I’m not the only one to notice what Obama’s up to

Here’s a fellow writing in the Wall Street Journal pointing out what I’ve been yammering about: Obama and his crew want total control of our economy and private enterprise.

The government wants to control the banks, just as it now controls GM and Chrysler, and will surely control the health industry in the not-too-distant future. Keeping them TARP-stuffed is the key to control. And for this intensely political president, mere influence is not enough. The White House wants to tell ’em what to do. Control. Direct. Command.

It is not for nothing that rage has been turned on those wicked financiers. The banks are at the core of the administration’s thrust: By managing the money, government can steer the whole economy even more firmly down the left fork in the road.

If the banks are forced to keep TARP cash — which was often forced on them in the first place — the Obama team can work its will on the financial system to unprecedented degree. That’s what’s happening right now.

 Under the Bush team a prominent and profitable bank, under threat of a damaging public audit, was forced to accept less than $1 billion of TARP money. The government insisted on buying a new class of preferred stock which gave it a tiny, minority position. The money flowed to the bank. Arguably, back then, the Bush administration was acting for purely economic reasons. It wanted to recapitalize the banks to halt a financial panic.

Fast forward to today, and that same bank is begging to give the money back. The chairman offers to write a check, now, with interest. He’s been sitting on the cash for months and has felt the dead hand of government threatening to run his business and dictate pay scales. He sees the writing on the wall and he wants out. But the Obama team says no, since unlike the smaller banks that gave their TARP money back, this bank is far more prominent. The bank has also been threatened with “adverse” consequences if its chairman persists. That’s politics talking, not economics.

Think about it: If Rick Wagoner can be fired and compact cars can be mandated, why can’t a bank with a vault full of TARP money be told where to lend? And since politics drives this administration, why can’t special loans and terms be offered to favored constituents, favored industries, or even favored regions? Our prosperity has never been based on the political allocation of credit — until now.

6 Comments

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6 responses to “I’m not the only one to notice what Obama’s up to

  1. anonymous

    Darwinian world…hedgies who can earn >$1Bn/yr paychecks in mkts like ’08, e.g., Paulson, Simons, Arnold, etc, are immune to gvt nonsense and charge whatever fees market will pay for their talent

    Moron IBers who can’t manage risk and end up w/TARP money deserve the consequences of their own stupidity

    For past ~10yrs, no one has chosen to work for an IB if talented enough to work at a leading HF…or can start own HF if market values one’s talents more generously….mark to mkt, baby

  2. ‘… the Congress, the Executive and the Judiciary have forfeited the largest part of the legitimacy afforded them by the Constitution. A government that puts aside the expressed will and the rights of the citizenry is an aristocracy no less than that of King George no matter how well-intentioned or enlightened it imagines itself to be. Such unconstrained governance … incrementally disconnects government from the governed until government isolates itself sufficiently from the people that it largely represents itself. … and the nation shall be fully comprised of we the people and they the government.

    Congress, the Executive and the Judiciary have come to believe it’s part is to direct the people rather than be directed by them, that they are the self in self-government. … they have come to believe they are not merely the faithful administers of legitimate power but legitimate power itself.

    Given their grand overreaching, … Considerable sectors of the populous believe the social contract close to voided. Unless there is an orderly, genuine and convincing return to the Constitution, in spirit and letter, the ruling class will, probably unwittingly, transgress so egregiously there occurs a precipitous change by a citizenry unwilling to be humiliated by further subservience to a relatively small cadre of elitists.

    Interesting times lie ahead.

    – ‘ol remus
    woodpile report, volumes 82, 83

    http://woodpilereport.com/html/index-80.htm#remus

    http://woodpilereport.com/html/index-81.htm#remus

    http://woodpilereport.com/html/index-82.htm#remus

    http://woodpilereport.com/html/index-83.htm#remus1

    and “President” Il Duce still won’t produce his birth certificate.

  3. John in Derby

    Read Rahm’s book “The Plan” if you really want to get agitated. Reminds me of another tome, called “My Struggle” written in German.

    BR,

    John

  4. Anonymous

    Returning the TARP money makes it obvious who can’t return it, which is why they were forced to accept it initially.

  5. gideonfountain

    Say, I don’t know what you folks are worrying about, this Obama fellow is BRILLIANT. Do you even KNOW what he’d accomplished before becoming President?? Loads of stuff. And his team? B-R-I-L-L-I-A-N-T. These people are top-of-the-line smart! We couldn’t HAVE better people “running” the country, so relax!

  6. Lorin

    so a friend of mine says the other night re: Obama, ” I’m all for him, we need change, the good kind. The rich have had it all long enough, now it’s everybody else’s turn..” I thrust my arm in the air and chanted “Class War!”…went home and cried…