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Gingrich Switches Bailout Stance

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September 29, 2008 2:11 PM

ABC News' Teddy Davis Reports: Former House Speaker Newt Gingrich reversed course on Monday, issuing a statement saying that if he were still in office he would "reluctantly and sadly" support the $700 billion Wall Street bailout bill.

Gingrich, who led the charge against the bailout last week, explained his change in position by saying that the House Republicans, "reinforced by John McCain," have improved the bill "significantly" so it is "less bad" than the original proposal offered by Treasury Secretary Henry Paulson.

While saying that he sympathizes with any member of Congress who votes "no," Gingrich says in his statement that the crisis of the credit markets is real and could have "horrendous" consequences.

While Gingrich has come around on the bailout bill, he still wants Paulson to resign for initially requesting the $700 billion with no oversight.

Gingrich maintains that as long as Paulson is in charge, "it is impossible to get a creative or significantly better solution."

"Having a former chairman of Goldman Sachs preside over disbursing hundreds of billions of dollars to Wall Street is a terrible concept and inevitably will lead to crony capitalism and the appearance of - if not the actual existence of - corruption," says Gingrich in his statement. "The Bush Administration has now provided three case studies in arrogance, isolation, and destructiveness: Michael Brown during Hurricane Katrina, Ambassador Jerry Bremer in Baghdad, and Secretary Paulson at Treasury."

"It is a tragic and very expensive legacy," he continued. "No conservative and no Republican should doubt how much it has hurt our cause and our party."

The former House Speaker hinted that he was moving in the direction of supporting the bailout during his Sunday appearance on the "This Week" roundtable but did not make his position definitive until Monday.

The former House Speaker was in a very different place last week when he urged McCain to break with President Bush and Barack Obama and oppose the bailout.

"I don't know how he can vote for this and with a straight face go around and say that he's for real change and he's the reform candidate," Gingrich told ABC News on Sept. 23.

Gingrich issued the statement as the vote was underway on the floor of the House. It eventually went down to defeat: 205 in favor, 228 against.

September 29, 2008 | Permalink | User Comments (86)

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KR - Funny, I blame the democrats, starting with Pelosi, Frank, etc. Rank & file Republicans said all along they didn't like the bill - everyone knew it ... all of the discussion was on getting at enough Republicans on board. The fact that 66 went along, while Pelosi lost 94 says more about the Dems than the Republicans.

Posted by: Reg | Sep 29, 2008 2:52:02 PM

thanks you john mccain it was his presence on the hill that motivated all involved to take a more serious look at what was a 3 page effort to rob us overnight. the original 3 pager would be signed sealed and voted on if it wasn't for mccain.
thank you democrats that held out and voted against the bill as written.
back to work boys.

Posted by: colorado | Sep 29, 2008 2:52:06 PM

Jayhawk, ctaylor:

http://www.nytimes.com/2008/07/14/opinion/14krugman.html

There's thousands of articles that explain Freddie and Fannie.

Posted by: Check You Facts | Sep 29, 2008 2:52:17 PM

WASHINGTON - Democratic presidential nominee Barack Obama said Sunday his Republican rival deserves no credit for helping to forge a tentative agreement on the $700 billion bailout of Wall Street.
Instead, Obama said he deserves credit.

What do you think Obama will do now?
a). blame McCain for the non-passage of the bill
b). will wash hands and say he was busy campaigning
c). will just vote present although he said he will vote for the bill

Posted by: zoilodel | Sep 29, 2008 2:52:44 PM

I am glad theydidn't pass it and I think they should shove this down Pelosi's throat as well.
http://www.americanthinker.com/blog/2008/09/memory_lane_lynching_franklin.html

Posted by: carolyn | Sep 29, 2008 2:54:58 PM

Obama: If it passes, I get the credit.

If 94 Democrats vote it down in flames, then it's McCain's fault.

Posted by: Pre-conditions | Sep 29, 2008 2:55:35 PM

ok, folks, Fannie and Freddie are not part of this, they have already been bailed out. The issue here is the decision by the financial community to bundle mortgages and sell them like commodities, the people that took those mortgages had no say in that. This is the result of a decision by finance and investment companies to increase profit. The shot themselves in the foot by counting on a bubble not to pop. Now since we are a nation that survives on credit, it is necessary to keep that credit flowing.

Posted by: Danny | Sep 29, 2008 2:50:57 PM

That fannie and freddie had nothing to do with this is completly incorrect they are the ones selling these mortgages to banks after they get someone a mortgage they push it on a bank

Posted by: reddog0216 | Sep 29, 2008 2:57:53 PM

We the People have Spoken. The crisis is a scam, the bailout an unnecesary and monstrous windfall for crooks, the chronically over-extended and other pettifoggers.
We, the Responsible, will not rescue the Reckless, no matter how much fear the reckless foment. Obama and McCain are both useless senatorial whores. If one of them had said NO, that NO alone would have guaranteed their election, but rescuing scams and crooks means more to both Senators than saving the taxpayers a horrific debaucle.

Posted by: richard cook | Sep 29, 2008 2:58:41 PM

KR i agree we need to vote ALL who supported regardless of party affiliation out of office in november.

yes bush proposed it but republicans were the ones that voted it down. to their credit their were 90+ democratic hold outs as well. i want the list.

Posted by: colorado | Sep 29, 2008 2:59:00 PM

The Dems have been making this bail-out a Republican whipping post all week.

First, Reid chastizes McCain for not being in Washington where he's needed.

Secondly, McCain shows up, gets the House Republicans to the table, and all of a sudden Reid and Pelosi say McCain isn't needed, and he should have stayed on the campaign trail.

Thirdly, Pelosi opens her big mouth and calls the House Republicans "unpatriotic" for not participating in the talks sooner.

Then today, Pelosi again mouths off and blames the Republicans for everything.

Hey Nancy...who has the majority in the House? How come 40% of your own Party doesn't want this bill?

Maybe because they listen to their constituents.

Maybe because they're tired of having a 10% approval rating because of you and your fellow "leaders."

Posted by: SandyB | Sep 29, 2008 2:59:32 PM

zoilodel- This bill was a Republican Bill put forth by a Republican President and members of his Treasury. The Democrats compromised to help get the bill passed. Obama did not suspend his campaign in a political stunt to race back to the capitol to rally Republicans.

"What Senator McCain was able to do was to help bring all the parties to the table, including the House Republicans,” GOP strategist Steve Schmidt said on Meet the Press.

Posted by: Check You Facts | Sep 29, 2008 3:00:35 PM

We the people have to take back/protect our rights. Wake up Americans, take back our country, put America 1st make it the land of the free that it was meant to be. Get rid of big goverment & CEO's acting like they don't have to answer/account to nobody. As for the bailout let the CEO's/Lobbyist/Crooks bailout out the companies/people that that made them outragously rich. Thank you all who voted not to bailout on we the people.

Posted by: FlKay53 | Sep 29, 2008 3:01:16 PM

We the people have to take back/protect our rights. Wake up Americans, take back our country, put America 1st make it the land of the free that it was meant to be. Get rid of big goverment & CEO's acting like they don't have to answer/account to nobody. As for the bailout let the CEO's/Lobbyist/Crooks bailout out the companies/people that that made them outragously rich. Thank you all who voted not to bailout on we the people.

Posted by: FlKay53 | Sep 29, 2008 3:01:17 PM

colorado...McCain NEVER looked at the bill so how could he change anyones mind? He was only using this as a ploy. BTW, the HOuse rejected this, so we're back to square one again.
Thanks Jon McCain for helping getting this passed!!!!!

Posted by: newvoter | Sep 29, 2008 3:02:24 PM

Because of Pelosi and her mean spirit targeting the GOP and using her "puppet" Obama, America is now in a dark period. Obama will never be elected...he is too closely tied to Pelosi! McCain is the only one who can save us now!

Posted by: Janice | Sep 29, 2008 3:03:18 PM

Check..you are so right....most parties said McCain sad like a "bump on a log" and didn't even speak....
GREAT JOB JOHN!!!

Posted by: thetruth | Sep 29, 2008 3:04:22 PM

Yes, the bill was first presented by the President and his Cabinet members.

In case you haven't noticed, most Republicans don't agree too much these days with the President, and try to distance themselves from him as much as possible.

The DEMOCRATS are the ones who grabbed the proposal and took it upon themselves to "fix" it.

Along the way, they added a bunch of liberal stipulations and a slush fund for liberal agency funding that created mistrust for the bill among the American people.

Most members of Congress have been receiving phone calls and emails from their constituents, of which about 90% were OPPOSED to the bill.

Election Day is only five weeks away.

Who would you listen to?

The lame duck President, or the people who put you where you are in the first place?

Posted by: SandyB | Sep 29, 2008 3:08:34 PM

Huh. That's not what he was saying a couple of days ago: http://tinyurl.com/4s6oet

Posted by: chiefeditor | Sep 29, 2008 3:08:34 PM

Janice ...sweetie...McCain was the one who voted for de-regualtion before Obama even got into the Senate...He has lobbyists and CEO'sin his pocket...

Posted by: formerhillary | Sep 29, 2008 3:08:42 PM

"We could have gotten there today had it not been for the partisan speech that the speaker gave on the floor of the House," House Minority Leader John Boehner said. Pelosi's words, the Ohio Republican said, "poisoned our conference, caused a number of members that we thought we could get, to go south."

Rep. Roy Blunt, R-Mo., the whip, estimated that Pelosi's speech changed the minds of a dozen Republicans who might otherwise have supported the plan.


*********

Pelosi and Obama are "birds of a feather". Its time for them to nest somewhere else other than the United States!

Obama/Pelosi = LOSERS!

Posted by: Will | Sep 29, 2008 3:09:36 PM

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