House Republicans slam steps to alleviate crisis as ‘bailout mania’; Bunning introduces legislation challenging Fed’s authority; Bunning says recent actions remind him of China, Venezuela; AIG gets $85 Billion Fed loan, Cedes control to government; Fannie/Freddie takeover could cost $200 Billion; Analysis by Sen. Jim Bunning, (R) Kentucky
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>> we should not bail out everybody. >> i think chris cox has done a terrific job. >> we cannot have a situation where you expect this taxpayer to foot the bill when times are bad. >> they are in limbo right now. >>> some of the harshest criticism of the armored and seek action by the fed and treasury to stabilize the financial markets has come within the president’s own party. jim bunning has been among the most vocal critics, introduced legislation yesterday to keep the fed from injecting more money into other companies in the future. good to see you, senator. we were talking about your concerns about the takeover of fannie mae and freddie mac, i concerns — i assume that your to intervene in just certain cases, or will they intervene constantly? who did they pick and choose to win, who they pick and choose to lose? it is an unbelievable situation we find ourselves in. >> as a republican free-market are on the hill, and i know there are a few up there, do you feel betrayed? >> i feel less certain about those three market republicans — free-market republicans around me. >> the me ask you specifically about the aig. are there any exceptions to your role? the treasury secretary, fed chairman ed apparently made the case to some colleagues in the senate and house, aig was too interconnected to fail, a much greater risk to the wider economy if you let it go under. how much more chaos have the fed chairman and treasury secretary brought to the market by what they have done it? who did they pick and choose? what is next? chrysler, ford, general motors? they’re all here with their hand out, united airlines, delta air lines. u.s. airlines. it will all be here with their hand out. this is not a free market that we are in. this is france, 20 years ago, and the french even said, please, get us out of here, we do not want this. this is not good individual initiative. this is not good for america. this is not good for my family. this is not good for main street america. tell me one person who that helped. >> let me ask you about another issue, even as we talk about the aig takeover, senator Schumer was talking about it, that perhaps the federal government was misled, creating this idea of creating federal intervention with the creation of resolution trust corp. and apple the savings and loan cris, something to help purchase distressed that, or riches and a comprehensive solution — mortgages and a comprehensive solution. >> i was here when we created the resolution trust corp. i was in the house banking committee at the time, and believe me, i fought it until the very last. wright, the speaker of the house, has forced to under 40- some savings and loans down the tubes, and he was resisting any assistance by the federal government. i do not want to create an entity in the federal government that just bails out those who fail. we have a system in our country that rewards those who are successful. what happens to those banks that have worked their bottoms off to be successful, and follow the rules? do we take their success and punish them by buying off all the bad loans from those who are failing? no! > would you be willing to risk a recession to stick to your principles? >> risk a recession? > that may be true or may not be true. but the way we are going right now, peter, we’re going deeper into recession if we follow the policies of ben bernanke and henry paulson. >> that me ask you about another regulator in the news, and that is christopher cox. you are a member of the banking
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