Wednesday, January 27, 2010

Soros Heaps Praise On Obama's Banking Plans

This is a case of which came first, Soros' praise for Barry O's plans to attack big banks or his whispering in the ear of the TOTUS, and now taking a victory lap because the schmuck was actually stupid enough to try and carry through on the idea.
Analyzing attempts to overcome the crisis, Mr Soros had plenty of praise for Mr Obama's plan to split big banks - separating their commercial banking bits and their investment arms.

Even after the break-up proposed by Mr Obama, most investment banks would "still be too big to fail," Mr Soros told the lunch guests.

To contain these banks, he said all major economies would have to agree on a common set of financial regulation that set strict limits for leverage - how much money the banks can borrow to invest.

Without a global agreement, capital would simply move to the least regulated country.

However, if all major economies participated, they could exercise the necessary controls over money flow to prevent rogue states from circumventing the system - or stop "Goldman Sachs from setting up shop in Somalia," as one of the participants called it.
Look, I'm no economic genius, but while I would like to blame the banks for being the cause of our current woes, the truth is the blame goes to half a dozen parties. From government legislators who turned a blind eye to the practices at Fannie Mae and Freddie Mac and passed laws and issued opinions that lending institutions should do more to put everybody in a house, to individuals who never faced the reality that they were buying more home then they could afford.

Long before the real estate collapse occurred, me and my friends and neighbors would talk about how high the price of housing had gotten in our area. The conversation normally ended with somebody asking the rhetorical question of just who the hell do they think lives out here and how can they afford the price of a house.

Well, the truth is they couldn't, but the housing market was superheated and many of the parties involved were driven by visions of making a quick buck and nobody wanted the gravy train to stop. Well it did, and while it is easy to try to make banks out to be the bad guys, the truth is Freddie and Fannie not only pushed banks to make the loans, they backed them up.

Since Fannie and Freddie had friends in Congress, not a lot of attention has been given to them, and Congressmen eager to not have their enabling of this crash known have been quick to point fingers at bankers too.

So I got off track, but my real point is if you have George Soros out promoting your economic policies, the investment who was to blame for the collapse of the British banking system and the Japanese markets, then you had better look hard and try to find out what his motivation is.

Just like Warren Buffett, Soros does nothing without looking at how he can profit from it while supporting and financing groups that wish to stop anybody else from doing the same. This appears to be nothing more then one more way to achieve some sort of global ruling class. If countries aren't allowed to regulate business within their own borders, then it is just more piece of their sovereignty that they are giving away. Weak leaders are happy to have somebody else to blame for their inability to make the tough choices. Like our current president, they quite often blame inanimate objects or credit non living entities with being the cause of bad news.

Ever notice that bad news out of our government normally comes with the phrase of "The White House" or administration officials.

No, having a big socialists like George Soros trumpeting your economic policies should be enough to concern all Americans who do not ascribe to the Socialist viewpoint.

Information on the Bretton Woods plan mentioned in the article can be found here.

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