In US economic drama, controversy dogs government woes

Senators like Chris Dodd (D-Conn.), Chuck  Schumer (D-NY) and others have jumped into the economic bailout fray, so it’s worthwhile to take a walk through time for a few US economy highlights. Should Sen. Barack Obama (D-Ill.) win the presidency, Schumer and Dodd are just a couple of the politicos who will enjoy a hefty amount of power in our government. I’m tossing in highlights of a few more political players as well. As a taxpayer, I think we could do some housecleaning come November. Sen. John McCain (R-Ariz.) is the incumbent for the president's party, but Obama is the incumbent for the majority party in Congress. Let's start our highlights with a Schumer memory.

• When Schumer sent a letter in June to regulatory agencies, he questioned IndyMac’s viability. Somehow, the letter found its way to media (imagine!) and the rest is history. Some analysts say IndyMac would’ve failed either way; others blame Schumer who served on both the Finance and Banking committees.

• While you were weeping (over our possible future tax increases), Congress got something done! They passed, 293-109, a bill to upgrade environmental education in U.S. schools. Total funds authorized: $24 million to the Environmental Protection Agency and Department of Education. Don’t schools already have science programs? I can assure you teachers have been completely brainwashed about climate change, having been under the influence of Gorian mind control wherein ‘An Inconvenient Truth’ is a flawless, truth-filled work (at least in the U.S.), and every first grader knows s/he is descended from an ape. What’s left?

• An aside: Sen. Barack Obama (D-Ill.) requested as an earmark $30 million for the National Writing Program. And you thought they were supposed to already be teaching writing in our schools?

• In 2004 Bloomberg said: “[T]he Senate Banking Committee approved a bill to strengthen oversight of Fannie Mae and Freddie Mac by creating a regulator that would put the largest U.S. mortgage finance companies in receivership should they become insolvent.” Bloomberg went on to say: “Fannie Mae and Freddie Mac oppose receivership and other aspects of the bill, while Federal Reserve Chairman Alan Greenspan and Treasury Secretary John Snow have praised the legislation. Snow has called for stronger regulation of the two companies to dispel investor and taxpayer concerns about a $5 billion earnings restatement last year by Freddie Mac and a $1.1 billion accounting error by Fannie Mae in the third quarter.” I don’t know about you but a $1.1 billion accounting error makes me a little queasy.

• In 2002, conservative political analyst Dick Morris wrote about current chair of Senate Banking Christopher Dodd’s efforts to limit auditors’ liability after the Enron scandal. Dodd managed to pass a bill (over President Bill Clinton’s veto) providing that accountants, lawyers and other professionals who do work for firms accused of stock fraud could no longer be sued for aiding and abetting the fraud. Morris noted The New York Times called Dodd, “perhaps the accounting industry’s closest friend in Congress.”

• Some have criticized Sen. John McCain (R-Ariz.) for calling for the firing of SEC chairman Chris Cox. I happen to agree with McCain and here’s why. On the SEC website, there’s a mission statement: “The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. As more and more first-time investors turn to the markets to help secure their futures, pay for homes, and send children to college, our investor protection mission is more compelling than ever.” Sound like the SEC met the mission?

Newt Gingrich's latest book is 'Drill Here Drill Now.' (Image from Newt.org)• The Hill is reporting: “Former Speaker of the House Newt Gingrich said Tuesday that any lawmaker who votes for the Bush administration's $700 billion bailout package, which he called a ‘dead loser,’ will face defeat in November. All I can say to Newt is Atta boy! He also called the plan ‘stupid.’

I guess we’ll stop there. I have a whole folder of plucky items showing moments in US government money-spending history, and it’s not a pretty picture. I can, however, spend a little time daydreaming happily about Gingrich’s prediction and giving thanks there is a voice of reason in politics today even if he’s not serving in Congress anymore.