The White House will be crowing about the evil banks and how they are looking out for us by assessing fees to the banks that received TARP money.They will also tell you that the fees will be used to reduce the deficit.Neither,of course,are true.
There are several issues here.Many of the banks never wanted the TARP money,yet were forcibly made to take it by the administration.It was a control issue all along and this is just furthur proof of this.
Taking a page from the Alinsky playbook,they are now isolating and demonizing the banking industry.The audacity of these banks to actually make a profit.It would appear the natural extension of that logic would be to encourage bailed out companies to fail instead if success is the evil result.
The fees will reduce the deficit?Such a ridiculous premise that it hardly bears commenting on.Maybe we should just label it the banking trust fund because it's headed to the same black hole that the SS and medicare/medicaid trust funds were swallowed up in called the general fund.Much easier to funnel it to your special interests this way.
The fees paid by the banks will of course be paid by you the consumer as corporations never pay taxes.They merely collect them from their customers thru higher fees and other related costs of doing business.This is another of those indirect taxes we all love.
Certainly nothing groundbreaking here as this is just standard politics.As usual the media will play along.Whatever the industry of the moment is,they get the brunt of criticism about profits.In recent years,we've had the tobacco industry,the oil industry and the pharmaceutical industry all in that position.Now it's bankings turn.
Americans had better get over it.Outlandish bonuses,golden parachutes,preferred stock options and all the other bennies handed out are part of the game.If you believe that corporations are in business for any reason other than pure profit,you're a fool.If that leaves a bad taste in your mouth,than you should fully support Obama and the movement to crush capitalism.
As usual,the government role as the enabler to all of this will be overlooked.The unconstitutional bailouts.Providing banks nearly free money from the Treasury because of Bernanke's policies.Relaxing regulations that allowed investment companies to be considered commercial lending banks.
The government dangles the carrot to encourage this type of activity and then demonizes those who participate.Just like a crack dealer handing out free samples.They provide the air pump and needle and let the unsuspecting blow up the balloon and when the bubble bursts,they will be right there to pounce.This is the point where we are told the government is the only one that can step in and save us from some systemic risk.All you have to do is give away a little bit more freedom and control.You've now become an addict.More to come...