Reid's Irresponsible Lie Costs Insurance Industry a Fortune
Harry Reid did his best to cause us to fail in Iraq by proclaiming that the war had already been lost, even as the Surge turned the tide in our favor. Now he's applying similar tactics to the economy, in hopes of whipping up enough financial chaos to sweep Obama into the White House. His disgraceful efforts appear to be meeting with success.
Senate Majority Leader Harry Reid is getting credit for sparking a blistering sell-off in insurance stocks.
MetLife Inc., Hartford Financial Services Group and Prudential Financial Inc. all fell by double-digit percentage amounts [yesterday] after Reid on Wednesday said the financial-system bailout plan was crucial because a large insurer was at risk of failing.
Reid specifically cited "a major insurance company — one with a name that everyone knows — that's on the verge of going bankrupt," according to Dow Jones Newswires.
But apparently Dingy Harry was just kidding — i.e., talking trash for political purposes.
A statement from his office said that Reid was "not personally aware of any particular company being on the verge of bankruptcy" and that "he has no special knowledge about nor has he talked to any insurance company officials," Dow Jones reported.
However, the damage has been done.
But with investors already on high alert after the Federal Reserve’s rescue of insurance titan American International Group Inc. on Sept. 16, and with the credit crunch still making funding difficult for even the largest U.S. financial companies, Reid's comments were the equivalent of pouring gasoline on a grease fire.
MetLife plunged $7.19, or 14.9%, to $40.96; Hartford dived $12.20, or 32%, to $25.91; and Prudential slid $7.15, or 11%, to $57.65.
Reid is following in the proud tradition of fellow Democrat Senator Charles "Chuckie Schmuckie" Schumer.
In late June, Democrat Schumer made public a letter he had sent to federal bank regulators, expressing concern that Pasadena-based IndyMac Bancorp was on the brink of failure.
When regulators seized IndyMac in mid-July, they accused Schumer of fomenting a panic run on deposits that made the bank’s collapse inevitable.
Due to liberal domination of the media, lefty politicians stand only to benefit from the economic ruin they inflict, as they can be assured that few people will know enough to hold them responsible.