Lucille
12-11-2012, 02:04 PM
They are. It's not about what's good for the country, or the American people. It's about politics, and their power.
http://www.zerohedge.com/contributed/2012-12-11/more-stupid-stuff-dc
As is required with any proposed law, the Congressional Budget Office gave Reid’s bill a review. Some words from the CBO on S. 3637:
CBO estimates that fees collected by the FDIC would not offset the full risk of the additional insurance coverage.
CBO expects that, using recent history, the FDIC would underestimate probable losses when setting fees to charge for this additional coverage.
Because the fees charged for the additional insurance would be insufficient, in CBO's estimate, to offset the expected value of the cost, enacting S. 3637 would have a net cost to the FDIC over the next 10 years.
This is a D- report from CBO, yet Democratic Senators will line up to sign S. 3637.
The CBO calculated that extending TAG would cost about $20m a year. That seems like a very low number to me. It comes to an insurance premium of only 0.001% on the $2 Trillion of account balances that are getting the protection.
TAG is the poster boy for TBTF. Trillions of bank deposits are guaranteed by the FDIC without any insurance premiums being paid. TAG is not necessary in 2012 anymore than it was for the hundred odd years that the banking system worked before TAG came into being.
TAG is a free subsidy for big and medium sized banks. Reid’s motivations are questionable on this legislation. Either this is payback for corporate donations, or, even worse, it is a show pony law designed to piss off Republicans; possibly both.
Reid is a little guy, but has big clout in D.C. He might have the votes in the Senate to past this bill tonight, and send it to the House. But House Republicans are not going to go for this. Nor should they. It’s a bad law that makes big government bigger.
When the House does reject the Senate Bill, the Democrats will be able to cry that the “Reds” are the ones who are resisting progress. The American people don’t understand what TAG is about; they will believe that the Republicans are to blame (once again) for the lack of movement in Washington.
They believe Obama won’t be satisfied with a favorable deal; they believe he wants to drive a stake through the heart of the Republican party (http://www.theamericanconservative.com/the-game-to-play-is-compromise-solution/).
That's because it's true. The only way to fight it is to give the Dems everything they want. Let it burn. And let the progs, for once in their miserable lives, own their disastrous policies.
http://www.zerohedge.com/contributed/2012-12-11/more-stupid-stuff-dc
As is required with any proposed law, the Congressional Budget Office gave Reid’s bill a review. Some words from the CBO on S. 3637:
CBO estimates that fees collected by the FDIC would not offset the full risk of the additional insurance coverage.
CBO expects that, using recent history, the FDIC would underestimate probable losses when setting fees to charge for this additional coverage.
Because the fees charged for the additional insurance would be insufficient, in CBO's estimate, to offset the expected value of the cost, enacting S. 3637 would have a net cost to the FDIC over the next 10 years.
This is a D- report from CBO, yet Democratic Senators will line up to sign S. 3637.
The CBO calculated that extending TAG would cost about $20m a year. That seems like a very low number to me. It comes to an insurance premium of only 0.001% on the $2 Trillion of account balances that are getting the protection.
TAG is the poster boy for TBTF. Trillions of bank deposits are guaranteed by the FDIC without any insurance premiums being paid. TAG is not necessary in 2012 anymore than it was for the hundred odd years that the banking system worked before TAG came into being.
TAG is a free subsidy for big and medium sized banks. Reid’s motivations are questionable on this legislation. Either this is payback for corporate donations, or, even worse, it is a show pony law designed to piss off Republicans; possibly both.
Reid is a little guy, but has big clout in D.C. He might have the votes in the Senate to past this bill tonight, and send it to the House. But House Republicans are not going to go for this. Nor should they. It’s a bad law that makes big government bigger.
When the House does reject the Senate Bill, the Democrats will be able to cry that the “Reds” are the ones who are resisting progress. The American people don’t understand what TAG is about; they will believe that the Republicans are to blame (once again) for the lack of movement in Washington.
They believe Obama won’t be satisfied with a favorable deal; they believe he wants to drive a stake through the heart of the Republican party (http://www.theamericanconservative.com/the-game-to-play-is-compromise-solution/).
That's because it's true. The only way to fight it is to give the Dems everything they want. Let it burn. And let the progs, for once in their miserable lives, own their disastrous policies.