Dodd-Frank: Trillions for future bailouts, without Congressional approval (video)Submitted by Mark Hanson on Wed, 02/20/2013 - 14:59
In a Congressional hearing on Dodd-Frank's Resolution Authority, Rep. Brad Sherman said the executive branch has authority to spend Trillions on future bailouts, without Congressional approval. This is of course, taxation without representation. Sherman then asks former SEC Chairman Arthur Levitt what his opinion is on the matter.
Senator Brown cites a Congressional Budget Office report saying it will cost taxpayers 8.6 Trillion to prop up failing banks.
The 8.6 Trillion doesn't include a short term budget liability represented by another financial crisis. Former IMF chief economist Simon Johnson told the Budget Committee that another financial crisis represents a budget liability equal to 40% of GDP (5.6 Trillion), and CBO rules require this be scored in the budget. Ranking Republican Judd Gregg replied, "We don't score a lot of things around here". Here's video of Johnson and Judd Gregg.
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