In Washington, they like to give “good-sounding” names to bills in Congress, to make us think they are doing “good things” for us. But in many cases, we would be better off if Washington “did less.”
A current example is the bill the Senate just passed called the “Restoring American Financial Stability Act of 2010.” That sounds “benign,” doesn’t it?
Well, Tennessee’s two excellent United States senators, Bob Corker and Lamar Alexander, don’t think that’s good.
Sen. Corker warned, for example, “I think over the course of the next decade we’re going to be unwinding much of this bill.
“To add insult to injury, this bill is not paid for and will add $10 billion in debt to our country.”
That reminds us of a “quote” nobody now can prove that the late Sen. Everett Dirksen, R-Ill., supposedly said about Washington spending — but “it sounds just like him”: “A billion here and a billion there, and pretty soon, you’re talking real money.”
Sen. Alexander said, “This bill throws a big wet blanket on the American entrepreneurial system, the real creator of most new jobs. It was supposed to rein in Wall Street, but instead is just another Washington takeover — this time of Main Street — making it harder for plumbers, dentists, community banks, auto dealers, and credit unions to do business.”
But the bill passed the Democrat-majority Senate 59-39.
Sen. Corker said, “My focus, first and foremost, has been to ensure that when an institution fails, it goes out of business in an orderly way and taxpayers are not exposed to future bailouts.”
He explained the problem: “At the core of the financial crisis were home loans that should never have been written because the borrowers could not repay.” He proposed an amendment to remedy that problem, but it was rejected.
Sen. Corker took up other items in the measure:
* “When I look at the consumer protection title of the current bill, I’m reminded of one of the White House’s favorite adages: ‘Never let a good crisis go to waste.’ “
* On federal pre-emption: “Our current banking system reflects over 150 years of precedent that has helped foster the growth of our truly ‘national’ economy … . This far-reaching, unfettered consumer protection agency overturns our banking system and allows a wild, wild West of hyperactivity by state attorneys general, especially those that may have political and social justice agendas. … This will also frustrate consumers who will be paying more for less as the cost of compliance is passed along to them and they become subject to confusing rules regarding their checking accounts and ATM usage.”
Sen. Corker also noted, “A federal mandate is not the way to protect shareholders from management failure and excessive risk taking; it is yet another government intervention into America’s private sector.”
Many citizens are not conversant with the problems of “Fannie Mae” and “Freddie Mac” federal loan agencies, or with “derivatives,” financial instruments that derive their value from something else. But many people perceive they cause big problems.
Sen. Corker made an informed and informative speech on the Senate floor, pointing out in detail some of the things this bad bill will do.
In a nutshell, you may expect “more Washington dictation and control” and “$10 billion more” in government cost — at least.