The Solution to the Bailout
Partial transcript from The O'Reilly Factor with Newt Monday night.
O'REILLY: Now, I have supported the bailout because I believe if the government doesn't stabilize the economy now, foreign investment will pull out of America. Now you know how important foreign investment is to this country's health. So I don't like this bailout. I agree with you that the government is incompetent and corrupt in some areas. But I don't see any other choice at all but to do it.
GINGRICH: Well, let me give you two choices immediately. First, there's an accounting rule called mark to market. We were warned against doing it by the European Central Bank in 2004. Two economists — Chicago Bank Today came out and said if we would simply repeal it — this is an overreaction to Enron — if we would simply repeal it, they think 70 percent of the problem would go away. That's $500 billion of the bailout would disappear.
Second, I have no problem with the workout. We'll let you work out your bad debt. But I am deeply opposed and I will actively oppose any bill which has the Treasury buying bad paper because that's a bailout. That's not a workout.
70% of the problem solved and it doesn't cost you a cent!
Maybe the Banks Are Just Counting Wrong
Bailout fails — Move on to Mark-to-Market Reform