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Later the question is that where do we go from here there's talk in Washington this morning of creating a whole new agency charged -- buying up these -- these bad assets helping to clean up the credit -- Let's get straight to Capitol Hill Alabama senator Richard Shelby is with us.
He's the ranking member of the banking committee he opposed the AIG bail out senator we'll get to that just a moment but this idea of this new agency and is that what the Fed.
And treasury are doing now.
Well if so it's what they're trying to do but what I think if we forget in all of this.
Euphoria that's going known we forget the role of the taxpayer central all of this is that taxpayer in word is is stop what his -- What is names.
And the financial what is names that the fans in the treasury would step up to the plate and pledged that taxpayers' money.
I think they're going down a uncharted.
As you know you that ties into your opposition obviously to this 85 billion dollars for AIG the question though as you know the debate out there is isn't this different isn't this different from the banks we were looking at this enormous insurance company so complex -- summit that would be an.
Unmitigated disaster or catastrophe if this thing.
Well you don't hear this in the future to what I I don't know what the next financial is -- going to barely but they're going to be some.
And now we gonna be.
Going to the front with a taxpayers' money.
Actually what we should do fundamentally is let that the market correct dollar this it will not be of that pain but he will correct.
Will 85 billion dollars be enough AIG we don't know that -- 85 billion dollars ever be paid back doubtful.
But the market -- erected all it always.
As in the past.
You know there's also an idea resurfacing there on Capitol Hill this morning that he had heard in the past it it didn't have the votes I was done away with but it's back this morning as you talk about focusing on the taxpayer.
Some calls for congress to actually enact legislation that would allow the families that are out there struggling to renegotiate their mortgages what are your thoughts on the.
Well I think we've we've we've.
Set up FHA to do that.
Dead -- qualify for a mortgage can go to FAK right now as we speak.
And I'll probably get their mortgage refinance.
If they got good credit in -- there worthy by our.
But they're going to be simple closures it already has become a lot of those loans were banned eight that that happened that'd be it but the taxpayer cannot should not.
Bailout everything especially large firms that have made mistakes being greedy and be in this managed.
You know some financial experts today senator disagreeing with the use of the term bail out when we're talking about the 85 billion dollars for AIG saying it's truly alone.
There is the potential loan lets the market work there's a potential -- we get attacked as taxpayers could end up making money out.
When if we do Powell will be the first one to go on TV and congratulate.
But it the same time until that happens now we'll the very skeptical as most Americans are at this point.
Is anti worth 85 billion dollars right now the American taxpayer I would say no although their assets might be.
But should we do that I'd say no.
Alabama senator Richard Shelby who is the ranking member on the banking committee we appreciate your time Saturday kids.
Wall Street all.
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