Finance Reform = Government Takeover

It’s time to take our heads out of the sand about the agenda of President Obama and his insider supporters.  Having passed legislation that will give government bureaucrats the power over who gets medical care and who doesn’t, he has now set his sights on taking control over who gets money and who doesn’t—of every person in the USA through the alleged “Financial Reform Bill.”

In effect, if this Trojan horse legislation passes in its present form, the President will have control over every citizen’s savings and every enterprise’s finances.  It amounts to the nationalization of our financial and private economy.

It would give control over the economy to the Federal Reserve, the FDIC and the Treasury Secretary, the same regulators who were a large part of the cause of the financial crisis we presently find ourselves. If you Google “James F. Davis, The Cause of the 2008 Financial Crisis” you will find the details on who caused the economic problems we now face.

This bill gives the president’s political appointee, the Treasury Secretary, virtual dictatorial powers without any meaningful judicial review or restraint.  It gives him the power to seize any financial institution that he arbitrarily thinks is ‘too big to fail,’ replace the management and wipeout the legal stockholders equity and debt holders, i.e., your pension fund and/or savings!

The President already did this to General Motors’ bond and stockholders. He got the activist courts to disregard the law and essentially gave the company to the unions that were critical in getting him elected.

This “Financial Reform Bill” establishes an innocuously sounding “Consumer Financial Protection Agency.” This agency will have the power to approve or reject any kind of loan (including your home mortgage) by any company in the USA. It will create a huge bureaucratic bottleneck which will further hurt the economy, cost more jobs, increase costs, and slow consumer spending.

This bill gives an incentive for big banks to be irresponsible. It sets up $50 billion fund for bailouts for banks deemed ‘too big to fail.’

It also encourages more corruption as we have seen in such government controlled allegedly private companies such as FANNIE MAE.  They have already cost U.S. Taxpayers over $800 Billion.

Further, this legislation, sponsored by Senate Democrat Banking Committee Chairman Christopher Dodd, D-Conn., will create an “Office of Financial Research.” This will enable government bureaucrats to use their knowledge of market conditions and individuals’ private finances to benefit themselves.

This agency will be able to pay its selected employees over $200,000 a year. They will enable them to hire as many of their politically connected friends as they want without restriction. And they would not be required to answer directly to any elected officials.

If you know your history, this blatant an economic power grab by a democratically elected leader has not been seen since Mussolini in Italy, Hitler in Germany, and later, Perón in Argentina. All three of those government directed economies ended in disaster.  It didn’t work then and it will not work in this country.

If this bill passes it will codify the creation of an economic Fascist dictatorship in the USA. Fascists such as Mussolini and Hitler’s National Socialist Party (NAZI) were socialist—Socialists in the USA now call themselves Liberals—who were elected by promising economic improvements and security. Once elected, they were given powers to direct the economy similar to what is in this Financial Reform Bill.

Do your homework and check out the results of those governments’ directed economies. Those that do not know their history and continue to vote for charlatans are going to see a horrible repeat of something we have read about but never experienced personally.

James F. Davis is the president of Accuracy in Academia.