Memo to Washington: No more bailouts

Washington Examiner

Senate Minority Leader Mitch McConnell is catching hell from the Washington establishment for having the temerity to tell the truth about the fine print in the Obama-Dodd Wall Street reform bill. McConnell is raising alarms about the proposal’s provision to make Washington bailouts a permanent feature: “It’s almost as if the people who wrote this bill took the pulse of the American people and then put together a bill that endorses the very things they found most repugnant about the first bailout.” The Democrats have responded with a lot of jive. The bill’s chief sponsor, Sen. Chris Dodd, D-Conn., claims his proposal “will end bailouts.” The GOP leader is also being flailed by liberal journalists like Steven Pearlstein of the Washington Post who during a recent WTOP interview accused McConnell of lying about the Dodd bill.

Apparently Dodd and Pearlstein haven’t talked to former Clinton administration Secretary of Labor Robert Reich who said of the Obama-Dodd measure that “yes, it preserves the possibility that the Fed could launch another bank bailout.” Or Tim Geithner, Obama’s own treasury secretary, who last October told the House Financial Services Committee that “a standing fund would create expectations that the government would step in to protect shareholders and creditors from losses.” Or Richmond Federal Reserve President Jeffrey Lacker who said Obama-Dodd bill “just perpetuates the dynamic that gave us ‘too big to fail’ to begin with.”

The editorial continues at the Washington Examiner.

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