President Obama’s Wall Street Friends All Benefit From The Democrats’ Bailout Bill

President Obama’s Wall Street Friends All Benefit From The Democrats’ Bailout Bill

Washington, Apr 20 

Follow @GOPLeader on Twitter for updates.

President Obama likes to say we need to clean up Wall Street.  But let’s be clear: He is pushing a job-killing bailout bill for Wall Street that benefits his top financial contributor from the 2008 campaign – a firm that just happens to be under investigation by the SEC for defrauding investors.

Despite the President’s rhetoric, his support for the Democrats’ bailout bills gives big Wall Street banks a permanent, taxpayer-funded safety net by designating them “too big to fail.”  Just whose side is President Obama on?  Here are the facts:

WALL STREET GIVES GENEROUSLY TO THEN-CANDIDATE OBAMA:

• Goldman Sachs, recently charged with defrauding investors, was President Obama’s top Wall Street contributor during the 2008 election cycle, donating nearly $1 million to his campaign.
• Securities & investment firms in general were the fifth largest contributor to President Obama’s 2008 campaign, donating nearly $15 million.
• Big banks also donated more than $3 million to Obama during the 2008 election cycle.

PRESIDENT OBAMA’S RHETORIC SAYS “GET TOUGH ON WALL STREET”:

“We will hold Wall Street accountable.  We will protect and empower consumers in our financial system. That’s what reform is all about. That’s what we’re fighting for.” (Weekly Address, 4/17/10)

PRESIDENT OBAMA’S ACTIONS PUSH PERMANENT BAILOUTS FOR HIS WALL STREET FRIENDS:

• The Dodd Gives Wall Street a Pre-Existing $50 Billion Bailout Slush Fund.  Sen. Dodd’s financial bailout bill would create a $50 billion ‘orderly resolution fund’ ($150 billion in Rep. Barney Frank’s bill) that could be repeatedly replenished from industry assessment.
• The Dodd Bill Gives Wall Street a Treasury-Backed Credit Line.  The FDIC would be authorized to borrow from Treasury up to the amount of cash left in the ‘resolution fund’ plus 90 percent of the value of the assets of any and all too-big-to-fail firms in its control. 
• The Dodd Bill Provides a Government-Guaranteed to Wall Street Debt.  The FDIC would be authorized to guarantee the debt of any solvent bank, bank holding company, or affiliate in any amount subject only to an aggregate debt limit set by the Treasury Department.
• The Dodd Bill Institutionalizes Unlimited Wall Street Bailouts.  The FDIC, as the resolution agency for too-big-to-fail firms, would be given wide latitude to use resources to make payments to anyone in any amounts, at their own discretion. 
• The Dodd Bill Gives Wall Street Bridge Bank Authority.  The FDIC would be authorized to create a bridge institution as part of resolving a covered institution and vest the FDIC with broad authority to use the orderly resolution fund in connection with the bridge institution.

While President Obama and congressional Democrats push job-killing legislation that gives permanent bailouts to their top campaign contributors, Republicans are fighting to end the bailouts and create jobs for families and small businesses. Republicans believe the best way to protect taxpayers is by reforming Fannie Mae and Freddie Mac, the government-sponsored companies that sparked the meltdown by giving high-risk loans to people who couldn’t afford it.  For more information on the House Republican plan, click here.

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U.S. President Barack Obama and other world leaders sent Israel greetings and warm wishes on the occasion of the country’s 62nd Independence Day.

U.S. President Barack Obama and other world leaders sent Israel greetings and warm wishes on the occasion of the country’s 62nd Independence Day.

The relationship between Israel and the U.S. “will only be strengthened in the months and years to come,” Obama said in a special statement.

“Minutes after David Ben-Gurion declared Israel’s independence, realizing the dream of a state for the Jewish people in their historic homeland, the United States became the first country to recognize Israel,” Obama said.

“To this day, we continue to share a strong, unbreakable bond of friendship between our two nations, anchored by the United States’ enduring commitment to Israel’s security,” Obama continued.

Obama also said his administration would continue to work toward a two-state solution to the Israeli-Palestinian conflict.

“I look forward to continuing our efforts with Israel to achieve comprehensive peace and security in the region, including a two-state solution, and to working together to counter the forces that threaten Israel, the United States, and the world,” he said.

 
[NOTE: And, which forces, precisely, might these be???
  • Hamas — with whom Obama’s underlings are negotiating?
  • Fatah — on whom Obama is lavishing all kinds of money and weapons?
  • Hezbollah — against whom Obama is doing nothing?
  • Syria — formally considered to be a terrorist state which has just delivered scud missiles to Hezbollah, but with whom Obama is now dealing as if it were a normal state?
  • The Islamic Republic of Iran — which is rapidly developing nuclear weapons and against which Obama is doing nothing?
  • The Organization of the Islamic Conference (OIC) which refuses to recognize Israel’s right to exist as a Jewish state but to whom Obama just named an ambassador who shares the OIC’s Islamist views?
  • Saudi Arabia — which is in the forefront of spreading agressive, anti-Semitic imperialist Islam, but to whose king Obama bowed?
  • Islam itself — which Obama says is a religion of peace which has contributed so much to Western civilization and America?
Remember that Obama just purged all mention of Islam, jihad, and any possible linkage between Islam and violence from the vocabulary of government officials and national security reports. Whom should we believe — Obama, or our own lying eyes??? ]

Morning Bell: The Wall Street Bailout Bill Threat to Your Bottom Line

Morning Bell: The Wall Street Bailout Bill Threat to Your Bottom Line

Posted By Conn Carroll On April 20, 2010 @ 9:42 am In Enterprise and Free Markets | No Comments

[1]

This past Friday, President Barack Obama again threatened to veto [2] any financial reform bill that fails to tightly regulate financial derivative products which many blame for the 2008 economic crisis. Derivatives [3] work like insurance to protect certain investments, and provide stability to the price of most goods and services. For example, farmers buy derivatives on the price of their crops, so if the price of their crop plummets, the price of the food at the grocery store won’t change that much. Airlines buy derivatives on oil, so if the price of oil goes up drastically, they won’t have to immediately hike ticket prices.

Lehman Brothers CEO Dick Fuld shares President Obama’s view on derivatives. He also blames them for the downfall of his Wall Street firm. But a closer examination of Lehman’s failure shows that derivatives may just be a convenient scape goat. Bankruptcy examiners found that it was bad business decisions hidden by complex accounting tricks [4], not addressed by the current Wall Street Bailout Bill at all, that brought Lehman down. In fact, Lehman’s derivatives positions represented only about 3.3 percent of its net assets, and the bankruptcy examiner found [5] its derivatives trades were reasonable and more carefully monitored than Lehman’s other assets.

So whenever Sen. Chris Dodd (D-CT) says his Wall Street Bailout Bill “would have prevented that kind of events from happening” [6] he needs to explain how. If anything, the Dodd plan will only make future Wall Street bailouts more likely and more costly while also stifling consumer choice.

Increases Chance of Future Bailouts: Obama administration officials are claiming their plan “outlaws bailouts [7],” but in fact it institutionalizes them forever. Just go straight to page 134 of the 1,334 page Senate bill. On that page begins a section titled “Funding for Orderly Liquidation.” The text reads that the Federal Deposit Insurance Corporation, the designated federal receiver for failing financial firms, “may make available…funds for the orderly liquidation of [a] covered financial institution.” Where are those funds to come from? Well, on page 272 the bill creates an “Orderly Resolution Fund” within the U.S. Treasury. The target size of this fund? Fifty billion dollars. [8] The Obama administration claims no funds could be provided to compensate a firm’s shareholders. But the failing firm’s other creditors would be eligible for a cash bailout at the discretion of Treasury Secretary Timothy Geithner who has described the bill’s new bailout authority in exactly the same way he described how he bailed out AIG. [9] This is why Rep. Brad Sherman (D-CA) told Politico: “The Dodd bill has unlimited executive bailout authority. That’s something Wall Street desperately wants but doesn’t dare ask for. The bill contains permanent, unlimited bailout authority.”

Increases the Costs of Future Bailouts: The second administrative fall back position is that while the bill does bailout Wall Street, the bailouts will be paid for by Wall Street so taxpayers won’t foot the bill. But where does the left think Wall Street will get the money for the bailout funds? The tooth fairy. Just as airlines will ultimately just recoup the money they would have charged for carry on bags in higher ticket prices, Wall Street will suck the bailout money from American consumers in the form of higher bank fees. The Congressional Budget Office has confirmed this the last time the Obama administration proposed a new bank tax [10]. Worse, The New York Times [11] reports: “The Obama administration does not support the $50 billion fund, partly out of concern that more money may be needed if one or more big financial firms ever collapse and that creating a fund could make it difficult to authorize more money.” In other words, the only reason the Obama administration does not want a set $50 billion fund is so it will be easier to ask for even higher bailout funds later.

Limits Consumer Choice: One of the new Super Regulators [12] Dodd’s Wall Street Bailout Bill would create is a Bureau of Consumer Financial Protection that would make it harder for consumers to utilize new technologies. Debit cards, for example, are common today. Just a decade or so ago, though, customers had to carry bulky checkbooks and two forms of ID in order to pay for many purchases. What might be the next innovation to revolutionize how Americans pay for products? It’s impossible to say, and under the Dodd bill we may never know. Under a CFPA, a cell phone company that wants to offer an even more convenient payment mechanism would have to submit to a massive set of regulations. [13]

Heritage fellow David John concludes [14]:

A better approach to preventing another crisis is to modify U.S. bankruptcy law to accommodate the special problems of resolving huge financial firms and to allow the courts to appoint receivers with the specialized knowledge necessary to best deal with their failure. By creating an open process controlled by an impartial judiciary guided by established statutory rules, financial firms, investors, taxpayers, and others would have the advance knowledge that large financial firms that were once known as “too big to fail” can now be closed if necessary without risking disaster.

Quick Hits:

Obama: America won’t be in the economic position it was before I got here

Obama: America won’t be in the economic position it was before I got here

posted at 12:15 pm on April 20, 2010 by Ed Morrissey
regular view

On one level, this video from Breitbart and Naked Emperor News doesn’t tell us anything we don’t already know. The American economy isn’t recovering, and won’t any time soon, either. Barack Obama gives this sober assessment on “global rebalancing,” but perhaps doesn’t quite realize that he’s reversing himself on what kind of growth we had prior to his election:

Part of this global rebalancing is that they’re going to have to make some decisions as well about how they are approaching their domestic markets. And, you know, part of the bargain that we’re trying to strike within the G-20 framework is to say, “Look, we’ve got to take on our responsibilities in terms of improving our savings rate. You, on the other hand, have to recognize that a purely export-driven strategy of economic growth is not going to work, in that American consumers are just not going to be in the same position, and the American government is not going to be in the same position, that it’s been in over the last several years.

Remember when Obama used to sneer at the years of economic growth under the Bush administration? Well, apparently we’re not going to get back to even those levels, which Obama dismissed during his presidential campaign. And he’s entirely correct, as long as he continues to pursue the economic policies he’s used for the last fifteen months. That’s not a surprise to anyone who’s paid attention to this administration, except that Obama has finally gotten around to admitting it.

This is similar to Jimmy Carter’s “malaise” speech, except that Obama was smart enough not to deliver this one from the Oval Office.

Go AHEAD punks, make our day!

Go AHEAD punks, make our day!

Who let the dorks out?

Jason Levin, creator of crashtheteaparty.org, said Monday the group has 65 leaders in major cities across the country who are trying to recruit members to infiltrate tea party events for April 15—tax filing day, when tea party groups across the country are planning to gather and protest high taxes…

Levin says they want to exaggerate the group’s least appealing qualities, further distance the tea party from mainstream America and damage the public’s opinion of them.

“Do I think every member of the tea party is a homophobe, racist or a moron? No, absolutely not,” Levin said. “Do I think most of them are homophobes, racists or morons? Absolutely.”

Go ahead punks, make our day! Cameras will be rolling; police will be standing by.

More
Left Coast Rebel: Exposed…The Individuals Behind “Crash the Tea Party
Crash course: Your illustrated guide to the Tea Party saboteurs
I will keep harping on this until the end of time: a camera is an indispensable tool for these things.
Check this out from Ruby Slippers: 58% Support Repeal of ObamaCare – We need to make that happen!
Chief Tea Party Crasher is a 9-11 Truther.

Left Wing Filth and Hatred

Left Wing Filth and Hatred

Left-wing hate
Alan Colmes says the Right is “struggling to draw equivalency with Obama-bashing.”
There’s no struggle. It’s quite easy to find evidence of vile left-wing hatred and violence…it’s abundant, and it’s tolerated and accepted by mainstream lefties:
(Warning: totally NSFW)
Don’t miss the misogynistic hate filth from this left-wing sex pig:
(Warning: totally NSFW)
No, the left-wing hatred that I’ve seen is NOT equivalent to the peaceful and mild mannered dissent that I’ve witnessed at the tea parties over the past year. The left-wing hate is truly disgusting.
Left-wing outrage over uncivil discourse was conspicuously absent two short years ago. Alan Colmes: During the Bush years, where was YOUR concern for incivility?
More
Extensive documentation of Left Wing hatred and filth from ZombieTime (NSFW)
Breitbart: If the LEFT stops eating our fingers, beating up black men, throwing eggs at our buses, threatening violence, perhaps we can work together!

He Is One Of The Smartest Men Of His Generation–You will never guess who. Or in which publication such tripe was written.

He Is One Of The Smartest Men Of His Generation

You will never guess who. Or in which publication such tripe was written.

For those of you who have just emerged from a three-year long coma or a round-trip to Mars, here is the context, from The New York Times (emphasis mine):

They are two of the smartest men of their generation, both magna cum laude products of Harvard Law School, both cerebral and charming and ambitious. They vaulted to the highest offices in the land after just short stints at the next level down, and each was seen initially as a conciliator only to lead on the strength of his own majority.

One of the two is John Roberts, Chief Justice of the Supreme Court. A brilliant jurist with such a long history of legal accomplishment that even 22 Democrats voted for him, leaving only the emotionally and intellectually insecure Democrats in opposition.

The other is Barack Obama, whose major intellectual accomplishment consists of writing semi-fictional books about himself, and giving damn good speeches when reading from a teleprompter.

To include Obama in the twosome depends upon what the definition of “smartest man” and “generation” is.

If by “smartest man” one means “shameless self-promotional overachiever,” and if by “generation” one means “politicians who achieve high office despite never having accomplished anything,” then you’ve got your guy.

Is there a Nobel Prize for being one of the “smartest men in a generation”? He deserves it every bit as much as the Nobel Peace Prize.