Thursday, April 03, 2008

Christopher Dodd is an Idiot

Again the FED chairman and a whole bunch of CEOs have to waste their time before Congress to explain the Bear Stearns Buyout to them.

Was this a justified rescue to prevent a systemic collapse of financial markets or a $30 billion taxpayer bailout, as some have called it, for a Wall Street firm while people on Main Street struggle to pay their mortgages?" asked Sen. Christopher Dodd, the Connecticut Democrat who chairs the committee.

I think those Main Street people would really be hurting if Bear went bankrupt and the Stock Market fell by 1000+ points and took their IRAs with it. I'm sorry Mr. Mainstreet the FED sat on its hands and Bear went bankrupt so you won't be able to retire anytime soon.

The head of the banking committee should be aware of things like contra-party risks and what a capital crisis to a broker means. He makes it sound like the FED is bailing out "Wall Street fat cats" at the detriment of nebulous middle class folks instead of heading off what could have been a world financial crisis. You just can't trust a Democrat when it comes to money matters.

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