We heard during the financial meltdown in September 2008 that some companies were too big to fail. Among these companies were many of our banking institutions and later our automotive manufacturers. But I am still perplexed as to what is the measure to determine which companies are too big and which ones should fail. More importantly why should the government get to choose which companies are to be saved and which ones go away.
I bring this up because our president,B-Rock Obama, listening to his now to be known incompetent economic advisers, has decided that the Federal Reserve should be the policer of which companies are to be saved. And we have those out there who do not think that this president harbors a socialist agenda.
The Fed was created and chartered to prevent banking panics, regulate the money supply and to supervise and regulate some banking practices in the U.S. not to act as a governmental bureaucracy to decide which industries and companies get to survive. We already see how government has been able to chose those industries thus far.
First we said that the Big Three automakers could not fail. They could not be allowed to go into bankruptcy. Too many jobs are in jeopardy. They must have a financial bailout even though all these companies really wanted was a government backed loan. Many business pundits and politicians openly discussed a controlled bankruptcy for Chrysler and General Motors but the government determined that they were "too big to fail" and bailed them out any way. Fast forward four months into the Obama reign and Chrysler was forced to file for bankruptcy protection even though they were "too big to fail."
Gone are the $8 billion that was already given to Chrysler. Now because General Motors has not come up with a viable business plan they too are being told to plan for a bankruptcy filing. Now the taxpayers will be on the hook for $15.4 billion that GM has received. But the Fed is being proposed as the group who will decide going forward which companies will get federal dollars for their survival even in the face of some of the obvious things that should occur when a company is not able to meet its obligations. Bankruptcy.
Americans should be outraged that Obama is proposing more of this sort of government interference in American business. Government, not George Bush, was the reason for the financial problems we currently have. The bureaucrats (government) that were charged with regulating and watch-dogging these institutions were not able to perform. The government, not George Bush, was heavily involved in the mortgage crisis. The government, not George Bush, is just "too big to fail" at its responsibilities yet B-Rock expects this same government to decide who the winners and losers are. Some say that we had a lack of oversight and regulations under George Bush.
I know that it has become popular to blame George Bush for our current economic crisis and everything that is bad or deteriorating in this country even though millions of Americans successfully prospered under the first 6 years of Bush. But for the current president to propose "more of the same government" oversight will only lead to industries that are politically connected being allowed to survive, i.e. newspapers! Bureaucrats only create bureaucracy not efficiency. By the time the Fed were to figure out that a company was in dire straits it would take 5 months to come up with a plan to save them only to tell them to file for bankruptcy two months later.
The government is not suppose to chose winners and losers. It is not suppose to determine when a company goes into receivership or bankruptcy. It is not suppose to be above the law and decide which creditors of a failed company gets paid first. It is not to be a representative or stockholder in a company. The government should be a caretaker of our tax dollars. We have too quickly become a country of government interference. The tide must recede and it must recede now.
These are my words! Please post yours!