Carol Shea Porter, Right for the Wrong Reasons

Carol Shea Porter issued a statement explaining why she voted no on the bailout bill this week.  For once I agree with her on her vote but her reasoning behind it was wrong.  Allow me to point out from her statement why (I will supply her statement her in full separated out with my own comments).

"Our economy has been battered by eight years of a financial wild west on Wall Street.  There was no oversight and no accountability.  I thought it was a mistake for the Administration to ask Congress to vote on a $700 billion bill to bail out Wall Street with only a single week to consider the proposal and a single day to review it.  The Administration asked Congress to give up its Constitutional power of the purse and hand over a blank check for $700 billion.  Congress said no.

The two statements in bold are the key here.

First off she's claiming there is no oversight and no accountability.  Basically she's saying this bill should for MORE government on the private sector.  Clearly she as many other democrats fail to understand that the cause of this problem wasn't the free market, it was government intervention in the first place.

I explained this in some detail hereThere is also a video posted in an article Bill Gnade posted that goes much further with even more detail and shows the direct correlations between the government interventions and the market responses found here.  I highly recommend everyone regardless of your opinion to take the time and watch the video in Bill's article.

Her second statement ignores reality.  Ron Paul has been pushing for a solution for nearly this entire decade, even McCain had put up a bill a few years ago to try to solve this problem before to grew to the point it has (this is also pointed out in the video in Bill's article).  Government created the problem and has refused to even consider the solutions needed to solve it.  Now there are those on BOTH sides of the spectrum saying they need a solutions or else... 

Moving on to the next part of her statement:

"While I believe it is essential to address our credit and liquidity crisis, I voted against the Bush Bailout.  I could not support the bill because it did not address the fundamental problem in our economy that caused the crisis in our financial institutions.

I love how it's all bi partisan talk from Pelosi when attempting to get this passed and yet Democrats such as Carol here who oppose it once again try to use it to fault Bush.  Hey Carol, the reason we need a Bush Bailout in the first place is because of the mess Clinton created!

And is Bush the one calling for the money in this bill to go to groups like ACORN?  Oh no, that would be Dodds.  But let's call this mess the "Bush Bailout", give me a break!

"I voted against the bill because it gave the Secretary of the Treasury -- a political appointee -- unfettered control over the execution of the bailout program.  If the bill had passed, the Secretary of the Treasury would have had absolute authority to decide which securities to buy, from whom to purchase, and how much to pay.  The Secretary of the Treasury would have also had absolute authority to decide who he would hire to manage the assets he purchased.  

If you take out "Secretary of the Treasury" and replace it simply with "the goverrnment" she would actually be correct.  The problem here isn't which part of the government is going to buy up this bad debt and pass it on to the tax payers, the proble is just that, that the government is going to buy up bad debt and pass it on to the tax payers.  Does it really matter who in the government buys it up and passes it off on us and our children?

"More than four hundred economists, including three Nobel Laureates, appealed to Congress to slow down and make sure we got this right.  Congress took about 8 months to draft and pass the legislation establishing the Resolution Trust Corporation -- and this only involved about $100 billion of taxpayer money.  Certainly, Congress needs more time than one week to invest $700 billion of taxpayer money in a bailout.
The Resolution Trust Corporation was the solution created to the S&L problems that started under Clinton.  When the government started forcing banks to give loans equally to all minorities and genders regardless of abilities to pay the banks begain having a problem with people unable to pay them back.  Bill Clinton and company stepped in with the creation of the original Resolution Trust Corporation which bought up that bad debt and passed it along to you and I.  Carol proudly helped bring that same level of wealth redistribution back.

And don't you just love how she put that, it ONLY involved $100 billion of your hard earned dollars.  Soon we'll be talking real money here!
"American taxpayers need a better bill, a better plan, and better protection.  That is why I voted to stay in Washington and continue working on this bill.  That is why I voted against this bill."
At least she got one part right, the American taxpayers do need protection.  Protection from people who want more government and are pushing for government solutions that involve buying up bad debt from people who should have never been able to take out loans in the first place and passing that dept off on the rest of the US taxpayers.