their mouths on issues related to the national economy....Hope to see how "market oriented" Republican talk in the future as it regards "social issues" spending: bridges, roads, schools, hospitals, environment, etc.!
Irony is the elementent woven throughout the discourse of this mess. I don't support this "bailout", especially, because I know that were the bailout needed for social programs for the working poor and middle class....not much action would have resulted from this Republican administration. The rich get richer.....

How deep is your pocket?

[Archangel]

Epitaph... 'Here lies the idiot taxplayer stripped of all substance for want of understanding the money scam.'
It’s all well and fine for these public parasites to promote policies encouraging these tottering markets to self-regulate… until it’s their personal fortunes, derived from the public dole they’re paid from, that become threatened. Then the American fool gets to pick up that tab too. Curious, you think?
By design of these said policies, the financial deadbeats in question must be allowed to fail. That would certainly be “truth in lending”!
The Club for Growth is certainly on point that there is no credit freeze. As long as flesh and blood DNA people can sign promissory notes, WHICH ACTUALLY CREATES ALL CREDIT (that which passes for money these days) into existence, and the recipient bank in turn steals this 'money' without legally creating a deposit entry evidenced back to the benefit of the true creditor (YOU), these kind of Republo/Demo bailout scams will continue ad nausea. What the hell did you imagine the intent of this Fed Reserve/bookkeeping entry ‘money’ system was all about?
If morons truly understood and studied the concept of this Fed Reserve system of theft (bookkeeping “money”) the revolution would ignite in a heartbeat and these public parasites would be packing for Mars.
Democrat or Republican they are both essentially welfare recipients of the same cloth feeding off your sweat and blood, no different than the proverbial welfare cheat that occasionally makes some minor headline. Get a clue?

[kev]

The president has again gone on TV to elicit our fears and join with ---Experts--- he has hired who clearly have guessed everything wrong and have not been able to do the right thing with the economy so why would I believe they now ---KNOW--- how to fix it.

So now, there is what I have named the ---EMD--- to replace ---WMD---.
---EMD--- or Economic Mass Destruction is the mantra if we do not do it now we will all die a slow and painful financial death, and of course, we just realized it is crashing, and that Economic Mass Destruction will occur. Gee, they just noticed a problem after saying for years everything is Rosy. My heaven I am to believe crooks coming from Wall Street and Corporate America to Washington to ask for a free ride. Are they not millionaires already? So all the current and previous Crooks on Wall Street walk away with the millions they pilfered from us for the past 20 years or so, which have led to this new fraud to take from the poor and give to the rich?

I am sorry crying wolf when the wolf is the one crying does not convince me.

NO BAILOUT. I repeat NO BAILOUT. Let the ---EMD--- occur and clean us of a scourge that is haunting us instead of borrowing just to put it off. When will the PONZI scheme of propping up our economy end? We must all suffer, not just me paying for someone else’s mistake while I pay more taxes and pay my bills.
I worked for Washington Mutual Bank who deserves nothing as I watched them approve billions in loans, which now are ---Toxic---. That company deserves nothing but a kick out the door. NO BAILOUT. I will vote against every ---POLYTICK--- (Blood Sucker) the rest of my life if they take more of my tax money to pay for Crooks from Wall Street to Main Street.
Thanks and have a nice day,
Kchusa.