NEW YORK (CNNMoney.com) -- Lawmakers grilled bank regulators Tuesday about why they didn't intervene as lax lending standards led to a meltdown in the mortgage market and a credit crunch that threaten the economy.
"Again and again the question has been asked over the past year as our credit markets have grown increasingly impaired: Where were the regulators?," said Sen. Christopher Dodd, D-Conn., chairman of the banking committee. "Why didn't they do more? Were they asleep at the switch? And when the alarm went off, did they merely hit the snooze button?"
Yes, why didn't the regulators do more? Where were the regulators? It's so hard to understand!
I mean, we haven't had a hundred billion dollar banking crisis, which will surely require a taxpayer bailout, in almost twenty years!
Not since Reagan and Bush I de-regulated the Savings and Loan industry, while brave, straight talking, ethical Congressmen like John McCain leaned on regulators to back off from doing more.
Because, remember, as Sainted Ronny Rotten used to tell us: government is not a solution to our problems, government is the problem!
So Reagan and the Reagan Republicans took that pesky ol' gubment out of the Savings and Loan industry and let the miracle of the Free And Unfettered Market work its magic. And within a couple of years, taxpayers had to come up with one hundred and twenty billion dollars--and those are 1980s dollars--as a solution to our problem.
So how could this happen again?
Gee, let me think...
Could it be that once again Republicans were running the gubment? And that Republicans not only don't believe in gubment regulations but actively thwart them?
There's a reason we have all these regulations--all this interminable red-tape the insane Bush clown posse is always whining about:
In the very distant past called the twentieth century, the American People suffered horrible catastrophes. And the People learned hard lessons from these catastrophes, and They made rules and regulations so that these awful events could never, ever happen again.
And after the People made these rules, everything was fine for four or even eight years.
Until another Republican got into the White House and told the People that these rules and regulations weren't solving any problems--they were the problem!
And then a bunch of limp-dick Democrats let the Republicans get rid of the rules and regulations, predictable catastrophe ensued, and then gubment had to spend an ungodly amount of taxpayers money to solve the problem.
Hundreds of Congressmen and Women do not vote to pass laws or create agencies which will be contrary to the interests of their corporate sponsors just because Congress likes passing laws. Congress does that shit at gunpoint.
Congress only passes regulatory bills when things get so unbelievably fucked up that a veto proof majority of them are afraid that if they don't do something they'll all be out of their phoney baloney jobs and lose their awesome Government provided healthcare and benefits.
That's it. They never do it before the fact. It's always after the fact. It's always too little too late. And it's always something that is and was desperately needed.
Your FDA, your EPA, your FCC, your SEC, your FDIC, your SSA--all of that shit--all of it--came in response to catastrophic disasters that Congress just could not ignore, no matter how many corporate dollar bills it cost them. The People were that angry.
And your modern Gee Oh Pee doesn't want to do anything with gubment except get rid of all the answers to all the problems we've ever had so we can have all those problems all over again.
The modern Gee Oh Pee is proud of our American heritage and they long for a simpler time--a time of bank failures, and burning rivers, poisoned food, fake medicine, soup kitchens, and exploding automobiles.
And the only thing between the American People and that Republican Utopia is your federal gubment.
Government is the problem!
And that's why the regulators didn't do anything.
And when the gubment has to poney up a couple hundred billion dollars to bail out the banks again, your modern Gee Oh Pee will insanely say that just proves what they were saying all along.