This is pure BS, and I wouldn't blame financial institutions at all for either refusing to pay or finding a way to totally cause this to blow up in the presidents face.
What is it?
President Obama, who through some sort of misguided logic, believes that there is some sort of populous outrage at the banks has decided to target certain financial institutions to pay back all of the bailout money that they wrote checks for. There are however several big caveats in this horse squeeze.
1) It will be levied on banks and financial institutions based on their size, regardless of whether they received bailout money.
2) They will have to pay even if they have already paid back bailout money given to them.
3) Carmakers, such as General Motors and Chrysler, which together received $65 billion in funds under the Troubled Asset Relief Programme (Tarp) will not have to pay. Also exempt are Fannie Mae and Freddie Mac.
This administration has in effect decided to paint some financial institutions as Public Enemy #1, while still working to meet the demands of the unions which control the auto industry.
Look, I don't blame people for getting upset when they hear about some of the bonuses being handed out recently, but I do not believe the government has the right to seize the assets of one company, who is not involved in the mess, to pay the debts of another business. That would be like throwing every kid in elementary school into the county jail if one of their students got caught stealing candy from a local convenience store. Even if the kid never entertained thoughts of shoplifting, merely being a member of that school is all the evidence needed to punish them.
This is just so wrong. Those financial institutions which did the right thing in their lending practices and get not get into trouble are being sent the very clear message that they were suckers. The next time the government wants you to make all kinds of unsecured loans they had best do it, because in the end they are going to have to pay anyway.
I think is about a clear of example of socialism in action that you can get.
Earlier this morning Fox and Friends had White House spokeswoman Valerie Jarrett and one of the hosts asked the question point blank about certain institutions having to pay for others and she launched into some sort of Socialist reasoning that involved saying that all of the financial institutions were guilty merely by being a part of the banking sector.
When that interview becomes available on video I will post it here. It is simply incredible.
For everybody else, you need to be very worried. How long before they blame the housing construction sector for the slow down in building new houses and decide to penalize them. Or how about how everybody who buys a Ford instead of a vehicle from their protected bailout entity GM, who gets slapped with a fee to support the greater good known as the auto industry.
Health insurance companies need to line, since they are certainly being painted as the enemy of their healthcare legislation. If the government takeover of healthcare fails I see some severe penalties coming for them to punish them. Big Pharma seems to be in a protected class status by virtue of getting on board with the administration and trying to push the legislation through and by spending vast quantities of money in the "right" political campaigns. (See: Coakley, Martha) It seems it is okay to send millions of dollars to support liberal candidates but it is somehow immoral or even now verging on illegal to pay bonuses to your employees or make a profit. Profits I guess are supposed to be funneled directly to the DNC now to avoid punitive measures.
What Obama is doing is wrong, plain and simple. Get mad at executives bonuses if you want, but we should never stand behind any plan that allows the government, which at the end of the day basically is seizing assets at the business end of gun, they do have federal law enforcement agencies after all.
More on this third world country edict is here.
UPDATE: As promised here is the video from Valerie Jarrett's appearance on Fox and Friends this morning
"...well it's not just the banks, it's financial institutions, it's bank holding companies, it's insurance companies. They are the ones that are principally responsible for creating, for taking the risk, creating the financial crisis, so they a collective obligation as the law requires to be responsible for paying it back. So, yes we think it's fair, yes, we think they can continue to that and continue to do their business..."
Not a single finger is pointing back towards the government which put in place all of the rules and regulations that actually put this crisis in motion, instead it is all the fault of those greedy capitalists.
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