Go to PDF Version | Go to Recent Issues
To save time in the future, you may select one of the preferences below. You may update your eIBD preferences at any time by going into My IBD and selecting Update Your eIBD Preferences.
Set Web-Based Version as Default Set PDF Version as Default Set Recent Issues as Default
Get QuoteSearch Site
Daily Graphs Online
Overhaul: As Democrats batter GOP holdouts on financial changes, it's becoming clear they have every intention of extending government's hand into our financial markets to an unprecedented level.
By holding repeated votes to end the GOP's filibuster of the Dodd financial overhaul bill, the Democrats hoped to make it look as if Republicans are against any change — that they're in the pockets of big banks and Wall Street.
Senate Majority Leader Harry Reid on Wednesday called the GOP filibuster "un-American," continuing the insults that Republicans have taken — and media have dutifully reported — for refusing to go along with an awful bill. Portrayed as tools of Wall Street fat cats, the GOP seems to have caved.
Also on Wednesday, a key Republican senator said his party will stop its filibuster of financial change as part of a "deal" to allow amendments on the Senate floor. GOP Sen. Richard Shelby said he's been assured by Democrats they'll address fears the bill would lead to nonstop bailouts of big banks and finance companies.
Good luck with that; we'll believe it when we see it. A lot is riding on the financial overhaul authored by Chris Dodd, the Connecticut senator who, having the luxury of imminent retirement, no longer has to worry about the political fallout.
As it stands, Dodd's bill amounts to a nationalization of our financial sector. It creates permanent bailouts in the U.S. for any company that regulators consider to be in danger of default. That includes any company "substantially engaged in activities ... that are financial in nature."
In other words, virtually any big company, since many industrial giants — GM and GE leap to mind — have their own finance units.
This would give sweeping discretionary control over the economy to the Federal Reserve, the Federal Deposit Insurance Corp. and the Treasury — the very regulators who, asleep at the switch in 2005 and 2006, let the U.S. economic locomotive run off the rails.
If the Dodd bill passes intact, regulators can essentially shut down any company at will and force it into receivership. This style of state-directed capitalism has been tried before — in Italy under Mussolini and, later, in Argentina under Peron. It didn't work then, it won't work now.
In such a hyperpoliticized environment, the next generation of corporate CEOs won't be capitalist visionaries eager to create wealth and jobs. They'll be political lickspittles and well-connected rent seekers looking for patronage in Washington. We already saw how that worked with the failure of Fannie Mae and Freddie Mac, a mess that's saddled taxpayers with a bill for $400 billion.
Cap-And-Trade: While senators froth over Goldman Sachs and derivatives, a climate trading scheme being run out of the Chicago Climate Exchange would make Bernie Madoff blush. Its trail leads to the White House. Lost in the recent headlines was Al Gore's appearance Monday in Denver at the ...
Politics: Most members of Congress like to bring home the bacon to their districts. But Arizona's Raul Grijalva wants everyone to boycott his state to protest its immigration law. Who, exactly, is he serving? It ought to astonish onlookers to see a congressman, elected to represent the ...
Next Justice: The Supreme Court has once again affirmed that religion is not unconstitutional — but just barely, by 5-to-4. Will Justice Stevens' replacement be an unholy influence? ...
COALINGA, Calif. — Would France rip out its storied vineyards? Would Juan Valdez scorch Colombia's coffee crop? Sri Lanka its black pepper harvest? China its tea? With global markets won by nations specializing in doing what they do best, and with regional reputations important enough to drive ...
Many in the media, including my colleagues at the Washington Post, Eugene Robinson and Richard Cohen, have written powerful and appropriate columns in this space decrying the action of the Arizona Legislature and Gov. Jan Brewer in passing and signing a punitive law aimed at illegal immigrants. If ...
Posted By: Osamas Pajamas(2025) on 4/29/2010 | 1:51 AM ET
Geez. The Republicans have lost their cojones? AGAIN?! This is just another bailout bill --- albeit a permanent one --- and it is chockful of rotten ideas. The Republicans have also lost their minds if they don't run up an eight-foot long gold-colored flag with the word "NO!" on it in three-foot letters.
Posted By: dwdrury(1260) on 4/29/2010 | 12:22 AM ET
The beachfront location to which Dodd should retire: Gitmo. Deemocrats need to understand what goes around comes around. The next Majority Leader cannot be like Bill Frist, who only brought to the floor bills that had sufficient votes, both parties, to pass. NO MORE! If the likes of Dirty Harry insist on cram downs, let the games begin! Though Dirty Harry is likely to be gone, Pelosi will remain. Strap her to a chair and duct tape her mouth. Sit down and shut up, indeed.
Posted By: Ty Coon(105) on 4/29/2010 | 12:13 AM ET
There's really only one rule that needs to be passed. One that says that no company receives free money from the government. If you make dumbass decisions, you fail. Wouldn't that be clear enough.
Posted By: BlakeC in Florida(5) on 4/28/2010 | 9:39 PM ET
I agree with you bassman! It is irresponsible and naive for the GOP to think the progressive Dems will allow them a seat at the table much less a voice after the way they crammed the health bill down their throats! we're trying to send a true conservative, Rubio, to Senate this year but Obama's buddy Crist is trying to circumnavigate us.
Posted By: Serfdumb(1630) on 4/28/2010 | 9:35 PM ET
The federal reserve by creating money out of thin air and then loaning it to treasury at interest is the main problem in America today. Abolish the Fed and use our constitutional right for congress to print money and we wouldn't have all our tax money going to pay interest on the debt. See Reagans grace Commission Report. Then Abolish the unconstitutional income tax which was only created to pay interest to the FED. See: http://www.youtube.com/watch?v=G1465ygw5HU
To participate in Community areas, please Sign In or Register
Register
It's best to know ahead of time when to sell your stock.
Get QuoteSearch Site
Read Full Article »
