Despite efforts by some weak sisters like Sen. “Bailout” Bob Corker (R-TN) to cut a deal with “Countrywide” Chris Dodd (D-CT) on legislation to create a Blank Check Bailout Bill and lots of loud speculation from Senate Democrats about peeling off a Republican, Senate Republicans are currently holding firm against intimidation tactics to ram the bill through the Senate a la Health Care Reform.
Sources on Capitol Hill report that Sen. Shelby recently briefed Senate Republicans about the bill and got unanimous support for his efforts to block the Democrats latest government takeover scheme. Unanimous support means that even the Senators from Maine — Susan Collins and Olympia Snowe are holding the line against future bailouts despite ongoing White House efforts to jam the bill. According to our sources, Collins even went so far as to make an explicit commitment to Shelby to oppose the bill saying she has many problems with it.
And with good reason too. As readers recall, the so-called “Financial Reform” legislation contains a number of key provisions – none of them good–that creates more bureaucracies, more fees and taxes, more Washington red tape and makes bailouts the permanent policy of the US Government. But while offering permanent bailouts and a government takeover of the rest of our economy the legislation of course does nothing to address the root causes of the crisis including Fannie Mae, Freddie Mac and the consumer lending laws that pushed mortgages to people who could never afford to pay them back.
The House bill version of the bill authored by Rep. Barney Frank (D-MA) authorized the Federal Reserve to spend up to $4,000,000,000,0000 (trillion) to breakup and bailout failed companies. The Senate bill is worse – it contains no limit. The Dodd bill is nothing more than a blank check to enshrine bailouts as the permanent policy of the US government.
Adding insult to injury, both bills create a new red-tape creating bureaucracy that – in the words of Sen. Dodd is one like we have “never seen before.” The agency will be authorized to regulate any and all financial transactions – from car loans to lay away plans.
And despite the populist rhetoric, its big banks and former heads of the Federal Reserve that support the legislation.
Contact your Senators immediately. Tell them to oppose the BLANK CHECK BAILOUT BILL.