‘No more bailouts,’ says Barr

On the eve of a like Federal Reserve takeover of the once-mighty AIG, Bob Barr has issued a press release calling on government to “take future taxpayer bailouts off the table.”

The full release is printed below:

Atlanta, GA – “The bill is coming due for years of reckless federal spending,” says Bob Barr, the Libertarian Party candidate for president. “Yet Washington politicians have trouble going cold turkey on more corporate welfare and business bailouts.”

Although Treasury Secretary Henry Paulson refused to bail out Lehman Brothers, he stated, ‘Don’t read [that position] as no more’ government support; however, Barr says this is precisely what government officials need to say.”

“The mere possibility of a bailout will discourage companies and markets from adjusting in the future,” explains Barr. “Analysts say that Lehman Brothers had more trouble attempting to raise money because of expectations created by the $30 billion Bear Stearns bailout.  The fact that investors viewed Fannie Mae and Freddie Mac as having an implicit government guarantee encouraged irresponsible behavior by both the organizations and private investors,” Barr adds.

“Now that the consequences of this behavior have become so obvious, American companies and markets look a lot less attractive to foreign investors,” notes Barr. “And the prospect of more multi-billion dollar bailouts makes federal debt a more dubious investment. In fact, Moody’s Investors Services has announced it is considering downgrading federal bonds because of the federal government’s growing financial liabilities. Every new bailout adds to the total,” Barr warns.

“Similarly misguided was the $300 billion housing bailout, which rewards people and companies for their irresponsible decisions. It also slows down the inevitable drop in housing prices, keeping homes on the market longer. That makes it harder for people who have been responsible with their finances to buy a house,” notes Barr. “Indeed, the most obvious victims of government bail-outs always are the common citizens who get stuck paying other people’s bills.”

“Unfortunately, those bills just keep climbing. Yet Senators John McCain and Barack Obama spend more time arguing about lipstick on pigs than about how to cut the deficit, pay down the national debt, or deal with the coming entitlements crisis,” says Barr. “But without responsible leadership in Washington, we will face more and worse economic crises,” Barr warns.

“Only Bob Barr and the Libertarian Party are willing to address the most critical issues facing the nation. For the Republicans and Democrats, every election is politics as usual,” observes Barr. “So it is in 2008. The American people recognize that America desperately needs change.  But change will come only if they stop voting for the status quo,” explains Barr.

Libertarian Party presidential candidate Bob Barr represented the 7th District of Georgia in the U. S. House of Representatives from 1995 to 2003.