DOLE STATEMENT ON ADMINISTRATION'S PROPOSED RESCUE PLAN
Pledges to work towards alternative plan that puts taxpayers first
"After a week of closely scrutinizing the Bush Administration's Wall Street rescue proposal, I have concluded that it violates every principle of American capitalism and free enterprise that I have been taught, and that our country has always held.
"I am not an economist, but the overwhelming reaction from economists has been negative about this plan. I am not a banker, but the overwhelming opinion of the bankers I have talked to in my home state and elsewhere has been negative about this plan.
"I share the values of the people of North Carolina, who have in calls and visits with me sent an extraordinarily clear message: This plan is not the way we do things in America. Like these folks, I put my faith in our people before our government; and in free enterprise, with appropriate regulation and oversight, before nationalized control of our economy.
"I do not believe a plan that has drawn such wide criticism from experts and such anger from many of my constituents will create the kind of consumer confidence and market stability that we need to get our economy back on track. Most importantly, asking each household in America to in effect fork over $10,000 to help save Wall Street from itself is not something I can support.
"To be clear, I am opposed to the plan the Administration has put forward, and I will not vote for it.
"That said, it is abundantly clear that inaction is not an option. We must swiftly act so that responsible citizens do not pay for the folly of fat cats on Wall Street. I will continue to work with my colleagues from both sides of the aisle to get a plan for the president to sign - and it must be a plan that puts the taxpayers first."
Dole met earlier today at the Minority Leader's office with a handful of her colleagues to discuss the way forward, and she remains committed to working towards an acceptable solution. Some principles Dole would like to see in an alternative plan include:
Providing a significant and immediate tax credit for purchasing a home.
Requiring the Treasury Secretary to provide a report on the future role of the federal government in the U.S. mortgage market.
Effectively ending the system of "private rewards, public loss" that America has already been exposed to via Fannie Mae and Freddie Mac.
Specifying how the government would price problem assets, which the Administration proposal fails to do.
Fixing the most urgent of the interrelated problems, including liquidity for the marketplace, solvency of financial institutions, declining home values and reforming the entire regulatory structure.