cannedjam

Those of us on the right have thrown a pretty big fit over this whole GM government takeover. You know the part about Barack Obama firing the CEO of a private company and taking over the strategic vision of an entire domestic industry. Well, those on the left can and do justify his actions by the fact that GM asked for this. If they had not taken the bailout money they would be in liquidation right now. GM is on borrowed time, and as a condition of being allowed to survive they basically find themselves in a sold your soul to the Devil situation.

Well, you know what I say to those people on the left who can justify Obama’s actions in such a way? I say you are 100% correct. I am a fan of logic, and logic dictates that the board of GM asked for this, the federal government did not knock on GM’s door with a blank check and an open hand, no, GM came to congress and threw themselves on the mercy of politicians. And what do politicians love most? Power. Granted I think the government should have told GM to go fly a kite, but then again I am opposed to tripling the deficit.

So, those on the left tell us on the right to stop all of our whining and carrying on about Obama taking over GM, it’s not socialism, it’s not like he forced this on GM, hell they asked for it. All good points, all logical conclusions.

Now turing our attention to the banks and TARP. I have heard so many say, “if the banks don’t like the caps on bonuses then tell them to pay the TARP funds back”, or “I don’t know what all you are complaining about, the government control over TARP funded banks will cause them to pay us our money back faster, seems fair to me, kind of lights a fire under their asses”. Once again all good, surprisingly logical points from my friends on the left. 

And for these very reasons, following this very logic, some of the largest most self-sufficient banks in America are jumping out of their seats, apparently weary of that fire lit under their posteriors, begging to repay the TARP funds, funds they never asked for in the first place.

But not so fast. Now in this change-the-rules-as-the-game-is-played-era of government, Barack Obama is telling the successful banks that it would not be fair to the struggling banks that accepted the TARP funds, to allow them to repay the money. He is actually blocking banks form repaying the funds. When was the last time you ever heard of a lender refusing to accept repayments of a loan, especially a loan the borrower never asked for? I believe these are called prepayment penalties, and they are considered to be predatory lending practices by various industry watchdogs, including the government. Remember this was not in the fine print when the banks took the money.

So now we find ourselves in a situation where private corporations were heavily persuaded to take TARP funds (even though they did not need them in the first place), then as a result of taking these funds, congress and the president imposed significant and heavy handed intrusive and retroactive restrictions as a condition for their acceptance,  so in response, trying to escape these draconian regulations the banks now naturally and logically (just as my friends on the left have suggested) wish to repay the government back, freeing them from the binds of this oppressive situation (and in the process repaying the Treasury billions of dollars that they will now no longer have to print). The only problem is, Barack Obama now says the money cannot be repaid, the banks have to hold onto the TARP funds and (conveniently for Obama) the shackles that come with them. 

This is why I am asking those on the left to clarify for me as to how the federal government forcing TARP money on solvent, strong, viable banks, then using the leverage of TARP targeted legislation to control the actions of those banks, without letting them pay the TARP funds back, thus perpetuation such control indefinitely, for as however long Obama sees fit; how is that not a hijacking of an entire industry - socialist totalitarianism in full force? 

I swear I will credit anyone $100 into their paypal account if they can explain to me how this is not backdoor socialism. Anyone up for the task?

JAM Economics, Politics Obama, TARP