RUSH: Obama is on television again, and he’s from the East Room of the White House, and he’s taken over the financial industry here — the credit industry, whatever it is he’s taking over — and he’s recycling every lie! Every one. Every lie that was told during the mortgage crisis: that the lenders lent to people that shouldn’t have been lent to and it was the lenders that were predatory and that the regulators were out to lunch.
Greetings and welcome back, by the way, Rush Limbaugh, the EIB Network and the Limbaugh Institute for Advanced Conservative Studies.
I often talked about Ronaldus Magnus. Now, Jeremy hang on we’re coming right to you here. I often talk about Ronald Reagan often and he did not have a conservative media supporting him and he did not have a Republican majority in the House or Senate. Yet he was able to get done he went he wanted to do, for the most part, especially in the first term. He had the ability — with his communication skills and the power of his personality and issues — to go over the heads of the media and communicate and connect directly with the American people but also he had three things. Reagan was a three-legged stool. Three things he said needed to be done coming out of the disaster of the Carter years. We need to defeat communism, we need to rebuild our military, and we’re going to cut people’s taxes to restore economic growth.
Now, all three of those things are very understandable. Every day Obama’s out there with his professorial stuff that people take notes at Harvard and so forth and try to understand for final exams and then people can’t keep up with it. Every day it’s something new and not only new, it is huge! Cap and trade one day, then the next day we’re back to nationalized health care. The next day we’re going to run the car companies, then the next day we’re going to run Wall Street. The next day we’re going to cap the pay of everybody that gets paid in this country at the executive level. Next day it’s back to health care, then today it’s taking over the banks again. Every day, it’s just… It never stops, and at some point this is going to have people if it hasn’t happened already people’s heads are going to start swimming. And, by the way, have the sea levels started coming down yet? Remember Obama said he was going to do that. (sigh) So it’s just breathtaking to watch this. It’s also maddeningly frustrating because I know at the same time there are some people out there lapping it all up.
RUSH: I’m sorry to do this to you, folks. It’s a teachable moment. Let me find the stupid thing. Here it is. All right, another lie. Another lie here, White House East Room, Obama announcing his regulatory reform plan.
OBAMA: It is an indisputable fact that one of the most significant contributors to our economic downturn was a unraveling of major financial institutions and a lack of adequate regulatory structures to prevent abuse and excess. A culture of irresponsibility took root from Wall Street to Washington to Main Street.
RUSH: Okay, so everybody gets blamed for this. We’re all to blame. We’re all culprits here. He’s the one shining knight, clean and pure as the wind-driven snow coming in here and fix it all up. It was overregulation. It was government meddling that caused this. It was all the regulations. Do you know…? I saw this today. The airline industry is regulated by the FAA. There are 1,000 pages of regulations, which sounds exorbitant, does it not? There are 132,000 pages regulating Medicare. One-hundred-and-thirty-two-thousand pages of regulations, and one thousand pages regulating air travel in America. How many damn regulations are there in the financial business? How many tax regulations and all that garbage? It just infuriates me, and it just gets worse, as you know.
OBAMA: Loans were sold to banks. Banks packaged these loans into securities. Investors bought these securities, often with little insight into the risks to which they were exposed.
RUSH: Stop the tape right there! What we’re talking about here is subprime, and he’s right but he doesn’t say ‘subprime.’ Those are worthless loans! They were made to people that couldn’t pay ’em back and the banks that were forced to make the loans tried to come up with a scheme to make them worth something. So they packaged them as securities or… These are the things that became the toxic assets, essentially. And people did start buying this stuff, figuring that something would happen to it to give it value. But all of this happened because Democrats from Bill Clinton forward, Barney Frank and Chris Dodd demanded — and ACORN demanded — that people that could not ever pay a loan back or even qualify for one be given one, essentially be given a house! They were threatened by Janet Reno and others and regulators who tried to stop this were in turn threaten by people like Barney Frank and Chris Dodd. All right, here’s the rest of this.
OBAMA: And it was easy money, while it lasted. But these schemes were built on a pile of sand.
RUSH: Government sand!
OBAMA: Meanwhile, executive compensation — unmoored from long-term performance or even reality — rewarded relentlessness rather than responsibility. And this wasn’t just the failure of individuals. This was a failure of the entire system.
RUSH: (silence) The cough button is sticking. A little Inside Baseball broadcasting language there. Ladies and gentlemen, the problem, the system, the only system that failed here big time was government. Now, I’m not exonerating Wall Street people or Main Street people. But I’m not going to tell you this: Whatever problems existed in the credit markets, in the loan markets, whatever markets you want to talk about, not one of them was caused by how much anybody made. Not one. Executive compensation? ‘Well, there were no risks, Rush. They got paid regardless.’ Let me ask you, something. People don’t understand how these people get compensated in the first place. Sometimes it’s exorbitant. It’s none of his business, by the way. It’s the business of the shareholders and the board of directors and this sort of thing. But remember when United Airlines, way, way back was just losing like General Motors was losing, and we learned one year that the CEO of UAL corp. that year made $1.7 million or something and everybody was outraged. ‘How in the hell is a guy presiding over a company losing billions make that kind of money?’ and somebody said, ‘They would have gone out of business if it hadn’t been for the guy. Yeah, they might have lost billions, but they could have lost more and been out of business were it not for the talents of the guy.’ You know, when people get involved in business they don’t know anything about and just use stereotypes and inuendo, which is what he’s trading on here… (sigh) Private sector compensation is none of Barack Obama’s business. It’s none of Bill Ayers’ business. It’s none of Bernardine Dohrn’s business. It’s none of Jeremiah Wright’s business. It’s not Rahm Emmanuel’s business. It is nobody’s business. And if a company is going to overpay an executive or a series of executives and they go south, then that’s the price. But we bailed ’em out! For the purposes of controlling them. Do one more before the break.
OBAMA: We did not choose how this crisis began but we do have a choice in the legacy this crisis leaves behind.
RUSH: Yip yip yip yip.
OBAMA: So today my administration is proposing a sweeping overhaul of the financial regulatory system —
RUSH: Right, right, right, right.
OBAMA: — a transformation on a scale not seen since the reforms that followed the Great Depression.
RUSH: All that means is that he and the Federal Reserve and Timmy Geithner are going to run it. We’re going to overhaul it; we’re going to run it. He blames his predecessors again. ‘We didn’t choose how this began.’ It’s time to man up, Barack. It’s unseemly to keep blaming your predecessor. Why stop at Bush? Why not go back and blame Hoover! We have to take a brief time-out. This is how he does this stuff. I just think it’s not playing as well anymore. All these words are not leading to the hope and change that a lot of his voters thought they we’re going to get.