This is going to be a rather lengthy post, but please take the time to read it and pay attention to the details. This is important stuff that we all need to know. At the end, you’ll get specific names of who’s responsible for our financial crisis and why.
This gives YOU the power to do something about this on Election Day.
Sunday night, 60 Minutes had a great segment explaining more about what happened to cause the current financial crisis. A few weeks ago, they explained about how Credit Default Swaps were the root cause of this mess. Credit Default Swaps are where large financial companies like Lehman Brothers and AIG were basically selling insurance without calling it insurance, and because they didn’t have regulations to make them have cash reserves for their losses, we now have this financial disaster.
This week, 60 Minutes went into more detail about how this was allowed to happen, even though this practice was outlawed almost a hundred years ago and was banned for most of the 20th century. Why was it previously banned in every state in the country? Because this type of gambling is exactly what caused the stock market crash of 1907. Would you believe that eight years ago, the Congress sneaked a law through at the last minute that specifically banned any and all regulations against this practice that had been illegal for almost a hundred years?
Since we’re all going to be paying for this for a very long time, we should at least know why it happened and who’s responsible. This is a must see video from 60 Minutes that will not only make you knowledgeable about the history of this problem, but mad as hell, too.
Watch CBS Videos Online
So now that you understand the history of what caused this mess, you may be wondering about this interesting law passed eight years ago by the Republican Congress called the ‘Commodity Futures Modernization Act of 2000′. Since this was the specific law that deregulated Wall Street and allowed them to gamble away our futures while getting incredibly rich, I was definitely curious to know more about it. So I looked it up, and here’s the history of this law from Wikipedia:
The ‘Commodity Futures Modernization Act of 2000′ (H.R. 5660) was introduced in the House on Dec. 14, 2000 by Rep. Thomas W. Ewing (R-IL) and cosponsored by Rep. Thomas J. Bliley, Jr. (R-VA) Rep. Larry Combest (R-TX) Rep. John J. LaFalce (D-NY) Rep. Jim Leach (R-IA) and never debated in the House. The companion bill (S.3283) was introduced in the Senate on Dec. 15th, 2000 (The last day before Christmas holiday) by Sen. Richard Lugar (R-IN) and cosponsored by Sen. Peter Fitzgerald (R-IL) Sen. Phil Gramm (R-TX) Sen. Chuck Hagel (R-NE) Sen. Thomas Harkin (D-IA) Sen. Tim Johnson (D-SD) and never debated in the Senate.
Given the above-stated chronology, it would appear that the House and Senate versions of the bill were introduced just prior to the Christmas holiday in December of 2000, following George W. Bush’s first election in November of 2000, while then-President Clinton was serving out his final days as President. The bill was never debated by the House or Senate. The bill by-passed the substantive policy committees in both the House and the Senate so that there were neither hearings nor opportunities for recorded committee votes. In substance, it appears that the leadership of the Republican-controlled Senate and House incorporated the deregulation of credit default swaps into an omnibus budget bill without hearings at a time when the outgoing president was in no position to veto anything.
The omnibus budget bill was called the ‘Consolidated Appropriations Act, 2001′. It’s described as ‘Making appropriations for the Departments of Labor, Health and Human Services, and Education, and related agencies for the fiscal year ending September 30, 2001, and for other purposes’, but as you can see from the following link, it had everything but the kitchen sink thrown into it including this nasty bill that deregulated Wall Street.
http://www.govtrack.us/congress/bill.xpd?bill=h106-4577
So I bet by now you’d like to know who voted for this bill that the Republican Congress rammed through without any debate, a piece of legislation that later resulted in this huge financial mess we’re in.
In the Senate, 37 Republicans and 9 Democrats voted for the bill while 30 Democrats and 7 Republicans voted against it. Here’s a list of the specific roll call vote:
http://www.govtrack.us/congress/vote.xpd?vote=s2000-171
In the House, 214 Republicans and 2 Democrats voted for the bill while 203 Democrats and 9 Republicans voted against it. Here’s a list of the specific roll call vote:
http://www.govtrack.us/congress/vote.xpd?vote=h2000-273
Since the Democrats didn’t have control of the Congress in 2000, there was little they could do about stopping the bill, especially with such overwhelming Republican support for passage. Also, note that Senator John McCain voted for this bill that was co-sponsored by Senator Phil Gramm, one of McCain’s chief economic advisors for many years. This happened before Obama was in the Senate, however it’s a fair bet that he would have voted with the other Democrats against the bill.
Some might like to criticize President Clinton for not vetoing the bill, but since Bush was the President elect, and this was the very end of Clinton’s term in office, there wasn’t much point in a presidential veto since Bush would have simply signed it into law a short time later. In essence, this was the first result of Bush being elected since it’s obvious the Democrats didn’t want this bill passed. Had Gore won, it’s reasonable to speculate that this legislation wouldn’t have been passed by the Congress, and if it had been, that he would have vetoed it.
The Commodity Futures Modernization Act of 2000 has received criticism for the so-called ‘Enron loophole,’ 7 U.S.C. §2(h)(3) and (g), which exempts most over-the-counter energy trades and trading on electronic energy commodity markets. The ‘loophole’ was drafted by lobbyists for Enron working with Senator Phil Gramm seeking a deregulated atmosphere for their new experiment, ‘Enron On-line.’
Several Democratic legislators introduced legislation to close the loophole from 2000-2006 but were unsuccessful.
In September 2007, Senator Carl Levin (D-MI) introduced Senate Bill S.2058 specifically to close the ‘Enron Loophole’. This bill was later attached to H.R. 6124, the Food, Conservation, and Energy Act of 2008, aka ‘The 2008 Farm Bill’. President Bush vetoed the bill, but was overridden by both the Democratically controlled House and
> Senate, and on June 18th, 2008 the bill was enacted into law. One specific reason behind its introduction was to address the record high oil prices of the 2008 energy crisis. Since it was enacted, average gas prices of regular unleaded gasoline in the U.S. have
> dropped $1.333, from their record high of $4.114 on July 17, 2008 to an average of $2.781 as of October 24, 2008, though the drop in price can not be specifically linked to the legislation, mainly due to the volatility of crude oil prices.
The prohibition on single-stock futures and narrow-based indices that had been in effect until the passage of this act was known as the Shad-Johnson Accord because it was first announced in 1982, as part of a jurisdictional pact between John S.R. Shad, then chairman of the U.S. Securities and Exchange Commission and Phil Johnson, then chairman of the Commodity Futures Trading Commission. The Commodity Futures Modernization Act of 2000 specifically banned regulation of credit default swaps. These unregulated instruments, insurance policies against default on risky investments like Mortgage Backed Securities (MBS), necessitated the government bailout of insurer A.I.G. and has resulted in a huge cascade of financial collapses worldwide.
Are you mad yet? I sure hope so!
When you’re voting on November 4th, it would be good to remember which Senators and Congressmen are responsible for our country’s financial crisis:
Sponsors of the bill in the House:
> Thomas W. Ewing (R-IL)
> Thomas J. Bliley, Jr. (R-VA)
> Larry Combest (R-TX)
> John J. LaFalce (D-NY)
> Jim Leach (R-IA)
Sponsors of the bill in the Senate:
> Richard Lugar (R-IN)
> Peter Fitzgerald (R-IL)
> Phil Gramm (R-TX)
> Chuck Hagel (R-NE)
> Thomas Harkin (D-IA)
> Tim Johnson (D-SD)
Senators who voted Yes to deregulating Wall Street and allowing Credit Default Swaps:
> MI Abraham, Spencer [?]
> MO Ashcroft, John [?]
> UT Bennett, Robert [R]
> MO Bond, Christopher [R]
> LA Breaux, John [D]
> MT Burns, Conrad [R]
> WV Byrd, Robert [D]
> CO Campbell, Ben [R]
> RI Chafee, Lincoln [R]
> GA Cleland, J. [D]
> MS Cochran, Thad [R]
> ME Collins, Susan [R]
> GA Coverdell, Paul [?]
> ID Craig, Larry [R]
> ID Crapo, Michael [R]
> OH DeWine, Michael [R]
> NM Domenici, Pete [R]
> WY Enzi, Michael [R]
> IL Fitzgerald, Peter [R]
> TN Frist, William [R]
> WA Gorton, T. [?]
> IA Grassley, Charles [R]
> NH Gregg, Judd [R]
> NE Hagel, Charles [R]
> IA Harkin, Thomas [D]
> SC Hollings, Ernest [D]
> AR Hutchinson, Tim [R]
> TX Hutchison, Kay [R]
> OK Inhofe, James [R]
> VT Jeffords, James [I]
> NE Kerrey, J. [?]
> WI Kohl, Herbert [D]
> AZ Kyl, Jon [R]
> AR Lincoln, Blanche [D]
> MS Lott, Trent [R]
> IN Lugar, Richard [R]
> FL Mack, Connie [?]
> AZ McCain, John [R]
> KY McConnell, Mitch [R]
> AK Murkowski, Frank [R]
> KS Roberts, Pat [R]
> DE Roth, William [?]
> PA Santorum, Richard [R]
> AL Shelby, Richard [R]
> OR Smith, Gordon [R]
> ME Snowe, Olympia [R]
> PA Specter, Arlen [R]
> AK Stevens, Ted [R]
> WY Thomas, Craig [R]
> TN Thompson, Fred [R]
> SC Thurmond, J. [R]
> VA Warner, John [R]
Congressmen and women who voted Yes to deregulating Wall Street and allowing Credit Default Swaps:
> AL-4 Aderholt, Robert [R]
> TX-7 Archer, Bill [R]
> TX-26 Armey, Richard [R]
> AL-6 Bachus, Spencer [R]
> LA-6 Baker, Richard [R]
> NC-10 Ballenger, Cass [R]
> NE-3 Barrett, Bill [R]
> MD-6 Bartlett, Roscoe [R]
> TX-6 Barton, Joe [R]
> NH-2 Bass, Charles [R]
> VA-1 Bateman, Herbert [R]
> NE-1 Bereuter, Douglas [R]
> IL-13 Biggert, Judy [R]
> CA-49 Bilbray, Brian [R]
> FL-9 Bilirakis, Michael [R]
> VA-7 Bliley, Tom [R]
> MO-7 Blunt, Roy [R]
> NY-23 Boehlert, Sherwood [R]
> OH-8 Boehner, John [R]
> TX-23 Bonilla, Henry [R]
> CA-44 Bono Mack, Mary [R]
> TX-8 Brady, Kevin [R]
> TN-7 Bryant, Ed [R]
> NC-5 Burr, Richard [R]
> IN-6 Burton, Dan [R]
> IN-5 Buyer, Stephen [R]
> AL-1 Callahan, H. [R]
> CA-43 Calvert, Ken [R]
> MI-4 Camp, David [R]
> CA-15 Campbell, Tom [R]
> FL-12 Canady, Charles [R]
> UT-3 Cannon, Christopher [R]
> DE-0 Castle, Michael [R]
> OH-1 Chabot, Steven [R]
> GA-8 Chambliss, C. [R]
> ID-1 Chenoweth-Hage, Helen [R]
> NC-6 Coble, Howard [R]
> OK-2 Coburn, Thomas [R]
> GA-3 Collins, Michael [R]
> TX-19 Combest, Larry [R]
> LA-5 Cooksey, John [R]
> CA-47 Cox, C. [R]
> IL-8 Crane, Philip [R]
> WY-0 Cubin, Barbara [R]
> CA-51 Cunningham, Randall [R]
> VA-11 Davis, Thomas [R]
> GA-9 Deal, Nathan [R]
> TX-22 DeLay, Thomas [R]
> SC-4 DeMint, Jim [R]
> FL-21 Diaz-Balart, Lincoln [R]
> AR-4 Dickey, Jay [R]
> CA-4 Doolittle, John [R]
> CA-28 Dreier, David [R]
> TN-2 Duncan, John [R]
> WA-8 Dunn, Jennifer [R]
> MI-3 Ehlers, Vernon [R]
> MD-2 Ehrlich, Robert [R]
> MO-8 Emerson, Jo Ann [R]
> PA-21 English, Philip [R]
> AL-2 Everett, Terry [R]
> IL-15 Ewing, Thomas [R]
> KY-6 Fletcher, Ernest [R]
> FL-16 Foley, Mark [R]
> NY-13 Fossella, Vito [R]
> FL-4 Fowler, Tillie [R]
> NJ-7 Franks, Bob [R]
> NJ-11 Frelinghuysen, Rodney [R]
> CA-23 Gallegly, Elton [R]
> IA-4 Ganske, Greg [R]
> PA-17 Gekas, George [R]
> NV-2 Gibbons, James [R]
> MD-1 Gilchrest, Wayne [R]
> OH-5 Gillmor, Paul [R]
> NY-20 Gilman, Benjamin [R]
> VA-5 Goode, Virgil [R]
> VA-6 Goodlatte, Robert [R]
> PA-19 Goodling, William [R]
> FL-14 Goss, Porter [R]
> SC-3 Graham, Lindsey [R]
> TX-12 Granger, Kay [R]
> WI-8 Green, Mark [R]
> PA-8 Greenwood, James [R]
> MN-1 Gutknecht, Gilbert [R]
> UT-1 Hansen, James [R]
> IL-14 Hastert, J. [R]
> WA-4 Hastings, Doc [R]
> NC-8 Hayes, Robin [R]
> AZ-6 Hayworth, John [R]
> CO-5 Hefley, Joel [R]
> CA-2 Herger, Walter [R]
> MT-0 Hill, Rick [R]
> TN-4 Hilleary, Van [R]
> OH-7 Hobson, David [R]
> MI-2 Hoekstra, Peter [R]
> CA-38 Horn, Stephen [R]
> NY-31 Houghton, Amory [R]
> MO-9 Hulshof, Kenny [R]
> CA-52 Hunter, Duncan [R]
> AR-3 Hutchinson, Asa [R]
> IL-6 Hyde, Henry [R]
> GA-6 Isakson, John [R]
> OK-5 Istook, Ernest [R]
> TN-1 Jenkins, William [R]
> CT-6 Johnson, Nancy [R]
> TX-3 Johnson, Samuel [R]
> NC-3 Jones, Walter [R]
> OH-12 Kasich, John [R]
> NY-19 Kelly, Sue [R]
> NY-3 King, Peter [R]
> GA-1 Kingston, Jack [R]
> MI-11 Knollenberg, Joseph [R]
> AZ-5 Kolbe, James [R]
> CA-36 Kuykendall, Steven [R]
> IL-18 LaHood, Ray [R]
> OK-1 Largent, Steve [R]
> IA-5 Latham, Thomas [R]
> OH-19 LaTourette, Steven [R]
> IA-1 Leach, James [R]
> CA-40 Lewis, Jerry [R]
> KY-2 Lewis, Ron [R]
> GA-11 Linder, John [R]
> NJ-2 LoBiondo, Frank [R]
> OK-6 Lucas, Frank [R]
> IL-16 Manzullo, Donald [R]
> CA-31 Martinez, Matthew [D]
> FL-8 McCollum, Bill [R]
> LA-4 McCrery, James [R]
> NY-24 McHugh, John [R]
> CO-3 McInnis, Scott [R]
> IN-2 McIntosh, David [R]
> CA-25 McKeon, Howard [R]
> WA-2 Metcalf, Jack [R]
> FL-7 Mica, John [R]
> FL-13 Miller, Dan [R]
> CA-41 Miller, Gary [R]
> KS-1 Moran, Jerry [R]
> NC-9 Myrick, Sue [R]
> WA-5 Nethercutt, George [R]
> OH-18 Ney, Robert [R]
> KY-3 Northup, Anne [R]
> GA-10 Norwood, Charles [R]
> IA-2 Nussle, James [R]
> CA-3 Ose, Doug [R]
> OH-4 Oxley, Michael [R]
> CA-48 Packard, Ron [R]
> IN-7 Pease, Edward [R]
> PA-5 Peterson, John [R]
> WI-6 Petri, Thomas [R]
> MS-3 Pickering, Charles [R]
> VA-2 Pickett, Owen [D]
> PA-16 Pitts, Joseph [R]
> CA-11 Pombo, Richard [R]
> IL-10 Porter, John [R]
> OH-2 Portman, Robert [R]
> OH-15 Pryce, Deborah [R]
> NY-30 Quinn, Jack [R]
> CA-19 Radanovich, George [R]
> MN-3 Ramstad, James [R]
> OH-16 Regula, Ralph [R]
> NY-27 Reynolds, Thomas [R]
> AL-3 Riley, Bob [R]
> CA-27 Rogan, James [R]
> KY-5 Rogers, Harold [R]
> CA-45 Rohrabacher, Dana [R]
> FL-18 Ros-Lehtinen, Ileana [R]
> NJ-5 Roukema, Marge [R]
> CA-39 Royce, Edward [R]
> WI-1 Ryan, Paul [R]
> KS-2 Ryun, Jim [R]
> AZ-1 Salmon, Matt [R]
> NJ-3 Saxton, H. [R]
> FL-1 Scarborough, Joe [R]
> TX-5 Sessions, Peter [R]
> AZ-4 Shadegg, John [R]
> FL-22 Shaw, E. [R]
> CT-4 Shays, Christopher [R]
> PA-10 Sherwood, Donald [R]
> IL-20 Shimkus, John [R]
> PA-9 Shuster, Bill [R]
> ID-2 Simpson, Michael [R]
> NM-2 Skeen, Joseph [R]
> NJ-4 Smith, Christopher [R]
> TX-21 Smith, Lamar [R]
> MI-7 Smith, Nick [R]
> IN-4 Souder, Mark [R]
> SC-2 Spence, Floyd [R]
> FL-6 Stearns, Clifford [R]
> AZ-3 Stump, Robert [R]
> NH-1 Sununu, John [R]
> NY-22 Sweeney, John [R]
> MO-2 Talent, James [R]
> CO-6 Tancredo, Thomas [R]
> LA-3 Tauzin, William [R]
> NC-11 Taylor, Charles [R]
> NE-2 Terry, Lee [R]
> CA-21 Thomas, William [R]
> TX-13 Thornberry, William [R]
> SD-0 Thune, John [R]
> KS-4 Tiahrt, Todd [R]
> PA-15 Toomey, Patrick [R]
> OH-17 Traficant, James [D]
> MI-6 Upton, Frederick [R]
> LA-1 Vitter, David [R]
> OR-2 Walden, Greg [R]
> NY-25 Walsh, James [R]
> TN-3 Wamp, Zach [R]
> OK-3 Watkins, Wes [R]
> OK-4 Watts, J.C. [R]
> FL-15 Weldon, David [R]
> PA-7 Weldon, W. [R]
> IL-11 Weller, Gerald [R]
> KY-1 Whitfield, Edward [R]
> MS-1 Wicker, Roger [R]
> NM-1 Wilson, Heather [R]
> VA-10 Wolf, Frank [R]
> FL-10 Young, C. W. [R]
> AK-0 Young, Donald [R]
What’s really sad is that if they’d simply done their jobs, properly, it’s highly doubtful this legislation would have stood up under even historical scrutiny. This law went so far as to dismantle all the state laws in place to stop regulation. They knew full well what they were doing, and now we’re all paying the price. If any of these idiots are up for election in your state or community, now would be a good time to fire them for screwing up our lives.