Looking Out For Our Interests? - Granite Grok

Looking Out For Our Interests?

On the morning of the New Hampshire Democrat Convention Ray Buckley took the opportunity to send out a press release on the recently passed vote on what is being called ‘Wall Street Reform.’

"The vote in the United States Senate to close debate on Wall Street reform is a critical step in once and for all fixing the disastrous Republican policies that drove our economy into a ditch."

Mr. Buckley doth protest too much.  The democrats are more than adequately complicit in captaining the economy into the rocks.  Of course Buckley and his party embrace failure as the solution because Big Government is their verb.  They are the Glee club for top down inefficiencies, addicted to Government—obsessed with securing its monopoly on the commerce of everything from ideas to markets to the very words used by the republic.  But that reality shines poorly on the party in an election year so instead he takes a shot at Senator Gregg for voting against it.  I take that to mean that the New Hampshire democrat party supports this bill?  I know soon to be citizen Hodes does so let’s open the hood and take a look at the NHDP’s idea of “reform?”

First up, Fannie Mae and Freddie Mac:  These two entities–now financial utilities of the Peoples Republic of Obama, are understood to be the primary drivers of the credit crisis and housing bubble.  They remain tax payer supported money pits wasting billions of your dollars, then as now, for what is and has always been a goal of the left and the democrat party; the right to own something without having to actually pay for it.  The new ‘Reform Bill’ does nothing to improve this relationship or the taxpayer’s exposure to rampant incompetence and cronyism.  Result: They are re-inflating the housing bubble with the blessings of Buckley’s Democrats and on an even bigger taxpayer dime.

Next, Goldman Sachs: Goldman–happy campaign supporter of future citizen Paul Hodes–owns or is connected to most of the major players in DC and in the Obama White House as part of the charade against Goldman meant to make hacks like Hodes look hawkish on banking.  But this all for show.  You think China has an arm to twist, take a closer look at Goldman.  These Hodes like banking hawks are just playing bit parts in the political meat puppet theatre becasue of the trillion dollars in US bonds Goldman is sitting on.   So the so-called crack down on Goldman and the timing as it relates to the lefts interest in ‘reform’ are sadly obvious.  It’s another Potempkin Village.  But what is less obvious—and by that I mean less advertised—is that the bill is good for big banks and bad for taxpayers.

Kevin Williamson in the May 17th issue of National review put the Goldman charade this way

It is a red herring, a distraction from the fact that congressional Democrats, the Obama administration, and the big Wall Street players are colluding to make the present system of ad hoc and ad infinitum bailouts permanent, codified in law, with practically no accountability in Washington and no oversight from our elected representatives.

What Ray is applauding is the successful investiture of permanent bank bailouts by law at your expense with little or no accountability to the people paying for it.

…the Dodd bill creates a system of shadow bailouts. Example: The bailout of insurance giant AIG wasn’t really a bailout of AIG—AIG is a dead corporation walking, and everybody knows it. Rather, it was a bailout of all the firms that would have taken losses if AIG had gone into bankruptcy. The Dodd bill’s defenders protest that the bill will end bailouts, but it will only hide them. That’s because firms that might have been sent tumbling into insolvency by a failure elsewhere in the financial system—by a repeat of the Lehman Brothers fiasco, for instance—will be protected by the Dodd regime from default and bankruptcy. And Congress will be protected from having to go on the record supporting such actions in each case. The Dodd bill is a blanket backdoor-bailout authority.




…the bill would allow—in fact, appears designed to ensure—bailouts for the creditors of troubled firms. Under the Dodd bill, Wall Street firms (or unions, or sovereign wealth funds, or anybody else with the right political connections) who are ex – posed to losses on failing financial companies will be able to collect significantly more money than they would be able to under normal bankruptcy


Given this small sample of reality pie, Buckley’s closing remarks are that much more entertaining.

"Republicans need to stop looking out for their Wall Street donors and start caring about the voters that sent them to Washington to look out for their interests."


Look out for their interests?  Buckley—if he is speaking for all NH Democrats—has just implicated the lot of them in a massive scheme to obscure how and how much of the taxpayers dollars his party will distribute in bail outs to favored unions, and connected insiders.   Any republican in the state can effectively run against any democrat on that, and they should.


Cross Posted From NH Insider