Obama's Sleight of Hand on the Bailout Bill

The Obama Administration is concerned their takeover of the financial industry is at risk and are offering Republicans a fig leaf to buckle.

First they deny there was a bailout in the legislation. Now they are proposing the removal of a $50 billion fund that oversees future bailouts.

Don’t be fooled — the $50 billion is just a downpayment to administer future bailouts. The funding for the permanent bailouts will come from the Federal Reserve under the Blank Check Bailout bill.

The House bill authorizes the Fed to spent $4 trillion to bailout and “wind down” companies. The Senate bill doesn’t have a cap.

The Administration’s play is a sleight of hand. Don’t be fooled. If they were serious about ending future bailouts, the legislation would have a prohibition against it. It doesn’t.