In Washington Times op-ed published earlier this week, Rep Blaine Luetkemeyer complained about the Wall Street Reform legislation currently before Congress, recycling debunked talking points provided by GOP pollster Frank Luntz. Democrats "want to establish a $150 billion permanent bailout fund," Luetkemeyer wrote, and the proposals would make "bailouts a permanent part of the regulatory arsenal."
Luetkemeyer's goal with the bailout language-- a goal shared by many of his GOP colleagues in Washington -- is to scare the public, not inform or accurately describe the legislation.
Neither the House nor the Senate bills make a bailout "permanent." And the use of the word "bailout" is misleading on purpose. The bill does set up a $150 billion "dissolution fund," but that money is for dismantling failed companies that threaten the entire economy -- not propping up bad guys. Moreover, the funds for the "dissolution fund" comes from fees charged to big banks, not taxpayers.