CrackedWorld

After all the outrage over the Troubled Assets Relief Program (TARP), it appears that more government

Bail Out Bucks - Who's Next?

misgivings are at the crux of it. After-all the outrage over a $35 billion bail out to two of the big three auto makers, government power grabs were at the crux of it. The recent government spending spree has been nothing more than a well orchestrated power grab.

Case in point, CEO for General Motors Rick Wagoner was pushed out in return for government aid. Now renamed by political pundits across the nation as GM (Government Motors), the Obama administration claims they do not want to control GM but are making decisions regarding executive personnel.

Now, thanks to Stuart Varney of The Wall Street Journal we find that these sorts of power grabs have been taking place for several months now. The TARP funding of last fall has been turned into an attempt to control the banking industry:

• How much their top brass makes
• What industries to lend to
• What regions to lend to
• What favorite lobbyist to lend to

His opinion expressed in the Wall Street Journal earlier this week Varney wrote:

If the banks are forced to keep TARP cash — which was often forced on them in the first place — the Obama team can work its will on the financial system to unprecedented degree. That’s what’s happening right now.

Fox News colleague Andrew Napolitano (with the names and some details obscured to prevent retaliation). Under the Bush team a prominent and profitable bank, under threat of a damaging public audit, was forced to accept less than $1 billion of TARP money. The government insisted on buying a new class of preferred stock which gave it a tiny, minority position. The money flowed to the bank. Arguably, back then, the Bush administration was acting for purely economic reasons. It wanted to recapitalize the banks to halt a financial panic.

Fast forward to today, and that same bank is begging to give the money back. The chairman offers to write a check, now, with interest. He’s been sitting on the cash for months and has felt the dead hand of government threatening to run his business and dictate pay scales. He sees the writing on the wall and he wants out. But the Obama team says no, since unlike the smaller banks that gave their TARP money back, this bank is far more prominent. The bank has also been threatened with “adverse” consequences if its chairman persists. That’s politics talking, not economics.

Would some one please explain to me how this is constitutional?

How is that they are allowed to perpetrate   such financial atrocities?

Next they’ll be bailing out Warren Buffet and telling him how much money he is allowed to keep.

It came out that as many as 95% of banks in America had no toxic asset problems and didn’t need to be “Recapitalized,” as according to Heidi N. Moore of The Wall Street Journal. We now find out that the remaining 5% are the problem, not the entire industry. This 5% is constituted of the largest of banks in the country such as Bank of America, and Goldman Sachs.

The argument can be made that TARP was forced onto un-needy banks for reasons not nefarious,  I found several of these possible reasons at Scholars and Rogues:

1. Stronger Banks may buy up weaker Banks
2. Stronger banks may lend more
3. Mistrust of stronger bank’s accounting practices
4. Spreading around the risk like a Mutual Fund

This is all well and good but their is still the demon of socialist prospects. This indoctrination into “Liberal Fundamentalism” is just what the current administration wants. Government control of the Banking industry. Expect the Health care system to be next. Look for something similar to this for the Energy sector as well. They already have their hooks into the auto industry. And lets not leave out the Life Insurance TARP.

Long explanation short; Government shouldn’t give money to private sector entities because government shouldn’t be running private sector entities. Because that IS socialism.

I can see it now, once Obama is running the rest of America he’ll join us up with the European Union so we can slowly start to buy up those countries too.

Its a Cracked World, probably because the Federal Government is controlling more and more of it everyday.

Tags: Bailout, Economy, Politics