Obama’s $4 TRILLION (or maybe more) slush fund hidden in ‘reform’ bill to buy US businesses
Another monster power grab disguised as ‘help’ for US. When will legislators stop this looting of the taxpayers?
by Capitol Confidential at Big Government
The “Restoring American Financial Stability Act of 2010?, authored by Senator Chris Dodd (D-CT), will be considered by the Senate in the very near future and it will make federal bailouts of private enterprise permanent. The House has already passed Congressman Barney Frank’s (D-MA) bailout bill by a 223-202 vote in December. Both bills, supported by President Barack Obama, expand bailout authority for the federal government. These bills provide a back door bailout of Wall Street.
The debate between Republicans and Democrats has centered on a $50 billion bailout fund in the Senate bill. The provision would have the effect of bailing out a failing business’s creditors during the liquidation process. The President has called for the pre-funded $50 billion bailout fund contained in the bill to be removed.
The irony is that the Obama Administration supports a different provision in the bill that provides an even bigger bailout of Wall Street. The other provision, which appears in both the House and Senate bills, provides the Federal Reserve unlimited amounts of money in the form of “loans” to failing businesses. If you like the AIG bailout, get ready for that style of bailout for companies deemed to be friends of the Fed and “too big to fail.”
The House bill contains an authorization for the Federal Reserve for $4 trillion in “secured loans” to bailout individuals, partnerships or corporations in financial distress. Page 506 of the House passed bill, titled the Wall Street Reform and Consumer Protection Act states in part:
The amounts made available under this subsection shall not exceed $4,000,000,000,000.
The Senate bill has the same loan authority with no cap on the amount of funds available to failing businesses.
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