Obama Vs. The Big Banks

I don't like big bank greed anymore than I like big government greed. In the banking industry the only ones that I see are profiting from this are the executives who make the big bonuses on the backs of their shareholders and the United States taxpayers.

Do I think big banks need more regulation? Probably, but I hate that government is getting their hands in the private sector and the banks in particular. I really dislike the fact that the government decided to pass an 1100 page stimulus package full of earmarks with a $787 billion dollar price tag. I despise the back room deals and special interest projects that senators and congressmen hash out to buy other members' votes.

I think Obama's announcement that he intends to put more regulation on the banking industry and restrict the size of the big banks is a knee jerk reaction to what happened the other day in Massachusetts. He needs to find a way to appease the voting public and he thinks by bullying the Wall Street fat cats is just the way to do it. There go our 401Ks again. We're about to take another financial hit. Bail them out and then smack them down.

Do you remember the Savings and Loans crisis back in the 80's? Many Savings and Loans went under because of unwise lending processes and the end of a boom in real estate. Our country went into a recession and the unemployment rate went over 10%. Sound familiar? That particular mess cost the American taxpayer more than $120 billon. There were a lot of unwise business decisions made by the S & Ls. Again you see greed rearing its ugly head. The Lincoln Savings and Loan scandal ended the careers of three senators Alan Cranstan, Don Riegle, and Dennis DeConcini. John McCain and John Glen also received rebukes from the Senate Ethics Committee for their involvement.

A lot of corruption was involved. New regulations were enacted, but what have we learned from the past? I guess we learned that eventually unsound practices and greed lead to collapse. That even though legislation is created to prevent these crises from happening again those who would lie, cheat, and steal move on to greener pastures it seems to be a never ending cycle. Special interest groups will try to sway government officials to protect their interests. It's nothing new and it's what the American people were hoping would change in Washington. Unfortunately our government just doesn't get it.

The election of Senator Brown in Massachusetts lends a glimmer of hope. But it looks to me that if real change is to occur we need to make sweeping changes in our elected officials. Vote out the old and usher in the new. That's the only way we'll see real change.

Sources:
http://moneywatch.bnet.com/economic-news/article/stimulus-package-report-card-has-it-worked/343932/
http://en.wikipedia.org/wiki/Savings_and_loan_crisis