Thursday, 22 July 2010

The biggest X since the Great Depression [insert your own answer] - updated

Barack Obama has just signed into law what he boasts is “the biggest financial reform since the Great Depression.”  (Just so you know, that was the reform that gave the world Fannie Mae—"one of the US government's most ill-fated welfare creations, ever, on the part of the United States government” and at least one of the proximate causes of the latest depression.)

So how’s the latest Dodd-Franks reform going to work, then? Explains Chris Dodd, the bill’s co-author,

“No one will know until this is actually in place how it works."

Uh, haven’t we heard this somewhere before?

"But we have to pass the bill so that you can find out what is in it..."

Ah, yes.  I thought it sounded familiar. That’s exactly the sort of “rule of law” the Obama Administration and its tame Congress can believe in.

The sort of “rule of law” ushering in precisely the sort of regime uncertainty last experienced in, you guessed it, the Great Depression.

No wonder most surviving American businesses are saving, not spending. Under this regime they literally have no idea what laws they have to follow tomorrow.

Oh, and just so you know. You know Fannie Mae The govt’s big mortgage lender who almost single-handedly generated a nation in negative equity?  Yep, that’s right. “Fannie” is exempt from all the new rules.

[Hat tip Kate]

UPDATE: Peter Schiff, who intends to stand against Chris Dodd in the forthcoming Senate elections, had this to say:

Washington did it again.
    “Last week the Senate passed a financial overhaul that balloons the role of government while suffocating small businesses. It's Washington theatrics at its worst, and I've had enough.
Instead of punishing the fat cats, Washington has given them the opportunity to feed off the American taxpayer and grow even fatter. And in failing to address the root causes of the financial crisis, this bill actually ensures that the next crises will be even worse!
    “These shenanigans are destroying our economy and they must end. That's why I'm running for the U.S. Senate…
    “I'm appalled by the Senate's carelessness in passing this financial overhaul. But you and I both know that the career politicians and their cronies don't care about the taxpayers. And a bill that enshrines mechanisms for future bailouts into law only proves that.
    “Enough is enough.
    “We need to allow market forces to restructure the economy and we cannot do that with all of the regulations Washington is imposing on the financial sector. That's why I need to be in the U.S. Senate.
    “Unlike the majority of the Washington political establishment, I understand the economy.   That means I will never support legislation like this financial overhaul bill, and I will do everything in my power to make sure that our economy has the mechanisms to thrive.
In other words- no more regulations, bailouts, tax hikes or bogus stimulus plans.
So if you are a patriot and you want America to prosper, I need your immediate help.


  1. I don't know if you saw Bernanke on CNBC this morning, but he stated in one of his answers that he thinks it possible, and not problematic, for a country to run a permanent deficit (so long as it's 'not too big').

    He's obviously never run a private business. How easy it is to simply be able to tax and print: how dumb it is, and tragic, at this level not to understand the consequences.

  2. Richard McGrath22 Jul 2010, 13:26:00

    Let's hope Mr Schiff goes to Washington.

  3. Christian Libz22 Jul 2010, 15:13:00

    Congress, since he is a one-man-band. This is why it is very important to form alliances even with those that Schiff doesn't want to associate or agree with some issues (such as Christian Congress men/women) but at least they (Christians) will back him on some. Achieving something on just a single issue but even failed in many others is much better than nothing.

    Does the Libz have any friends out there in Congress that would support or backed Mr Schiff? I think that there is zero. So, it means that whether Mr Schiff goes to Washington or not, wouldn’t change a single damn thing, if he is on his own. This is the time when Libz candidate like Schiff needs many friends (including Christians). One has to fight with numbers, because no one can fight on his own and come out winning. So, stop dismissing & berating Christians for their beliefs and start making friends.

  4. Thankfully part of the bill contains legislation that Tech companies cant put anything in their products that comes from Congo that maybe "conflict". Fantastic stuff from that beacon of the free market.

  5. Richard McGrath23 Jul 2010, 09:43:00

    @Christian Libz:

    Libz are happy to form friendships and work together with other groups on particular issues. We have even backed the Labour Party at times when our standpoints coincided - though for different reasons, of course, our interest being in maximising individual liberty.

  6. Richard McGrath23 Jul 2010, 09:48:00


    I think congressman Ron Paul would welcome Peter Schiff's election to the Senate, and there is a group in the House of Representatives called the Republican Liberty Caucus (or some similar name) that share much of Mr Schiff's views on matters economic. So he wouldn't be completely alone.


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