Morning Bell: CBO Confirms You’re on the Hook for Wall Street Bailout Bill

Conn Carroll / April 26, 2010

President Barack Obama’s favorite rhetorical device is to lecture the American people about what are and are not “legitimate” public policy arguments. So throughout the health care debate, President Obama insisted that it was “not legitimate” to claim that “a public option is somehow a Trojan horse for a single-payer system.” This despite the fact that Reps. Barney Frank (D-MA), Jan Schakowsky (D-IL), Anthony Weiner (D-NY) and Nobel Prize winning New York Times columnist Paul Krugman were all caught on video explaining to single-payer advocates that the public option was exactly that.

Now the President is bringing the same audacity to the financial regulatory debate, telling a handpicked audience at New York’s Cooper Union: “Now, there is a legitimate debate taking place about how best to ensure taxpayers are held harmless in this process. But what is not legitimate is to suggest that we’re enabling or encouraging future taxpayer bailouts, as some have claimed. That may make for a good sound bite, but it’s not factually accurate.”

Before President Obama continues to go around accusing others of lacking legitimacy, he should read the official cost estimate of the financial regulation bill released by the Congressional Budget Office last Thursday. Assessing the budgetary impact of the $50 billion that “systemically important financial firms” would have to pay in assessments to pay for the bill’s “Orderly Resolution Fund,” the CBO writes: (more…)