Wednesday, June 17, 2009
Obama’s new Financial regulations that he will propose today will in my opinion wreck the incentive of innovation and risk taking that has made this country great over the last two hundred plus years.
One of the “nanny” state goodies being proposed by the Obama administration to address what they say were the causes of the financial meltdown.Is his plan to overhaul the nation’s “outdated” financial system.
Obama’s plan seeks to overhaul the nation’s system of financial regulations. The White House makes its case for this approach in an 85-page white paper that describes the roots of the crisis. Gaps in regulation allowed companies to make loans many borrowers could not afford. They believe that funding came from new kinds of investments that were poorly understood by regulators. They further believe and are saying that big firms paid employees massive bonuses, while setting aside little money to absorb potential losses.
By vastly expanding the mandate of the Federal Reserve, Obama is giving the quasi-independent agency regulatory power, that is not not answerable to Congress.Just as all 15 other Czars of Obama creation have no one to report to other than the president.
If you’re a company and have a complaint about how the Fed is regulating your business,good luck. You will get no satisfaction from our lawmakers.Ask the minority bond holders in the Chrysler and Gm “rapid” bankruptcy, or the dealers ho were summarily “fired” by the now government run car companies, how much satisfaction they got by complaining. It is said that some dismissed dealers were even given a gag order from the government! So much for free speech!
This is a nightmare for those who value free, independent markets. And it will get worse as time passes. Interpreting Obama’s broad goals will be the job of federal regulators who may take the opportunity to impose even more draconian restrictions.
I see no other end result from these regulations except the loss of American pre-eminence in world finance. What set us apart from other nations was the freedom enjoyed by companies large and small to generate capital for investment, for business and job creation, and for new industries and technologies. Obama will mostly destroy that. Risk taking will be frowned upon, perhaps even made illegal in some ways. It was risk taking by entrepreneurs, financiers, markets, and investors that greased the wheels of capitalism and created a financial system where the entire world was welcome to join in the joy of wealth creation.
Where would be today if Henry Ford listen to government regulators who told him he could not risk the millions he spent developing the first assembly line for automobile production?
Or if the government regulators had told Bill Gates or Steve Jobs that their ideas for personal computers were not worth the risk of asking people to invest in their dreams?
Obama is marching us directly into government control of all forms of business and the way we live our lives, even how and when we die if he gets his socialised medicine scheme passed!
There is no doubt in any ones mind who examines what he has done and what he proposes to do. That Obama is a hard core progressive who believes in the government control over our lives. He and his band of sycophants believe we “rubes” do not have the brains to fend for ourselves, so they will tell us( really demand us) how we should live from cradle to grave!
DO WE WANT OUR GOVERNMENT TO RUN OUR FINANCIAL INSTITUTIONS AND HEALTH CARE LIKE THEY RUN AMTRAK?