Market Overview

Are Republican Senators Trying to Kill Entire Economy (Again)?

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It was less than three years ago that the entire banking system of the world collapsed, weighed down by a series of complex and ultimately stupid and greedy investments in fancy instruments. Reluctantly, and against the wishes of the American people, the American government bailed out those sinking institutions.

In response to the near-collapse of the entire world economy, the Congress passed and the President signed the Dodd-Frank bill, reforming the financial industry. The idea was to prevent the industry from putting the country in the same situation down the road, where we either bail them out with taxpayer dollars or risk the entire economy busting into a global depression.

Naturally, the Republicans are now out to kill the regulations. They don't have the nerve to attack the regulations directly, as no one wants to be seen as the allies of the people who nearly destroyed the world. So, instead of voting to kill Dodd-Frank, they instead are trying to simply defund it.

That's a great idea, isn't it? Have a law on the books but refuse to provide funding to actually enforce the law. That's a wonderful recipe for encouraging Wall Street to behave and follow the laws and regulations that keep the economy from total collapse. By all means, encourage the most reckless parts of society to play with fire. What are the odds the system will collapse again? 90%? 99%?

That doesn't stop Republican Senator Mitch McConnell, who thinks stopping the Democrats from preventing another crisis by regulating Wall Street is a wonderful plan. Here is the Kentucky Republican, quoted by ThinkProgress.

"Anything we can do to slow down, deter or impede their ability to engage in this kind of oppressive overregulation which is freezing up our economy would be good for the country,” McConnell said, speaking at a breakfast hosted by the Christian Science Monitor…McConnell endorsed those plans, saying, “The less we fund those agencies, the better America will be."

When the next wave of bank failures and economic doom hit, you can thank Republicans like Senator Mitch McConnell for riding to the rescue of the very banks who blew the economy up last time. When will the GOP ever learn?

 

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Posted-In: Dodd-Frank Mitch McConnellNews Politics Legal Global Media General Best of Benzinga

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