Guy Pacot: Bailout mess |

Guy Pacot: Bailout mess

Guy Pacot

I’ve found the events of the last week very disturbing. Disturbing in that the very people who vehemently denied the necessity of oversight in Fannie Mae and Freddie Mac are laying the blame directly at the feet of the current administration and the Republicans. Both Frank’s and Dodd’s speeches of four years ago as well as praise for the now-defunct Raines are easily found on the Internet. But for the sake of argument, let’s say we give the Democratic plan for bailout and financial prosperity a chance.

We’ll pass an act that will essentially be the same as the Revenue Act of 1932 and will be similar to that of the Democratic Michigan 2007 tax increases and watch the GDP plummet as it did in both cases raising unemployment and driving the last nail into small business’s coffin. Historical financial evidence is not kind to the Obama/Biden/Democratic bailout plan, nor is good old common sense.

Let’s also lay the blame for this financial crisis directly where it belongs to the over-regulation of the Community Reinvestment Act which demanded loaning money to those who could not repay it. Let’s also lay the blame at the feet of Barney Frank, Christopher Dodd and the rest of the Democratic trustees in charge of Fannie Mae and Freddie Mac who denied the need for additional oversight, and praised now-defunct leaders of both instituions.

Contrary to popular belief, the failure of the financial rescue package was not due to thin-skinned Republicans and coerced Democrats, but was the result of elected officials doing what there were elected to do, represent their constituents who let their opinions known that they in no way wanted to foot the bill to bail out irresponsible corporations.

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