Mitch McConnell And The S.O.D.


Thus every action must be due to one or other of seven causes: chance, nature, compulsion, habit, reasoning, anger, or appetite.

Aristotle

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The Republicans aren’t very clever, now are they.  No one is 100% of the time, but dammit, ya gotta try.  But they seem to have simply given up. Mitch McConnell is trying to argue that the bill the Democrats are trying to get through congress will institutionalize bank bailouts.  What the bill actually does is adds regulatory oversight for derivatives and CDS’s and the like.  It would also create something called the Consumer Protection  Agency, a group that would protect consumers from getting into mortgages they can’t afford and avoid trouble due to fine print in credit card deals.

As far as bailouts are concerned the legislation has at its core “Orderly liquidation”, which would allow the government to dismantle distressed firms that are  “too big to fail”, rather than letting them fester and do what AIG and CITIGROUP did to us with multiple bailouts. One and done.  Almost like a more aggressive form of Chapter 13 bankruptcy.

But to pay for all of this, you say, that must cost US a fortune!  OUTRAGEOUS!  Not so fast there…. The money would come from the Banks and firms themselves, in the forms of fees paid to the government for just this purpose.  Call it the price of being “too big to fail”, being having to pay for your own bailout.

Somehow, Mitch seems to think this equates to Institutionalizing bailouts.  Mitch is crazy, and forgets that he voted FOR the bailouts.  Funny that he uses the language that he does now, thinking we would so soon forget the words and actions of him and his compatriots on both sides of the aisle.

The system as it stands is a mess, something has to be done, and I think controls on the large machinery of wall street so as to make sure it does not jeopardize the livelihood of millions of hard working Americans, makes the big boys pay for their own protection, call it bailout insurance, and the added benefit of consumer protections is exactly what America needs.

The hand of government protecting America from the predations of billionaires on the working and middle classes, what is left of them, is a good thing for everyone in America. 

Silly Mitch.

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A viddy with Paul Krugman back in November 2009 talking at White and Case, from Fora.tv   Income Inequality and the Middle Class (viddy replaced 1/4/11, original white and case viddy was deleted)

Reckless people have deluded themselves that this was a subprime crisis. But we have problems with credit-card debt, student-loan debt, auto loans, commercial real estate loans, home-equity loans, corporate debt and loans that financed leveraged buyouts… We have a subprime financial system, not a subprime mortgage market.

Nouriel Roubini

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And with all that seems wrong with the system, the market keeps going up, and that is a happy thing.  It’s over 11,000 points right now.  You cannot argue with the fact that the policies put in place over the last year+ by the President and congress have given the markets at the very least the confidence to keep moving into positive territory.  Don’t forget, it was only 13 months ago that the market was under 7000 points.

It doesn’t mean we are out of the woods though.  Not by along shot.  The unemployment problem will persist for a long while yet, and until the regulatory framework is in place, it leaves the possibility of another major financial shakeup without proper protections for the system and the people in it, which could jeopardize all the hard work that has taken place since the day this current debacle began.

Still, all good news is welcome.

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And now for something completely different….

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