Jackson Jambalaya

FINALLY a Republican leader speaks out against this insane bailout conjured up by Paulson. This bailout is nothing but a betrayal of the conservative principles of free markets, moral hazard, limited government, and reducing government spending. The bailout bans any review of the bailout by a court or agency. In plain English this means the Secretary can act without ANY check on his authority unless the statute itself is changed. The bailout can run OVER 700 billion dollars, as it allows the Secretary to use $700 billion at any one time. Meaning, the $700 billion amount is a line of credit limit, not a hard one time cap. This bill bails out the Chinese and other foreign debt, not just American debt. You read right: The American taxpayers will be bailing out the Chinese.

Bondholders are protected. The holders of bad mortgage notes are allowed to dump them on the taxpayers and the Secretary can sell them at pennies on the dollar if he so desires. Translation: The Secretary can buy high and sell low while manufacturing an excuse about stabilizing the markets. It allows him to choose which financial institutions can act as "financial agents of the government". Can you say "crony capitalism"? This is the kind of crap seen in moribund Europe or Chicom socialism, not the American capitalist system that built up the highest standard of living in the world.

Republicans are supposed to stand for protecting the taxpayer and not engaging in such schemes, but here we are standing on the edge of the monetary abyss because President Bush and Secretary Paulson have "lost their nerve", as Speaker Gingrich put it so aptly tonight. It's about damn time a Republican called this treasury spade the poisoned dagger it really is. Already Bush is caving in to the Democrats as they seek to pile even more money on top of this monstrosity. Do you Republicans not remember 1994 when you stood against Hillary's attempted takeover of the American healthcare system? Do you remember the complaints about her plan? Unlimited liabilities. Too much power handed over to a bureaucrat with no limit on his power. No cap on how much money could be spent supporting a national healthcare system. The ability to levy unlimited taxes with no approval from Congress on all employers within a region. Back then you showed some guts in taking on the media and the Democrats in stopping Hillary's insidious scheme.

Where is the Phil Gramm today who will say "This will pass over my dead body" as Bob Dole prepared to surrender? Have all of the Republicans lost their nerve? Have they all gone wobbly? Is crony capitalism what Republicans now stand for? If the Republicans don't get some backbone and stand up to the Democrats and Bush, they deserve to get creamed in November.

Note: Don't worry if you don't understand everything about the bailout. Kingfish is going to take care of you and over the next few days, make sure you know everything you need to know about the bailout.

Newt's remarks on bailout in National Review online today