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Apr 24
2010
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The Bailout Buck Stops HerePosted by Alice Stewart in Untagged |
To bail or not to bail - That should not be the question for Congress. It's wrong for the government to pick winners and losers and the bailout nation mentality will ensure that Democrats are the losers in the midterm elections.
The current financial regulation reform bill is more of the same; talk of Wall Street reforms that cater to Wall Street. Case in point, the bill includes a $50 billion dollar bailout fund to liquidate failing institutions which is nothing more than a big government bailout. Giving the government the power to bailout institutions at their own discretion, virtually guarantees risky behavior resulting in a government bailout. If a game show contestant knew they had more lifelines, they would keep making risky moves.
While Dodd denies the existence of a bailout provision, Senate Minority Leader Mitch McConnell points out, "this bill not only allows for taxpayer-funded bailouts of Wall Street banks; it institutionalizes them."




