McBlogger: low-calorie but still full-flavor: Oh, Jeb. You moronic fool...

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September 26, 2008

Oh, Jeb. You moronic fool...

It'll come as little surprise to those of us in Texas that our own Rep. Jeb Hensarling is leading the little rebellion of House Republicans against what was, until they stepped into the fray and began playing politics, a bipartisan plan.

Hensarling has always been an advocate of ideology over reality. Now, he's taking that to it's ultimate extreme by supporting a market solution to the financial crisis we now face. What's terrifying is that even at this late date he has not realized that the crisis itself was brought on by a complete breakdown of the market. Which he now proposes to legislate back into operation. With loan guarantees and insurance.

Here's the problem... the market has consistently, by not working, activated every form of insurance placed on it to offset declines in value. That's what brought down AIG. Which means that should his plan go forward, it'll be taxpayers that take it on the chin because he proposes to have the government backstop LOSSES, not hold and service ASSETS for eventual sale.

The plan, which has not been transformed into legislation, seeks to insure mortgage-backed assets at prices and premiums set by the government, creating a virtual backstop for all the debt. This would not require an initial outlay of taxpayers’ funds in the neighborhood of Paulson's $700 billion.
But the Treasury Department has expressed concerns about whether an insurance model would provide the economy with the immediate stimulus it needs. And taxpayers would have to foot the cost for a major financial slide because the government would be required to make up those losses.

Jeb, just like Fannie and Freddie, how long do you think it will take the market to push through the stops and activate the insurance. What will you do then? Cry that you were wrong?

I don't know what more I should expect from someone who's business experience includes working for his Daddy's little company and some kind of insurance company that you can't find out anything about. Oh, and Green Mountain Energy which is anything but green.

Jeb, you're a tiny, underpowered mind operating among giants this week. Instead of trying to throw your stupid, irresponsible and irrational bull into the mix, why not let those smarter than you take the lead?

You know, Jeb, it's better to keep ones mouth shut and be thought a fool than open it and remove all doubt.

Posted by mcblogger at September 26, 2008 01:15 AM

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