Friday, September 19, 2008

Thank you Marsha! Taxpayers should NOT be

bailing out these companies.


"These massive federal bailouts have exposed taxpayers to literally tens of billions of dollars of new risk," the members of the Republican Study Committee wrote to Paulson and Bernanke.

Blackburn said the total risk to taxpayers is $323 billion and that she believes private companies would have come to the rescue had they known the federal government would not intervene.

She said constituents wonder "what is the next business, the next entity that is considered too big to fail?"

The lawmakers' letter calls for using free-market principles to deal with the problems, including "re-establishing the market discipline that comes from the potential of failure."

Though as a Democrat he didn't sign on to the letter, Rep. Lincoln Davis of Pall Mall backed its sentiments. "I strongly oppose taxpayers of America bailing out private investment groups who have knowingly made high risk investments," Davis said in a written statement.