McClintock, Brown react to bailout package's passage

Congressional candidate and state Sen. Tom McClintock (R-Thousand Oaks) criticized the bailout package passed by Congress Friday, saying the more proper step would be to increase liquidity further in credit markets.

"The Federal Reserve took the correct action last week by increasing the monetary base in response to this liquidity crisis," McClintock said in a statement released by his campaign. "This will inject additional currency into lending markets so that money can resume flowing into sound loans."

McClintock said that spending money to buy up bad loans, as the bailout package does, will use money that could otherwise be available for good loans. A separate release noted that McClintock was endorsed this week by the Americans for Legal Immigration PAC, a group opposed to illegal immigration.

His 4th Congressional District opponent, Democrat Charlie Brown of Roseville, said in a press statement Thursday that passing a package he acknowledged was flawed was still the right move.

"With small businesses unable to access the credit they need to run their businesses and create jobs, retirees losing the savings they worked so hard to accumulate, and foreclosures reaching record levels, inaction by Congress is not an option," Brown said in that release.

The retiring 4th district representative, John Doolittle (R-Roseville), voted against the bailout package Friday.

EARLIER on PolitickerCA.com:

• Three of four Bay Area-based members of Congress change votes on Wall Street bailout
• Financial bailout pass U.S. House; 7 CA Dems change votes
• McClintock attacks Brown on Rangel, Pelosi donations
• Pelosi gives one last impassioned speech before Wall Street bailout is passed by House
• McClintock, Brown square off at forum