After solving all of the world’s nuclear problems yesterday, President Obama will hold another summit today at the White House to solve America’s financial problems. Invited are members of Congress, some of whom played a role in getting us into this mess. Can you say Barney Frank and Chris Dodd? Sure ya can! Last December, the ‘Nut’-House passed it’s financial reform bill. The Senate is poised to debate and pass their version before Memorial Day. After reviewing both bills, I can say this, neither will succeed and, as things usually happen in Disneyland on the Potomac, either version will actually make the situation worse. A key point for each bill is the creation of a Consumer Financial Protection Agency (CFPA) to have regulatory and oversight powers over such things as credit cards, auto loans and home mortgages. The BIG problem is that the CFPA will be not be as independent as supporters claim, because it will be run out of the Federal Reserve Bank!

Yes, folks! The same people who create all of our fiat, debt-based currency, easy credit to mega-banks, and who allow speculators to commit financial arson daily will be managing the CFPA. Sort of like letting the fox guard the hen house. Also, speaking of the Fed, both bills create the Financial Stability Oversight Council (FSOC) to monitor bank solvency. Did I happen to mention that both the FSOC and CFPA will have representatives from the Fed on their management boards? So now the fox gets to watch TWO hen houses! YEA for the fox!

On yesterday’s episode of “The Keiser Report”, Max Keiser was asked by his lovely co-host, Stacey Herbert, about all that testifying that went on last week on Capitol Hill. Former Fed Chairman Alan Greenspan said they, the Federal Reserve, were right 70% of the time in their decision making. To which Max gave a blistering retort, “They were WRONG 100% OF THE TIME!” You tell’em, Max! What was even funnier was Max making soap bubbles during the program, since that is about all the Fed is good at, creating bubbles in our markets.

A poster, Caviar Emptor, at another great website for monitoring the world of scam-finance, ZeroHedge.com, gave us a brief history lesson on just how effective government oversight on the economy has worked thus far. 1887: the Interstate Commerce Commission (to deal with those evil railroads). 1913: The Federal Reserve (to deal with those evil bankers and foreign exchanges). 1914: the Federal Trade Commission (to deal with those evil monopolies). 1934: The Security and Exchange Commission (to deal with that evil stock market) [and Bernie Madoff, too!]. 1974: The Commodity Futures Trading Commission (to deal with those evil commodities & futures markets). Caviar suggests that Congress also set up the Credit Derivatives Trading Commission, to be chaired by Hank Greenberg, and the Currency Exchange Commission, to be chaired by George Soros. Barney Frank and Chris Dodd must be slipping for not thinking of those.

We can see just how well all of those have worked out so far, can’t we? Can’t we? Well, at least Obama can serve the Congressional leaders at his financial reform summit a good meal of Kobe steaks. In his mind, Obama probably figures they’ve earned it. Both bills combined amount to over 3,000 pages of utter stupidity. Now that’s a lot of stupidity! Over the next few days I’ll be detailing the blood and gore. My guess is that this monster will derail what’s left of the economy. For example, the House version sets up a $4 TRILLION dollar line of credit for future bailouts, courtesy of the U.S. taxpayers. The Senate version only sets up a $50 Billion dollar fund, which is supposed to be funded by the banks themselves. Either way, it says “Good Bye” to ’moral hazard’ and risk aversion and “Hello” to perpetual bailouts from here to eternity. Or more aptly, from here to oblivion!