The crash of the financial and housing markets in 2007-08 brought cries for reform from many quarters. Still, there was bitter debate throughout 2009-10 on the approach and substance of any prospective reform. Ultimately, Congress passed – on a party-line vote – the Wall Street Reform and Consumer Protection Act, whose authors were Christopher Dodd and Barney Frank, two of the most questionable characters in recent Congressional history.
Many Americans are concerned that whenever Congress launches a crusade for “consumer protection,” somehow that’s not what we end up with. When the Dodd-Frank bill contained a Trojan Horse – the Consumer Financial Protection Bureau (CFPB) – a lot of people became alarmed. When President Obama wanted to nominate Elizabeth Warren to run the CFPB, flashing lights and sirens started going off.
Ms. Warren had never worked in financial services – in fact, she had never held a job in any financial industry – but as a Harvard law professor, she had written a variety of articles and books. To the Obama crowd, this made her the perfect candidate to set new rules to control our lives. While Ms. Warren’s particular expertise is the struggle of middle-class families in which both parents must work just to stay even, she hasn’t yet figured out that it’s the massive growth of regulation and taxes at all levels of government – principally promulgated by her elitist comrades – that is the core of the problem.
Ms. Warren is the embodiment of the Totalitarian Liberal. Her “we know better” viewpoint endeared her to Obama, who gleefully appointed her to an extra-governmental position after it became clear that there was no hope she would obtain Congressional approval to be Chair of CFPB. Obama give her a fancy title and she has been running the CFPB – without oversight – ever since. When she appeared before Congressional committees, she exercised her best lawyer skills, repeatedly making grossly misleading statements. When asked pointed questions by committee members, she sounded like a parakeet, squawking “We need a cop on the beat!” over and over again. And, of course, what better cop could exist than Ms. Warren?