BREAKING NEWS: Fred L. Smith Jr., President of CEI, issues a Statement on the Bailout Package.
The nation is not only facing an economic crisis, it's facing a moral and Constitutional crisis. Fears of Wall Street's collapse have Washington politicians fighting for their political lives, and it may cost the United State dearly. Nearly a trillion dollars in bailouts have been proposed along with hastily planned additional layers of regulation. The biggest takeover of the private sector by government is on the horizon.
But big questions aren't being addressed by the President or Congress. The biggest question: "What was government's role in this crisis?" At CEI, we believe that over-regulation, government sponsored entities like Freddie Mac and Fannie Mae, and a series of ill-conceived government housing programs have contributed greatly to the current crisis.
To make sure the free market voice is heard, CEI is taking on the bailout through podcasting, blogging, and traditional media.
Bailout Podcast:
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"Bailout Crashes, Rocket Doesn't " Listening to the CEI podcast is quick and easy by subscribing to us on iTunes. |
Blogging the Bailout:
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At OpenMarket.org, CEI's staff blog, we've created a new Bailout Watch section and RSS feed to keep our readers up-to-date on all the latest developments out of Washington and what the proposed plans really mean. |
Traditional Media:
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"Doing Something?" John Berlau in The American Spectator explains that "The bailout, as originally proposed and in its latest incarnation, would spend $700 billion of taxpayers' money and actually make the economy worse? Believe it or not, there is good evidence this may happen. The inflationary prospects of the bailout price tag may lead to spikes in oil and crop prices that could hit ordinary Americans in their cars and on their kitchen tables." |
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"$700 Billion Won't Buy What Pro-Market Solutions Can" Syndicated columnist Deroy Murdock rails against the $700 billion bailout plan, suggesting that the free market plan offered up by the House Republican Study Committee is the best alternative. Murdock cites CEI's John Berlau as an advocate of one of the reforms in the RSC plan, scrapping mark-to-market accounting. |
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"Fannie, Freddie Critic Ridiculed In 2000" Fred Smith in Investor's Business Daily explains how eight years ago, when testifying before Congress on Fannie Mae and Freddie Mac's his criticisms were met with ridicule. Today his predictions are proving to be frighteningly accurate. |
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"It’s Paulson’s Own Mess" John Berlau in The American Spectator tells the story of another firm that was "too big to fail." While it wasn't a bank, this multi-billion dollar firm was on the verge of bankruptcy and held complicated assets such as derivatives and traded with just about every big bank on Wall Street. This was, of course, Enron. |
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"Maybe the Banks Are Just Counting Wrong" John Berlau, Director of CEI's Center for Entrepreneurship, in the Wall Street Journal on how mark-to-market accounting standards amplify the ups and down of the market, making booms big and busts even bigger. |
