Monday, April 13, 2009

The Coming Destruction of the Banking System as We Know It

Anti-bank operatives are using the current financial crisis to destroy the current banking system. Put aside for a minute the raping of the taxpayer by the privileged elite banks, the cover of the crisis and the obvious taxpayer money grabs by the elite banks are being used by anti-bank operatives to change the entire banking system. They will attempt the creation of huge new "consumer" regulations and the creation of new regulations that will dramatically distort bank lending practices in favor of the politically favored.

WSJ reports:

The committee overseeing federal banking-bailout programs is investigating the lending practices of institutions that received public funds, following a rash of complaints about increases in interest rates and fees.

Since the Troubled Asset Relief Program was launched last October, banks bolstered by capital infusions have boosted charges on a wide range of routine transactions, hiked rates on credit cards and continued making loans criticized as predatory by consumer advocates. The TARP funds are intended to open lending spigots and make it easier for people to borrow money.
Keep in mind, as I reported last week:

The head of the [TARP Oversight] panel is Elizabeth Warren. Warren is a Harvard Law School professor and has collaborated with Americans for Fairness in Lending.(AFFIL)AFFIL is "a non-profit organization designed to draw national attention to the unregulated lending industry in America. AFFIL’s ultimate goal is government regulation of the lending industry to protect American consumers from financial products which deplete assets and can lead to bankruptcy and foreclosure." AFFIL is an umbrella organization for groups working on lending and asset-building issues. Its official partners include: ACORN.
Warren is radically anti-bank and aggressively seeking power, her "investigation" of "overcharging" by banks that received TARP money will turn into an investigation of "overcharging" by the entire banking system, in an attempt to micro-manage banking in the direction of the politcally favored, if she gets her way.

1 comment:

  1. Yup. And yet some free market thinkers (e.g., the Inst of Economis Affairs) still loudly procalim that Free Market Capitalism is alive and well. Hmmm ...