During the debate over health care, President Obama had a habit of repeating talking points that sounded appealing but did not reflect the reality of Congressional Democrats’ actual legislation. Judging by his remarks today on Washington Democrats’ financial bailout bill, he’s at it again.
CLAIM: “I am absolutely confident that the bill that emerges is going to be a bill that prevents bailouts.”
FACT: The Congressional Democrats’ bill includes a $50 billion ‘bailout fund’ that puts taxpayers on the hook for irresponsible actions by “too big to fail’ banks” on Wall Street.
CLAIM: “I am actually confident that we can work out an effective bipartisan package that assures that we never have ‘too big to fail’ again.”
FACT: The Democrats’ proposal would actually enshrine “too big to fail” in permanent law – helping a handful of big banks on Wall Street and hurting smaller community banks across the country.
CLAIM: “We have a strong mechanism to regulate derivatives, something that we have not had, a derivatives market that is in the shadow economy but is enormously powerful, enormously risky -- we want to get that into daylight so that regulators and ordinary Americans know what’s going on when it comes to this huge segment of the financial system.
FACT: The actual effect of Democrats’ bailout bill will be to push the derivatives market overseas – making it even less transparent and accountable, and costing American jobs.