Remember how Big Brother crammed through the Dodd-Frank “financial reform” (2000+ pages!) legislation a year ago, under the guise of protecting the public from evil banking institutions? Remember how it totally ignored Fannie & Freddie which actually caused the mortgage crisis and severely damaged the economy?
Despite much rhetoric about ending bailouts, the bill does nothing to address Fannie Mae and Freddie Mac, two of the largest recipients of federal bailout money. These two government-sponsored enterprises, now in federal receivership, helped fuel the housing bubble. When it popped, taxpayers found themselves on the hook for some $150 billion in bailout money. The failure to address their future is a serious error and shows just how hollow are claims that this agreement will prevent future crises.
Common sense, and decades of experience with “progressive reforms”, told us that Dodd-Frank was just another grab for more federal control over the private sector. The bill even managed to sneak in $20 billion in tax hikes – which consumers will get to absorb as usual. And since it’s “notably short on specifics, giving regulators significant power to determine its impact… this law is going to be continually rewritten by federal bureaucrats for years to come.” Terrific!
President Obama signed this bloated mess into law on July 21, 2010. How’s it working out so far? Check out Rep. Ed Royce’s article at Heritage Network, “Dodd-Frank; One Year Later”:
Upon passage of the financial reform bill, then-Speaker Nancy Pelosi (D-CA) said, “This is the next critical step forward in an effort to rebuild our economy.” This type of political hubris is reminiscent of what economist Friedrich Hayek referred to as the fatal conceit. Unemployment still stands above 9 percent, business confidence is in the tank and economic growth remains stagnant.
And Fannie & Freddie need another bailout! Reuters reported on May 9, 2011:
Mortgage finance giant Fannie Mae (FNMA.OB) on Friday said it would ask for an additional $8.5 billion from taxpayers as it continues to suffer losses on loans made prior to 2009.
See: “Who’s Up For Another Fannie Mae Bailout?” at Michelle Malkin’s site
Michelle just posted an even more depressing piece today: Dodd-Frank: The Beltway Industry Full-Time Employment Act Ugh!
If we ever get responsible conservatives running things in D.C., repeal of this nightmare legislation has to be a priority!