Deliberately Ignoring the Real Problem

Congress and President Obama are out to get Wall Street now. It’s not as if there doesn’t need to be change on the Street, but it needs to be the right kind. In the past, when Wall Streeters made bad decisions, there were consequences. People learn from consequences and change their behavior.

We’re no longer content to allow that. The federal government must now step in and “correct” the behavior.

One of the architects of a proposed law to penalize the financial markets is Sen. Chris Dodd, parading himself as a paragon of virtue. This is the same Sen. Dodd who had a sweetheart deal for two homes via Countryside Mortgage company. This is the same Chris Dodd who is chair of the Senate Banking Committee, from where he consistently resisted attempts by the Bush administration to more closely watch the government lending agencies Fannie Mae and Freddie Mac.

I’m sure there’s no connection, but Dodd also just happened to receive nearly $134,000 directly from those two agencies over the years.

The new bill being pushed, for some strange reason, omits oversight or a change of rules for both Fannie and Freddie. Everyone else is to get hammered, but these two are exempt.

Yet they are the principal reasons why we got into the subprime lending disaster in the first place. They currently dominate the mortgage lending market. How can they be ignored in the bill?

The current economic car wreck began with Fannie and Freddie. Nothing is being done to correct the problem. What’s to keep it from exploding again?

The late volcanic eruption in Iceland is nothing compared to what may be coming.

But let’s blame Wall Street instead.