House passes Barney Frank's financial regulation bill 232-202.

In a swift maneuver Barney Frank bypassed his own committee and within two days of introduction squeaked the biggest and most expansive financial regulatory bill since the Great Depression!  This 1,300 page mammoth contains everything from new regulatory commissions to 3 billion dollars in free mortgages.  The Wall Street Reform and Consumer Protection Act of 2009 authored by Barney Frank is an excellent example of our government in action. 

First, due to intrusive social engineering our government has perpetrated and engineered a gigantic housing bubble fueled by cheap credit streaming out of the Federal Reserve.  Virtually none of the people tasked with regulation including ex-chairman Alan Greenspan, current chairman Ben Burbank, current congressman Barney Frank of the House finance committee understood, envisioned or stopped the coming collapse.  In fact we have video of Barney Frank as far as back 2003 maintaining that Freddie and Fannie are perfectly fine and healthy and will not be in need of a bailout. 

In a brazen manner now known as Government standard operating procedure, the arsonists have come the rescue of the fire they themselves helped ignite and are now offering fire extinguishing services.  First they burn the house down and now they take over clean up, construction and supervision at the expense of the taxpayer.

No one had time to read this bill or even understand what is in it, including the very legislators that have voted on it!  The following pieces of information have emerged:

The language allows the proposed federal consumer protection agency, which will be charged with regulating mortgage and credit card products, to preempt state consumer financial laws on a case-by-case basis. However, it also allows states to formally petition the CFPA to improve consumer protection standards if a majority of states pass resolutions in their legislators seeking to have the CFPA write a rule.

 Further destruction of the 10th amendment and creeping federal expansion.

The package includes supervision of trillions of dollars in complex derivatives products and new power to file suits against credit raters that have been blamed for overly rosy debt ratings as well as new capital levels for big banks. The package also requires big banks to pay into a $150 billion fund that would be used to dismantle a "too-big-to-fail" bank whose collapse would unsettle the markets.

There is something very similar that functions like this and it's called the FDIC.  The FDIC fund has been completely raided by Congress and it's moneys used for general expenditures.  This is just another mechanism to generate more revenue.

Responding to concerns from the Congressional Black Caucus, lawmakers approved using $3 billion of bank bailout funds to give out fixed-rate, low-interest loans to unemployed people facing foreclosure. The amount of assistance for any homeowner is prohibited from exceeding $50,000.

Handouts.

There is also a rumor that ACORN will be involved in the process of financial regulation.   The speed at which the liberal House is pushing bills through is truly alarming and should be of concern to all citizens.   The good news is of course that with the health care debate in full swing, Senate's busy schedule will allow us time to understand what is in this bill.