These Folks Never Run Out of Bad Ideas

By Gary Howard

Today, President Obama has decided that his administration should strengthen its populist bonafides by pretending to get tough on everybody’s favorite bogeyman–big banks.

From the Wall Street Journal:

President Barack Obama proposed Thursday new rules designed to restrict the size and activities of the U.S.’s biggest banks, the latest in a series of administration moves to curb Wall Street.

The White House wants commercial banks that take deposits from customers to be barred from investing on behalf of the bank itself-what’s known as proprietary trading-and said the administration will seek new limits on the size and concentration of financial institutions. Read more…

According to the President:

“My resolve to reform the system is only strengthened when I see a return to old practices at some of the very firms fighting reform; and when I see record profits at some of the very firms claiming that they cannot lend more to small business, cannot keep credit card rates low, and cannot refund taxpayers for the bailout,” President Obama said Thursday. “It is exactly this kind of irresponsibility that makes clear reform is necessary.”

What he fails to mention however, is that many of the banks who are making record profits and record bonuses, and who recieved sweetheart bailout deals (Goldman Sachs), are filled with buddies of his economic team (Summers, Geithner, et al)–who are all former colleagues of one another.

From the same article:

Admistration officials said the new rules would force major institutions from J.P. Morgan Chase to Bank of America to decide the direction of their business. Banks shielded from risk through federal-deposit insurance, or aided in financial crises by low-interest loans from the Federal Reserve Board, would no longer be allowed to engage in trading unrelated to their customers’ interests, one senior administration official said.

So we should trust you guys to further police your friends’ business, when that’s what you’re supposed to  be doing already? No way. And these useless restrictions imposed on banks will inevitably affect consumers negatively.

This new false populism is just another tactic for the permnanent Obama campaign. Another bad idea, recycled (also known as trash) and repackaged.

How about untangling the federal government from big business and let them prosper or fail on their own merits–let people decide which banks are worth the risk of putting their money into and deal with the consequences of their decisions.

View the original article at Campaign for Liberty


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