Gohmert on Economic Bailout

News Release:

WASHINGTON, D.C. - Rep. Louie Gohmert (TX-01) released the following statement regarding U.S. Treasury Secretary Henry Paulson's proposed financial bailout:

"This is a very frustrating time here. Our capitalist, free market world is under attack by some on Wall Street who have acted out of greed, and others in Washington who want more government to control much of the free market.

These bailouts have set a dangerous and unmistakable precedent for the federal government to bailout the greedy or imprudent from the consequences of their own poor economic decisions. We must restore decency and consumer confidence in our market system by reinstating accountability and consequences for the officers of publicly traded corporations, by giving incentives to do the right thing, and the loss of improperly gained assets for doing the wrong things.

I've told Sec. Paulson that a socialist solution to this problem should not be an option.  I am not ready to give up on this experiment called democracy. Our free market has many solutions. A group of us proposed to have the mortgage-based securities packaged so that those other than foreign banks can buy and service them, having the government insure the mortgage-based assets by requiring the owners to purchase and pay premiums for the insurance. I have also proposed giving banks the option of carrying FDIC insurance on its deposits of $100,000 or $500,000, at the bank's choice. Furthermore, we have also proposed substantial tax incentives to those who will purchase the mortgage-based securities so taxpayers don't have a new bureaucracy that does. There are other suggestions, but those are some of the basics.

This morning I organized a conference call with numerous bankers from all over east Texas to get their input on the financial situation. Our local banks are doing well and they will continue providing loans and serving our communities. East Texans do not need to panic.

Many east Texans and taxpayers across the country have made clear that they do not want to be bailing out Wall Street.  The thought of asking my constituents to pay for the gross improprieties of these bad actors is abhorrent to me. In these next few days I will continue to work with my colleagues to produce a solution that will allow America's free market to work and not punish American taxpayers for the greedy overreaching of Wall Street executives, while keeping America not only as the home of the brave, but also the land of the people free of a socialist government."