This law is a monstrosity. After watching the bill come to fruition on the senate floor, I find myself wishing it would go away. The Republicans must hold firm on this piece of legislation. At times in the past I have called for compromise, or explored it (in regard to the START treaty, of which I now have many doubts.) but this is a bridge too far.
Over a period of a couple of weeks the bill has gotten worse and worse. They are seemingly asking the taxpayer to set up a bailout fund, in case of future “failures of the system”, let me be clear on this: Two things kept this country’s bankers in check after the horrific situation of the 1930’s. They were that the government did not step in to save the bankers, see the men jumping out of the windows, and the Glass-Steagall Act, which separated Investment Bankers from Commercial Bankers. Some on this site, I am sure, will attack the ideas of Glass-Steagall, but I think it should be pointed out that at least the original incarnation of Glass-Steagall was a short, easy to understand regulation. The new regulations the Democrats are trying to force on the entire banking sector is going to make getting a loan in this country nearly impossible.
The are not dealing with Fannie Mae’s and Freddie Mac’s abuses. They are not ending bailouts. Wall Street reform should center on one principle: If you engage in improper practices that endanger your share-holders, you should go bankrupt.
Further, the Democratic Senators voted en bloc to accept potential future federal government bailouts of insolvent states like California. I live in a state that has made tough decisions, but will not need the feds to step in. I surely do not think the rest of the taxpayers in this country, including people in the ever-shrinking private sector of California itself, want to be on the hook for the mismanagement of that state.
Republicans need to stand up to the Democrats on this. If the RNC was worth a damn, they would run ads in the country demonstrating the poor parts of this act. Then we’d get some popular support behind us. Instead, they lose their courage at the very thought of the Democrats saying they aren’t tough on Wall Street. The important point to make: In 2008 more Wall Street money went to Democrats than Republicans. Steele needs to demonstrate some guts and back the Senate GOP members who will ferret out the monstrosity this bill is to the american people.
Ask ourselves this, why is Harry Reid unwilling to let us finish the amendment process, why do we need to do this NOW? Isn’t next week the same as this week? Why is it now a crime to let the Senate work its will and destroy this rotten piece of legislation?