Dodd states concern over Fed housing programs, but Fed could have bought most houses already

So I was reading this August 25 piece in CQ Politics about the reappointment of Ben Bernanke as Chairman of America's legalized banking cartel The Federal Reserve. Unsurprisingly, the piece that caught my eye was quote from Senator Dodd.

“While I have had serious differences with the Federal Reserve over the past few years, I think reappointing Chairman Bernanke is probably the right choice,” said Dodd, D-Conn., who has been critical of the Fed’s inability to use its power to stop the housing crisis. (by Phil Mattingly)

At first I thought it was absurd that Senator Dodd would make such an assertion. But the second half of the paragraph made his statement plausible... until I recalled a February 9 article in Bloomberg News.

From Bloomberg's Mark Pittman and Bob Ivry:

The stimulus package the U.S. Congress is completing would raise the government’s commitment to solving the financial crisis to $9.7 trillion, enough to pay off more than 90 percent of the nation’s home mortgages.

So what is Senator Dodd claiming?

Either Dodd has no idea what he's saying... or he's intentionally misleading people. Based on history, my guess is that he simply doesn't grasp the situation and doesn't know what he's saying. After all, Ben Bernanke has made it clear to him that an Audit of the Fed would harm the US economy. And that's that! End of story, Mr. Dodd! You just go back to those mean, nasty reporters and tell them that they should be afraid of what will happen... if we have to start answering questions. Enough is enough!

Tim White