Congress Haunted by Ghost of Bailouts Past

Statement

Shadegg: "A permanent bailout, higher taxes, and a new Czar are not the tools we need for recovery."

Congressman John Shadegg (AZ-03) released the following statement in response to the passage of H.R. 4173, the Wall Street Reform and Consumer Protection Act of 2009:

"This December, Congress has been haunted by the Ghost of Bailouts Past. H.R. 4173, nicknamed "TARP II,' that gives permanent bailout authority to the government. It raises taxes in a failing economy, and expands federal bureaucracy.

"Rather than learn from the 2008 credit crisis, Congress has decided to continue its flawed, wasteful, and counterproductive bailout strategy--permanently. This bill gives the government authority to take over firms it deems risky rather than let them fail as they should. And, it creates a government slush fund to pay for the process. This creates an incentive for risky investing, knowing government will bail them out!

"And, the bill also creates a new "Credit Czar,' who has the authority to approve all financial products and consumer credit. This new Czar and his Consumer Finance Protection Agency will put bureaucrats in the middle of personal financial transactions and make credit even less available in a struggling economy.

"A permanent bailout, higher taxes, and a new Czar are not the tools we need for a financial recovery. With legislation like this, the march toward a government-controlled economy continues."

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