HARTFORD, CT - Peter Schiff, Republican senatorial candidate in Connecticut, today released the following statement regarding the House's passage of the Wall Street Reform and Consumer Protection Act of 2009:
"The financial reform bill is Washington theatrics at its worst. Not only does the bill completely ignore the root causes of the 2008 financial crises (artificially low interest rates provided by the Fed and government guaranteed mortgages) but it helps ensure that the next financial crises will be even worse.
More regulations will only exacerbate the moral hazards and credit misallocations that produced the last financial crisis and will lay the foundation for an even larger one to come. Instead of reigning in the Fed, this bill gives it even more power to inflict even more harm on our economy. Government created monstrosities Freddie Mae and Fannie Mac, the two largest systemic risk originators, are left unchecked and the harm they are doing to our economy is even greater now then before the crisis their reckless actions helped engender.
To add insult to injury, instead of admitting that its decision to bailout out Wall Street was a mistake, this bill now enshrines a mechanism for future bailouts into law. Unfortunately, rather then learning from its mistakes, Congress simply repeats them on larger scales."
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In 2006, businessman Peter Schiff warned of a coming financial crisis. Now, Peter sees the same problems repeating themselves in Washington. As Connecticut's Senator, he will stop Washington's spending binges that destroy jobs and lead to higher taxes. Born in New Haven, Peter lives in Fairfield County, where he raises his seven-year-old son.
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