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G.O.P. Bigs Back Bailout Condemnation

January 05, 2009 8:55 PM

ABC News' Teddy Davis Reports:

During a Monday debate in Washington, D.C., five of the six Republicans hoping to chair the national party endorsed a resolution which would break with President Bush and GOP congressional leaders by putting the party's governing body on record as opposing the recently enacted bailout of the financial industry.

"The bailout was a bust. It should never have happened. Republicans should have had a little bit more you-know-what to withstand the pressure. They didn't and we're paying for it. I absolutely support the resolution because it reflects the frustration of our base," said former Maryland Lt. Gov. Michael Steele.

Steele was not alone in voicing his support for a resolution condemning the bailout. Joining him were Michigan Republican Party Chairman Saul Anuzis, South Carolina Republican Party Chairman Katon Dawson, former Ohio Secretary of State Ken Blackwell, and former Huckabee campaign manager Chip Saltsman.

The resolution, which was co-authored by R.N.C. Vice Chairman James Bopp, Jr., and Oregon Republican National Committeeman Solomon Yue, will be considered by the party’s resolutions committee on Jan. 29. To be adopted by the party, the resolution must get beyond the resolutions panel and win a majority support from the RNC’s full 168-person membership.

The candidates for R.N.C. chair were asked for their positions on the bailout resolution by debate moderator Grover Norquist who heads Americans for Tax Reform, a conservative anti-tax group.

"There's a resolution that's being offered to the Republican National Committee criticizing the bailout that was done this summer for the banks suggesting that it was criminally stupid . . . is this a resolution you intend to vote for? Or, if you're not on the committee, would you support its enactment?"

The only candidate who did not endorse the resolution during Monday’s debate at the National Press Club was Mike Duncan, the current RNC chairman who is seeking an additional two-year term.

"This is not the kind of question I believe you can answer with 'yes' or 'no,'" said Duncan. "As a banker, I probably understand this as well as anyone on this stage."

Although he stopped short of offering an on-the-spot endorsement, Duncan had critical words about the bailout.

"I resent the TARP money," said Duncan, referring to the Troubled Assets Relief Program contained in the Wall Street bailout plan. "And I think there are problems in this whole area."

Bopp was delighted by the anti-bailout sentiment expressed at Monday’s debate.

"There is widespread understanding among Republicans that we have to do this," said Bopp, referring to his anti-bailout resolution.

"Bush has been a fabulous president," he continued, "but nobody is perfect and this was a serious error which was not controlling spending, not controlling earmarks and then doing the bailouts. Unless you say you’re wrong, no one is going to believe you when you say that you’re not going to do it again."

In quickly describing the resolution at Monday’s debate, Norquist only referenced its condemnation of the bailout that the financial industry received.

In an interview with ABC News, Bopp explained that the resolution goes much further.

"The resolution opposes the bailout of the financial industry and their nationalization," said Bopp. "It opposes the bailout and nationalization of the auto industry, and it opposes any future bailouts including Obama's public works projects which amount to a bailout of cities and states because they would have the federal taxpayer assume the responsibility to pay for all the state and local public works projects."

Bopp, who backed former Gov. Mitt Romney's, R-Mass., presidential bid and is uncommitted in the RNC chairman’s race, thinks Sen. John McCain, R-Ariz., blew his chances against Barack Obama by voting for the Wall Street bailout.

"If McCain had voted against it, I think he would have won the presidency," said Bopp. "He would have separated himself from Bush. He would have showed that he was not an insider. He would have showed that he understands the American people."

Norquist, who is neutral in the GOP chairman’s race, told ABC News that the anti-bailout resolution is important because it gets the RNC "back into the swing of having an opinion as a party" on something as central as "giving $750 billion of other people’s money to people whose claim to fame is that they lost their money."

ABC News' Ferdous Al-Faruque contributed to this report.

January 5, 2009 | Permalink | Share | User Comments (68)

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It's about time somebody challenged this march of lemmings to the sea of bankruptcy for our nation.

The economy is cyclical and will right itself in short order. We got into this problem by keeping interest rates too low and allowing unqualified people to buy houses.

Let's not complicate it anymore by continuing to spend money we do not have and bankrupting our future to make Wall Street go higher.

Posted by: jim 234 | Jan 5, 2009 9:04:12 PM

Did anyone ever really believe this would work? Money down the tube and in many cases, probably straight into the offshore accounts of the rich. Paulson is the worst treasury secretary that could have possibly been in charge of this. I KNEW IT!

Posted by: LongT | Jan 5, 2009 9:28:14 PM

Not sure what this resolution would accomplish other than saying "we told you so," but the bailout has definitely been a shameful waste: http://articles.moneycentral.msn.com/Investing/CompanyFocus/the-10-worst-bailout-boondoggles-slides.aspx?slide-number=6

Posted by: 1bluestocking | Jan 5, 2009 9:48:00 PM

Bush a wonderful president...

What planet has this nut been visiting?

Posted by: MrSleepy | Jan 5, 2009 9:50:41 PM

Jim 234 is right! Bears and bulls are cyclical and therefore should allow this to correct itself. What a wasted worth of effort and taxpayers money.

Why must financial institutions and car companies be given highest priority and allow to survive by bailout? Nevertheless, these are corporations and shld adopt the same style to be efficient and then profitable.

The Govts have dug themselves so deep that when (not if!) these bailout fails, even the Govt is a pauper and have to increase taxes

Posted by: Alan | Jan 5, 2009 9:53:30 PM

More Monday morning quarterbacking from people who aren't fit to be water boys. They have no idea of what a good or bad idea is. Ample evidence can be found in the quote "Bush has been a fabulous president." For all they know, TARP could indeed be working, they're just too stupid to know the difference. Thank goodness the smart people take over on January 20th. They'll either use TARP, adjust it or ditch it. But they'll do it after intelligent analysis. All these cretins can do is whine and apologize for their fallen monkey king. What a bunch of losers, they make me sick.

Posted by: hey Scoob | Jan 5, 2009 9:54:24 PM

Finally reengaging their minds. How come we elect teenagers to office?

Posted by: JC | Jan 5, 2009 9:57:45 PM

Republican economic policies since Reagan have caused the crises we're in today. Listening to anything this same group offers by way of criticism or suggestion is for amusement purposes only. Where were these whiners when Bush was flushing hundreds of billions down the toilet he called the central front of the war on terror? And as for expressing opinions, it would be nice if they could say something constructive, but they can't!

Posted by: Butch Dillon | Jan 5, 2009 10:04:02 PM

Republican hypocrites.

You have not seen anything yet. Your party is finished.

You voted to give money to the super rich Wall Street CEOs who ran down the economy and now you are pretending to hate the stimulus package because President Obama intends to extend it to help Main Street.

Damn hypocrites. You will be crushed in the 2010 elections.

Posted by: Steve_NJ | Jan 5, 2009 10:15:48 PM

Republicans should do America a favor and just leave.They could all go to Irag and screw that up some more.

Posted by: con me not | Jan 5, 2009 10:23:04 PM

Ron Paul's on the phone again. He's calling to say "I told you so..."

Posted by: Skeptic | Jan 5, 2009 10:24:56 PM

Too Funny, The republican party is done. I agree with this comment posted by Butch Dillon: Republican economic policies since Reagan have caused the crises we're in today. Listening to anything this same group offers by way of criticism or suggestion is for amusement purposes only. Where were these whiners when Bush was flushing hundreds of billions down the toilet he called the central front of the war on terror? And as for expressing opinions, it would be nice if they could say something constructive, but they can't!

Posted by: rightbehind | Jan 5, 2009 10:32:18 PM

The blind leading the blind!!!!

Posted by: sisterdearest09 | Jan 5, 2009 10:49:30 PM

The GOP led us down to the path of financial meltdown. Markets require confidence to work. We all invested, people bougtht and sold securities based on some confidence that the financial regulations in place were being enforced. Under Bush and a GOP Congress they were not and let things slide.

McCain lost the election for a number of reasons, the principal one is that he forgot the nation was center right and he made a hard right to keep the GOP base happy.

We all know that the GOP BASE is never and will never be happy. McCain and the GOp were clueless for years on their spend thrift, look the other way governing. McCain and the GOP lost on putting personal financial gain ahead of the nation or trying to impose thier reglion upon the country. The should see that over half of the nation does not idendify as being Christian and have not desire to live a Christian theocracy.

Posted by: scott jeffries | Jan 5, 2009 10:50:04 PM

If these Republicans truly mean what they're saying, they will support a bill requiring these financial institutions to lend $$$ now or pay it all back under threat of jail time for the CEOs of these banks. AND support a bill limiting/eliminating the golden parachutes. Otherwise, it's all just political posturing.

Posted by: realvalues | Jan 5, 2009 10:52:12 PM

God how out of touch can you get. Condemn it after the fact.

Good job GOPers. Thank god you didn't win.

Posted by: keredte | Jan 5, 2009 10:54:30 PM

Where were the GOP budget hawks during Bush's years of squandering on the War in Iraq? And during his handing the keys to the kingdom to his Wall Street buddies with the help of Congressional Republicans, as well as the, at the time, minority Democrats?

I agree with their condemnation, but it's a little late now. If Bush and Congress hadn't run up this huge deficit with the tax cuts for the rich and with the Iraq War, then we'd be able to handle a stimulus now for the average citizen when it is so badly needed but all the money has already been blown by the Bush Administration. It's a little late to grouse about the size of Obama's stimulus package. That is only a relatively small part of our whole national debt picture run up since the Repubicans had control of both houses of Congress and the White House.

Posted by: JL | Jan 5, 2009 11:11:49 PM

The people who are blaming Republicans today for deficit spending will be blaming Democrats in another six months. Obama is proposing a trillion dollar stimulus plan. On top of this the US automakers will be back to ask for another 200-300 billion dollars. The steel industry is asking for another trillion and Democrat governors are asking for yet another trillion. There is even talk of the newspapers wanting several hundred billion to bail their sorry rears out.

The Democrats are simply not going to tell these people no. I don't have any faith that Obama will be willing to take on his own party to stop this insanity. If he does not then we are in for a very long and very painful depression. The federal government is out of control with each pary trying to outspend the other in promising giveaways to their supporters.

Posted by: gerry | Jan 5, 2009 11:38:05 PM

Ron Paul fan Grover Nordquist was the moderator. The RNC might be getting their act together after all. Maybe they realize Dr. Paul was correct on the bailout. Yeah!

Posted by: Huh | Jan 6, 2009 12:45:34 AM

republican "trickle down economics" and a hands off attitude by an 8 year republican administration is what led us to this point. Its just a wonder they didn't rename that theory "Patriot Economics" so the simple minded could wave flags while the country went down.The republicans put us in the crapper-and want to complain when the rest of us have to go to work to figure out how to get us out. The republican party is dead and dying and for good reason. Their ideas are old-they haven't worked even in the regan days-and they cling to their old ideas like a deflated life preserver-I am from Oregon and never heard of the moron who proposed this-but then oregon is the wilderness for a republican..ship them all to Alaska-then if we get invaded by Russia-they can be the first responders-or put them on the frount lines in Afganistan..If you like war so much-go fight one...

Posted by: cowgirlblues | Jan 6, 2009 7:18:21 AM

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