Thursday, May 6, 2010

Republicans agree to Financial Reform Deal - Screwed Again

Now is this a good deal? Ezra Klein
- Wonkbook: FinReg deal; Obey tired of explaining the Senate; Republicans take on Fannie and Freddie
: "Republicans and Democrats reach deal on too-big-to-fail".

I had to read this at least four times, so let me recap. The $50 billion fund (that to-big-to-fail companies paid into) to dissolve a wayward company has been dropped, the FDIC will liquidate "faltering" to-big-to-fail companies "by borrowing money from Treasury," i.e., tax payers, and "Congress would have to approve the use of federal debt guarantees."

It sounds like to me that the Republicans are laying the expense of liquidating these to-big-to-fail companies squarely on the backs of you and me, the taxpayers. How is that not being screwed again?


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