Critics said the government was going too far in bailing out the financial sector.
"The free market for all intents and purposes is dead in America," said Sen. Jim Bunning of Kentucky, a member of Bush's own Republican Party. The Treasury's proposal would "take away the free market and institute socialism in America," Bunning said. "The American taxpayer has been misled throughout this economic crisis. The government on all fronts has failed the American people miserably."
Bush, and supporters of the rescue plan, said it would restore confidence in the financial system. Wrong. Spending our tax dollars does not restore confidence, regulating our capitalist system is the only thing Americans will settle for.
Bush said, "And as we've seen repeatedly over the past eight years, we have a flexible and resilient system that absorbs challenges, makes corrections, and bounces back."
In the Wisconsin State Journal article, “Local experts say financial crisis is 'out of control,' a few economic experts checked in with their opinions locally.
According to AP:
"Like an out-of-control forest fire" — that's how Scott Anderson, senior economist with Wells Fargo Economics in Minneapolis. Anderson said … he has qualms about the federal government "running our financial system." Anderson said while economists never want a solution that puts taxpayer and U.S. Treasury finances at risk to correct problems of a profit-driven industry, the current situation is "a Great Depression-style financial crisis that requires a Great Depression-style solution," one that only the government can handle. James Johannes, UW-Madison School of Business finance professor, said rescuing the companies that are too big to fail creates "perverse incentives. I am bothered by policies that privatize gains and socialize losses."
David J. Ward, president of NorthStar Economics in Madison said, "In a crisis, ethics and principle do go out the window."
(Do you think that’s just what the Bush administration was counting on all along? “Ethics and principle out the window.”)
Newt Gingrich with his Contract on America was one of the principal architectsof the 1999 repeal of the depression era reforms, Glass-Stegall that stabilized the United States economy and prevented unfettered speculation that could trigger economic collapse and bring ruin to hundreds of millions of families -people like Waxing America readers.
The product of his theoretical rubbish first bore fruits with the Enron and Worldcom disasters and this past week brougth us the worse economic collapse in three generations.
Now Newt Gingrich wants to lower the capital gains taxes to zero.
His real motivation is that he fashions himself as an economist theorist and wishes to be recognized for his intellectual prowess.
Not content with the destruction he created, he plows forward. The man is a fool. He should be tried for treason.“These measures require us to put a significant amount of taxpayer dollars on the line. But I'm convinced that this bold approach will cost American families far less than the alternative."-Bush