Brietbart has up an exclusive interview with Senator Rand Paul and in it we are treated to this warning…
“I basically say he [Obama] is bailing them out over my dead body because we don’t have any money in Washington.” –
Paul was speaking, of course, over the Detroit debacle. The debacle which had people screaming for a bailout even back in December.
“Our people in an overwhelming way supported the re-election of this president and there ought to be a quid pro quo and you ought to exercise leadership on that,” said Watson. “Of course, not just that, but why not?” – Detroit City Councilwoman JoAnn Watson – RCP
So, back in December at least one city leader was expecting the nation’s taxpayers to come rushing in to save the day. The talk of bailout has amped up since then but at Friday’s press briefing at the White House, Jay Carney seemed to make it clear that no bailout was forthcoming:
“Q Is there any talk of a bailout for Detroit? MR. CARNEY: I think, again, I would point you to what we have said and what leaders in Michigan and Detroit have said, which is that on the matter of their insolvency, that’s something for the city and the creditors to resolve.” – Jay Carney- Whitehouse
Ah, but see the government has to do something. Steve Rattner, aka the former “car czar” said Friday that the administration needs to ride to the rescue of the motor city.
“I think this is a place where government’s going to have to step in” – Steven Rattner
But back to Rand Paul. He’s heard the cries for a bailout just as everyone else and is promising to fight it if the administration calls for one. It comes down to what other cities can expect if they find themselves in dire financial straits.
” Paul said the reason he is going to fight to stop any efforts to bail out Detroit is that if the president succeeds in bailing it out, that will send a signal to the rest of cities and states nationwide that the federal government will bail them out to if they conduct reckless spending.
“You don’t set up an implicit promise from the federal government that everybody is getting bailed out,” Paul said. “It’s sort of like too big to fail for banks. If you have too big to fail for cities or for states and they believe they’ll be bailed out they’ll continue to make unwise decisions. “
Usually, we scream at the government when it acts like a nanny state. Ensuring we don’t drink too many soft drinks, don’t smoke, buckle up, exercise a lot, yada yada. We do get fed up with fed (or state or local) intervention to save us from ourselves. But in this case, the fed needs to save Detroit and other cities from making unwise decisions. It does this by not stepping in. Because these cities truly do need to be saved from themselves.