View Full Version : Did Lawrence Kudlow just Inhale?

09-29-2008, 09:28 PM
The End of the U.S. Financial System as We Know It? (http://www.rasmussenreports.com/public_content/political_commentary/commentary_by_lawrence_kudlow/the_end_of_the_u_s_financial_system_as_we_know_it)

As this scenario goes, the House Democrats need 218 votes, and they have to pick up a number of black and Hispanic House members who jumped ship because the Wall Street provisions, in their view, were too benign. So things like the bankruptcy judges setting mortgage terms and rates, the ACORN slush-fund spending, the union proxy for corporate boards, stricter limits on executive compensation, and much larger equity ownership of selling banks through warrants will all find itself back in the new bill. Of course, this scenario will lose more Republican votes. But insiders tell me President Bush will take Secretary Paulsonís advice and sign that kind of legislation.

Personally, if this scenario plays out, I would probably withdraw my support for the rescue mission and switch to plan B, which would center on the FDIC and its bank-recapitalization powers. The bank-ownership issue, in particular, could lead to heavy nationalization of Americaís financial system with a three-house Democratic sweep in November.

Iím not forecasting, because I donít know the next billís content. And while McCainís polls are heading south, he could still win. But a three-house Dem sweep to implement some off the very onerous provisions being talked about could set up the end of the U.S. financial system as we know it.