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,
Uh, haven’t we heard this somewhere before?
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.”