More on why the bull’s eye should be on politicians and not on capitalism

UPDATE TO INSTAPUNDIT READERS:  thanks for coming by!  I am just overwrought (but not surprised) by the actions of our professional political class.  They must truly believe that they are protected by the Enterprise’s shields….and the Klingon invisibility shield….

And thanks to you, Glenn!

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Put under PLAIN STUPIDITY instead of PLAIN POLITICS. 

Insanity: doing the same thing over and over expecting different results.

Politician: deliberately trying to get more graft by the same tactics over and over

Senator Dodd (D-Conn)  (remember, the guy who got special mortgage treatment?) has tried the same tired "hide the pork" albeit in some "not cute" terms.  Glenn from Instapundit had it right:

You know, it would be easier for me to believe this was a crisis, if the people in charge were acting like it was a crisis, instead of just an opportunity for graft. Then again, to some of these people, everything is just an opportunity for graft.

This is in reference to his link to Jim at the Volokh Conspiracy:

I have read Dodd’s proposed statute and in some respects, it is far worse than has been reported. Senator Dodd has placed a loophole in the bill that is explicitly designed to siphon off tens or hundreds of billions of dollars to the Housing Trust Fund and the Capital Magnet Fund even if there are no net profits in the $700 billion venture.

Here is the provision that has already been widely noted:

d) TRANSFER OF A PERCENTAGE OF PROFITS.-

(1) DEPOSITS.-Not less than 20 percent of any profit realized on the sale of each troubled asset purchased under this Act shall be deposited as provided in paragraph (2).

(2) USE OF DEPOSITS.-Of the amount referred to in paragraph (1)-

(A) 65 percent shall be deposited into the Housing Trust Fund established under section 1338 of the Federal Housing Enterprises Regulatory Reform Act of 1992 (12 U.S.C. 4568); and

(B) 35 percent shall be deposited into the Capital Magnet Fund established under section 1339 of that Act (12 U.S.C. 4569).

(3) REMAINDER DEPOSITED IN THE TREASURY.-All amounts remaining after payments under paragraph (1) shall be paid into the General Fund of the Treasury for reduction of the public debt.

The biggest problem here is that the 20% is not taken from net profits, but rather from any profit in the sale of each and every individual troubled asset.

[snip]

I was mildly in favor of the bailout until I read Dodd’s proposed statute. The way that the statute is drafted is so tricky and its definition of profit is so unsophisticated and nonsensical that the statute smells more of graft than of an honest attempt to solve the financial crisis. We are moving from failed "crony capitalism" to failed "crony community organizing."

And this is why Congress is half the approval rating of President Bush (lower than third-hand used car salesmen, or lawyers).  This is why I’m glad that "quick is not good" is carrying the day. Here we are, at the so called "worst financial flop since the Depression" and the long term politicians are STILL being politicians instead of leaders.

So tell me again: why should I trust my government that is out to bury me?  And why do we need (or want) professional politicians?