Wednesday, April 08, 2009

The Dark Side Of The Bank Bail Out

I do not want the government's fingers in my piggy bank! Apparently a lot of bigger banks don't either!

It leads me to wonder, why, if the government really does not want to nationalize the banks, are they not allowing banks who didn't want or need TARP money in the first place, return it?

As an example of what's happening, Investor's Business Daily tells of one bank which has no sub prime loans, no bad debts, no credit default swaps, didn't need, ask for or want the money.

They were told if they didn't take it there would be a multi-year public audit of their dealings. Now the government owns a 2% stake which gives them the right to control salaries, open access to the books, literally tell the bank how it can do business.

Again, I'm uncomfortable with the bully tactics the administration is using. To have guidelines for those that were truly bailed out is one thing; to force themselves on those who didn't want nor need their help smacks of extortion. If they succeed in nationalizing the banks and perhaps the auto industry, where will the strike next?

There is a place for government intervention, but intrusion into the private sector, under threat, where it's not needed is a dangerous precedent. I had enough of those during the Bush administration.

Keep a close eye on the charm offensive that's going on. It's only rhetoric. What counts is what's going on beneath the radar and it isn't pretty.


Rinkly Rimes said...

I'm sorry you sound so disillusioned. The charm offensive as you call it is certainly going gang-busters but who knows?

Anonymous said...

IMO it is the road to complete Socialism. As I recall, this mess occurred, in large part, because of the (then) govt's. threating Fannie Mae and Freddie Mac into giving these dangerous loans. The "charm offensive" as you so marvelously put it, is once again the tail wagging the dog. Misdirection to avoid public sonar to see what is going on beneath.

Word Tosser said...

Why is it with the government it is always the pendulum, of far right or far left, never in the middle with common sense...

There has been so much going on under the radar for some many years, that Washington will NEVER be clean...

As the saying goes, things are never what they seem... and sometimes that is so scary...when it is your own government.

Pretty scary, when their thoughts are, well if you did it right, and you don't need our help, well, we are going to make your life a living hell... because you must have done something illegal.

It's Just Me said...

I'm so glad you posted about this - It's just how I feel and I cannot understand why there is not more of this in the news? I, of course, have seen it on Fox but that doesn't count as we all know.