The proposal by the U.S. Treasury Department to rescue the country’s financial industry is drawing sharp criticism from Kentucky’s junior U.S. Senator.
Senator Jim Bunning calls the $700 billion bailout plan “un-American” and says it would replace the free market system with socialism.
The Republican says he doesn’t buy the argument that the country would plunge into a recession without the rescue. He says government and industry leaders should sit down and hammer out a big picture response to the lending crisis.
“A new business model that would say you can’t lend money to people who don’t have a down payment or you can’t lend $400,000 to someone who can only afford to pay for a $200,000 loan,” Bunning told reporters Tuesday morning.
Bunning is a member of the Senate Banking Committee, which began hearing testimony on the bailout plan Tuesday.