Senate Republican Leader Mitch McConnell today spoke from the Senate floor challenging President Obama on the Democrats’ finance “reform” bill that seeks to set up a system of permanent bailouts for businesses the government deems “too big to fail.”
“If a future administration thinks there’s a crisis that requires using taxpayer funds, then they should have to get permission from the taxpayers first,” McConnell said. “It isn’t enough for someone in the administration to say it’s so. They need to come to Congress before they write the check. If this bill isn’t like the first bailout, prove it.”
The bill as put forth by Democrats would place the power in the executive branch to decide if they think a company is in trouble and take whatever means they deem necessary to force said company into compliance with whatever rules it deems necessary.
“People need to be convinced that we’re doing what we say we’re doing,” McConnell said. “This time they want proof. And frankly, I don’t blame them.”
In his New York speech today, the president says the parade of horribles opponents warn are in the bill really aren’t in the bill we’re just going to have to trust him. But that’s what he said about Obamacare and we’re being reminded daily he was wrong.
“Now, there is a legitimate debate taking place about how best to ensure taxpayers are held harmless in this process. But what is not legitimate is to suggest that we’re enabling or encouraging future taxpayer bailouts, as some have claimed. That may make for a good sound bite, but it’s not factually accurate. In fact, the system as it stands is what led to a series of massive, costly taxpayer bailouts. Only with reform can we avoid a similar outcome in the future. A vote for reform is a vote to put a stop to taxpayer-funded bailouts. That’s the truth,” the president said in today’s remarks.
Ahem.
What was noticeably absent from the president’s speech and is absent from the Democrats’ bill is any mention of Fannie Mae or Freddie Mac, the two government-controlled entities most responsible for the meltdown of the housing market in 2008.
“Officially, the Congressional Budget Office expects the bailout of Fannie Mae and Freddie Mac to cost taxpayers $380 billion,” said Rep. Tom Price (R-Ga.), Chairman of the Republican Study Committee. “Unofficially, Democrats promised the companies an infinite bailout, forcing taxpayers to choke down all $1.6 trillion of their combined debt if necessary. At this point, that $1.6 trillion debt may as well be issued in U.S. Treasury bonds.”
