Democrats’ collective fixation on Frank Luntz’s memo on Financial Reform misses the point entirely but it is very telling.
The now famous Luntz memo makes strategic recommendations based on an aggregation of voters’ responses to being informed about various portions of the Dodd Blank Check Bailout bill in factual, common sense, simple language. The public spoke and Luntz recorded it. He didn’t make up the fact that there is a $4 trillion dollar bailout in the bill. Its right there in black and white.
But what has Democrats completely possessed is that what the public said is inconvenient to their Orwellian plan to dupe America into believing that up is down, black is white and that the Dodd bill will end “too big to fail”, contains no new bailouts and will possibly save endangered animals.
Their plan is a two step process: First, use oblique language about “protecting consumers” and “ending too big to fail” to convince the public that the Dodd bill is somehow “financial reform”. Then, bully Senate Republicans into voting for Dodd’s government takeover bill by portraying them as against said “financial reform.”
So Democrats are pulling out all the stops. They have launched attacks to discredit the Luntz memo and label legitimate criticism of the Dodd bill “poppycock”. And President Obama has engaged to reassure the public that the bill will stop bailouts.
But here in the real world, Dodd’s bill is in fact an attempt to takeover the other 5/6 of the economy left after health care and makes bailouts the official policy of the US Government.
Did small businesses cause the Financial Crisis? Of course not. Nevertheless, small businesses take a huge hit in this bill. A little noticed provision tucked into the bill is a death blow to the American Dream that will severely limit the ability of the average American to finance a start up small business.
Dodd’s bill adjusts the net worth requirements for a person to be considered an “accredited or qualified investor” by the Security and Exchange Commission. The change would dramatically reduce the number of informal investors financing small business and start up companies across the nation. Even the Huffington Post — a cheerleader for the Dodd bill — has recognized the dangers of this provision: ”Meanwhile, in his zeal to regulate the monster banks of Wall Street, Senator Christopher Dodd, Chairman of the Senate Banking Committee is about to kill the most vital and exciting part of the American economic miracle in all of these areas — start-ups.”
Whether it is the next eBay or the next Joe’s Hot Dog stand, the bill will dry up the ability of people to invest their own capital in a small business. So, even though the words coming out of Democrats mouths say “reform” it sure sounds, looks and smells a lot more like “takeover”.
On bailouts and “too big to fail”, Democrats have repeatedly pointed to the $50 billion dollar fund created by new taxes and fees on banks and disingenuously said that “taxpayers shouldn’t have to pay.” Aside from the fact that taxpayers will pay regardless when banks pass along the costs, there is a bigger omission here that puts taxpayers directly on the hook. While the $50 billion fund is certainly in the bill, the bill also gives the Fed unlimited authority to use taxpayer money as well.
So, rather than eliminating bailouts Dodd’s bill actually gives big bank CEO’s TWO bailout funds to catch them when their risky bets don’t pay off. Yet, Democrats continue their propaganda campaign with a straight face and repeat over and over that the Dodd bill will end “too big to fail” and contains no bailouts.
The public should not be fooled and should make sure that their senators aren’t either.