Financial Reform Bill Another Step to the Left


Since the healthcare debate has died down, you may think that we need not be vigilant over what the administration and congress are up to.

You would be wrong.

Up for a vote this week is a “financial reform” bill which, if enacted, will unofficially nationalize financial institutions who may or may not have done anything wrong. 

This bill sets up a beaureaucracy that monitors banks and financial institutions, along with insurance companies, and determines if these institutions are too big to fail.  Or if they might be getting too big to fail.  Or if they could sometime down the road get too big to fail.  Or if they are doing something underhanded.  Or if they might think about doing something underhanded. 

What could happen to one of these companies?  The government will destructure these companies and oversee their shutdowns.   The government will break up companies into smaller companies.  The government will decide who works on the executive boards of these companies.  All based on the judgement of a commission that is not answerable to anyone but the White House. 

Call me crazy, but I don’t think the president will be able to come up with anyone to run this commission who has ever worked for a bank or knows the first thing about the operation of a financial institution.  He couldn’t find anyone to serve on his cabinet who isn’t or wasn’t a radical or a tax cheat, so given this level of vetting, I don’t have much confidence in his ability to choose a commissioner for this task. 

Any of you have a problem with the government making these kinds of decisions?  What would stop them from going after other PRIVATELY owned companies who openly disagree with or criticize the administration?  What if they decide your company, who happens to have a division that does investments but is less than one percent of your company’s revenue, is too big to fail and needs to be broken up or shut down?  Maybe your company isn’t organized and refuses to organize.  Given Obama’s love for labor unions, this isn’t that crazy. 

Obama is going to use the same rhetoric he has used for everything.  Wall Street fat cats caused this crisis and they need to be punished, so we are going to put a law in place that gives government ultimate power over these guys.  It’s the equivalent of having parental controls on your computer.  If your ten year old visits an all boobie all the time site, you take away his computer privileges.  Except that Obama and his band of socialists will affect the lives of hundreds of employees at a time. 

I’m not on board with Wall Street doing whatever they want; to the contrary, if they do business badly, these companies should fail.  No bailouts, no taxpayer help, nothing.  This bill also sets aside $50 billion for future bailouts, paid for by the financial institutions.  But at the end of the day, if there are bailouts, our tax dollars will pay for them, regardless of how much is stolen from private companies to cover them. 

This is the same old class warfare tactic used all along.  Don’t buy it.  These banks finance a lot of business expansion in this country.  If there are bad guys on Wall Street, they aren’t the only ones. 

Check Washington DC.

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