Cheney: No bailouts, no tax hikes…more oil

Vice President Dick Cheney wields considerable power on economic policy. In a Fortune exclusive, the free-market fan weighs in on the credit crisis and his biggest fear.

WASHINGTON (Fortune) — President Bush’s economic legacy is emerging as a central debate point in the 2008 presidential campaign. But it’s important to remember that this is also Dick Cheney’s legacy – the fact is, the Vice President plays a surprisingly major role in shaping the administration’s economic policy.
In the coming months, as the administration struggles with the threat of recession brought on in part by the subprime credit crisis, White House insiders say the staunchly free-market Vice President can be expected to resist any impulse to soften the blow with government action.

“The fact is, the markets work, and they are working,” said Cheney in an interview in his White House office. “And people – some of the big companies obviously – have taken risks. Risk means risk. And there’s an upside as well as a downside in some of the choices they’ve made. We have to be careful not to have this set of developments lead us to significantly expand the role of government in ways that may do damage long-term for the economy.”

…

So what is Cheney worried about? Oil. Specifically, the prospect of sabotage aimed at disrupting the oil market.

“Clearly the world depends on a global supply of oil, and that will continue to be true for some considerable period of time. Efforts to shut down the flow of oil could conceivably have a significant impact.”

CNN Money