During the debate over the stimulus, President Obama accused his critics of wanting to “do nothing” about the economic crisis. Republicans complained that it wasn’t true. “I know of no Republican in the Congress of the United States who wants to do nothing,” Rep. Mike Pence (R-IN) said. But with the focus now shifting to the credit and housing crises, Sen. Jim DeMint (R-SC) (who led the opposition to the stimulus) is advocating a radical prescription of “allowing private markets to run their course” and let banks fail:
“There’s a crisis of confidence throughout the market — throughout the world — even though the government has thrown nearly $1 trillion at the financial system,” DeMint said. “We’ve started this vicious cycle. We don’t have enough money — we can’t borrow enough money to take all the toxic assets off the books.
“We’ve got to let the market begin to absorb them at a loss, but they can absorb them. We just have to decide do we want a government-controlled economy, or do we want the private sector to work?”