On Wednesday, President Obama appointed Richard Cordray as head of the Consumer Financial Protection Bureau “without Senate approval under the constitutional provision for making appointments when lawmakers are in recess.”
This appointment begs an obvious question. In an era of runaway government spending, why the heck does the country need the Consumer Financial Protection Bureau?
I think the answer is simple:
To protect stupid people from themselves.
Nothing seems to be anyone’s responsibility anymore. Do you make $1,000 a month, but you signed up for a interest-only 5-year ARM on a $500,000 house? No problem. Call the CFPB and complain about your manipulative mortgage broker. It’s not like you need to understand how an ARM works before you buy a house it would take you about 42 years to pay off just the principal, assuming no taxes, no interest, and every dollar you own pays the mortgage each month.
In his rabble-rousing speech, Mr. Cordray suggested that, “nearly 20 million American households use payday lenders and pay roughly $7.4 billion in fees every year.”
So what? If you are daft enough to take out a 20% weekly interest pay-day loan, then you deserve to pay a $370 penalty for your stupidity. The taxpayer should not have to bear the cost of an agency that caters to glue-sniffing cretins.
In fact, from henceforth, the CFPB should be renamed the Cretinous Fool Protection Bureau, because it protects cretinous fools from shiny object syndrome.