Thursday, May 7, 2009
CEO OBAMA, Why There's No Hand Wringing
The much awaited bank stress tests are beginning to "leak" out, and no big surprise, some of the biggest banks in the world need billions to stay afloat. Wells Fargo, Citigroup and Bank of America are just three that reportedly are going to be at the White House for a hand out. The remarkable thing is that in the past it was the consumer and the consumer watchdog groups that warned the public of unreliable lending practices or instability in a financial institution. Now it's the government telling us what's good for us and what's bad. This wouldn't seem like such a big deal if the government wanted what's best for you. For many years the government though has shown it wants what's best for the government.
What seems to be happening here is the the Obama administration through various tactics will force major players in business to take the money. Let's say a government report is issued giving Citi a D-. Citi may or may not be in that kind of financial shape. The question is never what is or isn't, but what appears to be. In this economy just the appearance of instability is the death nell for a major bank. The Obama administration though has stated, that none of the 19 largest banks will fail. How can in one breath the administration sound off on instability, then turn around and offer guarantees like that? The reason is power. The administration is on course to be a major shareholder in the most powerful businesses in the world. When you take the money, there is no turning back. When you let big brother in the door, whether it be personal wiretaps "for our own protection", or helping these "weak" banks, "for our own protection". When he is there, he is staying. When these so called "stressed" banks, take this cash, they are letting the bully in the door. The Scriptures tell me that "a borrower is a slave to the lender", If I'm in the position to pick my master it's never going to be a government.