Minnesota Groups Oppose Bailout

Minnesota Groups Oppose Bailout
Campaign for Liberty Minnesota, Republican Liberty Caucus Minnesota,
Minnesotans for Limited Government, and Sons of Liberty issue joint statement
FOR IMMEDIATE RELEASE
September 29, 2008


MINNEAPOLIS, MINNESOTA – Leaders from four Minnesota organizations issued a joint statement today opposing the imminent Bailout, aka the ominous-sounding "Emergency Economic Stabilization Act," which they deem a nationalization of a failing banking industry caused by poor business decisions, encouraged by a runaway Federal Reserve, at the expense of taxpayers.

"The proposed bailout of Wall Street is not a ‘rescue plan,’" said Sue Jeffers, KTLK 100.3 FM talk show host and former candidate for governor. "It is massive purchase of bad debt using taxpayer’s dollars. This is not a free market failure or a failure of capitalism; this is a market failure caused by government interference. The ultimate responsibility for this failure rests on government policy which allows the greed and recklessness of their political party, their friends, lobbyists and others to flourish instead of allowing the free market to work."

"The current ‘emergency’ is a result of the Federal Reserve’s attempt to stopper the bust of the earlier tech bubble," said Marianne Stebbins, Campaign for Liberty Minnesota Coordinator. "If we had let the market work then instead of allowing the Fed to tinker, we wouldn’t have launched ourselves right into the housing bubble. Now our collective debt problem is much deeper. If we don’t allow the market to reset the credit levels and prices itself, causing some short term pain, we’re going to right back here, in even worse shape in a couple years – or a couple of months or weeks – by trying to paper over our malinvestment with dollars again. We’re in too deep a hole now for throwing dollars at it to work. We must allow the market to exert its ‘invisible hand.’"

"Meddling with the free market inevitably creates unintended consequences which will
undoubtedly be unforeseen by a group of hasty lawmakers," said Grant Cermak of the Sons of Liberty, a Minneapolis-based political action committee. "Since the Federal Government does not have the necessary capital to purchase the toxic ‘assets’ of the banks seeking a bailout, it will inevitably fall upon the Federal Reserve to create more dollars to supply the effort. This new money will ultimately lead to massive inflation and reduced buying power for all Americans. Minnesotans can expect nothing short of a free fall of their purchasing power and a greatly reduced standard of living in the months and years to come."

"Members of Minnesotans for Limited Government stand united to oppose the bailout and the future bailouts that are sure to be announced in the next months to come," said Rick Karschnia, Chair of Minnesotans for Limited Government, a Saint Paul-based political action committee. "If we look at all the failed attempts to stabilize the market over the last several months such as Bush’s Economic Stimulus package, the Bear Sterns bailout, the Fannie Mae and Freddie Mac Bailouts, and the AIG Bailout we see a clear track record of failure and incompetence from both the Bush Administration and Congress. This bailout will only hurt Minnesotans by putting families on the hook for government’s failures."

"The RLC applauds the stamina and fortitude of multiple Republican Senators and
Congressmen who have opposed any corporate bailout, expansions of government fiscal power, new burdens on taxpayers, or any further assaults on the value of the dollar through inflation," said Norann Dillon of the Republican Liberty Caucus Minnesota. "The Republican Party purports to believe in free markets. Now is the time for Republican incumbents to stand on these principles if they are to earn our votes."

Bill Jungbauer, a Republican Liberty Caucus endorsed candidate for MN House added, "When I am witness to the number of foreclosed homes in my district, I feel that it would be unconscionable to spend taxpayer money on a bail out for wall street executives."

The leaders of these groups asserted that they will be opposing the re-election of any Congressman who votes in favor of this unprecedented power grab, saying that this bailout violates the proper authority and all principles of a legitimate, Constitutional government.