America can't trust Obama, Dodd and the Democrats

George C. Landrith

After the United States Senate voted 75-24 to approve an $800 billion financial bailout plan, Democratic Senator Christopher Dodd proclaimed, "I hope this restores America's confidence in the government's ability to get things done." This statement only shows how insanely out of touch Senator Dodd is. Whether or not you agree with the bail-out package is not the issue. The real issue is why do American's lack confidence and trust in their government? Dodd thinks our lack of confidence stems from a fear that Congress can't pass bills into law. But we know they can do that -- they do it hundreds of times every year and generally waste our money and erode our liberty.

We lack confidence in our government because we doubt they can put aside their narrow self-interest and act in the nation's greater interests. Again, whether you agree or disagree with the bail out is not the point. For most Americans the issue is clear -- the very same dishonest politicians who have filled their campaign coffers with political blood money and created this problem are now telling us that they have solved the problem and that we should now trust them.

But even if the bail out bill is perfect and does every needful thing to solve the nation's current financial problems, why should we trust them? They created the problem. They lined their pockets. They lied about the problem and blamed others. Americans don't have confidence in dishonest politicians even if occasionally they pass a bill that may be needed. Here's a bit of news for congressional Democrats -- you can't play these games and line your pockets for more than a decade and then fix it with a single vote. Americans are smarter than that.

So even if this bailout bill is a good one, Christopher Dodd and Barack Obama and a host of other Democrats are not off the hook. They got too much money from Fannie Mae and Freddie Mac for Americans to just look the other way and say all is forgiven. Americans understand that even if the bailout bill is a good one, we are the ones who will pay its full cost over many years -- while congressional Democrats filled their campaign coffers with hundreds of thousands of dollars.

Here are the inconvenient facts: Christopher Dodd, Barack Obama, Hillary Clinton and Barney Frank received hundreds of thousands of dollars of campaign contributions from Fannie Mae and Freddie Mac.

In 2004, congressional hearings reviewing accounting irregularities at Freddie Mac and Fannie Mae, Democratic Rep. Maxine Waters said, "Through nearly a dozen hearings where frankly we were trying to fix something that wasn't broke. Mr. Chairman, we do not have a crisis at Freddie Mac and particularly at Fannie Mae under the outstanding leadership of Mr. Frank Raines."

For the record, Franklin Raines resigned in disgrace as government regulators investigated accounting irregularities that shifted losses so that large bonuses to senior executives at Fannie Mae, including himself, could get millions in bonuses.

When Republicans called for more oversight into Fannie Mae and Freddie Mac, Democrats absurdly accused them of racism because Mr. Raines is an African American. Democratic Rep. Lacy Clay had the audacity to call the congressional hearing in which greater oversight was sought a "Political lynching of Franklin Raines."

Democratic Rep. Barney Frank disputed that there was any problem at all, saying, "You seem to be saying these are areas that could raise safety and soundness problems [at Freddie Mac and Fannie Mae]. I don't see anything in your report that raises safety and soundness problems."

Nancy Pelosi had the audacity to tell America that this problem was caused by George Bush and his economic policy. I am not going to defend the domestic spending increases of the past eight years, but to argue that George Bush caused this problem takes tremendous hubris.

This is a problem almost entirely created by Democratic corruption and ineptitude. Interestingly, Bill Clinton recently summed up the situation: "I think that the responsibility that the Democrats have may rest more in resisting any efforts by Republicans in the Congress ... to put in some standards and tighten up a little on Fannie Mae and Freddie Mac."

Why did Democrats strenuously resist Republican efforts "to put in some standards and tighten up" things? Because they were receiving huge campaign contributions to make sure that Franklin Raines and other executives could take tens of millions in executive bonuses while driving the nation into financial crisis. Now, Mr. Dodd, you understand why Americans don't trust you or Barack Obama or your pals in Congress -- we're tired of big profiteers promoting a corrupt system.

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Mr. Landrith is a graduate of the University of Virginia School of Law, where he was Business Editor of the Virginia Journal of Law and Politics. He had a successful law practice in business and litigation. In 1994 and 1996, Mr. Landrith was a candidate for the U.S. House of Representatives from Virginia's Fifth Congressional District. He served on the Albemarle County School Board. Mr. Landrith is an adjunct professor at the George Mason School of Law. He is recognized as an authority on constitutional law and jurisprudence, federalism, global warming, and property rights.

george@ff.org