Last week, President Obama unveiled a plan to tax bank profits $90B over 10 years as punishment for causing the financial crisis and paying out huge bonuses.
As expected, Barney Frank piled on with his typical class warfare rhetoric.
As Glenn Beck as it sounds; we are crossing the line into socialism. I don’t say that just to jump on the tea party bandwagon. I say it to shine a spotlight on the nature of the class warfare created by the left. Robbing from the rich to give to the poor has gotten so out of hand that it’s causing the administration to completely miss the point on what really happened and how to clean up the financial industry.
The financial crisis was due to three factors as I see it.
- Our government promoting the concept through Freddie and Fannie that everyone has the right to own a home – regardless of ability to pay.
- Wall Street unchecked risk taking; giving loans to those who were unqualified then packaging up the securities to pass the risk along.
- Lack of oversight and regulation from government agencies to play watchdog over the whole game.
Greed is good. It is the driver of economic growth. But lack of regulation has devolved our stock market and institutions into legalized gambling parlors; with much more in common with Vegas than the mahogany lined offices of downtown Manhattan. Today the stock market serves a key liquidity function, but has transitioned from a lagging indicator of the health of the economy, to a leading indicator. Not a reflection of economic health, but a driver of it, in both directions.
With high risk financial instruments created without prudent government oversight, banks mask real assets and risk to create leverage. It is these instruments that must be given a serious look by regulators, in addition to stricter rules on liquidity and reserves.
Don’t put a penalty tax on financial institutions when they make money. Regulate the methods they can use to make money in a way that protects the economy as a whole and does not put stock holders at undue risk.
To me, tighter regulations are a reasonable and necessary response to what happened. Penalty taxes on banks are just another weapon in the wealth re-distribution arsenal for the liberal tax and spend machine. It will do absolutely nothing to fix the problem. In fact, faced with higher taxes, banks will create even crazier more risky ways to make money.
What do you think?
Guest Blogger – Jeff Hine
With a debate that lacked policy specifics and, well, kind of boring, our hosts channel the humor of some great comedians (or at least they though they did), and aggressively dive into some deep policy discussions in the 8th episode of PoliTalk.
- What is the nature of life?
- Is health care a right or a responsibility? To Whom?
- Why aren’t Jeff and Glenn hosting a morning show on MSNBC?
These are the vital questions debated this week in a show that’s sure to generate a lot of buzz.
Leave comments on the following (or anything you want):
- Find out who sponsored the pork that was added to the Bailout Bill
- Check out the Palin/Cameron video and tell us what you think
- Check out the O’Reilly/Frank video and tell us what you think
- Name 10 things that you think the candidates were doing on their notepads during the debate
Listen to this podcast and spread the word… tell two friends, and so on and so on…
You can get the PoliTalk Podcast from Podcast.com and iTunes.
What happened to political discourse?
This country has serious problems that we need to address. The media is one of the checks and balances to both educate and provide an independent perspective of what our politicians are telling us. Thank you Fox News and Bill O’Reilly for lowering political discourse to yelling and personal attacks that neither educates nor provides independent perspective.
As a media outlet and a “news analyst”, both parties should take pause and reflect how there actions impact the greater good. In this country, we have a free press, which is one of our greatest assets. This kind of programming is reminiscent more of Wally George and Morton Downey Jr. than news that is “Fair and Balanced” .
What I was looking for was someone to really peel back the onion on some of the statements that Congressman Barney Frank has made. Instead, the conversation devolved into an angry tirade in which no better understanding of the issues came out.
At a time of such need for information regarding our financial crisis, having an interview that was comprised mainly of yelling and personal attacks was truly a wasted opportunity to help the American people better understand the crisis we find oursleves in. — Glenn
I don’t want to take valuable real estate which would result in visitors possibly missing Glenn’s excellent posts — you’ve got to hear Letterman! But I just can’t let a day pass without commenting on John McCain’s bizarre stunt, and it must be seen for what it is. If he had a true interest in the economy — what amounts to Foreign Relations for him — he would have been involved in the policy discussions from the start. By every account and every person I’ve talked to in the Senate — where I used to work — he has had zero involvement. So then he decides to suspend his campaign, but he didn’t tell his running mate that, who was out negatively attacking Obama yesterday. So what gives? I think the best answer to that question comes from Congressman Barney Frank (D-MA), when he said, “all of a sudden, now that we are on the verge of making a deal, John McCain drops himself in to help us make a deal. We are trying to rescue the economy, not the McCain campaign.” What he’s really trying to do is pull a political stunt while seeming to take the high moral ground and buy more time to figure out just exactly how that economy thing works. But pulling stunts and negatively attacking your opponent may make good debate tactics, but it’s no way to get us out of this mess. — Jeff
Posted in Opinion
Tagged Bailout, Barney Frank, Debate, Economy Crisis, keith olberman, McCain, msnbc, Obama, Politics, rachel maddow, Wall Street