Tuesday, March 24, 2009

U.S. Obama Seeks Expanded Power to Seize Firms

I ferget... Is This the Socialism Part or the Fascism Part?

"Goal Is to Limit Risk to Broader Economy"

Ah, yes. That 'equality of outcome thang' the leftists love so much. Ain't that right, Freddie Mac and Fannie Mae?

"The Obama administration is considering asking Congress to give the Treasury secretary unprecedented powers to initiate the seizure of non-bank financial companies, such as large insurers, investment firms and hedge funds, whose collapse would damage the broader economy, according to an administration document.

The government at present has the authority to seize only banks.

Giving the Treasury secretary authority over a broader range of companies would mark a significant shift from the existing model of financial regulation, which relies on independent agencies that are shielded from the political process. The Treasury secretary, a member of the president's Cabinet, would exercise the new powers in consultation with the White House, the Federal Reserve and other regulators, according to the document."

Because Mr. Geithner has helped to manage things so well up to this point. But, there's a huge difference between private companies which people chose to risk their money for gain, and bedrock banks for basic monetary service.

Yet, we can't say we didn't see this coming, starting last October when former Sect'y of the Treasury Henry Paulson was granted unprecedented powers to oversee the original $700 billion bailout (remember when that seemed like a lot of money?
"The government also would assume the authority to seize such firms if they totter toward failure.

Besides seizing a company outright, the document states, the Treasury Secretary could use a range of tools to prevent its collapse, such as guaranteeing losses, buying assets or taking a partial ownership stake. Such authority also would allow the government to break contracts, such as the agreements to pay $165 million in bonuses to employees of AIG's most troubled unit."

My guess is that last sentence is the fascism part.

Or is that the lipstick on a pig part?

Either way, Chavez and Mugabe, despite their personal contempt for our Dear Leader, must be so proud of his political aspirations.

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