The President’s Permanent TARP Bailout Socialism Bill

April 28, 2010 05:20


President Obama’s so-called Financial Regulatory Reform bill institutionalizes permanent TARP bailout authority across the entire financial sector, indeed, for any company that can be deemed involved in financial activity of any sort. Washington is operating today as if we have been conquered by a foreign power that has suspended our democracy and doesn’t care what the American people think.

By at American Spectator

The Tea Party, with overwhelming agreement from the America people, opposes any further TARP bank bailouts. But just as with the health care bill, Washington’s ruling Democrats are laughing off the Tea Party, and ignoring the American people.

President Obama’s so-called Financial Regulatory Reform bill institutionalizes permanent TARP bailout authority across the entire financial sector, indeed, for any company that can be deemed involved in financial activity of any sort. Washington is operating today as if we have been conquered by a foreign power that has suspended our democracy and doesn’t care what the American people think.

Bailout Socialism

The bill led by Senate Banking Chairman Chris Dodd (D-CT) (not running for reelection), which President Obama supports, grants permanent bailout authority to the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve, and the Treasury. They are empowered to force into receivership any company they deem in danger of default that is “substantially engaged in activities… that are financial in nature.” The Federal Reserve and the Treasury would enjoy the power to define what constitutes “financial activities.” The Federal Reserve can declare any enterprise “a non-bank financial company” which can be seized and liquidated.

This takes potential bailouts and takeovers well beyond banking, even beyond the financial sector, to almost any business in the country. For who is not engaged in activities “that are financial in nature,” which at least arguably includes credit cards, lending, borrowing, insurance, issuing stock, selling on time, participating in exchanges of any sort, brokerage, pensions, and buying, selling, and holding stock, securities, foreign currencies, commodities, or speculative instruments of any sort. The auto companies have had their own finance arms, and other large manufacturers facilitate financing for their customers as well.

FULL STORY



Help Make A Difference By Sharing These Articles On Facebook, Twitter And Elsewhere:

Interested In Further Reading? Click Here

Comments are closed