Shut up, Peter

Oregon's Peter DeFazio has always been a loose canon, to be sure, and often off target. But he threatens the interests of those who agree with him when he gets it as wrong as he did yesterday.

Introducing Barak Obama, Defazio said of John McCain: "He says we need less regulation," said DeFazio in his introduction of Obama. "Hello! Wall Street mortgage meltdown, Bear Stearns taxpayer bailout, Enron, but, you know, I guess maybe for a guy who was up to his neck in the Keating Five and savings and loan scandal less regulation is better."

Defazio's ignorance of economics is striking. Especially for a member of congress who was in office during each of these issues, even if in the minority party.

Let's deal with Bear Stearns. The Fed did not "bail out" Bear Stearns, which was sold to another company for what, $10 per share and ceased to exist. Investors and employees of Bear Stearns got creamed. That's not a bail out.

By facilitating the sale for pennies on the dollar, the fed did make sure that those who had dealt with Bear Stearns were able to have contracts honored. This in turn helped others know that contracts would be honored. This probably kept the entire banking system from freezing up at a time when there were some serious concerns.

That's the problem with liberals Like DeFazio who are ignorant of economics: They are willing to destroy a system and ruin lives for the sake of their ideology.

Enron? A company run amuck. But as any cop or District Attorney will tell you, sometimes you can't prevent crime, you have to punish it. Especially true when the laws are gray, the economy is changing. There will always be bad guys willing to scam the system.

The American people voted in a president and especially a vice president willing to collude with Enron. Enron too, blew up, evaporated, died. The company got caught, ceased to exist (corporate capial punishment?) accounting standards improved, federal laws were passed.

Pre-regulation may have helped, but it may also have come at a cost even greater than that finally paid. It would have been even worse if great minds in economics like Peter Defazio were in charge.

The mortgage mess? Mr. Defazio, we need transcripts of all the speeches you made identifying the problems with mortgage backed securities and other derivatives when the asset bubble began in real estate. Thank you.

In the mean time, others will be analyzing the actual issues and crafting the minimum laws, probably reserve requirements for investment banks and greater disclosure, needed to deal with it.

Defazio helps no one when he shoots off his mouth, and his tendency toward self-righteousness makes him one of the less effective members of Congress. But right now, it could hurt the best candidate for president the left has had in a generation.

Shut up, Peter.

Obama in '08.