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. alvino

    Two out of every three Americans disagree with Shelby.

    February 8, 2009 06:28 pm at 6:28 pm |
  2. Amy-Texas

    Here this all you democrats. Enjoy your four years of power because the Republicans are making a comeback and we are going to get rid of every last one of you starting with voting out: Barney Frank, Nancy Pelosi, Harry Reid and the almighty god himself Barack Obama. The new slogan for 2012 will be "Take America Back" because after these people get done we won't even recognize what our country has become. People start supporting the RNC now and send your money so we can get moral people back in office who will do what's right for our country.

    February 8, 2009 06:28 pm at 6:28 pm |
  3. C W

    The Republicans have totally lost their credibility in regard to economic matters! Voodoo economics, trickle-down, whatever you want to call it: It doesn't work!

    And why do I get the feeling that Republicans, as their spokes-blaugh Rush said, that they want the Obama Administration to fail? They care more about protecting their cronies and keeping power than for the American people.

    Despicable!

    February 8, 2009 06:29 pm at 6:29 pm |
  4. Kevin

    Once again if they would stop spending so much time putting this bill down and actually work with everyone the way President Obama has asked. Then maybe this bill would work for eveyone and the problems we face might actually get fixed.

    February 8, 2009 06:29 pm at 6:29 pm |
  5. JNorman

    Quite frankly Shelby proved his idiocy on the show because not only did he support the fiscal policies over the last 8 years that led to this, he could not provide any specific constructive suggestions on what the government should do.

    February 8, 2009 06:29 pm at 6:29 pm |
  6. Chris E.

    Please tell me how can the stimulus be a "financial disaster." this country is all ready mess up so another stimulus package or a spending package will not do any harm, The Republicans had 8 years to make this country better but what did they do gave money out to companies that was going under and now when the poor man say he need help it is going to be a "financial disaster." PLEASE!!!!!!!!!!!!!!!!!!!!!!!!!!GET REAL

    February 8, 2009 06:29 pm at 6:29 pm |
  7. Claudia

    Why don't these guys (Republlicans) read history? A stimulus plan is what they did during the depression to stop the bleeding in the economy. They are so busy still trying to help themselves they refuse to help the American people. Why don't they talk to economists instead of Joe the plumber? They need to put aside this stupidity and help the economy right now what a bunch of losers. Everyone who has a Republican Senator ought to write them call them and tell them support the stimulus plan if it doesn't work they will have plenty of time to point fingers.

    February 8, 2009 06:31 pm at 6:31 pm |
  8. Simmy

    Sen. Shelby reminds me of Bush and Cheney, when they were selling the war in Iraq to the American people. What about that 700B Bailout in October, Sen. Shelby? Where did that money go? How many banks got it, and what did they do with it? Why didn't you question Bush, Paulson and Bernanke about that "financial disaster?"

    Don't warn President Obama.......Bush should have warned you. This Stimulus Package is a continuation of the clean up of the financial disaster left by him. Grand standing will not work this time. Intelligent Americans are wise to your games.

    Please Sen. Shelby, shut the hell up, and vote.

    February 8, 2009 06:31 pm at 6:31 pm |
  9. Joanna

    You lead us to disaster my republican friend. STOP THE FAKE OUTRAGE! You gladly gave up 700 million to wall street with NO over sight what so ever. And i remember you all saying how proud you were to come together and get this done. Now the CEO's on wall street got there bonuses, there million dollar office makers and yet credit is STILL not flowing. Therefore people are loosing jobs, with no jobs.. they can not buy things.
    SHUT UP, you have no place in fixing this, you are the one's who lead us here! A great rule of thumb to live by now is listen to the GOP, than do the complete opposite.. Than you know you made the correct choice.

    February 8, 2009 06:32 pm at 6:32 pm |
  10. Larry

    Any one with any common since would have to agree that the Obama administration's $800 billion-plus economic stimulus effort will lead to what one called a "financial disaster."Huge debt is what got us here,more huge debt is going to make it worse.

    "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 and we don't have another "fix"left when this doesn't work.

    February 8, 2009 06:33 pm at 6:33 pm |
  11. ex-rev

    And just exactly would the republican party want any program of the new democratic administration succeed? The answer is, they don't, so its better to oppose everything and not give any good suggestions except to help the same old cronies they have been helping in the past. Come on America and wake up. Look at what they want to cut. Education, construction, head start. Maybe they think that if we keep our children dumb, they won't realise it was the republicans who did nothing for them. I for one am tired of these nay sayers, and do nothing positive. If they truly believe this will fail, they should vote for it and if it does fail, they can always do what they did when it came to their vote on the Iraq war.. say they were given bad information by a bad president.

    February 8, 2009 06:33 pm at 6:33 pm |
  12. alvin

    Bush and the Republicans already led us to disaster. It can not be worse under Obama.

    February 8, 2009 06:33 pm at 6:33 pm |
  13. M. Levy

    I totally agree with Mr. Summers. The Republicans still cannot accept the defeat of McCain/Palin. Therefore, they will do everything possible to block what President Obama does.

    Why do they (the Republicans) ever admit that one of the reasons we are in trouble today is because of the BUSH ADMINISTRATION and the war.

    February 8, 2009 06:33 pm at 6:33 pm |
  14. Juge

    You should be on the unemployment line and without health insurance.

    February 8, 2009 06:33 pm at 6:33 pm |
  15. Lynn in NM

    Yes, it will cause a disaster. However, let the Democrats vote for it, and then everyone can blame this all on them, for a change. This whole mess started when tBill Clinton sent our jobs overseas and the Democrats decided to lower the standards for mortgages so EVERYONE could own a home. Sorry, but there are people who can not afford homes. That was what the checks and balances were all about. If you couldn't get past the mortgage process, there was a reason. But, they are bound and determined to blame it on the Republicans, of course. I don't care who votes for this bill – I will never vote for them again.

    February 8, 2009 06:35 pm at 6:35 pm |
  16. Awaiting Moderation, Again

    Senator Shelby would know a financial disaster when he saw one – he voted with Bush everytime when it came to pouring our money into Jet-Pilot's make good to impress Pappy in Iraq!

    Senator Shelby, didn't you also oppose helping U.S. autobuilders with a financial bailout? Of course you did, but the fact that there are four, foreign-owned, non-union auto plants in your state of Alabama is pure coincidence, right?!

    Senator Shelby, you'll never admit it, but you don't like the fact that a man of color is calling the shots do you?!

    February 8, 2009 06:37 pm at 6:37 pm |
  17. waxwing069

    Frankly, The GOP should look in the mirror. Because of thier free rein in government the last 8 years of GOP rulership, this economy is in the worst shape ever, we are already living in a major disaster, where our great great grandchildren will still be paying off the debt incured in the past and today. The GOP didn't think twice about the spending they voted for, now they have the nerve to question and criticize the Democratic government about spending???? Pardon me while I laugh so hard I fall on the floor.... Talk about Hypocrites.

    February 8, 2009 06:37 pm at 6:37 pm |
  18. sleepless in Seattle

    ...so how is it Republicans like Shelby can see this disaster coming?

    I thought this Disaster came in September, or didn't they see that one coming? What have they been doing since this began? Where was their urgency then? Why did we have to wait until Jan 20 to get moving? Now they suddenly have foresight and good ideas????

    February 8, 2009 06:37 pm at 6:37 pm |
  19. pdxman

    The republicans are speaking from a position of authority. After all, they know much about causing financial disasters...

    February 8, 2009 06:38 pm at 6:38 pm |
  20. Joe in MN

    Disaster is already upon us..the repercussion just haven't been fully realized. The republicans are just trying to stick to their ideology at whatever costs...

    February 8, 2009 06:39 pm at 6:39 pm |
  21. G

    As oppose to the last 8 yrs haha.

    February 8, 2009 06:39 pm at 6:39 pm |
  22. Carmine Abbattiello

    The disaster already happened under George Bush. Where was Shelby then? Its obvious that the GOP can't stand the thought of Obama fixing the mess they created and would rather see him fail.

    February 8, 2009 06:41 pm at 6:41 pm |
  23. GrogInOhio

    I'm no fan of Larry Summers, but he's on the button here. Having Republicans complain about the extinguishing methods after having set the house afire is preposterous. I continue to maintain that to be a conservative requires the omission of an irony detection gene.

    February 8, 2009 06:41 pm at 6:41 pm |
  24. Alicia

    Okay.....these were the guys who signed ANY and EVERYTHING Bushy and Cheney sent down for them and their greedy friends. Iraq war at Billions$$$$$ a month and 1,000s of lost lives....no problem!

    Funny how they gave Bush Carte Blanche, but NOW we have a disaster created by the REPUBLICAN PARTY and they have the nerve to balk. Shut up and sit down.

    By the way, putting the Uncle Tom in charge of the party does lure in African American, but exposes how racist and clueless you racist white guys are.

    February 8, 2009 06:43 pm at 6:43 pm |
  25. Tulsa L

    That is right, you Republicans were in charge these last 8 years and look how much you let your President Bush run this country in to this bad debt.......did you do anything then to stop it? Did you do anything to try to stop the Bush Administration from taking us down this road to hell.......NO....you did nothing......now you have all these ideas of how and what we should and shouldn't do.......give us a break and just sit back down and keep your opions to youself, just like you did over the last 8 years.....we are in this mess because you republicans couldn't and wouldn't do any thing to control your President Bush......

    February 8, 2009 06:45 pm at 6:45 pm |
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