Oh crap! Just when you thought it might be safe to start back up the 401K, Roth or whatever, along comes the government to “regulate” the stock market. This isn’t going to be how they “took control of deficit spending” is it? Or added/saved two million jobs? Or “pivoted to jobs, jobs, jobs? Or “controlled nuclear proliferation”? “Saved” the car companies?
Yes, I’m afraid it is!
Stay tuned for a Conservative blog on that!
Anyone remember when the government railed against “redlining”? The Clinton administration said that a pattern of banks not loaning in high risk communities looked suspiciously racist. So they required banks to step up loans to these communities and had Freddie Mac and Fannie Mae guarantee a market for them. So, whattya know, these banks under threat of being sued by the government for discriminatory lending practices went out and made lots of loans waving all that “pesky” 10% down stuff. No job? No Problem! Thus began the mortgage meltdown and the attending disaster we have seen unfold. Want to hear who blocked regulation of Freddie And Fannie? Well just search U-Tube for those names and regulation hearings. The same old “right wing” “conservative politics” Republicans were saying we cannot continue loaning this way, and the same old suspects, Maxine Water and Barney Frank and others, are right there accusing those “right wingers” of not wanting poor folks to own homes….And worse! I guess that whole thing wasn’t the result of “government regulation”?
Of course it was.
So now these geniuses want to set themselves up to “regulate” big investment banks?
And the Secretary of the Treasury is going to be the sole arbiter of who is getting dangerously close to being “to big to fail”? That official is going to judge how “risky” investments are?
Can you imagine owning a mega bank and giving a large donation to the party out of power? Next thing you know, the Secretary’s office is on the line… Guess what? The government needs to “review” your operation to assure itself that you have not grown “too big” or made “too risky” a loan. What do you think THAT would do to your stock price?
Think that ain’t gonna happen?
The Goldman Sachs announcement was made in the middle of a trading Friday. Customarily a company that is target of an investigation is notified… Didn’t happen.
Customarily the announcement is done outside of trading hours… Didn’t happen.
Their stock price tanked.
Here’s how this conservative views that:
This is a power grab, I mean ANOTHER power grab. Those of us who support “conservative politics” need to watch the votes on this one CLOSELY! There is nothing conservative about allowing the government arbitrary power of life and death over business. If power corrupts, and absolute power corrupts absolutely, what does absolute power over the billions on Wall Street do? And 50 billion is just a slush fund. Our backstopping of the economy since the end of 08 is estimated to have cost 20 trillion dollars so far! So that $50 billion? That is cheese and wine money for the regulators!
The problem IS government regulation, and no the lack of it. The problem IS interference with normal business practices and policies by artificial constraints, and carrots and sticks, that warp the free market and cause it to do things it would not ordinarily do.
And those fine politicians we have in D.C. have no idea how to “regulate” anything!
Would you buy a used car from any of them?
How about let them run YOUR bank?
Invest your money?
Well… You are about to!