PARLIAMENT OF MORONS

The Democrat-controlled House of Representatives, by failing to pass the bailout package, has done its best to wreck the economy.  And, of course, the usual suspects are blaming (surprise!) the Republicans.

For anyone interested in an honest perspective on why it happened, however, Thomas Sowell explains that the people who now control Congress can never be expected to act responsibly in this crisis:

Nothing could more painfully demonstrate what is wrong with Congress than the current financial crisis. Among the congressional “leaders” invited to the White House to devise a bailout “solution” are the very people who have for years created the risks that have come home to roost.

And who would that be? How about the Democrat Chairman of the Financial Services Committee in the House:

Five years ago, Barney Frank vouched for the “soundness” of Fannie Mae and Freddie Mac and said “I do not see” any “possibility of serious financial losses to the Treasury.”

And the Democrat Chairman of the Senate Banking, Housing, and Urban Affairs Committee:

Earlier this year, Sen. Chris Dodd praised Fannie Mae and Freddie Mac for “riding to the rescue” when other financial institutions were cutting back on mortgage loans. He too said they “need to do more” to help subprime borrowers get better loans.

In other words the Democrats put morons in positions of serious responsibility. Predictably, they studiously ignored countless warnings that this was coming:

Gregory Mankiw, chairman of the Council of Economic Advisers, warned in February 2004 that expecting a government bailout if things go wrong “creates an incentive for a company to take on risk and enjoy the associated increase in return.”

And Mankiw by no means alone in sounding the alarm:

Alan Greenspan, then head of the Fed, made the same point in testifying before Congress in February 2004.

The first step in solving the current financial crisis is get rid of brain-dead idiots like Frank and Dodd. If the voters are crazy enough to put a Democrat in the White House, who knows how much damage these dopes will do.

UPDATE I:

Here’s an AmSpec piece explaining how the Dems scuttled the bailout package. They didn’t whip their caucus, and Pelosi deliberately antagonized the Republicans. These creeps obviously think a wrecked economy will help them in the election, the good of the country be damned.

Meanwhile President Bush, who tried to forestall this mess three years ago, will appeal to these irresponsible jackasses to (for once) put the country and their constituents before their own tawdry political agenda. Good luck with that!

UPDATE II:

In an apparent effort to prove that they can be just as dumb as progressives, lots of conservatives and libertarians advocate “letting it burn.” This particularly self-destructive strain of adolescent nihilism can be found at Riehl World View, Jules Crittenden, and Michelle Malkin. This is the precisely the kind of unthinking that brought us Smoot-Hawley.

Comments 8

  1. Marc Brown wrote:

    Three points.

    1 A majority of Republicans voted against the bailout. A majority of Democrats voted for it.

    2 Surely you are not in favour of bailouts.

    3 Do you honestly think most people want their healthcare in the hands of deregulated free marketeers like these bankers.

    Posted 30 Sep 2008 at 3:32 am
  2. Russell wrote:

    “A majority of Republicans voted against the bailout.”

    You may have noticed, Mr. Brown, that the Democrats have a majority in the House. They could have passed this bill without a single Republican vote.

    Posted 30 Sep 2008 at 8:31 am
  3. James Lansberry wrote:

    Marc:

    These weren’t deregulated free-marketeers. Fannie and Freddie were federally sponsored corps. They had lots of federal money and regulation already. And they’re at the core of this mess.

    Catron:
    I’m surprised to see you coming out in favor of a bailout. In 100 words, why does spending 700B we don’t have instead of waiting for the market to pick up the pieces make sense to you?

    Posted 30 Sep 2008 at 9:08 am
  4. Catron wrote:

    “Why does spending 700B we don’t have instead of waiting for the market to pick up the pieces make sense to you?”

    This is like asking why we do bypass surgery instead of letting the body fix itself. The heart of the system is about to stop pumping. Ideology won’t keep it going. If you can deal with more than 100 words, here’s a good Wapo piece that explains the situation:

    http://www.washingtonpost.com/wp-dyn/content/article/2008/09/23/AR2008092302322.html

    Posted 30 Sep 2008 at 11:11 am
  5. Richard M. wrote:

    I found the Wapo piece unconvincing. The writer never attempts to place the blame for the housing bubble where it belongs. He makes reference to “poorly regulated mortgage debt.” His solution, I suspect, is much more regulation. He says, “the free market and Wild West capitalism of recent decades will be forever changed.” Really? I missed it. He must be talking about the late 1800′s.

    This, I think, is a much better explanation of the current difficulties: http://www.cnn.com/2008/POLITICS/09/29/miron.bailout/

    Posted 30 Sep 2008 at 1:38 pm
  6. Marc B. wrote:

    ‘His solution, I suspect, is much more regulation.’

    Too right – what you don’t seem to realise is that the bulk of the lax sub-prime lending was not in the most regulated parts of the market.

    Posted 30 Sep 2008 at 4:49 pm
  7. SmartDoc wrote:

    An army of democrat party felons have conducted the greatest theft in the history of the world. They all made enormous ill-gotten wealth: from bought and paid for politicians, to crooked mortgage brokers, to a thouroughly corrupted Fannie Mae leadership, all down the line. Obama, Dodd, Garelick, the Clintons: how the money rolled in.

    And we are going to bail them out?

    The $700 billion is totally wasted since no change is made in the democrat party laws mandating bad motgages by banks.

    Any surviving banks are all doomed to failure for precisely the same reason that the previous banks all failed.

    And this the army of criminals who want to get its evil hands on health care money.

    Posted 30 Sep 2008 at 5:34 pm
  8. Marc Brown wrote:

    ‘An army of democrat party felons have conducted the greatest theft in the history of the world. They all made enormous ill-gotten wealth: from bought and paid for politicians, to crooked mortgage brokers, to a thouroughly corrupted Fannie Mae leadership, all down the line. Obama, Dodd, Garelick, the Clintons: how the money rolled in.’

    So a sound case for heavy regulation then. Well done!

    Posted 01 Oct 2008 at 5:00 am

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