Time to make calls and send emails again

Posted on April 22, 2010. Filed under: General Info | Tags: , |

Hat tip Steven Bayrd:
Time to call your reps and senators again:
From IBD http://www.investors.com/NewsAndAnalysis/Article.aspx?id=530936
an op-ed from Republican Minority Leader John Boehner:

President Obama’s ‘TARP Forever’ Act

By REP. JOHN BOEHNER Posted 04/21/2010 06:12 PM ET


We cannot restore confidence in our economy unless we fully address the root causes of the financial crisis and take definitive steps to ensure that taxpayers are never again forced to pick up the tab for bad bets on Wall Street. The legislation President Obama is promoting, however, does neither of these things and actually makes matters worse.

President Obama talks a big game when it comes to Wall Street, but his newest job-killing initiative would provide the nation’s largest financial firms with permanent bailouts ordered and overseen by unelected federal bureaucrats.

Under his proposal, the largest Wall Street firms would become eligible for special treatment, including taxpayer-funded resources unavailable to smaller financial firms. These include exclusive access to a pre-existing bailout fund, a Treasury-backed line of credit and a government guarantee for any debt.

Such perks will benefit the likes of Goldman Sachs, President Obama’s top financial contributor during the 2008 campaign and a firm that just happens to be under investigation by the SEC for defrauding investors.

The decision to designate Goldman and other giant banks as “too big to fail” won’t be made by taxpayers or their elected representatives. Under the Democrats’ plan, a new “Financial Stability Oversight Council” made up of unelected federal bureaucrats — including representatives from the Treasury Department, the Federal Reserve, the CFTC, the FDIC and the SEC — would have absolute power to seize any company and do whatever it wants with it.

That means Washington Democrats would force taxpayers to rely on the same government bureaucracies that were asleep at the switch the last time around. The commissioner of the SEC has warned that “there are no clear limits on the degree of government intervention that could be expected.”

This special treatment makes these large firms more attractive to investors than the smaller local banks, widening the gap between Wall Street and Main Street. Local banks will receive none of the perks of the Democrats’ permanent bailout bill while being forced to comply with all of its expensive, job-killing mandates — at the worst possible time for small businesses across America.

Of course, the large banks won’t mind having their borrowing costs permanently lowered by government intervention. That is exactly how it was with Fannie Mae and Freddie Mac, the government mortgage companies that kicked off the crisis by giving high-risk loans to people who couldn’t afford them.

Hoping to meet ambitious growth targets and reap considerable bonuses, Fannie and Freddie executives doubled down on their junk mortgage bet by investing heavily in the derivatives market, sparking a systemwide meltdown.

While it’s true Republicans voted for the bailouts under Bush, they may have learned their lesson. Chances are they are just playing politics now, but the fact is they are right on this, whether it’s heartfelt or not. Please take a couple minutes and send some form of communication to your elected officials and let them know this is more of the same and that just by calling it reform, while stabbing the taxpayers in the back, is not the change we need or want. A rose by any other name is still a rose. A scheme by any other name is still a scheme. Just like the recently passed “health care reform” bill.

This is how it’s going to play out over and over again, at breakneck speed, until the end of this Congressional session.

You better put their phone numbers on your speed dial, I’m afraid.

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