
Burn baby burn....
Today, Timothy Geithner unveiled the Treasury’s latest plan to buy up toxic loans and securities from the nations banks. A brief description of the plan from Fox Business Correspondent Peter Barnes:
“Under the plan, the Treasury will match investments dollar-for-dollar in joint ventures with hedge funds, private equity funds and other investment firms to acquire the loans and securities at discount prices, the officials said.”
Obviously there’s more, but the gist is that the plan will rely heavily on investments from the private sector, and without those private dollars it will not succeed.
OK, that’s all well and good as far as it goes (I am witholding comment on the specifics of the plan until I have a chance to really dig into it. Unlike our ruling class, some of us have to, you know, work for a living.)
Here’s the problem - the federal government has gone out of its way to make an example of AIG over the past couple of weeks, culminating on the legislative side with the house passing a 90% tax on bonuses paid this year to employees of companies that have accepted federal bailout funds, and socially with further escalation of Obama-led class war with a union-backed liberal group actually visiting the homes of AIG employees in protest.
The duplicity of this ‘outrage’ on the part of government, however, is well-illustrated by the now well-known fact that congress, along with Obama and Geithner themselves, specifically allowed these bonuses to happen via a Chris Dodd-authored amendment to the stimulus bill.
The question, then, asked by many over the past several days, is who in their right mind would want to do business with Obama’s government after witnessing the AIG carnage? Perhaps a better question: how does the government expect to encourage the private sector to team up with it after it has demonstrated that it can and will do whatever it wants to its ‘partners’ without regard for contract law and, arguably, the Constitution? Regardless of its assurances to the contrary, there is nothing in this government’s recent history to suggest it would not do exactly the same thing again.
On tonight’s Hannity show, Dick Morris’s take on this was that he thinks Obama wants and expects the plan to fail. The reason that Geithner is the frontman on this, he says, is simply to be the fall guy so that when the plan does fail, Obama can jump in and say ‘we tried’, fire Geithner, and then use the ongoing - and probably still deepening - economic crisis as reason to go after what he really wants, which according to Morris is complate nationalization of the banking system in order to realize his dream of a socialized economy.
OK….Generally speaking, I’m lukewarm on Morris, but there are two things in his favor here:
- He has a sharp political mind, and by that I mean he knows how the sleazy, backroom-deal side of politics is played.
- He is not known to be a conspiracy theorist.
I think Morris’ comments on this more than anything go to illustrate the deep distrust that many of us have of this president, his administration, and congress. However it is the sheer number of things destructive to our country, our financial system, and our way of life that Obama has done, tried to do, is doing right now, or has proposed over the past three months that make Morris’ opinion seem not only not that far-fetched, but actually quite feasible.
Personally, Ill be more surprised if Morris’ scenario doesn’t come to pass than if it does.
-Cnation