Connecticut Local Politics

Mark Davis interview Sen. Dodd on WTNH (you can see the video and transcript of the interview at ConnPolitics.tv. There are several illuminating exchanges. Davis at one point tried to get Dodd, chair of the Senate Banking Committee, to take some responsibility for the mess:

“…Reacting negatively – people on the street here who know that you’re the senior senator and chairman of the Banking Committee, and moved to Ohio [he meant to say Iowa--GC] earlier this year to run for president, and have taken large contributions from these institutions, are saying to me you are partially to blame for this deregulation mess as well.”

Dodd responded, before launching into why the administration was to blame, by saying “Well, that’s wonderful Mark, that’s great.” And, you know, it is kind of wonderful, in a way, that that’s what people have been telling Mark Davis.

Another exchange:

Mark: “But don’t you believe there is enough blame to go around? It’s not just the administration. People are telling me…”

Sen. Dodd: “No I don’t, Mark…”

Mark: “… that they blame the Congress too…”

Sen. Dodd: “No I don’t, no I don’t, Mark. Not at all. This was not a natural disaster. This was avoidable. This was the failure of regulation. No cops on the beat.

He didn’t seem particularly happy that that line of questioning came up.

So does Dodd bear some responsibility for the current financial mess? Does Congress for failing to act in some way to prevent it? Or does the blame lie entirely with the administration which has championed deregulation for the past nearly eight years?

Here’s the other exchange that kind of bugged me:

Mark: “But will the Congressional version of this have some sort of additional stimulus as has been rumored for the average person?”

Sen. Dodd: “Well, I hope it does. If this is just about, you know, purchasing illiquid debt, bad mortgages from financial institutions that made those loans, then I think the public will react negatively.

Wait. What’s this? First, this is going to be in some way about purchasing bad mortgages (Dodd’s mortgage, I assume, is still good) from failing financial institutions. This isn’t a big surprise, but it gives us an idea of what the thinking is. However, it seems to be Dodd’s assumption that unless there’s some sort of “stimulus” thrown in for the little guy that the public is going to react negatively. However, throw in the stimulus, which is basically just making MORE debt we’ll have to pay back later, and all will be well!

Sorry about the ruined economy, and the fact that you’re stuck with the bill for it. Here’s $300. Feel better? Now go buy an Xbox.

Hooray. Anyway, go watch the interview. Dodd seemed both tired and irritable, which isn’t surprising.