February 8th, 2009
04:45 PM ET
6 years ago

Stimulus will lead to 'disaster,' Republican warns

WASHINGTON (CNN) - Leading Republicans warned Sunday that the Obama administration's $800 billion-plus economic stimulus effort will lead to what one called a "financial disaster."

"Everybody on the street in America understands that," said Sen. Richard Shelby, the ranking Republican on the Senate Banking Committee. "This is not the right road to go. We'll pay dearly."

Shelby, of Alabama, told CNN's "State of the Union" that the package and efforts to shore up the struggling banking system will put the United States on "a road to financial disaster."

But Lawrence Summers, the head of the administration's National Economic Council, said Republicans have lost their credibility on the issue.

"Those who presided over the last eight years - the eight years that brought us to the point where we inherit trillions of dollars of deficit, an economy that's collapsing more rapidly than at any time in the last 50 years - don't seem to me in a strong position to lecture about the lessons of history," Summers told ABC's "This Week."

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soundoff (400 Responses)
  1. Bud Burgoon-Clark

    Alabama, like most of the red states, is a fiscal basket case. Look up how much they receive BACK in federal monies as opposed to how much they pay IN.

    Republicans are liars and thieves. Whyis what ANY Republican have to say about the economy in any way relevant? THEY got us INTO this mess.

    Typically, Flush Limburger (sic) was on the radio as soon as President Obama was sworn in, talking about "Obama's Recession."

    Ex-CUSE me??!!

    The BuschReich managed to crash the WORLD economy by greed and theft, and it's President OBAMA'S fault??!!

    I'll believe THAT when pigs file flight plans!

    February 8, 2009 08:19 pm at 8:19 pm |
  2. mary,florida

    "If ye love wealth greater than liberty,the tranquility of servitude greater than the animating contest for freedom,go home from us in peace.We seek not your counsel,nor your arms" - Samuel Adams

    February 8, 2009 08:19 pm at 8:19 pm |
  3. jdquest

    The stimulus may not work because of all the doomsdayers out there. The real way to solve our economic problems is to shore up the people's confidence. We might start by bringing home some manufacturing jobs. If I were a young person, I would be out there trying to get in on some of the money being flung around to help develop more industries to make toys, jewelry, etc. Don't do it to try and get rich but to help your fellow Americans. You could still make a decent living. If someone is truly American they would be working to help the country grow stronger and not trying to line their own pockets. What happened to the America where people voluntarily sacrificed for the good of the country. I can't believe that congress has to look for all the loopholes to make sure that the bankers and bailed out business executives don't take advantage of the American people.

    February 8, 2009 08:21 pm at 8:21 pm |
  4. Don in Albuquerque

    Yeah, but a disaster for who? The wealthy, the bankers, the wall street people, and the Rethug party that brought us to this mess? Hope you are all voted out of office.

    February 8, 2009 08:21 pm at 8:21 pm |
  5. WIll 18E

    Where was Selby and his warnings when Bush pused for the Wall Street bailout. He was all for it.

    But now that Guvment $$ is for main street, the GOP will work full time to make sure the economy sinks.

    February 8, 2009 08:22 pm at 8:22 pm |
  6. Bud Burgoon-Clark

    CORRECTION:

    Republicans are liars and thieves. Why is what ANY Republican has to say about the economy in any way relevant? THEY got us INTO this mess.

    February 8, 2009 08:22 pm at 8:22 pm |
  7. Death of America by Obama

    Larry Summers is a fool.....just like that idiot obama.

    February 8, 2009 08:23 pm at 8:23 pm |
  8. Kimberly

    republican smuglican, WHO CARES WHAT THESE MORONS THINK!!! Do they NOT see that Americans DONT care about the ideas of rich old white bible thumping fools? THEY lost by record amounts because they caused this mess, and NOW they think they should have say in things??? HA!

    February 8, 2009 08:23 pm at 8:23 pm |
  9. catmom

    Oh, give me a break. Talk about fear mongering. What is his solution? More tax cuts. Republicans are the reason we are in this mess. They had no ideas. According to McCain, the fundamentals of the economy are strong. If Republicans had the answers, why did they wait until so many people lost their jobs? Why have they waited to impart their wisdom. What other idea do they have besides tax cuts. NOTHING.

    They have whined ever since 11/4 , when Obama became President and the American people rejected their ideas. If you had the ideas and you all knew what to do please tell the American people why you all let things get so bad. Of course, you all probably don't think there is a problem –right.

    Move over and allow someone else try something different. That is what the American people want. Not more whining and fear mongering. We had that for the past eight years. Most of us appreciate hearing the truth. It's not like a lot of us don't know or feel what Republican choices have done. Republicans have no answers.

    February 8, 2009 08:24 pm at 8:24 pm |
  10. fred

    NO MORE STIMULUS PLANS OR BAILOUTS!!!!!!!!!!!!!!!!

    signed,

    ~The American people

    February 8, 2009 08:24 pm at 8:24 pm |
  11. Enough Already

    Shelby maybe right! After all the Repubs should know disaster when they see it , they put the whole world in financial ruins and it only took them 8 years to do it.

    Shelby and his boys are a true joke.. We fired them for a reason, WE DO NOT TRUST THEM

    February 8, 2009 08:26 pm at 8:26 pm |
  12. dmott

    Five words, This guy is an idiot!

    February 8, 2009 08:27 pm at 8:27 pm |
  13. KC

    Come on people! Grow up! Both parties voted for the last 8 years to bring us to this mess! Obama doesn't need a Congress that will rubber stamp his programs for the next 4 years! Stop blaming the other side for this mess! Don't you realize that even if it is signed next week it will take until the latter part of 2010 to see any improvement if at all. Obama is doing exactly what he accused Bush of doing with the TARP bailout using "fear" to push something that may not work and even if it does it won't fix anything until late 2010.

    February 8, 2009 08:27 pm at 8:27 pm |
  14. Denise in Baltimore

    You would think that in a time of extreme financial crisis, record unemployment, and failing consumer confidence that our elected officials would put politics aside. Is there ever a time when politics takes a back seat? I think the Republicans see the sun setting on their trickle down, unregulated, less taxes for the wealthy strategies.

    February 8, 2009 08:27 pm at 8:27 pm |
  15. Steve in Las Vegas,NV

    What do the Reps offer to help? Are they offering chants of LOWER TAXES! While I don't like high taxes, it seems that is all they offer.

    Other than that I don't see much they have come up with(other than tax breaks for the uber rich),except complaining about these bills. And try to hold up the process. They fail to realize that they're supposed to do the peoples work, not just their own agenda.

    February 8, 2009 08:28 pm at 8:28 pm |
  16. Bilagana

    Sen. Shelby, save Alabama from this legislation you so fear. Don't take a penny in stimulus funding for Alabama!

    February 8, 2009 08:28 pm at 8:28 pm |
  17. Amber

    Southern Republicans wanting the rest of the country to be as feudalist and poor at their home districts...

    And the Sunday talk shows were replete with them today! 4 Republicans for every Democrat. You know that they're scared – they're getting louder.

    February 8, 2009 08:29 pm at 8:29 pm |
  18. alvino

    Daniel Cabrera of Merrillville, Ind-

    Obama is the best thing that has happened to our country in a long time, and you should resign to the fact that your party has almost destroyed the country.

    I do think he should give up on trying to work with the obstructionists. Oh, and stop yelling.

    February 8, 2009 08:30 pm at 8:30 pm |
  19. Jacque Bauer

    Thank God for Sen. Shelby and also Governor Sanford of South Carolina, we are FINALLY seeing some adults stand up and call this "spending orgy" fiasco for what it is. Obama would do well to listen carefully - if he wants a second term.

    February 8, 2009 08:31 pm at 8:31 pm |
  20. BRUTIS

    Another G...O...D....Dam,,,n REPUBLICAN lying B>>A>>S>>>T>>A>>R>>D like the TURD in Crawford,Texas..

    I for one am sick of REPUBLICNANS and all their C>>>R>>>A>>>P.

    They should all go crawl into a corner and CROAK...

    SCUM all of them

    February 8, 2009 08:31 pm at 8:31 pm |
  21. Texas Teacher

    Seriously, Repubs.... I cannot stop laughing! Do you honestly believe that the mistakes you made for 8 years that brought us to this crisis will really bring us out?

    Palease.... get over it.... .we don't care what you want to do or think or anything else..... YOU GOT US INTO THIS MESS.... now get out of the way and accept the blame you so surely deserve!

    February 8, 2009 08:34 pm at 8:34 pm |
  22. BRUTIS

    REPUBLICANS....S....U...C....K EVERY ONE OF THEM...

    February 8, 2009 08:34 pm at 8:34 pm |
  23. dn

    DIdn't the Republicans say deficits don't matter while W ran up the debt, in 'good' economics times, and took all the pork with all the tax cuts. Thus leading to huge foreign debt and a weak dollar! Now they lecture on economics and don't seem to understand that a dollar given to any worker results in spending on products and services – isn't that they way to increase economic activity?

    February 8, 2009 08:35 pm at 8:35 pm |
  24. M. Felder

    There is no guarantee in life. The only thing we can do is hope and pray that all things work out for the good. I thought conservative believed in something above themselves. Apparently, not. We do what we can today, because tomorrow is not promised to any of us. The thing about history is that it teaches us not to make the mistakes of the past. So even when we find ourselves in a bad situation, if we use the right tools, there is a chance that we will can overcome any obstacle that comes our way. Life is a balancing act. The fact is that all of that greed in the universe had to balance itself out. And we are witnessing the balancing act. Those of us who believe in a universe bigger than us, believe that the universe will do what is right.

    February 8, 2009 08:35 pm at 8:35 pm |
  25. curtis

    Fine, then – send the money destined to Alabama back into the Treasury to minimize the 'disaster' then. Will you be doing that Senator?

    February 8, 2009 08:36 pm at 8:36 pm |
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