Wednesday, September 8, 2010

A Massive New Bureaucracy That Will Be Almost Impossible To Control

The following compliments of Gerry Charlotte Phelps

New Dodd-Frank Bill is Socialist Takeover Attempt

Congress and President Obama claim to have corrected our financial problems through the recent “Wall Street Reform and Consumer Protection Act” (Dodd/Frank FinReg).  But on the contrary, it would be ruinous - not only to our financial system, but to our democratic republic as well.  It is a long, long document.  So here is a brief summary of it.

What it will NOT do:
• Control the insane level of exposure of our financial system due to derivatives by the TBTF banks
• Return the reserve ratios of the TBTF banks to sane levels
• Put any restrictions or wall between the selling of securities and banking by same TBTF banks
• Stop the manipulation and front-running of markets through program trading
• Give any hope that our financial system will return to sound banking principles that would return us to reasonable banking and lending. 
(Note: TBTF means "Too Big To Fail")
But what will it DO?
It "gives the government a relatively free hand" to:
  • Make business decisions
  • Promote or eliminate businesses
  • Break up businesses
  • Dictate its wishes to industry
It also establishes a massive new bureaucracy to enable all this.
In short, this is what the Left has been dreaming of:  Controlling Capitalism.*  But it is a huge step toward ruining it instead. 
This bill comes to us from the same Sen. Dodd and Rep. Frank who were the biggest players in keeping Freddie and Fannie going, against all yearly attempts by Bush and the Republicans to stop the madness - until the housing bubble burst into the great Meltdown.**
Some people never give up, do they?
For more, see this long but helpful report of September 1, 2010.
Postscript added after 10 p.m., 9-7-10:
Perhaps the worst thing about the Dodd-Frank bill is not merely that it creates a new governing and enforcing agency that will be one of the largest ever in Washington D.C.  But it will also be almost impossible to control, by any branch of government. That is because it has been embedded in the Federal Reserve.  BUT the Fed is forbidden to control it!  So who will ever oversee it?

* The usual name for this is "Crony Capitalism," where the government allows capitalism to exist, but controls it almost completely, while selected "crony" businesses profit so much that other businesses cannot survive in competition with them.  Selected "cronies" (people and parties) in the government also profit tremendously from such "Crony Capitalism."  It is a form of government/economy somewhere between U.S. democracy and Soviet communism - roughly, somewhere between the welfare states of the EU, and the socialist fascism of Mussolini and Hitler.
** Senator Chris Dodd is Chair of the Senate Banking Committee while Congressman Barny Frank is Chair of the House Financial Services Committee, and was the Ranking Member during the years the Democrats were not a majority in Congress.  Both Dodd and Frank were among the recipients of significant campaign donations from Freddie and Fannie during the last 20 years.  The biggest recipient, however, was Barack Obama during his single term in the Senate.

More Baloney aah... Barney (Can you believe this guy?  What a cheapskate!)

Massachusetts Congressman Barney Frank caused a scene when he demanded a $1 senior discount on his ferry fare to Fire Island's popular gay haunt, The Pines, last Friday. Frank was turned down by ticket clerks at the dock in Sayville because he didn't have the required Suffolk County Senior Citizens ID. A witness reports, "Frank made such a drama over the senior rate that I contemplated offering him the dollar to cool down the situation." Frank made news last year when he was spotted looking uncomfortable around a bevy of topless, well-built men at the Pines Annual Ascension Beach Party. Frank's spokesperson confirmed to Page Six that his partner, James Ready, asked the ticket office for a regular ticket for himself and a senior ticket for Frank, "but was turned down because Frank didn't have a resident ID."

No comments: