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We'll stocks soared this weight despite the world's economic woes senator Jim dement of South Carolina joins us now.
Senator let's begin before we get to the stock market -- that the big story of the day and that of course is that AIG the insurance giant.
Which has received a 170.
Billion dollars in taxpayers' bonds.
It's gonna pay out a 165.
Million dollars in bonuses your reactions there.
Well we shouldn't have given them the money in the first place so I think a lot of the blame falls on the politicians who think we can keep bailing out these companies.
Some of these banks and even insurance companies are going to have to fail.
We need to let them down gently and protect depositors and not policyholders.
But it doesn't make any sense for us to spread all this money around like we're doing now I think this is only the tip of the iceberg.
With all this stimulus money from the moving through state and local governments I think you're going to see a whole lot more of the the same and even the people who are overseeing it.
Can already tell us we should expect it like you say more the same you're talking about about corrupt senator was.
Well that corruption fraud just down ineptitude.
And it always happens when you throw money at them.
The someone and say you have to spend it in a hurry but fortunately we are saying some banks lending but to generally -- healthy banks that.
Didn't need the TARP money in the first place so we have some positive signals that are coming out of our economy.
Let me ask that went went and it was the Bush Administration in all fairness they were the ones who bailed out AIG at least originally.
And the argument at the time was of this company was so interwoven with the whole financial system because they basically had given.
Insurance policies to the banks on all of there toxic assets all of these mortgages as securities.
That if if if they went down with -- all those insurance policies.
That this could just cause the entire financial system -- fighter you know the old argument too big to fail.
Well if they're too big to fail they're too big.
And I think we should recognize that in the beginning in the government could certainly stand behind the policies that work.
Critical to our economy but that would have been a lot cheaper than just throwing money to AIG and allowing them to give out these huge bonuses.
But we're saying this with the banks that took a lot of this money.
Some other good banks that were almost forced to take it want to give it back now because the government is on.
In their offices almost every day with new requirements.
The government just not set up to do what we're promising we can do here and as soon as we can back out of this I think the market.
We'll see more a certainty.
And more stability.
But right now I'm afraid the government's doing more harm than good.
Let's go to the question of the Obama budget and the other of breaking story today and that is.
That the Obama White House is reportedly open.
Open not suggesting that open to the possibility of taxing employer.
Health care benefits now I know this would represent quite a flat for President Obama if he were to accept this.
On the other hand it is a Republican idea they have generally supported the idea.
-- all of this is a way to get revenue by taxing the the more gold plated health care benefits how do you feel about.
Well what we're seeing a lot of flips with that the president now we saw on the remarks last week and he was very critical of John McCain during the the campaign that McCain would suggest.
Taxing health care benefits but I'm afraid the president is not talking about the same plan that McCain was McCain was simply talking about trading.
One tax for another and actually giving workers some 5000 dollar a year tax credit.
To -- their own insurance or either to pay those taxes.
If if they got their policy through the insurance company.
And I'm not sure the president is going to be talking about trading taxes I think he's looking for new revenue.
In raising taxes in a lot of places.
And so I'm not going to be supportive of what he does unless it's -- a new health care plan that helps people pay for their own insurance.
And makes it fair to all Americans.
Overall let's have been back for a minute here from his individual issues overall about 56 I think it is days then I didn't the president is doing senator.
Whether they're definitely been some bumps in the road here and answer I mentioned before I think we're seeing more changes in the president.
Then we are saying in Washington right now.
What he's talking about spending and taxing.
It barring levels that we've never even imagined before.
It makes the Republicans look like amateurs that it overspending.
And I think even Barack Obama is.
Are very very concerned about that the level of spending and borrowing in taxing and he's talking about so.
Will say during this budget debate.
But I think Americans.
-- -- starting to get a little bit alarmed.
And some are even outraged.
At what we're doing is -- government spending an intrusion into the private market.
So I think I know I'm 41 and concerned I hope that that the president would move -- govern more towards the middle.
But what we've seen so far suggest.
A sharp turn to the left.
With some major new government policies and Chris -- the problem here is the things we're fixing or not what's wrong with the economy.
That would be a carbon.
But omissions did not cause our economic problems or people without health insurance did not cause our economic problems.
What we're doing is throwing a whole lot of money and these new programs that the president wants to get through.
Under the umbrella of a crisis.
But we're not fixing the things that caused the problem it really gets back to our credit problem and our housing problem.
And we need to have some focus and that's the biggest problem I see so far with the president is -- so spread out with so many big issues.
All over the board.
We're not addressing the real core problems that we're facing right now senator Jim diminish South Carolina we want to thank you for coming in and talk with us today sir.
Thank you Chris.
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