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    Greg and Beth

    the political and personal musings of two
    mountaineers living in west-central Florida
     
    Congress and asininity (is asininity a word?) Comment
    Nick, 9/12/08 11:25:37 am
    So Fannie Mae and Freddie Mac were officially bailed out yesterday by the US Treasury. Normally, I'd rail against how bad this is for a functioning market, that banks need to fail, etc. Today I would like instead to comment on something even stupider (and surprise, surprise, it is possible). Congressmen (I heard Chris Dodd on the radio this morning and a few last night on TV) are lining up to say, "Yes, we gave Secretary Paulson the authorization to take over Fannie and Freddie, but he assured us he wouldn't." To use Paulson's own bazooka metaphor, that is like looking at a pile of burning rubble and saying, "Well, sure I gave him the bazooka, but he told me he wouldn't use it." It's not rocket science. If you don't want the executive branch to USE an authority, don't GIVE them the authority!

    [Comments are closed after a month.]

    Re: Congress and assininity (is assininity a word?)
    Gregory Morris, 9/9/08 1:11:47 pm
    " If you don't want the executive branch to USE an authority, don't GIVE them the authority!"

    And the same applies to Congress, since we-the-people give authority to them.

    This is feigned surprise on the part of Congress anyway... politicians playing a little game we call Cover Your Ass.
    Re: Congress and assininity (is assininity a word?)
    name, 9/10/08 9:54:22 am
    I know that the word \'asinine\' is in usage. (Yes, it has only one \'s\'...at least, last I looked.)

    I don\'t know if the descriptive term \'asininity\' has been coined.

    Anyway, the way I understand the problem, there was/is one way out that doesn\'t involve giving the U.S. (and world) economy a huge kick in the private parts.

    That way involves what SecTreas did: taking over Fannie Mae and Freddie Mac, and putting plans in place to shrink them into either nonexistence or unimportance.

    Now, whether the 10%-reduction-per-year-after-2009 plan will actually be done is anyone\'s guess.

    But if I can trust the news reports, the lobbyists were fired at the same time as the Board of Directors...and the lobbyists were what helped keep Congress feeding and petting Fannie/Freddie, rather than making Fannie/Freddie follow all the laws that govern most other U.S. Banks.

    But I have to agree with you. They gave the Dept. of Treasury the ability to take over. After a short pause, the Treasury did. What made anyone think he would bluff when he\'s got a card that big in his hands?
    Re: Congress and assininity (is assininity a word?)
    name, 9/10/08 9:20:05 pm
    If you have any doubts on who Fannie and Freddie support with campaign donations check out
    http://www.opensecrets.org/news/2008/07/top-senate-recipients-of-fanni.html
    Who didn't make the list?
    < "More Obama-Caused Dyslexia"
    "QoTD: The Internet" >


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