Senator Dodd, meet Kevin Bacon

A rather pyhrric victory day for Senator Dodd. This morning he got some love from the Obama veep vetters and this no doubt stokes his ego. The Senate finally passed its version of the Countrywide Takeover Subsidy Act of 2008, awaiting Nancy Pelosi and Barney Frank's imprimator http://biz.yahoo.com/nytimes/080711/1194793624976.html?.v=15

So after getting about three votes across a whole state after spending a year in Iowa to campaign, and watching his fellow Democrats authorize the Bush wiretap program, this should have been a great day for Dodd.

Nope. The wages of a year of inattentiveness to the financial economy are coming due, Big Time.

We find that while Dodd was trying to bail out Countrywide, the big GSE's who were supposed to be part of the rescue party have taken on tons of water themselves.

Both Fannie Mae and Freddie Mac were savaged on Wall Street today, as investors ran for the doors fearing the firms were on the brink of insolvency http://www.msnbc.msn.com/id/25635292

A huge California based mortgage lending bank failed this afternoon and was seized by federal regulatorshttp://www.latimes.com/business/la-fi-indymac12-2008jul12,0,6071779.story

And Dodd's reaction? "There's sort of a panic going on today, and that's not what ought to be. The facts don't warrant that reaction, in my opinion,” http://thehill.com/leading-the-news/dodd-seeks-to-quell-panic-over-mortgage-giants-losses-2008-07-11.html

Maybe the reason for the panic is Dodd himself wants Fannie Mae and Freddie Mac to enter the subprime market http://www.marketwatch.com/news/story/dodd-urges-subprime-role-fannie/story.aspx?guid={70633668-7A43-4F1C-9947-F45C323DC2F2}&dist=hplatest and the Countrywide bailout bill drains $8 Billion out of their coffers http://biz.yahoo.com/bw/080710/20080710005819.html?.v=1

There was a chance last year to have put out this financial inferno before it raged out of control. But the Chairman of the Senate Banking Committee was too busy visiting 55 counties in Iowa to get legislation passed to fix Fannie Mae, Freddie Mac and the subprime mortgage mess.  http://www.gwu.edu/~action/2008/ia08/doddiavisits07.html

While Chris Dodd was in the Field of Dreams millions of homeowners and investors faced a nighmare.

Now, it's like the panic in Animal House after the Deathmobile starts crashing into parade floats

So Senator Dodd, is it time for American investors and borrowers to, as Kevin Bacon , put it

"REMAIN CALM!!!!"????