Democrats are saying that 2,320 pages of regulations wasn’t anywhere NEAR enough. They say they need total dictatorial control over the economy in order to adequately regulate it.
Notice that both Christopher Dodd and Barney Frank (as in, “the Dodd-Frank Act”) are both GONE now???
And yet the monster they created lives on.
Many rules are STILL BEING WRITTEN. That 2,320 pages will grow and grow and grow without end.
An article written a couple of days ago underscores this and a few other salient facts:
The Dodd-Frank Wall Street Reform and Consumer Protection Act, the most sweeping financial law enacted since the Great Depression, is supposed to protect investors and shield the economy from bubbles and speculation. Its promise is hard to judge; many detailed rules are still being drafted. What can be said with confidence is that Dodd-Frank has been a boon for lobbyists.
In that single sentence, we find: 1) Dodd-Frank was a complete lie and resulted in a complete fiasco; 2) the damn thing that is already a monster is growing into an even bigger monster all around us; and 3) Obama and Democrats LOVE lobbyists in spite of their sanctimonious self-righteous hypocritical denials.
We’ve just suffered the disaster of MF Global in which an EXTREMELY CLOSE ALLY AND PARTNER WITH THE OBAMA ADMINISTRATION directly led to the collapse and bankruptcy of MF Global and the disappearance of $1.6 BILLION in investor funds.
We’ve just suffered the disaster of JP Morgan – which donated HUGE campaign money to Obama, for the record (see here and here for the proof) – just lost $2 billion. With those losses reasonably expected to exceed $4.2 BILLION.
Now, speaking of what is “reasonable,” it is “reasonable” to point out that the Democrat rhetoric demonizing George Bush for failing to regulate, etc. was a complete load of hogwash and that the Democrats’ have refuted themselves. But that’s not the way the Democrat fascist mind works: rather, Democrats are actually arguing that their abject failure to regulate in spite of supermassive regulations requires more and MORE regulation.
There’s just no end to their stupidity. Or to their crony-capitalist fascism.
Democrats promised that they would end “too big to fail” by preventing the movement toward getting bigger. They accomplished the EXACT OPPOSITE: Banks are now THIRTY PERCENT BIGGER than when Dodd-Frank passed and they are in fact bigger as a direct consequence of Dodd-Frank as banks responded to the witch hunts by growing big and powerful enough to resist said witch hunts:
Two years after President Barack Obama vowed to eliminate the danger of financial institutions becoming “too big to fail,” the nation’s largest banks are bigger than they were before the credit crisis.
Five banks – JPMorgan Chase & Co. (JPM), Bank of America Corp., Citigroup Inc., Wells Fargo & Co., and Goldman Sachs Group Inc. — held $8.5 trillion in assets at the end of 2011, equal to 56 percent of the U.S. economy, according to the Federal Reserve.
Five years earlier, before the financial crisis, the largest banks’ assets amounted to 43 percent of U.S. output. The Big Five today are about twice as large as they were a decade ago relative to the economy, sparking concern that trouble at a major bank would rock the financial system and force the government to step in as it did during the 2008 crunch.
“Market participants believe that nothing has changed, that too-big-to-fail is fully intact,” said Gary Stern, former president of the Federal Reserve Bank of Minneapolis.
That specter is eroding faith in Obama’s pledge that taxpayer-funded bailouts are a thing of the past. It is also exposing him to criticism from Federal Reserve officials, Republicans and Occupy Wall Street supporters, who see the concentration of bank power as a threat to economic stability.
Goldman Sachs, check. Citigroup, check. Bank of America, check. And JP Morgan Chase, check check. Oh, and Wells Fargo, check.
It’s really just astonishing to anybody but someone like me – WHO SAYS ALL THE DAMN TIME THAT BARACK OBAMA IS A GENUINELY EVIL MAN – that Obama rammed a fascist crony capitalist takeover of the banking system through Congress promising to end too big to fail, and yet somehow mysteriously that legislation ended up benefitting the very list of banks that gave Obama more money than ANYBODY.
There’s kind of a trend there.
When a political party promises to regulate and reform to prevent collapses and bubbles and end the too big to fail mindset, and then they do the VERY OPPOSITE thing that they said they’d do, and as a result of their doing the very opposite thing that they promised they say they need more power, and you believe them and vote for them, there is something profoundly wrong with you.
Demon-possessed Democrats (“Democrat” actually stands for “Demonic Bureaucrat,” by the way) played this game once in 2008.
It was DEMOCRATS and DEMOCRAT POLICIES that blew up our economy in 2008. Bill Clinton radically expanded the housing-bubble-creating Fannie Mae and Freddie Mac by dramatically expanding the program that gave housing mortgages to people who could not afford them:
Fannie Mae Eases Credit To Aid Mortgage Lending
By STEVEN A. HOLMES
Published: September 30, 1999
In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets — including the New York metropolitan region – will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.
Fannie Mae, the nation’s biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.
For the factual record, that was something Bill Clinton blessed George Bush with just before he left office to go along with the Dotcom bubble collapse recession that wiped out 78% of the Nasdaq portfolio, and in fact vaporized more than 7.1 TRILLION DOLLARS in American wealth. Which collapsed on Bush just before the 9/11 disaster that happened because Bill Clinton let in every single terrorist who attacked us and allowed them to get trained, organized and funded completely on his watch. So thanks for those land mines that were guaranteed to blow up, Slick Willie.
Wicked, depraved, demon-possessed Democrats blame George Bush. But George Bush tried SEVENTEEN TIMES to reform and regulate Fannie Mae and Freddie Mac but Democrats thwarted him every single time. From US News and World Report:
Seventeen. That’s how many times, according to this White House statement (hat tip Gateway Pundit), that the Bush administration has called for tighter regulation of the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac.
For the record, “8,000 billion” is another way of saying $8 TRILLION DOLLARS. That’s what Fannie Mae, Freddie Mac, and the Democrat Party have cost us.
It was Democrats who established Fannie Mae and Freddie Mac. It has been Democrats who have controlled the staffing of both agencies for decades. It was Democrats – and particularly it was Barack Obama – who took more campaign money from Fannie Mae and Freddie Mac than ANYONE. It was Democrats who refused to regulate Fannie Mae and Freddie Mac when George Bush and later John McCain repeatedly pleaded for such regulation and reform of the out-of-control agencies. It was Democrats like Franklin Raines who were running Fannie and Freddie when all the policies that led us down the road to hell were imposed, just as it was Democrats who were running Fannie and Freddie when the fecal matter started hitting the rotary oscillator.
It was a Democrat who said that everything was fine with Fannie and Freddie less than TWO MONTHS before they completely collapsed:
REP. BARNEY FRANK, D-MASS, July 14, 2008: I think this is a case where Fannie and Freddie are fundamentally sound, that they are not in danger of going under. They’re not the best investments these days from the long-term standpoint going back. I think they are in good shape going forward.
And I think that anybody who respects what you think is a deluded and deranged dumbass, Mr. Frank.
Fannie Mae and Freddie Mac are now in control of 96.5% of all mortgages, for those who don’t think they’re all that important in their role of creating the mortgage meltdown. It was Fannie and Freddie that bundled all the bad mortgages into mortgage-backed securities and then sold the mortgage-backed and debt securities to domestic and international capital investors under the illusion that they were guaranteed by the federal government.
Fannie and Freddie were a $5 trillion wasted boondoggle BEFORE things got even worse. They exist only to help liberals and lose money. And there’s no end in sight.
Just how bad is the news at Fannie/Freddie? On Friday morning, Moody’s downgraded their outstanding preferred stock 5 notches from A1 to Baa3 (a slight gradation above junk) and their Bank Financial Strength Ratings (BSFR) to D+ from B- (one/half notch above D, which is reserved for companies in default). […]
I’ve pointed out which entity was directly behind the collapse of our economy in 2008. Look who see who failed first and then triggered the catastrophic chain of financial destruction:
But in short, just take a look at the following timeline of our 2008 collapse and see which (Democrat) entity led the nation into implosion:
- September 7: Federal takeover of Fannie Mae and Freddie Mac, which at that point owned or guaranteed about half of the U.S.’s $12 trillion mortgage market, effectively nationalizing them. This causes panic because almost every home mortgage lender and Wall Street bank relied on them to facilitate the mortgage market and investors worldwide owned $5.2 trillion of debt securities backed by them.
- September 14: Merrill Lynch is sold to Bank of America amidst fears of a liquidity crisis and Lehman Brothers collapse
- September 15: Lehman Brothers files for bankruptcy protection
- September 16: Moody’s and Standard and Poor’s downgrade ratings on AIG‘s credit on concerns over continuing losses to mortgage-backed securities, sending the company into fears of insolvency. In addition, the Reserve Primary Fund “breaks the buck” leading to a run on the money market funds. Over $140 billion is withdrawn vs. $7 billion the week prior. This leads to problems for the commercial paper market, a key source of funding for corporations, which suddenly could not get funds or had to pay much higher interest rates.
- September 17: The US Federal Reserve lends $85 billion to American International Group (AIG)to avoid bankruptcy.
- September 18: Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke meet with key legislators to propose a $700 billion emergency bailout through the purchase of toxic assets. Bernanke tells them: “If we don’t do this, we may not have an economy on Monday.”
- September 19: Paulson financial rescue plan is unveiled after a volatile week in stock and debt markets.
And I point out the whole process and how it happened to show why the 2008 disaster happened to prove that Fannie and Freddie failing first was no mere coincidence, but in fact the trigger that set off the entire chain reaction of 2008:
In a nutshell, Fannie and Freddie, acting as Government sponsored enterprises, bought tens of millions of mortgages, and then repackaged them into huge mortgage-backed securities that giant private entities such as Bear Stearns, AIG and Lehman Brothers purchased. What made these securities particularly attractive to the private banking entities was that these securities were essentially being sold – and had the backing – of the United States government.
The Role of the GSEs is to provide liquidity and stability to the U.S. housing and mortgage markets. Step 1 Banks lend money to Households to purchase and refinance home mortgages Step 2 The GSEs purchase these mortgage from the banks Step 3 GSEs bundle the mortgages into mortgage-backed securities Step 4 GSEs sell mortgage-backed and debt securities to domestic and international capital investors Step 5 Investors pay GSEs for purchase of debt and securities Step 6 GSEs return funds to banks to lend out again for the issuance of new mortgage loans.
Now, an intelligent observer would note a conflict: the GSE’s role was to “provide stability,” and yet they were taking on “significantly more risk” in the final year of the Clinton presidency. What’s wrong with this picture?
The GSEs Fannie Mae and Freddie Mac were designed to bundle up the mortgages into mortgage backed securities and then sell them to the private market.
Fannie Mae is exempt from SEC [Securities and Exchange Commission] regulation. Which screams why Bush wanted to regulate them. This allowed Fannie Mae to bundle up mortgages, which were then rated AAA with no requirement to make clear what is in the bundle. Which screams why Bush wanted to regulate them.
This is what has allowed toxic instruments that have been sold across the world. It also created a situation where money institutions did not know and could not find out whether potential inter-bank business partners were holding these “boiled babies on their books, complete with a golden stamp on the wrapping,” rather than safe instruments. This then inclined banks to a natural caution, to be wary of lending good money to other banks against these ‘assets’. And thus banks refused to lend to one another.
Congress chartered Fannie and Freddie to provide access to home financing by maintaining liquidity in the secondary mortgage market. Today, almost half of all mortgages in the U.S. are owned or guaranteed by these GSEs. They are mammoth financial institutions with almost $1.5 Trillion of debt outstanding between them. With the fiscal challenges facing us today (deficits, entitlements, pensions and flood insurance), Congress must ask itself who would actually pay this debt if Fannie or Freddie could not?
And of course, they could not pay their debts. Fannie and Freddie basically went bankrupt and were taken over. And they took a whopping share of the biggest financial institutions down with them. Fannie is in the process of devouring nearly 400 billion dollars of bailout money from the American taxpayer. And now – GREAT GOOGLEY MOOGLEY – Obama is planning to funnel yet another $800 BILLION through the same Fannie and Freddie who already destroyed us once.
And thus you had a financial disaster created by one William Jefferson Clinton and one Democrat Party. And now a second act of economic destruction is being planned by Barack Obama.
The 2008 economic collapse that Democrats were elected to fix was itself created by Democrats who will now continue the very policies that created the disaster in the first place.
Fannie Mae and Freddie Mac are now in control of 96.5% of all mortgages due to the corruption and fascist crony capitalism of the Democrat Party which has pretty much been allowed to run amok since 2007 (when they took control of the House and Senate) and which went completely insane when Barack Obama became president.
It was Democrats who blew up the economy with their stupid and demonic policies and it is Democrats who will make the rubble bounce by blowing it up all over again in a collapse that will make the Great Depression look like a walk on a warm sunny beach.
As a postscript, allow me to add that the problem is not and never has been that we don’t have enough regulations: we’ve got hundreds and hundreds of thousands of regulations such that the federal government has no idea how many different regulations they actually have on the books any more. NO! Rather the problem is that morality and ethics have disintegrated in America.
Founding father John Adams famously said, “Our Constitution was made only for a moral and religious people. It is wholly inadequate to the government of any other.” His point was that a free society cannot exist unless morality and religion are cherished and taught for a very good reason: because people who do not have the foundation to self-govern must be forcibly governed by an increasingly totalitarian state. And that view of John Adams was echoed by every single one of our founding fathers for very good reason.
The Democrat Party and the unjust judges the Democrat Party has imposed on us threw God out of America in in 1947 when they imposed a radical understanding of the Establishment Clause upon America. In a particularly heinous maneuver, the Supreme Court ONLY considered the phrase “a wall of separation between church and state” from a private letter written by Thomas Jefferson to a church that had written expressing concern about the removal of religious liberty. It’s not adequate to say that the Supreme Court took “separation between church and state” in 1947; they DEMANDED that the surrounding context be DENIED altogether. The result in 1947 was an awful ruling that defied the previous 160 years of Supreme Court decisions and effectively abrogated the Declaration of Independence and the 1st Amendment in doing so. The Supreme Court further acted on the secular humanist edifice it had artificially constructed for itself in 1962, when the Court threw out prayer in schools and threw the Ten Commandments out in 1980. The liberal court decreed that:
“If the posted copies of the Ten Commandments are to have any effect at all, it will be to induce the schoolchildren to read, meditate upon, perhaps to venerate and obey, the Commandments. However desirable this might be as a matter of private devotion, it is not a permissible state objective under the Establishment Clause.”
God forbid that children think about God and morality. Let’s teach them sodomy instead.
And now we have degenerated to the point in which an Obama-appointed federal judge is saying we should just get rid of the first four commandments that mention God. Because this moral idiot doesn’t comprehend that the first four commandments commanding reverence for the Creator form the moral foundation for the six commands that ethical laws that have formed the basis of Western Civilization that emerged from the Judeo-Christian worldview.
If you are an older American who knew what this nation used to be like, and you wonder what the hell went so terribly wrong, now you should understand why: we threw God out of America; and in so doing we invited Satan in. Pretty much every nasty thing, from violent crime, to venereal disease, to premarital sex, to single motherhood and abortion, to illiteracy, to suicide, to drug use, to public corruption, HAS EXPLODED. We’ve become a country that is so overwhelmed with convicted criminals that it is now beyond impossible to keep them incarcerated and we literally have to let them go as worse criminals keep flooding into the system.
When I graduated from university in 1990 as a business major, I did not receive any classroom instruction on business ethics. One professor pointed out that they had USED to teach ethics in previous years but had as a matter of policy stopped doing so. And precisely what would have been the foundation of those “ethics” if we’d been allowed to be taught about “ethics”??? What ethics? WHOSE ethics? Based on what ethical system?
Not the Bible, that is for damned sure. Not when the Supreme Court that inhabits a building whose founders and whose betters engraved images of Moses and the Ten Commandments upon them spurns the entire history of this great nation and replaces it with legally-imposed godlessness.
So the abortion society of death worship that Democrats created spirals wildly out of control. And the amoral and irreligious people now therefore need mountains of regulations as they become more and more and more blatantly depraved and predatory.
And such a people must be controlled with more and more force.
Liberals frequently compare conservatives to some kind of intolerant Taliban; but THEY’RE the Taliban. They are a radical secular humanist cult that has been increasingly rabidly determined to impose their agenda on this nation for the last 100 years.