Take this financial reform for instance. It doesn't even mention Fannie Mae and Freddie Mac which provided most of the sub-prime loans that those "evil" Wall Street firms then repackaged, sold or shorted. In other words, the gasoline that caused our financial house to burn down is still lying around waiting to catch fire again. And this is touted as "real reform?" As we'll see later Obama and the Democrats have good reason for exempting Fannie and Freddie. But now, what about the banks themselves?
Are these banks still too big to fail? According to the bill, the government will simply step in and bail them out again. Doesn't this sound reminiscent of the mess we just got out of? The obvious threat of large institutions flopping and the taxpayer picking up the tab is still very much alive. This bill doesn't address that point at all. In fact, by creating a $50 billion dollar bailout fund, some might be further encouraged to make risky investments and again have the government clean up the mess. Also, chew on this: the first bailout of AIG was over $80 billion. That was just the initial bailout. So this bailout fund will be like fighting a house fire with a garden hose -next to useless. Right now, the government is already on the hook for Freddie Mac and Fannie Mae to the tune of over $400 Billion. Sad to say, but in bailout terms $50 billion is chump change.
Speaking of Freddie and Fannie, it is interesting that Rahm Emanuel, Obama's chief of staff was on the board of Freddie Mac. Should he give back his his $320,000 in salary and his $100,000 from sale of stock for helping run Freddie into the ground? Of course not! That would identify him as one of those dreaded Wall Street fat cats that the President is always decrying. No one wants Rahm to get in any trouble. After all, he wants to be the mayor of Chicago and we all know how spotless the reputation of that office is. Rahm also snatched $51,000 from Fannie and Freddie serving in Congress, after his stint with Freddie. My favorite taker of the cash from Fannie and Freddie has to be Democratic representative Paul Kanjorski of Pennsylvania. Kanjorski, a regular on CNBC, is chairman of the subcommittee overseeing Fannie and Freddie. He grabbed $65,000 in campaign cash from Fannie and Freddie. That sure is some oversight! Please ignore that politician with "his pants down and money sticking in his hole" as Lou Reed used to sing. Sure Obama could get off his lazy duff, walk down the hall at the White House and collar his very own fat cat, but he really doesn't have to go even that far. Who was the third largest collector of campaign cash from Fannie Mae and Freddie Mac all time? That's right: Barack H. Obama.