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McClintock “absolutely opposed” to $700 billion bailout

By: Gus Thomson, Journal Staff Writer
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Fourth District congressional candidate Tom McClintock said Tuesday he’s “absolutely opposed to a taxpayer bailout of bad Wall Street investments.” McClintock, a state senator from Ventura County, is running against Democrat Charlie Brown to replace U.S. Rep. John Doolittle, R-Roseville, who retires next year. “If someone came to you and asked you to write a $12,000 check to pay top dollar for mortgages in default, would you do it?” McClintock asked, citing the $12,000 figure as the cost per family for the $700 billion bailout being proposed. McClintock said people he has spoken with in recent days are furious because they recognize the current situation is the result of government regulation and irresponsible investments on Wall Street. Brown has said he supports a rescue plan that provides no golden parachutes for corporate executives and promises any profits from bailed out financial institutions are returned to taxpayers. Doolittle voted against the bailout plan, which had the support of President George Bush and House Republican and Democratic Party leaders. Instead of taking a panic-stricken approach, McClintock said the government could take steps to repeal the capital gains tax and “swap it off” by dropping farm subsidies to inject new capital into the marketplace. Another step would be to reduce the federal fund rate by 50 basis points. “It isn’t the business of government to borrow $700 billion to buy up bad loans,” McClintock said. The Journal’s Gus Thomson can be reached at gust@goldcountrymedia.com.