Socialist Salvation
Your lips say no no but your eyes say……………………….Well, actually your lips say no no and yes yes at the same time.
Less than one month ago President Barack Obama stood behind the podium at a prime time televised White House press conference and bemoaned the work load of his 100 day old presidential stint like a beleaguered laborer given yet another task by the boss. “I don’t want to run auto companies and I don’t want to run banks” he said. “I’ve got two wars I’ve got to run already. I’ve got more than enough to do.”
The president was referring to the impending Fiat/Chrysler partnership which eventually turned into a bankruptcy and the presidentially mandated removal of General Motors CEO Ken Wagoner and a GM business reorganization, which will eventually turn into a bankruptcy as well. Both auto companies received a considerable taxpayer funded bailout to help keep them in operation prior to their inevitable filings. He was also referring to the banks that received billions in taxpayer dollars through the TARP program to help insure their continued solvency.
But now, only a few weeks later, the Obama administration is not only remaining intimately involved in the workings of companies that took taxpayer dollars, they are looking at imposing their distorted view of “best practices” into the inner workings of financial companies that received no federal TARP money.
The intent in this latest chapter of “Obama Knows Best” is clear. Take control of private industry and socialistically dictate profitability. The implications of this level of nationalization is stunning.
It is particularly troubling in light of the recent revelation that several of the banks that took TARP money did so because they had no choice. Minutes from an October 2008 meeting with then Treasury Secretary Henry Paulson revealed that 9 banks were instructed that they would be taking TARP money whether they wanted it or not. The justification given by Paulson for this approach was that any confirmation of weakness in the banks that actually needed the money to survive could lead to a complete collapse in faith for the entire banking system leaving even those healthier banks vulnerable. The upside to this revelation is that at least some of the banks were savvy enough to foretell the consequences of this handout.
The demands on financial institutions that took TARP funds are easy to politically justify. Congress has gone to great lengths to portray these major banks and their CEO’s and directors as uncaring, greedy risk takers that were all too willing to use taxpayer dollars to buy fancy new office furniture and pay for lavish bonuses and entertainment. The obedient media has been gleefully willing to join in this sensationalized and fallacious character assassination.
The purpose of this portrayal is simple. It allows the beltway bozos to insist that the banks are incapable of being responsible and therefore congress must act to protect the American public from their rampant greed. It is as if bank directors, whose very livelihood depends on sound financial decisions, are unable or unwilling to identify and enact “best practices” in running their businesses.
To compound the potential for the disaster Representative Barney Frank as Chairman of the House Financial Services Committee is proceeding with his attempt at legislation that would strengthen the governments control over compensation at financial institutions based solely on what the government feels is appropriate at the time.
Frank’s consistent and proven financial mismanagement skills and the resulting collapse of world-wide credit markets has reached legendary status. As a controlling interest in the political debacle that put Fannie Mae and Freddie Mac into a financial death spiral that destroyed American property values and placed the entire world’s financial system in serious peril. His continuing and unwavering political gamesmanship prevented the necessary oversight that could have abated the eventual ruinous implosion. With his indefensible record of financial ineptness Frank would have a hard time getting a job as a bank teller at most of the financial institutions he is now looking to impose control over.
Putting this Democrat Congress in charge of making business decisions for banks is like taking the captain of the Titanic and making him the pilot of your plane.
