Tag Archives: Bailout

Bobby Jindal defends Rush Limbaugh against hostile Larry King

Hot Air has the video of Jindal kicking butt on Larry King Live. It’s more fun to watch when the left is angry and crazy.

Here’s Hot Air’s blurb about the video:

Bobby Jindal faced off against an unusually hostile Larry King last night over the Steele-Limbaugh contretemps. King kept trying to stuff words into Jindal’s mouth, and Jindal politely but firmly kept spitting them back at King.  King insists that Republicans want the country to fail when it’s clear that not even Rush says that.

CNN has the full transcript! Here’s the best part:

KING: Governor, do you think people are thinking about capitalism now or are they thinking about problems?

JINDAL: Look, clearly, the American people are worried about paying their mortgages, keeping their jobs and paying their health care bills. I think Rush is a great leader for conservatives. I think he articulates what a lot of people are concerned about. And I think it is absolutely true that you can help people keep their jobs, help people afford their health care, help people afford their homes without abandoning the same conservative principles.  For example, Republicans offered ideas like aggressive tax credits to make homes more affordable so people can refinance, can stay in their homes. You’d see more demand for homes. They’ve offered ideas about — instead of nationalizing banks, why not modify the mark to market rules? …

KING: Do you want him to fail?

JINDAL: I want the — I don’t want those policies to be adopted. I want my country to succeed, but I don’t want policies to be adopted that I think –

KING: But what if the… policies actually work?  What if they work?

JINDAL: This is where we have a fundamental disagreement. I don’t think it’s going work to borrow half a — to spend in excess of our revenues.  If you believed everything that the president — if you believed all of his projections, if you believe the economy starts growing again, you believe that we’re not going be spending all that money fighting overseas…if you believe that all of these temporary programs are truly temporary, he’s still projecting deficits of half a trillion dollars per year, under the best case scenario.  Larry, that’s just not sustainable. We cannot continue to do this as a country. China cannot become — continue to be our largest foreign holders of debt. This addiction to debt is what’s caused so many of our problems. The government is not going to be the answer to every problem.  I want my country to succeed. But what I worry about is that simply spending money on new programs — look at every new bailout. You know, you talked today, you know, about the auto bailouts. Then you had the fourth, I think it’s the fourth — it’s hard to keep track — the AIG bailout today. It seems like every time you turn around, there’s another trillion dollar trillion plan. … I’ve yet to hear a coherent exit plan.

KING: So you hope — you hope it doesn’t hurt?

JINDAL: No. I hope that failed policies don’t get adopted. I want my country to succeed. I want the economy to grow. I want — certainly I want the economy to grow again so people can afford their homes.  But I don’t want the Congress to adopt policies that would make the problem worse, not better. … I think it’s our — I think it’s our obligation as Americans when we don’t agree with a policy to speak up against it and to certainly offer different solutions.

Canadian prime minister Stephen Harper interviewed by Larry Kudlow

Canadian Prime Minister Stephen Harper
Canadian Prime Minister Stephen Harper

Larry Kudlow sat down with Canadian prime minister Stephen Harper and had a conversation about Canada’s economic situation and policies. (Video here)

Kudlow first asks Harper about the banking situation in Canada. Harper says that the banks are run much more tightly in Canada. Harper explains that there are no bailouts planned for Canadian banks because Canadian banks are private institutions.

KUDLOW: Let me begin with an interesting subject here, banking. Everybody’s talking about banking. The Canadian banks appear to be in much better shape than the American banks. They have fewer toxic assets. Their losses aren’t nearly as bad. No one’s talking about bankruptcy up there. I want to learn from our northern cousins. What can you tell us? Why are Canadian banks looking better than our banks?

HARPER: Well first of all I can tell you, it is true. We have, I think, the only banks in the western world where we’re not looking at bailouts or anything like that.

KUDLOW: No TARP money sir, if I’m not mistaken? No TARP money?

HARPER: We haven’t got any TARP money. We’ve gone in and done some market transactions with our banks to improve liquidity. But I think the reasons are really complex, Larry. You know, first of all, our banks are private. We don’t have a Fannie Mae or Freddie Mac equivalent mucking around in the system.

KUDLOW: Is that a lesson right there Prime Minister?

HARPER: Well, I think my observation is those are institutions with a difficult private/public mix. And sometimes private/ public mixes have benefits and sometimes they have the worst of both worlds. We don’t have anything like that. We do have though, a strong system of regulation, and activist regulators, who go and meet with the sector. But they’re macro, prudential kind of regulations. They don’t try and micromanage banks’ decisions. We try and establish good oversight and transparency.

KUDLOW: Do you have leverage and borrowing ratios that might have been enforced? Because that’s clearly one of the breakdowns here in the states?

HARPER: Well, we do have leverage ratios. What’s ironic is that our own banks had not actually achieved those ratios. They were actually working under them. Part of what we…

KUDLOW: They were under leveraged?

HARPER: They were under leveraged.

KUDLOW: Wait, wait. Canadian banks were under leveraged?

HARPER: Under what they could have been.

KUDLOW: I didn’t know there was such a thing on this entire planet earth.

HARPER: Well I think part of what we have done is through the system of regulation we’ve had, we’ve encouraged a fairly cautious culture in the banks. For example, our banks, when they sign mortgages, largely hold those mortgages rather than trading them. So they have a lot more interest in the underlying quality of those mortgages. And we avoided the sub-prime kind of problem.

Kudlow goes on to quiz Harper on individual income tax rates, corporate income tax rates, tax cuts, Canadian energy production, carbon emissions, protectionism/free trade and auto-union bailouts. If you want to know what it is like to have an F.A. Hayek-admiring economist running your country, (BA and MA in Economics from the University of Calgary), read the whole thing!

UPDATE: More interviews with Stephen Harper with CNN, Wall Street Journal and Fox Business are here!