Washington’s Degenerate Elite
A few of our Poster Children are mentioned today by Capitol Guardian: Dingy Harry and those two champions of home ownership by those without an income, credit history or responsibility: Barney and Chris. Charlie gets a dishonorable mention, too.
In the Senate: as Reid races the clock to force a vote on the government takeover of healthcare later this week, the Banking Committee, meanwhile, will take up Sen. Dodd’s “I Hate Capitalism With a Passion” financial services regulatory bill. As if the crushing burden of excess federal regulations and looming higher payroll, corporate, and excise taxes are not enough to force private firms out of business (or the country) this should help any chance at economic growth.
In the House, Rep. Frank is considering legislation that would break apart “too big to fail” financial firms. Ostensibly to prevent another economic meltdown, Congress is on the verge of (further) punishing the entire financial services industry for the egregious behavior of the few. Making matters worse, the seldom told story is that Frank and Dodd’s protection of malignant Fannie Mae is one of the root causes of the mortgage market collapse, and these two gentlemen are driving the current “reform” effort!
Bottom Line: Post WWII East Germany is the economic model favored by the Democrat leadership. So do not be surprised at what comes out of House FS and Senate Banking in the coming day. It will inevitably be lauded as “consumer friendly” and “responsible government” — as it drives unemployment numbers to record highs and crushes free enterprise.
At the other end of The Avenue, the Obama Administration is announcing this morning a “multi-level attack” on financial fraud. If Obama were really interested in rooting out fraud, he would demand his top tax-man, Charlie Rangel, step down as chairman of House Ways and Means Committee. Then, he could take a look at the unseemly relationship his Financial Services chairman, Barney Frank, has had with the now virtually insolvent Fannie Mae.
Bottom Line: Don’t hold your breath.
Derek V. Baker * derek@getliberty.org
Director of Congressional Affairs
Americans for Limited Government
In a bid to stem taxpayer losses for bad loans guaranteed by federal housing agencies Fanny Mae and Freddy Mac, Senator Bob Corker (R-Tenn.) proposed that borrowers be required to make a 5% down payment in order to qualify. His proposal was rejected 57-42 on a party-line vote because, as Senator Chris Dodd (D-Conn) explained, "Passage of such a requirement would restrict home ownership to only those who can afford it." Be glad that he is out of the Senate but now he's a lobbyist for the motion picture industry buying off professionalpoliticans as he was bought off for lo,… Read more »