Even Republicans Think Mitch McConnell is Full of It

As touched upon in this post, Republicans have nothing left but to lie about what the Democrats do. They can't run on their record, because it is lousy. And they have no new ideas. But when the Republican Minority Leader in the Senate so blatantly lies about a piece of legislation that even Republicans are calling him for it, then you know they truly have no credibility left.

FDIC Chair Sheila Bair, a Bush/Cheney appointee to the FDIC, a former assistant Treasury secretary in the Bush administration, had this to say about McConnell's comments about the financial reform bill that is currently being worked on in the Senate. McConnell claimed that the bill will perpetuate bailouts of major financial institutions:

Would this bill perpetuate bailouts?

BAIR: The status quo is bailouts. That's what we have now. If you don't do anything, you are going to keep having bailouts. Bankruptcy doesn't work -- we saw that with Lehman Brothers.

But does this bill stop them from happening?

BAIR: It makes them impossible and it should. We worked really hard to squeeze bailout language out of this bill. The construct is you can't bail out an individual institution — you just can't do it.

In a true liquidity crisis, the FDIC and the Fed can provide systemwide support in terms of liquidity support -- lending and debt guarantees -- but even then, a default would trigger resolution or bankruptcy. Link