Oh as for the proposal for expanded powers for oversight. That may have some good in it but they want to pervert and weaken the FDIC in order to fund its operations.
The FDIC is the last line of defense for the individual.
Geitner states that he wants to honor contractual law when it comes ot exec bonuses yet is eager to pervert the purpose and obligations of the FDIC.
They have already weakened the FDIC by increasing it's exposure by 150%
BINGO...
What you're pointing to is the Achilles heel of this entire fiasco.
The Bailout maintains that the State is the source of all potential cure... It pretends that the State has the infinite means; in terms of wisdom and resources to effectively solve the problem; when in truth, THE PROBLEM is caused BY THE STATE.
The run on the banks of the 1930s was SOLELY the result of the policy known as "Fractional Banking." A policy which was established BY THE FEDERAL RESERVE... which allows Banks to operate with a fraction of capital, in reserve, against their total liabilities. The Run was created when individuals with deposits in those banks, demanded those deposits at a rate which the banks were not able to meet due to their LACK OF SUFFICIENT RESERVES. And despite the banks having, in almost every case, more than sufficient reserves to meet the thresholds required BY the Federal Reserve, they simply didn't have NEAR enough to meet the needs of their depositors, inducing a panic, which spread throughout the respective regions...
As I've stated MANY times, this failure was a function of left-think; it was a certain sign that the Federal Reserve was wrong and that Fractional Banking should be scrapped... but No NO! The Progressive Advocates of Social Science concluded that it was
not Leftism which had failed, it was that it had not gone FAR ENOUGH! (Remember: Progressivism/Fascism; Socialism; Communism...) The failure, as it is said today, was said THEN to be the result of
CAPITALISM>>> that the State did not have ENOUGH
CONTROL OVER CAPITALISM... so they relieved the banks of
their responsibility to their depositors to simply have sufficient reserves on hand to meet their liabilities and placed that responsibility on the State, through the FDIC.
In the Mortgage Crisis scenario... Fannie and Freddy played the role of the FDIC... and what happened to Fannie and Freddy? They went busted, Right? And why did they go busted? They went busted because the liabilities which they had guaranteed, vastly exceeded their means to warrant. And what was the conclusion drawn from this failure? The crisis wasn't a result of the failure inherent in the Left-think plan to over-ride sound actuarial thresholds... No NO! The failure was a result of the State NOT HAVING SUFFICIENT CONTROL OVER THE GREEDY CAPITALIST. The simple resolution OF which
is to establish GREATER CONTROL... Relieving the simple minded capitalist of THEIR RESPONSIBILITY and PLACING THAT RESPONSIBILITY UPON THE STATE... Which necessarily requires WHAT? It requires
MORE POWER! Power which can only lead to what? Power which is DESIGNED to prevent the individual from exercising their UNALIENABLE RIGHTS... BECAUSE THEY CAN'T BE TRUSTED... Which is a great idea, because if ya can't trust the LEFTIST STATE... WHO CAN YA TRUST? Right?
Gietner's extending of the FDIC liability did precisely the same damn thing... it's just that at
this point, that hasn't been tested
yet... so it appears solvent; but in fact it is guaranteeing a volume of deposits which it cannot HOPE to sustain WHEN the crisis that WILL challenge it, inevitably comes along.
Gietner and Comrades have just moved the cones farther back, extending the scope of the
SAME failed plan to cover EXPONENTIALLY MORE liability;
again this ALL REST upon the fundamentally flawed premise that THE STATE DID NOT HAVE ENOUGH CONTROL! Completely setting aside the certainty that IF the State COULD control it AT ALL, IT COULD CONTROL LESS OF IT, BETTER THAN IT CAN CONTROL MORE OF IT!
The new wrinkle is NOT that they want more power to seize private property... its that they're NOW WRITING BAD CHECKS, AGAINST WHICH, THEY ISSUE BONDS, NOTES and BILLS AND THEY'RE WRITING MORE BAD CHECKS TO BUY THOSE BONDS FOR WHICH THEY WROTE THE BAD CHECKS TO FUND IN THE FIRST PLACE. <<< For you leftists who may, on the off chance, be reading this: THAT'S BAD!
They NEED the power to seize those institutions, because
when those institutions fail... it
will stress the economic house of cards that they have built. The power to seize that private party is simply their BET, that they are smart enough to seize them BEFORE THEY FAIL. <<< Leftists: THAT'S BAD.
Friends... remember how amazed we were that Bernie Maydoff had scammed all those rich folks out of tens of billions of dollars? Well, if you were AMAZED by THAT scam... You simply will not BELIEVE what your about to see when this scam, which is working off of the SAME stupifyingly erroneous PRINCIPLES, crumbles... and the reason you will not be able to believe it is because everything you have is tied up in it. Your house, business, cars, college fund, retirement, savings and checking accounts... down to the very cash in your pocket and the change under your seat cushions.
Please think about this: What on earth REALLY serves the reasoning which says that Tim Gietner; who came to power in a flurry of desperation, where it was discovered that he had made an accounting error in the calculation of his income taxes... Please set aside the rationalization as to what the circumstances were surrounding that error resultant from his calculating the tax on his few
million dollar income... just note that it was an error.
Now this SAME GUY, we're told, is the smartest guy in the whole wide world; an economic scientist, who is supposed to be able to CORRECTLY distribute
TRILLIONS OF DOLLARS... He's suppose to possess the intellectual means, to have collected sufficient knowledge to seize HUGE, but troubled businesses and fix 'em! Businesses which were built by MANY VERY smart and capable people... but who, for whatever reason (Fractional Banking, for instance), were lead astray of reason and ran their businesses into the ground; but TIM GEITNER, the guy who
could not correctly weave through the incomprehensible maze that is TURBO-TAX... is smarter than ALL THOSE people who DESPITE their knowing their troubled business like the back of their hand, managed to allow their liabilities to exceed the demands being placed upon their existing capital reserves?
Understand, that NO reasonable person can believe that... yet that is what the left NEEDS us to believe. But this is because,
the point is NOT to fix those companies which President Hussein wants the power to seize; the point is to REDISTRIBUTE THE ASSETS OF THOSE COMPANIES... BEFORE THEY FAIL; BECAUSE IF THEY FAIL THAT FAILURE WILL CAUSE A CRISIS WHICH WILL
ONCE AGAIN EXPOSE THE SCHEME, to being recognized as the ongoing failure that it is.
Now,
WHEN that happens... will the Left FINALLY COME TO REALIZE THE ERROR OF THEIR PLAN and admit that they were WRONG, that SOCIAL SCIENCE is NOT the answer to our economic challenges; and that CENTRAL CONTROL is NOT the WAY to MANAGE an incomprensibly large and complex economic engine?
Nope...
They will look at that failure and CONCLUDE that they didn't have ENOUGH CONTROL! And demand in THAT crisis that they be given MORE CONTROL... that they need to seize MORE businesses farther down the chain... which caused the snow ball which lead to the failure of whatever asset(s) that made the waves, that eventually flipped the economic boat.
Economics is a lot like Golf friends... it's counter intuitive. By all appearances, what is needed to adequately strike the ball in such a way that rmakes that ball fly 300 yards IN THE RIGHT DIRECTION and land WHERE YOU NEED IT TO LAND...
appears to require one to tightly grip the club and SMASH THAT BALL WITH GREAT STRENGTH; CONTROLLING EVERY FACET OF THE PROCESS THROUGH A
THOROUGH and OVERT, INTENTIONAL
MANIPULATION OF PHYSICS.
When in truth... the key to striking that ball so that it complies with your desires, rests in understanding and cooperating WITH the simple principles at play and doing as LITTLE as one can possibly do to control that ball; trusting in the certainties that those principles establish... a soft grip; a light touch... and a stance which respects and complies with those incontestable principles; which allows the club to fall through the arch, striking the ball at apogee... where maximum, natural momentum compresses the ball off the squarely applied club face; which possesses, within its intrinsic design, the appropriate angle of attack to release the ball at the predictable angle for the desired flight; all of which determine the predictable distance; which predictably places the balls flight in the proper direction, landing in the desired location.
Left-think economics is the golf equivalent of a Saturday afternoon golf-Beer-fest... where hundreds of golf clubs are death gripped and thousands of golf balls are launched into the predictable but undesirable flight paths; landing them into the surrounding hazards; with every erroneous swing being executed with a tighter grip, a more violent turn of the club than the last; where the singular conclusion drawn from their chronic failure being that they just DID NOT HAVE ENOUGH CONTROL!
BRAVO Bobo... 
