Question: Could it be true that the Administration’s Wall Street Bailout Bill threatens our bottom line?
The following article and/or blog post reveals the disturbing answer to this question-You Decide:
The Wall Street Bailout Bill Threat to Your Bottom Line–Posted on The Heritage Foundation-On April 20, 2010:
These are pertinent excerpts from this article:
“This past Friday, President Barack Obama again threatened to veto any financial reform bill that fails to tightly regulate financial derivative products which many blame for the 2008 economic crisis. Derivativeswork like insurance to protect certain investments, and provide stability to the price of most goods and services. For example, farmers buy derivatives on the price of their crops, so if the price of their crop plummets, the price of the food at the grocery store won’t change that much. Airlines buy derivatives on oil, so if the price of oil goes up drastically, they won’t have to immediately hike ticket prices.
Lehman Brothers CEO Dick Fuld shares President Obama’s view on derivatives. He also blames them for the downfall of his Wall Street firm. But a closer examination of Lehman’s failure shows that derivatives may just be a convenient scape goat. Bankruptcy examiners found that it was bad business decisions hidden by complex accounting tricks, not addressed by the current Wall Street Bailout Bill at all, that brought Lehman down. In fact, Lehman’s derivatives positions represented only about 3.3 percent of its net assets, and the bankruptcy examiner foundits derivatives trades were reasonable and more carefully monitored than Lehman’s other assets.
So whenever Sen. Chris Dodd (D-CT) says his Wall Street Bailout Bill “would have prevented that kind of events from happening”he needs to explain how. If anything, the Dodd plan will only make future Wall Street bailouts more likely and more costly while also stifling consumer choice.
Increases Chance of Future Bailouts: Obama administration officials are claiming their plan “outlaws bailouts,” but in fact it institutionalizes them forever. Just go straight to page 134 of the 1,334 page Senate bill. On that page begins a section titled “Funding for Orderly Liquidation.” The text reads that the Federal Deposit Insurance Corporation, the designated federal receiver for failing financial firms, “may make available…funds for the orderly liquidation of [a] covered financial institution.” Where are those funds to come from? Well, on page 272 the bill creates an “Orderly Resolution Fund” within the U.S. Treasury. The target size of this fund? Fifty billion dollars. The Obama administration claims no funds could be provided to compensate a firm’s shareholders. But the failing firm’s other creditors would be eligible for a cash bailout at the discretion of Treasury Secretary Timothy Geithner who has described the bill’s new bailout authority in exactly the same way he described how he bailed out AIG. This is why Rep. Brad Sherman (D-CA) told Politico: “The Dodd bill has unlimited executive bailout authority. That’s something Wall Street desperately wants but doesn’t dare ask for. The bill contains permanent, unlimited bailout authority.”
Increases the Costs of Future Bailouts: The second administrative fall back position is that while the bill does bailout Wall Street, the bailouts will be paid for by Wall Street so taxpayers won’t foot the bill. But where does the left think Wall Street will get the money for the bailout funds? The tooth fairy. Just as airlines will ultimately just recoup the money they would have charged for carry on bags in higher ticket prices, Wall Street will suck the bailout money from American consumers in the form of higher bank fees.The Congressional Budget Office has confirmed this the last time the Obama administration proposed a new bank tax. Worse, The New York Times reports: “The Obama administration does not support the $50 billion fund, partly out of concern that more money may be needed if one or more big financial firms ever collapse and that creating a fund could make it difficult to authorize more money.” In other words, the only reason the Obama administration does not want a set $50 billion fund is so it will be easier to ask for even higher bailout funds later.
Limits Consumer Choice: One of the new Super Regulators Dodd’s Wall Street Bailout Bill would create is a Bureau of Consumer Financial Protection that would make it harder for consumers to utilize new technologies. Debit cards, for example, are common today. Just a decade or so ago, though, customers had to carry bulky checkbooks and two forms of ID in order to pay for many purchases. What might be the next innovation to revolutionize how Americans pay for products? It’s impossible to say, and under the Dodd bill we may never know. Under a CFPA, a cell phone company that wants to offer an even more convenient payment mechanism would have to submit to a massive set of regulations.
Heritage fellow David John concludes:
A better approach to preventing another crisis is to modify U.S. bankruptcy law to accommodate the special problems of resolving huge financial firms and to allow the courts to appoint receivers with the specialized knowledge necessary to best deal with their failure. By creating an open process controlled by an impartial judiciary guided by established statutory rules, financial firms, investors, taxpayers, and others would have the advance knowledge that large financial firms that were once known as “too big to fail” can now be closed if necessary without risking disaster.
- Goldman Sachs has hired President Barack Obama’s former White House counsel Gregory Craig to defend against the SEC’s charges.
- According to a new Department of Defense report, Iran could develop an intercontinental ballistic missile (ICBM) capable of reaching the United States by 2015.
- The Obama Environmental Protection Agency is spending taxpayer dollars to create videos explaining why federal regulations are “important to everyone.”
- Manhattan Institute fellow Steven Malanga details how government unions broke California.
- According to The New York Times, Obamacare makes flexible spending plans not so flexible.”
Note: What follows are numerous articles and/or blog posts and videos that relate to and/or support the above article and/or blog post-You Decide:
The Secret Goldman Sachs Tapes!-Posted on Bloomberg View- By Michael Lewis-On September 26, 2014:
Letter to our NM U.S. Representative Michelle Lujan-Grisham (re: Articles of Impeachment and Impeachment Proceedings)!–Posted on Tea Party Command Center-By Jake Martinez-On August 12, 2014:
Audio-Patriot Militia News: It’s Crunch Time, Collapse is Coming & The Truth About Dodd/Frank Bill & The FDIC!-Posted on Blog Talk Radio-By New Colony Network-On April 10, 2013:
The Truth About State and Local Governments Having Excesses of Your Tax Dollars They Are Not Using!-Posted on Cafrman.com-By Gerald R. Klatt Lieutenant Colonel, USAF (Ret.):
Vice President Biden Calls for a New World Order!–Posted on Tea Party Command Center-By Jake Martinez-On September 25, 2013:
The Barney Frank Era: ‘The Congressman from Fannie Mae retires!’–Posted on The Patriot Post-By Nate Jackson for The Patriot Post Editorial Team-On November 30, 2011:
Fannie Mae scandal is the most important political scandal since Watergate!–Posted on The New York Times-By DAVID BROOKS-On June 16, 2011:
‘Too Big to Fail’ May Still Exist Despite Democrats’ Regulations!–Posted on CNSNews.com-By Matt Cover-On June 15, 2011:
Fannie Mae Reports First-Quarter 2011 Results: ‘Company Continues to Manage Losses on Legacy Book While Building Strong New Book of Business’–Posted on FannieMae.com-On May 6, 2011:
Fannie, Freddie, Ginnie and Their Pimps–Posted on American Thinker-By Jack Curtis-On April 9, 2011:
Fannie and Freddie Reform: Too Little, Too Late-Posted on Mises Daily-By David S. D’Amato-On March 3, 2011:
Watchdog Says Financial Overhaul Won’t End Future Bailouts–Posted on CNSNews.com-By Daniel Wagner, Associated Press-On January 26, 2011:
Bachmann Moves to Repeal Frank-Dodd Finance Law–Posted on NewsMax.com-By Henry J. Reske-On January 6, 2011:
Investigate This!-Posted on Human Events-By Ann Coulter-On January 5, 2011:
Politicizing Banks, Again–Posted on The National Review-On September 14, 2010:
The Dodd-Frank Bailout is Already Here–Posted on The Heritage Foundation-On August 12, 2010:
Obama’s Fixes Keep Financial Crisis Going–Posted on ExposeObama.com-By Floyd and Mary Beth Brown, FloydReports.com-On August 10, 2010:
Fed to Buy U.S. Debt, Saying Recovery Has Slowed–Posted on The New York Times-By SEWELL CHAN-On August 10, 2010:
Freddie Mac Asks Taxpayers for $1.8 Billion More After Huge Loss-Posted on MoneyNews.Com-On August 9, 2010:
US Faces ‘Disaster’ from Financial Reform Bill, Bachmann Warns–Posted on NewsMax.com-By Jim Meyers-On July 27, 2010:
Obama Signs Overhaul of Financial System–Posted on The New York Times-By HELENE COOPER-On July 21, 2010:
Quotas Hidden in Bank Reform Bill Will Cost Taxpayers Millions–Posted on NewsMax.com-By David A. Patten-On July 15, 2010:
Morning Bell: The Lawyers and Lobbyists Full Employment Act–Posted on The Heritage Foundation-On July 16, 2010:
Congress Passes Bill to Overhaul Financial Regulation–Posted on The New York Times-On July 15, 2010:
Financial Regulatory Bill Approved by House Gives Feds Power to Subpoena Any Record from Any Financial Institution Without Establishing Any Probable Cause–Posted on CNSNews.com-By Matt Cover, Staff Writer-On July 09, 2010:
GE CEO Hits Out at Obama and China–Posted on MoenyNews.com-By Dan Weil-On July 2, 2010:
Morning Bell: The Dodd-Frank Assault on Economic Recovery–Posted on The Heritage Foundation-On June 29, 2010:
Senate Considers Union Pension Bailout–Posted on CNSNews.com-By Christopher Neefus-On May 28, 2010:
What Barack Obama Is Thinking–Posted on The American Spectator-By Peter Ferrara-On May 26, 2010:
Sen. Gregg: Finance Reform Bill a ‘Disaster’–Posted on MoneyNews.com-By Frank McGuire and Dan Weil-On May 25, 2010:
Obama Finance Bill Will Allow Seizure of Companies–Posted on NewsMax.com-By Dick Morris & Eileen McGann-On May 21, 2010:
Bill Passed in Senate Broadly Expands Oversight of Wall St.–Posted on The New York Times-By DAVID M. HERSZENHORN-On May 20, 2010:
Morning Bell: Dodd Bill is Just the Beginning of ‘Too Big to Fail’-Posted on The Heritage Foundation-On May 20, 2010:
Obama’s War on Wall Street–Posted on PJTV-On May 17, 2010:
Shelby: Bank bill should include mortgage firms–Posted on Yahoo News-By JIM KUHNHENN, Associated Press Writer-On May 8, 2010:
Sen. Shelby: Financial Reform Violates Privacy–Posted on CNSNews.com-By Matt Cover, Staff Writer-On May 7, 2010:
Morning Bell: Fannie and Freddie Failure Forever–Posted on The Heritage Foundation-On May 6, 2010:
Battle Over Bailouts Shifts Oversight Debate–Posted on The New York Times-By JOHN HARWOOD-On May 2, 2010:
Morning Bell: The Senate’s Goldman Kabuki–Posted on The Heritage Foundation-On April 28, 2010:
G.O.P. Blocks Debate on Financial Oversight Bill–Posted on The New York Times-By DAVID M. HERSZENHORN and EDWARD WYATT-On April 26, 2010:
Morning Bell: CBO Confirms You’re on the Hook for Wall Street Bailout Bill–Posted on The Heritage Foundation-On April 26, 2010:
G.O.P. Readies a Rival Bill on Financial Regulation–Posted on The New York Times-By DAVID M. HERSZENHORN-On April 26, 2010:
Democrats willing to test GOP in Wall St. showdown–Posted on Yahoo News-By JIM KUHNHENN, Associated Press Writer-On April 26, 2010:
Senator Dodd’s Regulation Plan: 14 Fatal Flaws–Posted on The Heritage Foundation-By James Gattuso-On April 22, 2010:
Financial Times: U.S. Debt to Hit $20 Trillion in 10 Years–Posted on NewsMax.com-On April 21, 2010:
Morning Bell: Economic Freedom Will Save the Earth-Posted on The Heritage Foundation-On April 22, 2010:
Morning Bell: The Crony Capitalist Threat to Our Economic Freedom–Posted on The Heritage Foundation-On April 21, 2010:
Hoyer Says Financial Regulation Bill is Not a Bailout Bill–Posted on CNSNews.com-By Matt Cover, Staff Writer-On April 21, 2010:
Obama’s Wall Street Bill Lets Crooks Escape–Posted on AIM.org-By CLIFF KINCAID-ON APRIL 20, 2010:
SEC Is Looking Into Accounting at 19 Biggest Banks–Posted on ABCNews.com-By By ALAN ZIBEL, AP Business Writer WASHINGTON-On April 20, 2010:
Republicans Dig In Against Obama’s War on Wall Street–Posted on NewsMax.com-On April 18, 2010:
Democrats Seize on Financial Oversight After Goldman Suit–Posted on The New York Times-By JACKIE CALMES-On April 18, 2010:
Senate GOP Now Unified Against Banking Bill–Posted on NewsMax.com-On April 16, 2010:
Chrysler’s Railroad: Why is CNN, ABC, CBS, NBC so quiet on this?–Posted on The RepublicBroadcastingNetwork.org:
Obama Thanks His Friends: Government Spending and Union Support–Posted on American Institute for Economic Research-By RICHARD M. EBELING –On June 8, 2009:
Note: The above articles and/or blog posts and videos relate to and/or support my following blog posts-You Decide:
Was the Economic Crisis Manufactured?
ACORN-The Community Reinvestment Act (CRA)-Automaker Labor Unions!
ACORN Charged With Voter Registration Fraud!
Are the Cracks Beginning to Show in a Radical Agenda Many Believe Was Crafted by the President and ACORN?
Can America Survive Obamanomics and Remain a Capitalist Society?
U.S. Debt to Hit $20 Trillion in 10 Years!
U.S. Accuses Goldman Sachs of Fraud!
Can America Survive Obamanomics and Remain a Capitalist Society?
Tyrannical Takeover of Our Financial Services Sector By the Federal Government!
Is it important to understand the Marxist assault on the foundations of our system?
Nearly 80 percent don’t trust the government!
Where Is America Today?
Washington Times Calls for Obama’s Impeachment!
A Nation Adrift Theme and Disclaimer:
“Food For Thought”
“God Bless & Keep Our USA Safe”