Proposed New Bank Fees for TARP Repayment...
In mid-January 2010, Obama said that he wants to require large banks
to repay taxpayers for aid related to the financial crisis through a
special 10-year fee. Obama considers this part of his 'common-sense
financial reforms to protect people and the economy from the kind of
costly and painful crisis we've just been through'.
First, it appears our community organizer doesn't understand simple
business concepts. Naturally, the banks will pass along the new fees to
their customers (aka taxpayers). J.P. Morgan Chase CEO Jamie Dimon
agreed that this would happen. So Obama is merely pretending to
recover the lost TARP funds for taxpayers. But Obama officials claim
that shame will prevent banks from passing along the new fees. Yeah
Second, the new bank fees will not prevent this from happening again,
as Obama implies. It merely pretends to pay for the last financial
Third, it's interesting that the banks should be blamed for the
government's interference in free markets. It was the government's
artificially low interest rates that encouraged the purchase of assets
on credit that many people ultimately couldn't afford; and also the
government forcing banks to make loans to individuals in their
communities who couldn't afford them (e.g. Community Reinvestment
Act). The problem was exacerbated further by the failure to rein in
'liar loans' where individuals qualified for mortgages based upon
claimed, rather than documented, income. Then allowing loan
originators to securitize (bundle loans for sale) these dicey mortgages
that never should have been made, and sell them to unsuspecting
buyers as AAA investments, rubber-stamped by only those rating
agencies approved by the government. Sick! Clearly, government
officials were the architect of the recent financial crisis. Looks like
conspiracy and racketeering (as in RICO act) to me.
If Obama wants to implement common-sense financial reforms so
there is not another financial crisis, he must stop this populist
interference in free markets: banks should lend to those they want to.
Also, government must stop setting interest rates to control the
economy. They have no authority nor responsibility to do this––and
obviously no expertise. And even if there is another bank credit crisis,
it's easy to capitalize and spin off a few new banks on Wall Street,
getting taxpayer money back immediately from the IPOs. Finally,
knowingly selling garbage investment instruments as AAA securities is
called securities fraud. It will happen again if nobody goes to prison.
· Is Obama capable of understanding the simple economics that
caused the financial crisis?
· Or does Obama understand the cause of the financial crisis, but he
thinks all Americans are so stupid that we can't figure out what
happened and who planned it?