DeMint opposes Wall Street bailout

Sen. Jim DeMint (R-S.C.) said he opposes the $700 billion bailout of Wall Street investment firms, a move that could threaten swift passage of the emergency legislation. 

In a statement announcing his objections, DeMint did not say whether he planned to filibuster the proposal.

{mosads}“After reviewing the administration's proposed bailout plan, I believe it is completely unacceptable,” DeMint, chairman of the Senate Republican Steering Committee, said in the statement. “This plan does nothing to address the misguided government policies that created this mess and it could make matters much worse by socializing an entire sector of the U.S. economy.”

“This plan fails to oversee or regulate the government failures that led to this crisis,” DeMint added.

Treasury Secretary Henry Paulson has pressured congressional leaders to approve the bailout as soon as possible to prevent panic from spreading across the U.S. and world financial markets.

But Paulson’s ambitious schedule may become derailed because of growing opposition from conservative Republicans and rank-and-file Democrats.

"This plan will not only cause our nation to fall off the debt cliff, it could send the value of the dollar into a free-fall as investors around the world question our ability to repay our debts,” said DeMint. “It's also very likely that this plan will extend the cycle of bailouts, encouraging other companies to behave in reckless ways that create the need for even more bailouts, triggering an endless run on our treasury.”

DeMint joins conservative House Republicans who have also attacked Paulson’s proposal.

Rep. Jeb Hensarling (R-Texas), chairman of the conservative House Republican Study Committee, questioned the proposed bailout Friday, saying he was “unconvinced that this is the proper remedy for our nation at this time.”

Rep. Mike Pence (Ind.), another conservative Republican, said in a statement Saturday: “Congress must not hastily embrace a cure that may do more harm to our economy than the disease of bad debt.”