Posted on 05/05/2010 9:31:56 AM PDT by bs9021
Too Big To Fail?
Melissa Barnhart, May 5, 2010
Rep. Ed Royce (R-Calif.), and James Gattuso, senior research fellow at the Heritage Foundation, discussed the pitfalls in Connecticut Sen. Chris Dodd’s (pdf) financial regulatory reform bill during the Tuesday, April 27, Bloggers Briefing in Washington D.C.
As of Wednesday, Dodd, the Chairman of the Senate Banking Committee, and Richard Shelby (R-Ala.) the ranking Republican on the Banking Committee, agreed to take the debate of the bill to the Senate floor on Thursday, after Republicans won what concessions they could get from the Democrats. Among them, the removal of the $50 billion bailout fund for large financial institutions.
Royce, a member of the House Financial Services Committee, said that for much of his tenure, he’s had a running battle with the majority of the members on the committee over the question of “whether or not we should have the kind of government intervention in the marketplace that increases moral hazard and that removes market discipline.” He believes that the government’s use of Fannie Mae and Freddie Mac as government sponsored enterprises was one of the causes of the recent financial crisis.
In 1992, Congress passed the Federal Housing Enterprise Financial Safety and Soundness Act (GSE Act) that gave Fannie Mae and Freddie Mac incentives to give loans to people who could not make any down payment on a house, would not qualify for a home loan, or who would be considered to be a high credit risk, in order to improve access to affordable housing to low- and moderate-income families....
(Excerpt) Read more at academia.org ...
Really?
And the Titanic was unsinkable, too...
When does government become too big to fail?
...you know...VOTERS...
...will wrest back control of their country...
...here's the BONUS: The Dems are too stupid to see this coming.
The GOP hasn't really earned the majority they ARE going to get come November, but they better act fast to restore trust in government...
The REAL power, to use your phrase, gave us Obama and a Democrat super majority in the senate.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.