The Big Picture (putting it all together)

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The Permanent Bailout Bill
By Rocky Vega

04/23/10 Stockholm, Sweden – President Obama is proposing a new bill to establish a permanent bailout fund. The bill proposes that this fund, run by unelected bureaucrats, will have the power to decide if banks and financial companies are in trouble and will have the authority to step in before problems become too bad.

The natural question is why the newly established fund should be any better than all the federal institutions we already have — none of which detected the last crises in time.

For more details, we turn to Republican House of Representatives Minority Leader John Boehner:

“Under his proposal, the largest Wall Street firms would become eligible for special treatment, including taxpayer-funded resources unavailable to smaller financial firms. These include exclusive access to a pre-existing bailout fund, a Treasury-backed line of credit and a government guarantee for any debt.

“Such perks will benefit the likes of Goldman Sachs, President Obama’s top financial contributor during the 2008 campaign and a firm that just happens to be under investigation by the SEC for defrauding investors.

“The decision to designate Goldman and other giant banks as ‘too big to fail’ won’t be made by taxpayers or their elected representatives. Under the Democrats’ plan, a new ‘Financial Stability Oversight Council’ made up of unelected federal bureaucrats — including representatives from the Treasury Department, the Federal Reserve, the CFTC, the FDIC and the SEC — would have absolute power to seize any company and do whatever it wants with it.


http://dailyreckoning.com/the-permanent-bailout-bill/