Robert Romano, Americans for Limited Government:
[…] Senate Republicans would also do well to remember, and never forget, that the tea parties were born because of the bailouts and government takeovers in the first place. That the GOP’s political misfortunes of 2008 can largely be attributed to their embracing the Wall Street bailout-takeover regime that Senate Democrats now seek to institutionalize permanently.
Public outrage over the bailouts and takeovers, and then the phony “stimulus,” and then the carbon cap-and-tax, and then ObamaCare, and on and on, have all spilled over to create the nation’s newest and most potent political force in the country. Thus far, this uprising of the American people has not abated, and the anger will only grow the more power government seizes.
Especially with the Dodd bill, which both Goldman Sachs and Citigroup wholeheartedly embrace. The Dodd bill creates moral hazard of the first order by giving the implied taxpayer backing to some 60 financial and insurance companies with over $50 billion in consolidated assets. The FDIC will levy assessments on these companies that the American people will pay for with higher costs of financial products and other fees to finance the unlimited bailout-takeover fund, or what the Senate is calling an “orderly liquidation fund.”
As ALG News has previously reported, the bill would also give unlimited authority to the government to seize any company in the country (financial or not) deemed “too risky”, and either keep their assets (i.e. nationalize) or redistribute to favored political constituencies, like labor unions.
Making matters worse, shareholders whose assets are liquidated, even if the company was not even insolvent, would have no recourse to federal courts, as the bill makes it illegal to sue over the assets of any government takeover.
As if that was not bad enough, the legislation addresses none of the root causes of the crisis: Fannie, Freddie, the Federal Reserve, the FHA, and HUD that weakened credit standards and pumped the system with easy money to inflate the housing, securities, and derivatives bubbles to catastrophic proportions in the first place. Now that those bubbles have popped, the bailouts have not ended, and the unbridled deficit-spending is ongoing in earnest, the nation’s credit rating and ability to repay its debts is threatened.
And Senate Democrats now want to institutionalize the system that nearly brought the global economy to its knees and has spawned the sovereign debt crisis with limitless deficit-spending.
In short, it’s a really, really bad bill. And should Republicans now fail to stop it, they could be sealing their permanent political destruction — because they will have directly aided and abetted the bankruptcy and sovereign default of the United States of its debt obligations.
Taxpayers cannot afford another 60 or so Fannie Mae’s.
Republicans must realize that none of their amendments or ideas will be of any consequence to the final outcome of this “debate.” After all, Republican ideas in TARP were never enforced. Congressional intent for the TARP bill was never followed as it was transformed into a recapitalization fund. Congressional rejection of the GM and Chrysler bailouts was overridden by executive caprice.
Have Republicans learned their lesson yet?
I don’t have a magic 8 ball handy, but if I did — and were I to ask it this question while shaking the thing vigorously — I suspect the little floating pyramid inside would come back with something like, “You’re fucking kidding me, right?”
And I wouldn’t have a leg to stand on, should I choose to object.
The ball, it just knows…
Yeah, but once C&T passes and the Chicago Exchange goes on line Fannie is gonna be fucking rolling in dough. Google it.
Greece leads the Western world once again…
In Dodd we trust? Countrywide Chris Dodd? Why of course! Look what he did for our real estate investments!
I’m glad you posted about this. It is incredibly bad legislation.
Sealing their what? In Nishi’s world, it’s flipped 180 degrees: if the GOP does NOT fall in line with this, they are doomed to extinction…
Really, I don’t think she’s stupid, I think she’s an arsonist.
Absolutely. Dead on.
I just want to point out that failure to get behind this legislation is proof that you are anti-American.
“The FDIC will levy assessments on these companies that the American people will pay for with higher costs of financial products and other fees to finance the unlimited bailout-takeover fund, or what the Senate is calling an “orderly liquidation fund.””
Oh noes. The FDIC.
Barely smart enough to regard the definition; never wise enough to grasp the meaning.
it’s an icosahedron Mr. Jeff
It’s more about the exultant dancing about the bonfire than building the bonfire I think: the building can safely be left to the industry of others.
Some people just like to watch the world burn.
The global monetary system is a kind of Cloward-Piven writ large. Whether it’s intentional or consequential doesn’t really matter in the final analysis.
It’s never been entirely about the banksters. It’s been about the monetary system ever since the progressive Federal Reserve Act. The last act concerns how the system itself is too big to fail. We already know how that ends.
burn baby burn
Foxes. Chicken coop. No assembly required.
How the hell did Dodd get anywhere near this? The “Senator from First National” has nothing useful to say.
The global monetary system is a kind of Cloward-Piven writ large. Whether it’s intentional or consequential doesn’t really matter in the final analysis.
It does matter in the sense that if it’s consequential, there’s hope that you can point out the problems to the congresscritters and they’ll stop going down this path. Assuming they can comprehend what you’re saying, and they understand how their actions will result in those consequences.
If it’s intentional, we can properly characterize those whom we’re dealing with and stop giving them the benefit of the doubt.
EVAR. AGAIN.
A LOT can happen between now and 2012, or even now and November. People mocked Glenn Beck for saying two years ago that within 12 months we’d not recognize our little country. Even though he was right, they continue to mock him—not because they think he’s a fool but because they know he’s not.
How Dodd got near it regards those foxes and chickens. It’s global, meaning it’s systemic. Worse, it doesn’t pay to remain solvent:
“An obvious and unavoidable conflict of interest”. Where have we seen that before, classical liberals?
I’m afraid that if the Fed’s try to “reform” Fannie and Freddie, they’ll only screw them up more. Check this out:
http://www.housingwatch.com/2010/02/17/fannie-and-freddie-jekyll-and-hyde/?ncid=AOLCOMMre00sharartl0003
The dollar is worth about five cents by now, dicentra. Everything else is more or less going exponential. Where to begin?
They cut apart a magic 8-ball on teevee last night. The show is basically a guy cutting stuff up to see what’s inside. It’s weird since if he wanted to know that he could just get the blueprints or something.
“People mocked Glenn Beck for saying two years ago that within 12 months we’d not recognize our little country.”
It wasn’t just that.
“The dollar is worth about five cents by now”
Where can I engage in this money making scheme?
Meya – what is your position on the alleged financial “reform”? Absent a clear statement as to where you stand, you can go fuck yourself, swordfish-style.
Chris Dodd is my “at hope”(the new government word for “retarded”) senator.
He is an absolute piece of shit, who is most famous for his “waitress sandwich” with the dearly departed Saint Ted Kennedy.
I hate Dodd’s guts, because he has obviously never read the constitution, and wouldn’t give a shit if he had.
AN ABSOLUTE PIECE OF SHIT, WHO PRECIPITATED THE MORTGAGE MELTDOWN, ALONG WITH “TAKE IT IN THE BUTT” BARNEY FRANK (I denounce myself!)
Excuse my French, but our government is completely out of control.
I hope the Tea Parties are for real.
I for one have registered to vote in a very blue state for the first time. I have voted for president many times, but have always been overwhelmed by idiots who think that the government is the ultimate caretaker.
CT is one of the richest states in the nation, so I am not surprised that the “Give Me” crowd rules.
Jim Himes is toast. Try to stuff enough shit down my throat, and I will puke all over you.
We are being fucked by the very people who have sworn to uphold the Constitution.
Maybe they should read it…
Nah. Too much trouble for people that don’t give a shit about anything but their power…
Enough.
It appears that I have a bad attitude, n’est pas?
Democrats are the party of the little people. Republicans are the party of the bankers. I read it in a history book somewhere. It must be true.
Republicans may not have learned their lesson, but they have internalized their position very well. It’s the British Bulldog theory of politics: you create a physical barrier to any debate, and therefore shut everything down. Well played.
The big banks pay lip service to this financial legislation because it is in their interest to ingratiate themselves into the process. I hope the smarter Dems don’t fall for it. Requiring large institutions to maintain adequate capital against losses and allowing banks to be liquidated does not imply any automatic bailout or government backstop. You are not only drinking the Drool-Aid, you are inhaling the fumes. What’s your preferred option? Let the markets work? Oh, yeah, that went well.
“It’s the British Bulldog theory of politics: you create a physical barrier to any debate, and therefore shut everything down.”
Isn’t that an example of itself at work Cynn? That is, you and god alone know what you’re talking about there. Well played, indeed.
crime inc.
http://www.watchglennbeck.com/
4/29/10
discuss
fuck you mr. projection
My bold.
The financial stuff is to haggle over. Boob bait for the economic Bubbas. This is the heart of the matter. Seize any company, any, A.N.Y., keep it as a government asset or give/sell it to anyone. Shareholders aka owners, fuck you, pigs. We need to spread
theyour wealth around.cynn, it was Copperhead manipulation of the markets (CRA, anyone) and refusal to entertain proposals that might have fixed it (Bush wanting Freddie and Fannie reform, 2003 and 2005) that are the proximate causes.
This is pretty vile and noxious stuff. And I mean really vile. And very noxious. It is no surprise that the statists think this is a good thing.
OT:
h/t Insty. Read it, it’s a story about the America going away now.
Cheers, Mr. Buck. RIP.
SDN: Everyone wants to make excuses; like the saying goes, they’re like armpits.
There is a difference between excuses and facts, cynn.
JD, don’t you have some golf balls to polish? I’d love to see your actual facts, rather than the hall-of-mirror websites you guys always reference. Thanks!
Cynn is obviously the love child of Yogi Berra and Norman Mailer.
Demented, yet incisive. That’s what I like about you, bh.
bh is wearing a fringed skirt and tasseled boots. Go big banks! Screw me even more. Yay!
Do you think that if they get their way with this “reform” cynn, that they will not assfuck you whenever they feel like it?
Is Zero Hedge a hall of mirrors website, winebox?
Let the markets work? Oh, yeah, that went well.
The whole housing bubble happened because we didn’t let markets work. Instead, the government co-signed mortgages for people with bad credit – a recipe for disaster.
cynn could turn a corner and walk into herself at Zero Hedge, JHo.
JD: Who is “they” and why won’t the usual political howitzer suffice? You don’t seem to get it, that unlike you haves, the have-nots who have paid for this crime are pissed.
Vaguely true, except for the you-haves part. But you remain clueless to the vastly bigger picture millions are waking up to, cynn. You’re still thinking in the faintest of political conventions.
Start with the fact that this crime hasn’t been even remotely paid for.
OOh, yeah. The government demanded that shit loans should be made to fetuses even though it meant huge fees for the financial industry. And yes, it’s an industry. BECAUSE OF THE PRIVATE PROFIT!! Morons. Look, if you didn’t have money in this scam, you were stupit.
I’m still a little freaked out about how that Cynn knew that.
It’s the weekend. Lighten up.
if you didn’t have money in this scam, you were stupit.
So did you have money in this scam?
You gonna let
Parcellscynn get away with that bh? Man up lady.Who are you ranting at, cynn?
Jhoward: Not ranting at anyone. Everyone has a valid point of view. I’m simply saying that the big banks should be smashed up, sold off, and the taxpayers are beholden to nobody. Win-win.
“So did you have money in this scam?”
I’m still waiting to find out who’s selling dollars for a nickel.
Sweet deal, Dodd.
Hey, cynn, is the New York Times good enough?
Cynn, Swordfish. Some assembly required.
FTFY
Requiring large institutions to maintain adequate capital against losses and allowing banks to be liquidated does not imply any automatic bailout or government backstop.
jeesus, cynn, Read the bill.
BTW
Listened to John Campbell on Hewitt this afternoon and there’s another rotten easter egg in the bill no one’s paying attention to — the CPFA – Consumer Protection Finance Agency(iirc the title)
Let me spell out the essense:
ANY LOAN… get that? ANY LOAN of ANY KIND made by ANYONE that requires FOUR OR MORE payments to be repaid MUST BE REGISTERED with the CPFA and the STRUCTURE of that loan MUST BE APPROVED before the loan can be made.
Read that again and try and imagine the scope and size of the bureaucracy to fulfill that. Makes the CPSIA seem like child’s play ….
I hope the smarter Dems don’t fall for it.
You’re assuming that Dems in the legislature actually do hate Wall Street and want to bring it to heel, but unfortunately, the dog-and-pony show of the Dems defending the people against Wall Street, with Big Biz agitating for free enterprise, has been a sham for a long time.
Both Big Gubmint and Big Biz benefit by the “crackdown,” not to mention Big Labor and Big Carbon.
They’re all in it together, finding ever more clever ways to milk us dry without our noticing it. If they can get us to thank them for it, well, BONUS!
Both Big Gubmint and Big Biz benefit by the “crackdown,” not to mention Big Labor and Big Carbon.
it’s like Mattel and the CPSIA – Mattel gets waivers and Mattel’s smaller competition gets fucked.
Just think, all those neighborhoods jewelers, car dealers, mattress shops – who float their own paper and change promotional credit deals with the season. They’ll be SOL under the CFPA but the Big Bank will certainly be helpful to sell their Government Approved loan packages to small businesses
for a price and control
Cynn, this scam has been going on for almost 100 years. The politicians get it into their heads that Home Ownership Is The Holy Grail, because homeowners are more solid citizens than renters, but they confuse cause and effect, thinking that if you give someone marginally irresponsible a house it will straighten them out.
They’re always wrong. The housing market always crashes after the bad loans lead to abuses (secondary infections), people get evicted by the truckload, but nobody ever gets to the “lessons learned” part.
This time around, people got it in their heads that because racial minorities own homes at a lower rate than whites, then lenders must have been “redlining” neighborhoods and people, denying them loans on the basis of RAAAAACISM.
So they pressured lenders to lower their standards so that more people could clear the bar. And by pressure I mean ACORN occupying bank lobbies and harassing bankers at their homes. I work in a bank’s customer call center right now, and I ran across some information that the phone bank was supposed to give out in case people asked about such things.
The bank, of course, denied they were discriminating based on race, and I believe them, because I know the Left. They saw the means testing as an exact parallel with the poll taxes of yore, which were designed specifically to keep certain people from voting.
Having no earthly idea how money and economies and such work, they failed to recognize that means tests aren’t racist at all but a way to protect both lender and borrower from a disasterous deal.
But no: the lenders are the “haves,” so they must have gotten theirs by taking it from the have-nots.
Oh, and the NYT saw it coming in 1999.
Do you not see the foundation being laid here? Wall Street’s contribution to the problem was the secondary infection, the original disease being the gubmint’s decision to lower lending standards and then to guarantee the bad loans. They knew it could happen.
They just didn’t care.
Darleen, you’re on the money with the CFPA and consumer credit. Post about this.
Please.
bh
I’ll have one up in the morning. I don’t step on Friday night ‘dillo.
:-)
Very wise.
Sweet, thanks, D.
“Listened to John Campbell on Hewitt this afternoon and there’s another rotten easter egg in the bill no one’s paying attention to — the CPFA – Consumer Protection Finance Agency(iirc the title)”
Just like health care it seems you’ll only get the truth from talk radio. Maybe they’ll try to sneak the death panels in this one?
If all you got is stupid, I guess you might as well be proud of it.
Go grooov3 on the ‘dillo thread, bdam. Try not to be so fucking white for a change.
the bill would also give unlimited authority to the government to seize any company in the country (financial or not) deemed “too risky”, and either keep their assets (i.e. nationalize) or redistribute to favored political constituencies, like labor unions.
Call it the “Nationalization Act”, wherein they may seize any company and redistribute its assets, without due process, without compensation, and without even the ugliness of a bill of attainder.
“We had a vote, and decided that you’re poor now.”
Unless it is owned by
illegalundocumented aliens. Then it is untouchable.I prefer to think of it as the “Stalinization Act,” Dishman.
Couldn’t be less legal, they couldn’t care less.
The inmates aren’t just running the asylum, they’re setting it on fire.
Something for meya. Yawn. Because of the insatiable progg curiosity.
53.Comment by cynn on 4/30 @ 8:38 pm #
Jhoward: Not ranting at anyone. Everyone has a valid point of view. I’m simply saying that the big banks should be smashed up, sold off, and the taxpayers are beholden to nobody. Win-win.
Why not just get the government out of the banking industry and let the banks get as big as they can. Kinda like Switzerland.
How do you feel about little banks being confiscated, pilfered, and the remains sold to the big banks? Because that is whats most likely gonna happen.
Why smash big banks that aren’t sucking the taxpayer teat? Live and let live, yo.
“How do you feel about little banks being confiscated, pilfered, and the remains sold to the big banks? Because that is whats most likely gonna happen.”
Isn’t that what the FDIC has done for decades? To the benefit of all, and under much protestation when enacted?
Federal law has become a toxic mix of sops to the connected and power grabs by Congress, all under aegis the single-line commerce clause. At some point, some Governor with a set is going to refuse to play along and there is going to be a little dust up.
Can’t come too soon for me. This bastardized vomitous whore of a Government cannot stand.
Gee, cynn, facts must work like garlic to vampires…..
You know, our betters love to tut-tut about Tea Party signs calling people “socialist”…
I’m gonna have to go with “fascist”. Even in the case of Government Motors, they’re allowing other stockholders. But the threat of arbitrary seizure means that any offhanded comment by an administration official (“at some point, you have enough money”) becomes an implied threat, which will cause companies to alter their behavior in the attempt to avoid being the target of a takeover.
[…] Jeff brought attention to the bill’s transform banks into public utilities provisions. Today I’d like to point to the bill’s regulations of any consumer lending. […]
meya still with its thumbs in its ears. The FDIC lost 7 billion dollars in the last week after gaining only $50 billion on three years advance bank fees. Surely it’ll all turn out well.
Like all words, “exponential” means something. A reset is coming and its initials are probably G30 or IMF or something.
“Federal law has become a toxic mix of sops to the connected and power grabs by Congress”
When do you think this started?
bdam, it started with Hammurabi. It has accelerated to toxic proportions in the US since FDR. And the US is the only country I’m concerned with. The whole point of the Tea Party, and Porkbusters in the Bush Administration, is to try and put the brakes on.