One step closer to socialism.

We are moving one step closer to socialism. Today Geithner is scheduled to announce “sweeping expansion of federal authority”. A rose by any other name is still a rose and socialism called “sweeping expansion of federal authority” is still socialism.

I get it, we need some oversight in the financial industries but complete government. control is not the right path. Dictating the salaries and limiting the risk that companies can take to benefit shareholders is an anathema to prosperity. Risk = reward. What they are proposing is nothing less than a government take over of private industry.

From an MSN article: “In essence, the plan is a rebuke to raw capitalism. and a reassertion that regulation is critical to the healthy function of financial markets and the steady flow of money to borrowers”. Literal translation: The leaders of industry don’t know as much as the government when it comes to business; or socialism trumps capitalism.

There is an undeclared war against capitalism by the Obama. administration. Capitalism is what made this country what it is and to “rebuke” that fundamental principle is to rebuke the nation that was founded upon it.

From the same MSN article: Geithner plans to call for legislation. that would define which financial firms are sufficiently large and important to be subjected to this increased regulation. Those firms would be required to hold relatively more capital in their reserves against losses than smaller firms, to demonstrate that they have access to adequate funding to support their operations, and to maintain constantly updated assessments of their exposure to financial risk.

Government determines who is large and important? By what standard? They are trying to free up capital so that banks will begin lending and yet are going to require that the “large and important” businesses hold more capital. It seems like a case of contradicting goals. Maybe the federal government should adhere to this principle. .

And perhaps the scariest thing of all:
From the article: Under current law, the government can seize only banks. The administration yesterday detailed its proposed process, under which the Federal Reserve Board, along with any agency overseeing the troubled company, would recommend the need for a seizure. The Treasury secretary, in consultation with the president, then would authorize the action. The firm would be placed under the control of the Federal Deposit Insurance Corp. The government also would have the power to take intermediate steps to stabilize a firm, such as taking an ownership stake or providing loans.

Hello, I'm pretty sure this is the essence of socialism. Why not just call it what it is? Why hide behind the facade of regulation?

I do not think it in the best interest of our country to give the federal government the power to seize businesses under any circumstance. We have measures in place to deal with failing companies, its called bankruptcy. . They are hell bent on redefining the way this country is structured in the name of “the people”. Lest we forget the cause of this whole mess was government interference in the form of strong armed tactics forcing banks to make unsound loans to high risk borrowers. To be sure, the banks and Wall Street were complicit but that neither abrogates the responsibility of nor negates the lead role of the federal government in this financial meltdown.

As a general rule anything the federal government touches becomes bloated and inefficient. I challenge anyone to point me to a program that contradicts my assertion. Anyone? I eagerly await an answer.
For the complete MSN article click here:

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