U.S. Seeks Expanded Power to Seize Firms

[del]

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.

The administration plans to send legislation to Capitol Hill this week. Sources cautioned that the details, including the Treasury's role, are still in flux.

U.S. Seeks Expanded Power to Seize Firms

Quis custodiet ipsos custodes?

 

[del]

The Treasury secretary could act only after consulting with the president and getting a recommendation from two-thirds of the Federal Reserve Board, according to the plan.

 

[xsited1]

Maybe Obama should change his name to Hugo Rafael Chávez Frías Obama.

 

[editec]

Quis custodiet ipsos custodes?

In a truly democratic republic the PEOPLE do.

In this nation?

The WEALTHY do.

That isn't obvious?

 

[WillowTree]

MARXISM MARXISM MARXISM

 

[rayboyusmc]

Groucho Marx or Harpo?

 

[PubliusInfinitum]

MARXISM MARXISM MARXISM

Now NOW Willow... just because Preisdent Hussein is asking for additional powers which would give him control over the means of production, should in NO WAY be taken as evidence that President Hussein is a MARXIST.

As you know Marxism is a very complex concept which can't be defined by its essential tenet that "the People" control the means of production...

I'm sure you also know that the history of Communism proves that Communists are gray people... PLUS they wear shabby looking gray Wool... On top of that EVERYONE knows that Communist are fat bastards with HUGE mustaches and bad hair cuts.

Anyone paying attention can CLEARLY see that President Hussein always presents himself in LIVING COLOR... he wears fashionable business suits and I dount he could grow a mustach if his life depended upon it.

This idea that its reasonable to rush to judgment that President Hussein is a Marxist JUST BECAUSE HE ADVOCATES FOR and IMPLEMENTS TO THE EXTENT OF HIS MEANS: POLICY WHICH EXEMPLIFIES THE TENETS OF MARXISM... is just not reasonable.

 

[Ravi]

Damn, all this trouble stems from redefining the word "bank" and pretending financial institutions that lend money aren't banks and don't have to follow bank regulations.

 

[sealybobo]

MARXISM MARXISM MARXISM

I told you Willow. These companies don't make the rules, we do. If their actions are fucking up the system, I want OUR government to go in and snatch em up.

Don't worry about government abusing this power, because Bush & Cheney are out of office now.

The sooner you realize that it is the corporations that are the problem, the sooner we will clean up this mess.

But instead you glow when the Dems fail and you are happy when the GOP pull some shady shit.

You just need to realize that when the GOP wins, you lose.

But sitting at home all day playing on the computer, how can you ever lose. Right Willow?

 

[sealybobo]

MARXISM MARXISM MARXISM

Now NOW Willow... just because Preisdent Hussein is asking for additional powers which would give him control over the means of production, should in NO WAY be taken as evidence that President Hussein is a MARXIST.

As you know Marxism is a very complex concept which can't be defined by its essential tenet that "the People" control the means of production...

I'm sure you also know that the history of Communism proves that Communists are gray people... PLUS they wear shabby looking gray Wool... On top of that EVERYONE knows that Communist are fat bastards with HUGE mustaches and bad hair cuts.

Anyone paying attention can CLEARLY see that President Hussein always presents himself in LIVING COLOR... he wears fashionable business suits and I dount he could grow a mustach if his life depended upon it.

This idea that its reasonable to rush to judgment that President Hussein is a Marxist JUST BECAUSE HE ADVOCATES FOR and IMPLEMENTS TO THE EXTENT OF HIS MEANS: POLICY WHICH EXEMPLIFIES THE TENETS OF MARXISM... is just not reasonable.

Hey, after 8 years of Bush, I'm not so sure I'm a capitalist anymore.

This marxism you talk about sounds good. Keep explaining it.

Grey clothing you say? I look great in grey.

You like to talk about Stalin. In 100 years, they'll be talking about Bush the same way.

Do you ever think about the idiots who back in the day were Marxists? Imagine, you are a modern day retard who backed Bush.

Remember, communism wasn't always a dirty word. And Capitalism was never a dirty word.

Now when I hear Capitalism, i think of sub primes, deregulations, unfair trade, predatory lending, breaking unions, sending jobs overseas, hiring illegals, high unemployment, unfair tax breaks, bailouts, bankers owning the system, pork, earmarks, stolen elections.

 

[FactFinder]

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.

The administration plans to send legislation to Capitol Hill this week. Sources cautioned that the details, including the Treasury's role, are still in flux.

U.S. Seeks Expanded Power to Seize Firms

Quis custodiet ipsos custodes?

Huge mistake. This is worse than feeding the failures cash. Let the market weed them out. It is not the failed banks that is going to revive the economy. If they want to throw around cash like that it would be better to start a massive government sponsored venture capital fund and let the businesses roll. The odds of getting a real return are certainly better than buying junk bonds.

 

[Annie]

They are fascists, not communists. The reality will sink in too late.

 

[PubliusInfinitum]

MARXISM MARXISM MARXISM

Now NOW Willow... just because Preisdent Hussein is asking for additional powers which would give him control over the means of production, should in NO WAY be taken as evidence that President Hussein is a MARXIST.

As you know Marxism is a very complex concept which can't be defined by its essential tenet that "the People" control the means of production...

I'm sure you also know that the history of Communism proves that Communists are gray people... PLUS they wear shabby looking gray Wool... On top of that EVERYONE knows that Communist are fat bastards with HUGE mustaches and bad hair cuts.

Anyone paying attention can CLEARLY see that President Hussein always presents himself in LIVING COLOR... he wears fashionable business suits and I dount he could grow a mustach if his life depended upon it.

This idea that its reasonable to rush to judgment that President Hussein is a Marxist JUST BECAUSE HE ADVOCATES FOR and IMPLEMENTS TO THE EXTENT OF HIS MEANS: POLICY WHICH EXEMPLIFIES THE TENETS OF MARXISM... is just not reasonable.

Hey, after 8 years of Bush, I'm not so sure I'm a capitalist anymore.

I've seen no evidence that you've ANY means to even understand capitalism... despite the simple fact that there are few things in the known universe which are simpler to understand THAN Capitalism... so that you're unsure that you're a capitalist serves reason.

Kids, this crowd of Bolsheviks make Bush look like the ORIGINAL GW... George Washington...

What you're about to watch happen: AS A DIRECT RESULT OF THE POLCIES OF HUSSEIN... is the US Dollar COMPLETELY DEVALUED! Shortly after that, he'll ask Congress for new powers, so he can convert the US over to a new international currency.

At which time, all bet's are off... and the US of A will officially be DOA and that will be 100% due to the policies of the L E F T.

 

[Gunny]

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.

The administration plans to send legislation to Capitol Hill this week. Sources cautioned that the details, including the Treasury's role, are still in flux.

U.S. Seeks Expanded Power to Seize Firms

Quis custodiet ipsos custodes?

It's okay. They aren't listening to suspected terrorists phone calls so it's not a violation of anyone's rights.

 

[del]

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.

The administration plans to send legislation to Capitol Hill this week. Sources cautioned that the details, including the Treasury's role, are still in flux.

U.S. Seeks Expanded Power to Seize Firms

Quis custodiet ipsos custodes?

It's okay. They aren't listening to suspected terrorists phone calls so it's not a violation of anyone's rights.

i was worried for a minute, but you put it in perspective for me.

 

[Gunny]

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.

The administration plans to send legislation to Capitol Hill this week. Sources cautioned that the details, including the Treasury's role, are still in flux.

U.S. Seeks Expanded Power to Seize Firms

Quis custodiet ipsos custodes?

It's okay. They aren't listening to suspected terrorists phone calls so it's not a violation of anyone's rights.

i was worried for a minute, but you put it in perspective for me.

Let's face it. I was giving Obama more than the benefit of doubt, but this is getting almost surreal.

Giving the Treasury the authority to seize basically whatever they deem economically vital? Translation: the government is going to take over AIG.

Is anyone actually LOOKING at WTF our government is doing?

 

[PubliusInfinitum]

WOW... It's almost as if these people are implementing MARXIST Policy! Which would be rather odd for those that SOME have claimed are not Marxists...

Who could have EVER foreseen that the US government would be looking for the power to seize the means of production?

I mean, to KNOW THAT... One would almost have to KNOW that those with life long histories of Marxist advocacies can be expected to implement Marxist policy upon the assention to power!


That's just CRAZY MAN!

 

[Gunny]

WOW... It's almost as if these people are implementing MARXIST Policy! Which would be rather odd for those that SOME have claimed are not Marxists...

Who could have EVER foreseen that the US government would be looking for the power to seize the means of production?

I mean, to KNOW THAT... One would almost have to KNOW that those with life long histories of Marxist advocacies can be expected to implement Marxist policy upon the assention to power!


That's just CRAZY MAN!

WOW. Idiot. The government seizing free enterprise is not solely a tenet of Marxism, so STFU, huh? The Democrats being dumbasses doesn't make you right, nor less of a dumbass.

 

[Toro]

Here is the problem.

We have allowed these institutions to become too big to fail. We have allowed these institutions to write unregulated financial contracts such that the notional amount totals many multiples of world GDP. We have allowed these institutions to make enormous bets based on implicit leverage that they never fully understood. We have allowed the financial system to get so massive that their failure imperils the economy in a frightening way.

In banking, the bargain is that we allow financial institutions to get levered up and supply credit to the economy, but if they fail, the government moves in and seizes the institution to prevent runs on the financial system. Depositors are protected by insurance administered by the government, with the taxpayer the ultimate backstop for the system. Thus, if you are going to be insured, the trade-off is that if you screw up, you are dead and the government owns you.

We have failed to stop the financial system from imperiling the nation. This is dead serious. Banks that had never been under the auspices of federal regulatory control have had to be bailed out by the Federal Reserve and the US Treasury, costing the US taxpayer hundreds of billions of dollars. They have been effectively seized and backstopped anyways, even though they did not submit themselves to the same level of regulation.

You want to repeat the Great Depression? Watch them tip over and smash the real economy around them. That's when you get a 30% contraction in GDP and 25% unemployment. Start letting these guys fail like dominoes. It was the failure of thousands of banks more than anything that pushed the economy into The Great Depression.

With nearly three-quarters of the credit flowing outside of the formal banking system, and it becoming very apparent that these institutions are too big to fail, seizing these institutions merely gives the government the same power it has over the formal banking system. If you are so big that your failure imperils the economy and you need to be bailed out by the US taxpayer, then you will be seized to protect the US taxpayer, just like a bank.

 

[Gunny]

Here is the problem.

We have allowed these institutions to become too big to fail. We have allowed these institutions to write unregulated financial contracts such that the notional amount totals many multiples of world GDP. We have allowed these institutions to make enormous bets based on implicit leverage that they never fully understood. We have allowed the financial system to get so massive that their failure imperils the economy in a frightening way.

In banking, the bargain is that we allow financial institutions to get levered up and supply credit to the economy, but if they fail, the government moves in and seizes the institution to prevent runs on the financial system. Depositors are protected by insurance administered by the government, with the taxpayer the ultimate backstop for the system. Thus, if you are going to be insured, the trade-off is that if you screw up, you are dead and the government owns you.

We have failed to stop the financial system from imperiling the nation. This is dead serious. Banks that had never been under the auspices of federal regulatory control have had to be bailed out by the Federal Reserve and the US Treasury, costing the US taxpayer hundreds of billions of dollars. They have been effectively seized and backstopped anyways, even though they did not submit themselves to the same level of regulation.

You want to repeat the Great Depression? Watch them tip over and smash the real economy around them. That's when you get a 30% contraction in GDP and 25% unemployment. Start letting these guys fail like dominoes. It was the failure of thousands of banks more than anything that pushed the economy into The Great Depression.

With nearly three-quarters of the credit flowing outside of the formal banking system, and it becoming very apparent that these institutions are too big to fail, seizing these institutions merely gives the government the same power it has over the formal banking system. If you are so big that your failure imperils the economy and you need to be bailed out by the US taxpayer, then you will be seized to protect the US taxpayer, just like a bank.

I don't disagree with your point. At the same time, there's too much danger inherent in giving the US Treasury Dept that much power.

I've been wondering when these dipshit politicians were going to wake up and realize corporations like AIG could wipe the world's economy if they failed, and posted as much a couple a weeks ago.

I would prefer to see the Treasury given case-by-by case authority to seize corporations that look like they are going to fail rather than blanket authority to seize whoever they say fits the bill.

The Dems are so big on oversight ... where is it here?