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."
My thoughts: Shelby , for all of his flaws is correct that the current plan is bad. We are sowing the seeds of the next financial crisis, more so than making this one worse. The current financial crisis perhaps can be papered over by Congress and the Fed. However the underlining problems are not being addressed. All this means is that the next "recession" will likely be deeper and longer than the current recession unless fundamental changes are made. Summers is also correct. The Republican Party has lost all credibility when it comes to the issue of fiscal responsibility.
Watch Ron Paul below, for a nice overview.