Obama and Banks: Like Oil and Water


http://www.msnbc.msn.com/id/34416646/ns/business-us_business

I have lamented previously on this blog that it is apparent that our president never ran a business.  His meeting today with the banks is proof.

Now, let me say that banks getting taxpayer money to give executives a big bonus chaps my hide.  I don’t like having to turn my thermostat down to 62 in the winter to save money while some bank exec is being paid enough to take a trip to Aruba.  For a month.  That being said, I understand why banks have to pay those salaries and bonuses, and unlike our president, I think they are necessary. 

The MSNBC article I linked to talks about the meeting between President Obama and the banking guys today.  The president previewed how this meeting would go last night on “60 Minutes” when he called bank executives “fat cats.”  I guess the president hasn’t looked at Barney Frank lately.  Anyway, he is basically demanding that banks loan more money to small and intermediate businesses.  This in spite of the fact that, according to the MSNBC article, “regulators” are requiring the banks to closely examine every credit application.  Who, exactly, are thes “regulators?”  My bet is on government beareaucrats.  So, on the one hand, the president calls these guys school yard names and smacks them across the face, demanding more lending, while on the other hand, government regulators tell these banks to lend cautiously.  I honestly think President Obama lives in a “Never Never Land Ranch” environment in his own head.  Recently, he accused businesses of “sitting on the sidelines” when it came to job growth.  What does he think?  That businesses in America are laughing and saying that they refuse to hire people because the government wants them to?  Are these guys evil Montgomery Burns types, pressing their fingertips together and hissing “Excellent?”  Businesses in America would like nothing more than to hire twenty people, fifty, a hundred.  But they can’t, because their business is down.  Sales are down.  Revenues are down.  Which means the business doesn’t need more people just to stay afloat.  It needs less.  Our president doesn’t understand the basics of this finanical crisis. 

Obama’s answer?  More regulation!  On Friday, the US House of Representatives approved the creation of new regulators who will make sure the “fat cats” aren’t allowed to get fatter.  This group will make sure that executives don’t get big paychecks and bonuses.  They will make sure that every move is closely watched by a beaueaucrat interested only in busting a “fat cat” down to an “alley cat.” 

Here’s how this thing should really have played out:

Banks make bad decisions in their business.  They become insolvent and file for bankruptcy and either reorganize and re-emerge, having learned a lesson about playing debt roulette, or they go out of business.  This is a free-market solution to the problem.  It would have hurt, sure, but the economy would rebound.  Now, we have a ridiculous debt, an economy that is still in a recession, and no jobs being “created or saved,” no matter how much of our money Obama and his crew spend on pork projects in Hawaii and Chicago.

Obama is partially right when he said the financial crisis was of the bankers’ own making.  The part he left out was how government regulations forced banks to become more creative about debt when they were forced to loan money to people who couldn’t afford to buy a house, so they could buy a house.  Now the banks would have billions on the books in debts that they knew they would never get back.  Sell the debt.  To the government.  They are a bunch of suckers, right? Government is more responsible than the banking industry for this.  Obama cannot admit this.  He can only propose government as a solution to a problem.  He cannot admit that government is the problem. 

But government is the problem.  At least a big part of it. 

Now the president plans on using the bully pulpit (and the bully checkbook) to force banks to make more loans they won’t ever get paid on.  It’s kind of like letting your six year old drive your car.  The kid understands basically how to do it, but not the particulars. 

Yeah, the president watching over banks.  What will be next?  Some super-humongus spending bill that…. never mind.  That happened.  A government takeover of healthc…wait.  They are trying that.  I got it!  Proclaiming Obama Grand Poobah of Whoville and giving him all the power and money he needs to destroy America… oh.  The voters did that a year ago.  Except for the Whoville part.  The Grinch still has his sights set on the roast beast. 

The arrogance of this man drives me nuts.  Here’s hoping one term is short enough.

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One Response to “Obama and Banks: Like Oil and Water”

  1. Randy Says:

    OBAMA AND THE BANKS

    He says that the banks should lend more,

    So we Americans can spend more,

    Go grab your plastic,

    Let’s do something drastic!

    Go buy a GE or a Kenmore.

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