Thursday, June 18, 2009

More Federal Reserve Power Grab

Government, with the help of organizations like ACORN, forced banks to lend money to people who could not afford a home, and did so at sub prime rates.
Government rewarded irrationality.
NINJA loans (No Income No Job) were made by banks.
Banks tried to make those bad assets profitable by packaging them up with other investments and selling them to investors.
The loans defaulted, and the financial dominoes began to fall.
Repercussions throughout the financial institutions were harsh.
Investment firms began to fail and government came to the rescue with taxpayer funded bailout.
Now they say it was the fault of the "free market" and not enough regulation.

Now the US government says the free market and greed is to blame, and has embarked upon legislation to cram more regulation onto the financial industry. The government now tells business who to hire, how much to pay them, and meddles in bankruptcies and decides what aspects of established contracts can be kept or not. It doesn't matter to the US government that they have no Constitutional power or authority to do what they are doing; the Constitution be damned. With the Federal Reserve, they have now effectively nationalized the banks and other financial institutions, nationalized the automobile industry and are looking to nationalize healthcare. The US government has set up "Czars" to unilaterally decide everything from car manufacture to bailout management, with no oversight from Congress or anyone else.

And now, legislation is pending by the Obama administration to give more power to the Federal Reserve.

This From Bloomberg News:

also from FreedomWatch: