Paul blames debt deal for financial market turmoil

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Sen. Rand Paul addresses a town hall meeting Tuesday, Aug. 9, 2011, in Hartford, Ky. (AP Photo/Ed Reinke)

August 9, 2011

Associated Press Associated Press Tue Aug 09, 2011, 08:10 PM EDT

Hartford, Ky. — U.S. Sen. Rand Paul blamed the deal that raised the country's debt ceiling for turmoil in financial markets, telling constituents in his home state of Kentucky that investors need clarity from Washington.

"The way the stock market does better is that it needs better signals from us, and one of those signals would be to get our fiscal house in order," Paul said during a town hall meeting in the western Kentucky city of Hartford, which bills itself as the "home of 2,000 happy people and a few soreheads."

More than 100 people, some of them clearly sore about the declines on Wall Street, crowded into a room at City Hall to quiz Paul about the debt ceiling deal, which he opposed. Paul said the deal does nothing to balance the federal budget. Instead, the tea party favorite said it adds at least $7 trillion to the nation's debt over the next decade.

"What America needs is a solution, not a deal," Paul said. "That sounds sort of clever, but it's true. We need a real solution to tell the world, to tell investors that we're going to do something."

Paul received robust applause when he called again for the resignation of Treasury Secretary Timothy Geithner, complaining that the national debt has risen sharply and the economy has struggled under his leadership.

Paul told constituents that he is always open to discussions with Democratic leaders who hold sharply different views on how to resolve the debt crisis.

"I will tell you that I do listen to both sides," he said. "I offered to vote for several of the Democrat plans if they would have just attached a balanced budget (provision. People say I'm unwilling to compromise. That's just untrue."

Senate Republican Leader Mitch McConnell and Paul have been hosting town hall meetings across the state, and appeared jointly for two such get-togethers in Owensboro Tuesday morning.

McConnell, who helped to broker the debt ceiling compromise approved just over a week ago, has been telling constituents that the deal could lead to "significant entitlement reform" to help rein in federal spending and to make changes that will be necessary to preserve Medicare and Social Security.

"We have to adjust the trajectory of these very significant entitlement programs, or they're not going to be there at all," McConnell said.

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Paul blames debt deal for financial market turmoil

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