Thursday, February 19, 2009

Are the politicians deliberately destroying our banks?

A tornado of comments suggesting banks should be nationalized has pushed Bank stocks to their lowest levels. Was this necessary? Was this avoidable?

Bank of America, JP Morgan-Chase and Wells Fargo were good banks. They were well managed, those which resisted giving away bad mortgage loans were forced to do so by politicians like Barny Frank and civil groups who sued banks to give away bad loans.

Obama him self filed such a law suit against CITI bank, one of the victims of the subprime mortgage meltdown:
Obama Sued Citibank Under CRA to Force it to Make Bad Loans

Eventually, the banks were urged by the Feds to buy out and "bail" distressed banks like Wachovia, Bear-Sterns and others. This in turn caused the "good" banks to fall into their own equity drop spiral.

The final straw came in the last two weeks. Over the last couple of weeks, everyone and his brother has been saying "Nationalize banks" - the effect on the stock market is noticeable and I ask out loud: Was this deliberate? Was this part of a socialist agenda? Did the capitalist system collapse in a deliberate calculated move?

Gloomy assessment as governments consider bank nationalization
Sen. Graham says bank nationalization an option
Liberal Democrats: Nationalised banks should be used to ensure ...
Nationalization gains as an option
Even Republicans may back US bank nationalization
Buy American Why Obama should nationalize the banks
Should US take over weak banks?
In praise of nationalizing banks
BofA and Citi shares fall on nationalization fear
Gloomy assessment as governments consider bank nationalization

You can't start a story by telling how it ends. This story starts with coercing banks to give out bad loans, then coercing them to merge, then coercing them to accept spontaneously regulated funds (TARP), then talking down the economy, talking down the banks, and eventually talking aloud about nationalizing banks without doing so - causing the entire stock market to collapse.

I'm not a financial professional - these are all facts available throughout the news media and can be collected by anyone. It seems the government - deliberately or not (stupidly if not deliberately) has brought a national financial catastrophe on the nation. To top off this abysmal behavior - liberals have gone off and performed a spending spree, like a last meal of the condemned - our government went on to spend every dollar the public does not have in a spendulus law.

The story of life does not end - and the sun will shine again, however this story - the story of destroying capitalism will end with a well predicted result. The question we should all be asking is - what will happen next, 10 years from now - how will we recreate what is being demolished in front of our eyes at this very moment.

1 comment:

  1. Many times through the years, my father (RIP) and I discussed the direction this country was heading in. Many times we agreed, that this great nation needed another revolution. Now, on several other sites, revolution or civil war is a very hot topic. These are not fringe sites, fringe groups or radicals in any sense. They are good people who have worked hard to build this country, served proudly in the Armed Forces to maintain what our fathers and forefathers have bequeathed us, and we will NOT sit idly by while the liberals/socialists destroy Her.
    "A patriot must always be ready to defend his country against his government." Edward Abbey

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