February 8th, 2009
04:45 PM ET
5 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. texasgreenacres

    we're almost to the end of disaster road. That they caused, so what difference will another disaster make? It has to get better it can't get much worse.HEY STUPIDS OPEN YOUR EYES SHUT YOUR MOUTH AND THINK (IF THAT'S POSSIBLE?) AND DO THE WILL OF THE VOTERS. NOT YOUR OWN SELFISH POLITICAL GAME THAT YOUR LOSING. you may block the the plan.but we already know how we got here. that's why your numbers fell like rain drops.AND ITS STILL RAINING.your looking at a long wet spell.

    February 8, 2009 06:46 pm at 6:46 pm |
  2. CA Indie for Obama

    "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." "
    ...seems to say it all.

    February 8, 2009 06:47 pm at 6:47 pm |
  3. Translation

    Whaaaaaaaaaaaaaaaaa, we lost the elction.

    February 8, 2009 06:47 pm at 6:47 pm |
  4. Sandra

    Thank you Mr Summers. The GOP has gone just a bit to far to make such comments after the past eight years. My cost for food, gas and just everyday living is proof in the pudding of their actions. Also if they recall "Mr" Paulson did a terrible job of setting up the oversight of the first half of the 750 billion dollars. I feel the GOP is trying to cut President Obama down every chance they get and they are acting in a very underhanded way. I hope the polls reflect that when they all come up for re-election.

    February 8, 2009 06:49 pm at 6:49 pm |
  5. Seattle Sue

    Why would I believe anything a Republican says? Isn't Shelby a Republican who helped Bush to bring on this disastrous economy? All they can say is more tax cuts and look how well the last tax cuts have worked for us.

    February 8, 2009 06:49 pm at 6:49 pm |
  6. Lilarose in Bandon, Oregon

    What is going to lead to worse economic disaster is something CNN and other media won't even discuss.

    Who is going to oversee this latest economic stimulus package? The same people who oversaw the banks' bailout?

    Oh, well, I guess we get to wait to find out–

    February 8, 2009 06:49 pm at 6:49 pm |
  7. Mark, B'ham., Al.

    Don't forget the democrats controlled the legislature the last 2 years and had the fillibuster all eight years in the Senate. Barney and Todd are as responsible for Fannie Mae and Freddie Mac starting the housing bust as W.

    February 8, 2009 06:50 pm at 6:50 pm |
  8. John Mahoney

    The biggest fear that Sen. Shelby and the other members of the Republican party have is that the country's economy will improve over the next 12 months and they will be seen as the party of "No". If they really cared about run away government spending, they would have been yelling when Pres. Bush II was running up the debt.

    The Republicans of 2009 are focused on one group only, the conservative talking heads that pull their strings.

    February 8, 2009 06:50 pm at 6:50 pm |
  9. MICK in MESA

    Another plantation repuglicon from the GOP (Grand Obstructionist party) heard from adding their typical input – "No".

    February 8, 2009 06:50 pm at 6:50 pm |
  10. theMoneyPit

    Disaster eh?...What do you call what we're in now?

    February 8, 2009 06:52 pm at 6:52 pm |
  11. bill

    unbeleivable. You would think that in a time of national issues, we would all work together to formulate a solution that would help all in need. What do the republicans think we need to do? Maybe we should all throw in the towel.

    February 8, 2009 06:52 pm at 6:52 pm |
  12. Bill

    There is not a whole lot that the Federal Government can do to stop this from slipping into a full blown depression. They can slow it down but what has been building up for the last 20 years will take just as long to undo.

    The Buy America idea is a laugh. Ever try to find any electronics made in the USA? Any clothes that is at a reasonable price? How many folks shop at Walmarts....and how much of what they sell is make in the USA?

    No country that we trade with is running scared when we push the buy in the USA matra.

    February 8, 2009 06:52 pm at 6:52 pm |
  13. Daniel, Atlanta, GA

    Another Southerner Repugnant that claims to be an economist! The GOP is clearly fearful of Obama's success with this stimulus package. Again, when the Great Depression hit, 25% of Americans were unemployed and basically homeless. What is one trillion dollars if millions of Americans lose their jobs? If millions of people lose their jobs the ripple effect will cause loss of tens of trillions of dollars in lost tax revenues, lost national productivity, and lost industries. The Great Brain Drain will also happen as the brightest and most educated Americans may have to migrate to Europe and Asia to find good jobs. At one time America was the mecca for world scientists, successful business minds, and great inventors to come from around the world, draining other countries of intelligence, but now, the opposite will happen and America will be damaged for good. All you Republicans must not be worried about losing your jobs, homes, and comfors.. But wait. As soon as your republican supporter lose everything, you won't have any solutions nor will you have any answers! A trillion or two is no big deal! Who is so worried about the future when their children are sleeping under the stars? Keeping Americans working will raise the money over time to pay down the debt! Surely, the Republican party is a party of the South and of evangelicals, a regional party. Stop being so dumb and come up with real solutions!

    February 8, 2009 06:53 pm at 6:53 pm |
  14. Scrub Rinse, Repeat

    Why is CNN giving the GOP any attention at all when it comes to the economy? It's like asking the fox to guard the hen house. Why do we care what the GOP thinks, when they caused the problem in the first place? We wouldn't be here if they knew how to fix the economy; get it CNN?

    February 8, 2009 06:54 pm at 6:54 pm |
  15. Bob C

    The rump Republican Party and their spiritual leader, Rush Limbaugh, want President Obama and the country to fail. They have no solutions other than giving Bernie Madoff a tax cut and will stand in the way of anything that has any chance of success. The few moderates (read thinking) Republicans left, realize the seriousness of the economic situation in which the policies of the Bush Administrations policies have landed us. They are trying to provide constructive criticism to improve a large and difficult piece of legislation. The rest of the obstructionist desire nothing more than to tear down and destroy rather than put anything constructive forward.

    And Senator Shelby, why would we want to take the advice of a Senator from a state that ranks 45th out of 50 in education?

    To the obstructionists in the Republican Party: LEAD, FOLLOW, OR GET OUT OF THE WAY!

    February 8, 2009 06:54 pm at 6:54 pm |
  16. daniel cabrera

    there is always the posiblillity that this bone-head idea works,...may be Harry Potter can use SOME magic on this thing,....after all according to many democrats thay still Believe that Obama is 'THE MAGIC ONE'

    WAH ! THIS IS SO FUNNY!

    February 8, 2009 06:56 pm at 6:56 pm |
  17. Soccer Nana

    Why weren't these old wolves howling three months ago? They should have "cried" themselves a river during that time. Better yet, they need to retire and let some youthful politicians take the helm. These "lifer" senators and congressmen/women need to be literally retired at the age of 65.

    February 8, 2009 06:57 pm at 6:57 pm |
  18. Gels and Vince

    He's a hater rader..lol

    February 8, 2009 06:57 pm at 6:57 pm |
  19. stimulating the economy

    What do you know, anyway?

    If it wasn't for you, we wouldn't be in this current disaster.

    I guess you don't see or acknowledge that we're in a recession.

    February 8, 2009 06:57 pm at 6:57 pm |
  20. Sye the Pychic

    What should we expect from someone that cares more about the Japanese auto companies and the Confederacy of the South than the good of the American people?

    February 8, 2009 06:58 pm at 6:58 pm |
  21. Why?

    And why exactly do we have to even listen to Sen. Richard Shelby's opinion?

    We are barely surviving 8 years of conservative republican disastrous economic policies – why should we listen to them now?! – give me a break!!

    February 8, 2009 06:58 pm at 6:58 pm |
  22. John Starnes Tampa Florida

    For the last eight years, as a Republican president and Congress were busy destroying America financially and morally and militarily, they were simultaneously destroying their own credibility.

    February 8, 2009 07:00 pm at 7:00 pm |
  23. After eight years

    of Republican rule, all of a sudden they have all of the answers?

    Look, get with the program. People are in a world of hurt, and your obstructionist, all criticism/no ideas of your own attitude is utterly transparent and fraudulent.

    And, no, "giving the rich more tax cuts" is NOT an acceptable answer.

    February 8, 2009 07:01 pm at 7:01 pm |
  24. usualone

    Mr. Shelby is playing politics. He has no sound proposal; he just wants to delay helping Americans until they forget that his party put us in this downward spiral. I hope the public remembers what the last eight years have brought upon us.

    February 8, 2009 07:01 pm at 7:01 pm |
  25. Craig Nazor

    He didn't speak up when Bush bailed out the banks and lied about it! Same amount of money, too. What does he want us to do, more tax cuts? And when that doesn't work AGAIN, where will the deficit be???

    The truth of the matter is, this bill is already a compromise. It includes lots of tax cuts, only this time, they do not target the wealthy. Maybe this is why the Republicans don't like THESE tax cuts – they don't target their supporters?

    Well then, filibuster, and watch the ship of state sink. For eight years, the Republicans have had it "My Way or the Highway!" Why would they stop now?

    Oh, other than the fact we are all Americans?!

    February 8, 2009 07:01 pm at 7:01 pm |
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