Friday, July 16, 2010

Financial "reform" passes Senate, but Fannie and Freddie once again escape scrutiny

Imagine that!


"Today, after imploding and being seized by Washington, the GSEs ostensibly have unlimited access to taxpayer assistance. At the very least, their operations and liabilities should be incorporated into official U.S. budget calculations. This is not a matter of left-right politics; it’s a matter of fiscal candor. As

economist Doug Elmendorf, President Obama’s CBO director, told the Wall Street Journal back in September 2008 when he was a Brookings fellow,
'Trying to keep these entities off the government’s books, given the government’s financial commitment, would perpetuate the illusion that they aren’t the government’s problem, even when they are.'"
Vincent Reinhart sums up the financial "reform" nonsense in a nutshell:

"The Senate’s passage of the Dodd-Frank financial reform bill is an event too discouraging to comment upon at length. What does it suggest we have learned as a nation from the past few years of financial turmoil?

• The failure of regulation requires more regulation.

• Multiple layers of official oversight would be made more effective if made more numerous.

• The financial system—in all the Byzantine complexity that thwarted official examination, market discipline, and effective internal controls—should be made more complex."

Such is the legacy of The Obamanation, Chris Dodd, Barney Frank, and the other conspirator members of the Vast Democrat Culture of Corruption.

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