October 23, 2009
This week in Washington, I pointed out the dangers of creating a new federal bureaucracy to impose draconian regulations on East Texas small businesses and community financial institutions. It seems Big Government supporters in Washington are no longer satisfied with taking over our auto companies, taking over Wall Street banks, taking over our mortgage finance system, now -- in addition to trying to take over one-sixth of our economy and the healthcare system -- by creating a new federal bureaucracy they want to take over 10-15 % of our economy in the consumer financial product area.
This new federal bureaucracy will create a czar who has unilateral authority to ban mortgages that people need to buy their homes, to ban credit cards that they need to put food on the table, to ban home equity loans that a small businessman may need to capitalize that business. We don’t need the federal government to take over more of our economy.
Second, we are in the midst of a great credit contraction. Under this Administration we have seen 3.4 million of our countrymen lose their jobs; the highest unemployment rate in a generation. Small businesses, which create 3 of 4 jobs in America, are crying for credit, the job engine of America is crying for credit, and they create a new federal agency which the United States Chamber of Commerce says will cost us more jobs at a time when our nation is crying out for jobs.
Finally, we must oppose this new federal financial products approval agency because it is an assault on consumer rights. This legislation says to consumers, “You are too foolish, or you are too ignorant to be trusted with the decision on whether or not you can choose a mortgage that’s right for you, choose a credit card that’s right for you, choose a home equity loan that is right for you, that somehow the nanny state must make this decision for you.” Ultimately, this will ration credit at a time that small businesses and families in East Texas desperately need it.
I was proud to co-author an alternative bill which said “no more bailouts” and provided for effective disclosure written in English for consumers, but didn’t take their choices away, didn’t take their freedoms away, and ensured that we have the resources necessary to enforce our anti-fraud laws. That is the answer, not another Washington bureaucracy.
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