Michael Graham, at the Boston Herald, observes that the 4th District of Massachusetts’ representative in the House has a lot more to do with the current financial mess than AIG does.

The only thing more painful than watching 180 billion tax dollars swirl down the AIG drainpipe is listening to Barney Frank bloviate about it.

I don’t know The World’s Most Expensive Legislator personally, but I hear he’s quite a cut-up at cocktail parties. However, as legislator and politician, he is an unmitigated disaster. Frank combines the economic success of AIG, the business ethics of Enron and the personal accountability of Ruth Madoff.

Frank began his career opposing Reaganomics, an opposition that stubbornly resisted 25 years of nearly constant economic growth. In the 1990s, Frank sat on the Banking Committee regulating Fannie Mae, even as his then-partner, Herb Moses, worked as a Fannie exec.

Is it a coincidence that Frank has been a die-hard advocate for expanding Freddie/Fannie at any cost?

Since at least 2002, Frank fought an ever-growing drumbeat of calls to slow down the Fannie Mae/Freddie Mac train wreck.

In 2003, he famously said that Freddie and Fannie were “not in a crisis,” that they were “fundamentally sound financially.” He repeated that expert testimony in 2005, all the while rejecting the argument that the taxpayers were responsible for Freddie and Fannie’s bills.

And in 2007, he actually proposed raising the caps on Fannie/Freddie’s portfolios – exposing taxpayers to even more risk – and then dumping the new money into (drum roll, please) even more subprime mortgages.

Less than a year later, the Fannie/subprime/derivatives catastrophe was upon us. And the cheerleader for all three? Our Barney.

Which is why it so astonishes that anyone takes him seriously as the self-declared watchdog of Wall Street. Please, Barney, just shut up.

And the spending just keeps going. Having just passed the $787 billion so-called Stimulus Package, democrat commissars on Capitol Hill are next turning their attention to an Omnibus Spending Bill, which as Newsmax reports, will contain more earmarks than ever before. The Saturnalia of Spending continues.

During the 2008 presidential campaign, candidates Barack Obama and John McCain fought vigorously over who would be toughest on congressional earmarks.

“We need earmark reform,” Obama said in September during a presidential debate in Oxford, Miss. “And when I’m president, I will go line by line to make sure that we are not spending money unwisely.”

President Barack Obama should prepare to carve out a lot of free time and keep the coffee hot this week as Congress prepares to unveil a $410 billion omnibus spending bill that’s riddled with thousands of earmarks, despite his calls for restraint and efforts on Capitol Hill to curtail the practice.

The bill will contain about 9,000 earmarks totaling $5 billion, congressional officials say. Many of the earmarks — loosely defined as local projects inserted by members of Congress — were inserted last year as the spending bills worked their way through various committees.

Byron York reminds readers of Congressional democrats posing as deficit hawks back when George W. Bush was in the White House. Now that they have control of Congress and the White House they are using the recession as a pretext for a budgetary blowout calculated to make the Great Society look like a Presbyterian picnic. Americans will be paying for Obama’s first month in office for a generation.

Back in 2006, when Democrats were hoping to win control of the House and Senate, party leaders worked themselves into a righteous outrage over the issue of out-of-control federal spending. Rep. Nancy Pelosi, D-Calif., called the Republican budget “irresponsible” and “unpatriotic” because it increased the amount of U.S. debt held by foreign countries. Sen. Harry Reid, D-Nev., accused Republicans of going on “an unprecedented and dangerous borrowing spree” and declared GOP leadership “the most fiscally irresponsible in the history of our country … no other president or Congress even comes close.”

You won’t find too many defenders of George W. Bush’s record on spending these days, even among Republicans. But a check of historical tables compiled by the Office of Management and Budget shows that the spending that so distressed Pelosi and Reid seems downright modest today. After beginning with a Clinton-era surplus of $128 billion in fiscal year 2001, the Bush administration racked up deficits of $158 billion in 2002, $378 billion in 2003, $413 billion in 2004, $318 billion in 2005, $248 billion in 2006, $162 billion in 2007, and $410 billion in 2008.

The current administration would kill to have such small numbers. President Barack Obama is unveiling his budget this week, and, in addition to the inherited Bush deficit, he’s adding his own spending at an astonishing pace, projecting annual deficits well beyond $1 trillion in the near future, and, in the rosiest possible scenario, a $533 billion deficit in 2013, the last year of Obama’s first term.

And what about the national debt? It increased from $5 trillion to $10 trillion in the Bush years, leading to dramatically higher interest costs. “We pay in interest four times more than we spend on education and four times what it will cost to cover 10 million children with health insurance for five years,” Pelosi said in 2007. “That’s fiscal irresponsibility.”

Now, under Obama, the national debt — and the interest payments — will increase at a far faster rate than during the Bush years.

“We thought the Bush deficits were big at the time,” Senate Minority Leader Mitch McConnell, told me this week as he prepared to attend Obama’s Fiscal Responsibility Summit. “But this is going to make the previous administration look like rank amateurs. We could be adding multiple trillions to the national debt in the first year.”

At some point last week, the sheer velocity of Obama’s spending proposals began to overwhelm even experienced Washington hands. In the span of four days, we saw the signing of the $787 billion stimulus bill, the rollout of a $275 billion housing proposal, discussion of Congress’s remaining appropriations bills (about $400 billion) and word of a vaguely-defined financial stabilization plan that could ultimately cost $2 trillion. When representatives of GM and Chrysler said they might need $21 billion more to survive, it seemed like small beer.

The Capitol Hill offices of many congressmen and senators don’t even have a copy! If you need top get hold of a copy, Paul Bedard advises, ask a lobbyist.

We’re receiving E-mails from Capitol Hill staffers expressing frustration that they can’t get a copy of the stimulus bill agreed to last night at a price of $789 billion. What’s more, staffers are complaining about who does have a copy: K Street lobbyists. E-mails one key Democratic staffer: “K Street has the bill, or chunks of it, already, and the congressional offices don’t.

Moreover, the press is having problems reporting because a number of versions of the bill are floating around out there.

[T]he Hill is getting calls from the press (because it’s leaking out) asking us to confirm or talk about what we know—but we can’t do that because we haven’t seen the bill. Anyway, peeps up here are sort of a combo of confused and like, ‘Is this really happening?'” Reporters pressing for details, meanwhile, are getting different numbers from different offices, especially when seeking the details of specific programs.

Worse, there seem to be several different versions of what was agreed upon, with some officials circulating older versions of the package that seems to still be developing.

Isn’t it wonderful having democrats in charge of the federal purse? If you went down to the port, shanghai’d 525 drunken sailors and put them in charge of legislation, it would not be much different.

Never let a serious crisis go to waste. What I mean by that is it’s an opportunity to do things you couldn’t do before. – Rahm Emanuel

The Wall Street Journal quotes the democrat White House Chief of Staff’s dictum in explaining what the democrat’s so-called stimulus package is all about.

Democrats in Congress are certainly taking his advice to heart. The 647-page, $825 billion House legislation is being sold as an economic “stimulus,” but now that Democrats have finally released the details we understand Rahm’s point much better. This is a political wonder that manages to spend money on just about every pent-up Democratic proposal of the last 40 years.

We’ve looked it over, and even we can’t quite believe it. There’s $1 billion for Amtrak, the federal railroad that hasn’t turned a profit in 40 years; $2 billion for child-care subsidies; $50 million for that great engine of job creation, the National Endowment for the Arts; $400 million for global-warming research and another $2.4 billion for carbon-capture demonstration projects. There’s even $650 million on top of the billions already doled out to pay for digital TV conversion coupons.

Read the whole thing. You and your children and your grandchildren will be paying for it.

Rasmussen Reports finds Congress breaking new ground in voter unpopularity.

If they could vote to keep or replace the entire Congress, 59% of voters would like to throw them all out and start over again. The latest Rasmussen Reports national telephone survey found that just 17% would vote to keep the current legislators in office.

The framers missed the boat when they overlooked establishing a suitable procedure.

John Steele Gordon identifies the guilty parties behind the Fannie Mae-Freddie Mac collapse.

At the heart of the problem is Congress and its deeply corrupt relationship with Fannie Mae and Freddie Mac. Congress was equally at the heart of the savings and loan disaster 20 years ago and, obviously, learned nothing from it. (For a history of what led to the savings and loan collapse, see here.)

Fannie and Freddie, two of the largest publicly traded financial institutions on earth, are headquartered in Washington, D.C., where the next-largest non-governmental financial institution is probably a local credit union. Big financial companies are headquartered in New York and other cities where capitalism is practiced. That should tell you a lot about Freddie and Fannie: they were political to their fingertips.

Being “government sponsored entities,” they were able to borrow at lower interest rates than other profit-seeking companies, had less regulation, had lower capital requirements, and had an “implied” guarantee on their huge debts. This was supposed to translate into more money available for mortgages, but was used instead to roll up big profits and, not so incidentally, big bonuses for their top management — which came not from the financial world but from the political one.

Franklin Raines, Fannie C.E.O. from 1999 to 2004, had been budget director in the Clinton White House. He cooked the books at Fannie to increase his compensation (more than $50 million). Jamie Gorelick, vice C.E.O., was number two at the Clinton Justice Department before going to Fannie Mae. She made $26 million. Jim Johnson, a perennial Washington big-foot, was chairman from 1991 to 1998. He too, according to an official government report, cooked the books to increase his compensation and failed to publicly reveal how much he received.

The Wall Street Journal editorial page has been giving chapter and verse for years on why this was a disaster waiting to happen (Pulitzer Prize judges, please note). The Bush administration tried way back in 2003 to change the system. It got nowhere. Alan Greenspan, then the chairman of the Federal Reserve, frequently noted the danger of Fannie and Freddie’s weak capitalization. He was ignored. Congressman Mike Oxley, then chairman of the House Financial Services Committee, introduced a bill in 2005 to correct the situation. Lobbyists from Fannie and Freddie succeeded in gutting it to the point that Rep. Oxley pulled the bill.

Why were Fannie and Freddie so successful at maintaining the status quo? Check it out.

Senator Chris Dodd — formerly ranking member and now chairman of the Senate Banking Committee, with oversight over Freddie and Fannie — recently said on Bloomberg Television: “I have a lot of questions about where was the administration over the last eight years.”

Excuse me? Just where the hell were you, Senator? Oh, right. You were standing in line at the bank in order to deposit the political contributions Fannie and Freddie were lavishing upon you. At least they got their money’s worth — until the party ended and the American people got the bill.

Members of Congress — aided and abetted by their many waterbearers in the media — wonder why their collective approval rating is about on par with colon cancer’s. The reason is simple enough: Congress is the sick man of Washington; a textbook example of the truism that institutions tend to evolve in ways that benefit their elites, at the expense of the people they were created to serve.

Gasoline is $4+ a gallon. It takes over $70 to fill-up my car, and around $10 more to put some gas in the plastic jerrican for the lawnmower.

Congressional Republicans want to pass a bill to do something about this by freeing up more domestic production. They have the votes, but democrat House Speaker Nancy Pelosi refuses to allow a vote, has adjourned the House of Representatives for a five-week vacation, and turned the lights off in the Capitol in an effort to evict Republicans who have stayed on the floor in protest.

As Patrick Ruffin notes, a watershed has occurred in which Republicans are succeeding in mobilizing a grassroots protest effort using the Internet.

The prime tool for organizing currently is Twitter free social networking and micro-blogging service that allows users to send updates, known as “tweets,” text-based posts of up to 140 characters in length.

Sign the petition.

1:38 Call Congress Back video

“F for Failure” coming to a town near you.

1:17 video

Lord knows, I don’t often agree with ultra-left blogger Glenn Greenwald about anything, but what do you know? Even the most unlikely of occurrences are possible in this best of all possible worlds.

Here‘s Glenn responding to the recent Rasmussen Poll finding national approval of Congress to have fallen to an all-time low of 9% by concluding the democrat House majority is safe in perpetuity and it’s time for moonbats to turn on the democrat party leadership and start defeating any democrat congressmen discernibly to the right of Leon Trotsky.

That’ll learn ’em. And those democrat leaders will then start obediently toeing the Party Line (and I don’t mean the democrat party line).

Many progressives and other Democratic supporters are reflexively opposed to any conduct that might result in the defeat of even a single, relatively inconsequential Democratic member of Congress or the transfer of even a single district to GOP control. No matter how dissatisfied such individuals might be with the Democratic Congress, they are unwilling to do anything different to change what they claim to find so unsatisfactory. Even though uncritically cheering on any and every candidate with a “D” after his or her name has resulted in virtually nothing positive — and much that is negative — many progressives continue, rather bafflingly and stubbornly, to insist that if they just keep doing the same thing (cheering for the election of more and more Democrats), then somehow, someday, something different might occur. But, as the cliché teaches, repeatedly engaging in the same conduct and expecting different results is the very definition of foolishness.

As foolish as it is, this intense aversion to jeopardizing any Democratic incumbents might be considered rational if doing so carried the risk of restoring Republican control of Congress. But there is no such risk, and there will be none for the foreseeable future. No matter what happens, the Democrats, by all accounts, are going to control both houses of Congress after the 2008 election. Their margin in the House, which is currently 31 seats, will, by even the most conservative estimates, increase to at least 50 seats. No advertising campaign or activist group could possibly swing control of Congress to the Republicans this year, and — given the Brezhnev-era-like reelection rates for incumbents in America — it is extremely unlikely that the House will be controlled by anyone other than Steny Hoyer, Rahm Emanuel and Nancy Pelosi for years to come.

The critical question, then, is not who will control Congress. The Democrats will. That is a given. The vital question is what they will do with that control — specifically, will they continue to maintain and increase their own power by accommodating the right, or will they be more responsive, accountable and attentive to the political values of their base?

As long as they know that progressives will blindly support their candidates no matter what they do, then it will only be rational for congressional Democrats to ignore progressives and move as far to the right as they can. With the blind, unconditional support of Democrats securely in their back pocket, Democratic leaders will quite rationally conclude that the optimal way to increase their own power, to transform more Republican districts into Blue Dog Democratic seats, and thereby make themselves more secure in their leadership positions, is to move their caucus to the right. Because the principal concern of Democratic leaders is to maintain and increase their own power, they will always do what they perceive is most effective in achieving that goal, which right now means moving their caucus to the right to protect their Blue Dogs and elect new ones.

That is precisely what has happened over the past two years. It is why a functional right-wing majority has dominated the House notwithstanding the change of party control — and the change in direction — that American voters thought they were mandating in 2006. As progressive activist Matt Stoller put it, “Blue Dogs are the swing voting block in the House, they are self-described conservatives, and they are perfectly willing to use their status on every action considered by the House.” The more the Democratic leadership accommodates the Blue Dog caucus — the more their power relies upon expanding their numbers through the increase of Blue Dog seats — the less relevant will be the question of which party controls Congress.

The linchpin for that destructive strategy is uncritical progressive support for congressional Democrats. That is what ensures that Democratic leaders will continue to pursue a rightward-moving strategy as the key to consolidating their own power. Right now, when it comes time to decide whether to capitulate to the demands of the right, Beltway Democrats think: “If we capitulate, that is one less issue the GOP can use to harm our Blue Dogs.” And they have no countervailing consideration to weigh against that, because they perceive — accurately — that there is no cost to capitulating, only benefits from doing so, because progressives will blindly support their candidates no matter what they do. That is the strategic calculus that must change if the behavior of Democrats in Congress is to change.

Democratic leaders must learn that they cannot increase their majority in Congress by trampling on the political values of their own base.

Let’s hope the entire nutroots base, responds to Glenn in the manner of Molly Bloom:

I was a Flower of the mountains yes when I put the rose in my hair like the Andalusian girls used or shall I wear a red yes and how he kissed me under the Moorish wall and I thought well as well him as another and then I asked him with my eyes to ask again yes and then he asked me would I yes to say yes my mountain flower and first I put my arms around him and yes and drew him down to me so he could feel my breasts all perfume yes and his heart was going like mad and yes I said yes I will yes.

Rasmussen reports:

The percentage of voters who give Congress good or excellent ratings has fallen to single digits for the first time in Rasmussen Reports tracking history. This month, just 9% say Congress is doing a good or excellent job. Most voters (52%) say Congress is doing a poor job, which ties the record high in that dubious category.

t’s just a shame that there is no Republican leadership whatsoever out there to offer a meaningful alternative.

Don Surber observes Congress cannot run a restaurant, but it still wants to run America’s $2 trillion-a-year health care industry.

Via Bird Dog.