Fed to buy FRE securities 13-Aug-09 07:44 am
When TARP is paid back. Unfortunately Govt wont let them pay it back. Too much interference. Regulation is good. You would think we would have better regulation without damaging the business structure and profit motive of American Businesses. Without profit how can more jobs be created and businesses grow to create even more jobs. Seems like the congress has a huge conflict of interest in owning and controlling American business. I thought they were the stewards of protection of Americans, not controllers.
Take for instance the judge who thinks he is doing something wonderful by not allowing the SEC fine to be paid and continuing to dig (costing you the taxpayer more money and taking more fines from you the taxpayer, since you paid the tarp funds to the bank) At what cost? more taxpayer dollars. If he believes he has a duty to punish BAC then he is also punishing the innocent taxpayer who so dearly paid to supposedly help BAC recover from its potential demise. Funds were forced upon many banks and then told they cannot repay because the govt has gotten the return they deserve regardless if the funds were used, and because they don't meet the reserve requirements. I agree that the money did create extra money to be loaned out. All the pressure from congress for banks to maintain certain reserves so they could get a pass on the stress test has actually created shady business practices. It gives banks a motive to push loans on people creating massive refinances. Yes, it is good to some degree, but think about this a homeowner is underwater so a bank forces a refi and this give the banks 3000 to 3500 ,sometimes more or less, in fees for every close. Multiply this by every refi and the banks got huge amounts of money to bolster their reserves. Do you really think that every banker out there isn't pushing these refi like crack to a junky. Of course they are and for some it is good. What about those people they force to buy points to get the 5.25% rate even further driving up their fees. My point is by forcing banks to such a huge capital reserve to protect from losses so that they can get a pass status immediately from congress has actually generated more unscrupulous behavior. I do like the banks and think they will do very well. I am just not so sure we ought to allow govt to become majority owners of them. Congress should regulate not run and own are American businesses. Leave this job to the American entrepreneur. Don't mess with the drive of the American businessman. If you take away the drive for success what you are left with is mediocrity. We need incentives to push our creativity (such as bonuses) maybe congress should keep an eye on businesses that are succeeding and realize that a healthy company has a good product, clear vision, and defined leadership, Also the leader must know how to get everyone to work as a team for a common goal. If this can't be done with the current Leader or management then they need to be replaced.
In case anyone has forgotten we are Congress and if we don't like what we see them doing and say nothing we are just as guilty and should quietly accept the consequences of their decisions.
Change is made by people (you and me) sometimes in as simple a place as a BAC board room. I love American business and believe this is the greatest country in the world due to the freedoms we have here. Change is gradual and is sometimes necessary. If change is forced down your throat because others think you just don't know any better and this is what they think you need. Prepare for resistance. Good Luck to all the traders and investors out there and GOD BLESS. |
Thread abonnieren
