Maybe I am wrong but this scares the crap out of me. Chipping away....what is next? Your business?
The power to seize and liquidate banks was based on Federal deposit insurance and the need for the government to be able to provide for an orderly close out of illiquid banks so that the overall stability of financial markets would not be destroyed as it was in the Depression. Today, the money system is much more complex. Bank holding companies that were basically established to circumvent state and federal regulation now have more of an impact on financial stability than traditional banks as the current crisis has made clear.
To protect the financial system, the federal government has stepped in to protect creditors of illiquid institutions. However, it has not had the tools to allow it to liquidate illiquid institutions forcing the type of abortion we have at AIG and could end up having at places like Citigroup. While we could theoretically allow these institutions to declare bankruptcy, that type of abrupt failure endangers the overall structure of financial markets as was illustrated by the failure of Lehman Brothers. It seems to me that we cannot afford to permit unregulated companies to play a central role in the operation of our national and international financial markets. Too big to fail means, I believe, to big to live without oversight. Part of that oversight requires that there be better mechanisms for managing insolvency in a way that protects the balance of the financial industry. If that existed now, AIG would now be out of business as it should be and Citigroup would probably be headed in the same direction.
From each according to his ability, to each according to his need
1. Attempt to seize control of census-Whitehouse control
2. Attempt to place salary cap on execs recieving Tarp funds-Whitehouse control
3.Attempt to stop bonuses for employees of companies recieving Tarp
4. Attempt to extend salary caps to businesses not recieving Tarp or Bailout money- Whitehouse control
5. Attempt to place high level of control on states recieving bailout cash Whitehouse control
6.Attempt to take over investment firms who are in trouble regardless of weather they are a financial institution or not Whitehouse control
HUGE power play for control by Obama, hell, who needs a Constitution when we have one man who is so brilliant and worthy:(
I just wonder who's power he will want to usurp tomorrow
So the FDIC should not take over banks that are in danger of failing either? I have a feeling that most of you would be giving an "Amen" to the government if they saved a bank in which you had over the FDIC limit.
The government's role is to keep us from running into the problems we had when Hoover was president. No one wants a company to be taken over if no one is affected (owners, shareholders, vendors). But, when a company's collapse potentially affects the entire U.S. economy, they need to do it.
Hoosier, it sounds like you would like U.S. air quality to be like that of Mexico City. Should we just let plants spew out emissions? Should we let plants dump toxic material into rivers and bays? Should we let people throw trash out of their pick-ups as they are driving down the road?
I agree with you on burning coal and clean-coal technology. Should we force businesses to pay for it or is that a government expense?