When I hear Mitch McConnell (R-Ky) speak I want choke him. I’m not necessarily a violent person, but when I see McConnell’s greasy white face on TV I want to punch him in the throat.
The Senate minority leader is the current GOP hitman. It’s his job to lead the attack to kill every bill the Democrats bring to the Senate floor with lies, lies and more lies – three in the back of the head.
Now he’s making the utterly mind boggling claim that regulating Wall Street will hurt Americans on Main Street.
McConnell said that the current financial regulation bills winding their way through Congress “actually guarantees future bailouts of Wall Street banks … endless taxpayer bailouts of Wall Street banks.”
I know, it makes no sense. How can we prevent another economic collapse if we don’t regulate the banks that created it? And yes, the problem was created by Wall Street.
But according to Frank Luntz, the GOP word guy, the financial collapse wasn’t caused by Wall Street but rather by Washington, DC.
In his document titled “Language of Financial Reform,” Luntz told Republican lawmakers and spindoctors that “Words that Work” sound like this.
“If there is one thing we can all agree on, it’s that the bad decisions and harmful policies by Washington bureaucrats that in many ways led to the economic crash must never be repeated.”
See? We can’t regulate Wall Street because regulators are part of the government and the government is always bad, wrong and evil.
Luntz wrote that this is “your critical advantage.”
“Washington’s incompetence is the common ground on which you can build support.”
Of course, McConnell is a US Senator, he voted for the Big Bank bailouts, and he’s very much a part of the “Washington” that Luntz is saying should be blamed for the financial crisis so …
Luntz claims that Americans aren’t just saying “no” to financial regulation, they’re saying “hell no.” He wrote this in January, so this should sound familiar to you by now. But it’s not the “American people” who are saying “hell no,” but rather McConnell, Congressman John Boehner (R-OH) and Sarah Palin who are saying it.
But as far as Luntz is concerned, the rejection of any government action to prevent another economic collapse is “rooted in the simple belief the government cannot effectively regulate the financial markets at any level.”
So the logic is that because the government, under the control of a Republican White House and a Republican Congress, can’t regulate financial markets at any level, they shouldn’t even try to. Remember, the GOP hates the government, wants it to go away, and so, when they’re in power, they actively work to make sure government doesn’t work for the people.
Of course, if the government isn’t going to regulate Wall Street, that means no one is going to regulate Wall Street – that should work about as well as it did in 2007, or during the hedge fund crisis in the ’90s and the Saving and Loan debacle in the ’80s.
New York Times columnist Paul Krugman wrote today, “It’s worth remembering that between the 1930s and the 1980s, there weren’t any really big financial bailouts, because strong regulation kept most banks out of trouble. It was only with Reagan-era deregulation that big bank disasters re-emerged. In fact, relative to the size of the economy, the taxpayer costs of the savings and loan disaster, which unfolded in the Reagan years, were much higher than anything likely to happen under President Obama.”
But that history doesn’t matter to the GOP. Luntz is telling the Republicans to link any attempt to regulate banks with the bank bailout, which everyone hates, and like I said, McConnell voted for.
“Frankly, the single best way to kill any legislation is to link it to the Big Bank Bailout,” Luntz said.
In another “Words that Work” section he wrote, “Taxpayer-funded bailouts reward bad behavior. Taxpayers should not be held responsible for the failure of big business any longer. If a business is going to fail, not matter how big, let it fail.”
It’s all a dog-and-pony show.
“It’s a truly shameless performance,” Krugman said, “McConnell is pretending to stand up for taxpayers against Wall Street while in fact doing just the opposite. In recent weeks, he and other Republican leaders have held meetings with Wall Street executives and lobbyists, in which the GOP and the financial industry have sought to coordinate their political strategy.”
According to Krugman, Wall Street isn’t lobbying to prevent future bailouts. “If anything, it’s trying to ensure that there will be more bailouts.” Wall Street likes the paradigm in which they reap the rewards and the taxpayer covers their losses – that works well for them.
McConnell and his GOP henchmen are firmly on the side of Wall Street and not Main Street. Without effective government regulation, we’ll continue with a boom and bust economy and higher and higher unemployment.
McConnell’s hometown newspaper had this to say, “While the intricacies of financial regulation are complicated, McConnell’s calculus is pretty obvious.”