Normally I don't read or recommend the New York Times, but take the time to read this story, it should be an eye-opening experience. A few relevant quotes, and a lot of questions:
The chief executives of the nine largest banks in the United States trooped into a gilded conference room at the Treasury Department at 3 p.m. Monday. To their astonishment, they were each handed a one-page document that said they agreed to sell shares to the government, then Treasury Secretary Henry M. Paulson Jr. said they must sign it before they left.What? Well, certainly these executives had already agreed to the deal and this was only a formality, right? Surely they attended this meeting fully aware of what they were getting into, greedily holding their hands out for government money? Right?
The chairman of Wells Fargo, Richard M. Kovacevich, protested strongly that, unlike his New York rivals, his bank was not in trouble because of investments in exotic mortgages, and did not need a bailout, according to people briefed on the meeting.Wait a minute, at least one of these banks had made wise choices, stayed out of the mortgage mess and WASN'T on board? Hm. Surely they were allowed to opt out? Take their chances? Trust to their own judgement?
What happened during those three and a half hours is a story of high drama and brief conflict, followed by acquiescence by the bankers, who felt they had little choice but to go along with the Treasury plan to inject $250 billion of capital into thousands of banks — starting with theirs. ...
...But unlike in Britain, the Treasury secretary presented his plan as an offer the banks could not refuse. “It was a take it or take it offer,” said one person who was briefed on the meeting, speaking on condition of anonymity because the discussions were private. “Everyone knew there was only one answer.”...This should send chills down our collective spines. This is an unelected government official that has just been given a 750B blank check flexing his muscles Mafia-style. "We've taken the liberty of writing your confession, you're welcome to sign it... sure would be unfortunate if something were to happen..." Of course, this is a last resort, there are no other options, these banks NEED this intervention to function. Right?
Kenneth D. Lewis, the chairman of Bank of America, also pushed back, saying his bank had just raised $10 billion on its own. ...
... In an interview on Monday, before the meeting, John J. Mack said his bank, Morgan Stanley, did not need capital from the Treasury. It had just sealed a $9 billion deal with a large Japanese bank.Hm, apparently financial professionals are able to work on financial problems without Big Brother buying shares in their companies.
With every buyout, bailout, and safety net that the Federal Government provides, our country falls farther and farther from it's roots, foundations, and principles. This is disheartening when it is done with willing accomplices in the private sector. When it is done TO an unwilling company it is maddening, criminal. That's not a bailout, it's extortion.
This begs two questions that need answering:
What CAN we do?
What SHOULD we do?
Paulson is not elected Bernake is not elected. They were appointed by the party of "fiscal responsibility." Normally my response to questions of this nature is "elections matter, vote conservative." However, apparently, in this case, elections did not matter. Would the response to this "crisis" have been MORE socialist with Kerry or Gore as president? I ask again, what can we do? What should we do? Should we do anything?
~ Gabriel
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3 comments:
Sometimes I wish we lived in Old Testament times... when God would send prophets to tell his nation to turn back or certain destruction would ensue. Instead we are flailing around in our own ego-centric, humanistic, vile cluelessly watching the world as we know it crumble around our ears. If we had a prophet then at least when it was all over we could have a good "I told you so." But as it is, all we're going to have is the selvages of a once great nation in the hands of some pagan nation who has come to put us in our place. And everyone will be asking "what did we do wrong?" There is nothing new under the sun; the same thing always happens when nations turn from the foundations of greatness on which they were built to some meaningless idol. I feel so helpless while I sit back and watch it happen. What will the world be like for my little ones?
What has been happening in the past few months is chilling. This has been a long time coming, but I am astonished at the blatant attitude from most of our 'leaders' from all sides.
I didn't think a lame duck president could do so much harm to our republic.
Susan, thanks for stopping by, I enjoy your writing on Illinois Review and check in Corn and Oil periodically as well.
Yes, the last few months have indeed been chilling. The blatant arrogance and disregard for our Constitution stunning. Not COMPLETELY a surprise, but the arrogance associated with it has been a bit shocking.
I don't know how much I'd lay at the feet of our lame duck president. He does share a good portion of the blame, but he didn't write these bills and vote for them. He did sign and campaign for them of course, but he couldn't have done it without Congress.
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