Monday, October 26, 2009

The March Toward Government Takeover of the Banking Sector Continues

NYT reports:
A senior administration official said on Sunday that after extensive consultations with Treasury Department officials, Representative Barney Frank, the chairman of the House Financial Services Committee, would introduce legislation as early as this week. The measure would make it easier for the government to seize control of troubled financial institutions, throw out management, wipe out the shareholders and change the terms of existing loans held by the institution.

The official said the Treasury secretary, Timothy F. Geithner, was planning to endorse the changes in testimony before the House Financial Services Committee on Thursday.
With government control escalating at such a rapid pace, the country we know now will be gone within five years. And to picture what America will be like in ten years, think poverty. Think Cuba. Think collapse.

1 comment:

  1. NYT states:

    "The measure would make it easier for the government to seize control of troubled financial institutions, throw out management, ***wipe out the shareholders*** and change the terms of existing loans held by the institution."

    We know that this is the last Government that will ever rule the USofA. Won't that crowd be in control forever?

    What does "wipe out the shareholders" mean? If you consider that investments are made on the basis of expectations of returns, your "Present Value" for the future return just became a Limit Theorem - As political time increases without bound, your return on investment approaches zero. In fact, your investment just went to zero.

    This is astonishing. There will be no investment except political investment. This is literally the End of Modern Capitalism.

    It marks the return of Feudalism.

    CW

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