Friday, September 26, 2008

Self-Fulfilling Prophecy

Republican Senator Jim DeMint:

Now, do you support the bailout?

No, I don't support it and I probably won't support it in any form. It should not have come to this. We knew this was coming and we didn't do anything about it. For years, a number of people, John McCain is one, have tried to change this system, but the Democrats have consistently protected Fannie Mae and Freddie Mac -- and some Republicans have been complicit in this easy credit game that we had going.

What I am trying to do is to cause enough anger and uproad through blogs, radio talk shows, and TV interviews that I am doing so that people will at least get their congressmen and senators to listen to some kind of alternative to what's been proposed that would keep us within the constitutional framework that we've sworn to uphold.

We can't have the government buying parts of companies, buying stocks, mortgages, selling those in the markets, and becoming a real player in the financial markets. We could do the same thing they're trying to do with insurance products, loan guarantees, things that have been used before with banks that assure the value of their assets, so they continue to do business. We can even get the banks to pay for that insurance -- but apparently, Secretary Paulson has promised Wall Street that we're going to come in and buy their assets at above market rates so they can come out like bandits.

The problem we have here is that by the government essentially promising to come in and do that, it is causing the credit markets to seize up. They're waiting for a government infusion of funds. They're waiting for the government to buy at a higher market rate, so they're not operating and credit is closing down in America. It's a self fulfilling prophecy...

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