Published: July 22, 2008 04:01 pm      

Bunning criticizes plan for Fannie Mae, Freddie Mac

Will have security at Fancy Farm

FRANKFORT, Ky. — U.S. Sen. Jim Bunning, R-Southgate, still doesn’t like the federal plan to prop up Freddie Mac and Fannie Mae, the two congressionally chartered mortgage lenders. He still thinks the best way out of the oil crisis is for the U.S. to develop more of its own resources, use less energy, and develop alternative fuel sources.



And he still has reservations about his personal security at Fancy Farm, the annual political picnic in far western Kentucky where he and his wife were jostled by supporters of his then-Democratic opponent Daniel Mongiardo in 2004.



But he’s going this year anyway – along with two state troopers as security – to support his buddy and fellow Kentucky Senator, Mitch McConnell, by taking on McConnell’s Democratic opponent Bruce Lunsford.



In June at the Republican Party of Kentucky convention in Bowling Green, Bunning announced he would attend Fancy Farm this year after vowing never again to go. That vow was in response to an incident in 2004 when his wife, Mary, was bumped by reporters and “little green doctors,” supporters of Mongiardo who is a surgeon and now Lieutenant Governor.



Bunning said during a conference call with Kentucky reporters Tuesday that he will have two Kentucky State Troopers with him as security this year who along with secret service agents for McConnell, the Senate Republican Leader, and McConnell’s wife, Labor Secretary Elaine Chao, should be enough to protect him.



“I really don’t need security – except to keep the little green doctors away from me,” Bunning said.



When he announced in Bowling Green that he will attend this year’s Aug. 2 Fancy Farm picnic, Bunning said, “I’m going to show up at Fancy Farm and tell you just why Bruce Lunsford is not qualified to be a U.S. Senator.” Tuesday he was asked what he intended to say about Lunsford.



“You’ll show up and you’ll find out,” Bunning answered.



Bunning again hammered the bailout plan for Fannie Mae and Freddie Mac – as he did a week ago in his last conference call with reporters. The plan extends a line of credit to the lenders and allows the government to buy equity in the firms in order to prevent a panic from weakening their financial position. Treasury Secretary Henry Paulson told Congress he doesn’t think those lifelines will be employed – but if they are, they could cost up to $25 billion in a worst-case scenario.



“Now, they’re talking about an unlimited amount of federal backup for 18 months,” Bunning said. “To me, that sounds like socialism. I don’t think that works very well and I don’t think Americans like that at all.”



Bunning has a degree from Xavier University in economics and worked as a stockbroker.



“I was always taught that this is a free market economy and government shouldn’t insure free market risk,” Bunning said.



He continued to blame Democrats for failure to address rising gasoline prices, saying they’ve doubled since Democrats took control of Congress – and despite Democratic promises to do something about them. He said they stand in the way of one of the country’s best alternatives to foreign dependence – more domestic production through off-shore drilling and producing fuels from coal.



Bunning said wind power isn’t a viable alternative, especially in Kentucky, and that the technology to store energy generated by wind doesn’t yet exist. He said that’s a problem as well for solar power, but he thinks that source of energy has more potential.



Solar power, Bunning said, “is one alternative I think we need to explore as quickly as possible.”



Bottom line, Bunning said, is America needs to produce more of its own energy – and use less. He called a Democratic sponsored measure to reign in oil speculators a “farce” which won’t lower gasoline prices.



Bunning said he hopes for an announcement soon about construction of a coal-to-liquid conversion plant near Paducah and a smaller, pilot sized plant in Pike County.



Ronnie Ellis writes for CNHI News Service and is based in Frankfort, Ky. He may be contacted by email at rellis@cnhi.com.