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Newt Gingrich Calls Federal Bailout “Appallingly Bad Plan”

Reported by Ellen - September 25, 2008 -

Newt Gingrich offered a surprisingly critical appraisal on Hannity & Colmes last night (9/24/08) of the federal bailout plan. “I think this is an appallingly bad plan,” Gingrich said. “I think this will be an engine of corruption.” Sean Hannity made no attempt to defend either the plan, President Bush or Republicans' role in the crisis. Instead, the self-styled "Great American" used the crisis to smear Obama with another round of distortions. With video.

Gingrich also characterized the bailout as “a nightmare to implement." He added, "I believe it is about as bad as anything I’ve seen in economic policy since I’ve been active in public life... I hope it is defeated if it comes to the floor in this form.”

Once again conveniently ignoring John McCain’s ties to Freddie Mac and Fannie Mae, including the recent revelations that his campaign manager’s firm has been receiving receiving funds from Freddie Mac (even though McCain insisted that his campaign manager, Rick Davis, had severed all ties to Freddie Mac several years ago), Hannity went on to distort Obama’s connections to Freddie and Fannie.

“One of the things that I noticed about Senator Obama’s statement today is that he kept bringing up greed on Wall Street," Hannity began. "He’s got two economic advisors. One was leading up his vice presidential selection campaign: Jim Johnson. He used to work at Fannie Mae.” In reality, Johnson left Obama’s campaign in June, just a few weeks after Obama asked him to work on the selection of a vice president. I found no evidence that Johnson was ever an economic advisor.

Hannity also referred to former Fannie Mae CEO Franklin Raines, as having “been an economic advisor for Obama.” But, as Media Matters noted about Hannity’s similar claim the night before, the term “advisor” is an exaggeration. Raines has admitted having a few phone calls with the Obama campaign but each denies that Raines has served as an advisor.