"Obama wants to control the banks...."

[Bigmack]

Actually, it sounds good to me, but this piece from the WSJ says that's a bad idea. I actually wish Obama would control the banks.
- - - - - -
Obama Wants to Control the Banks
There's a reason he refuses to accept repayment of TARP money.

The government wants to control the banks, just as it now controls GM and Chrysler, and will surely control the health industry in the not-too-distant future. Keeping them TARP-stuffed is the key to control. And for this intensely political president, mere influence is not enough. The White House wants to tell 'em what to do. Control. Direct. Command.

It is not for nothing that rage has been turned on those wicked financiers. The banks are at the core of the administration's thrust: By managing the money, government can steer the whole economy even more firmly down the left fork in the road.

If the banks are forced to keep TARP cash -- which was often forced on them in the first place -- the Obama team can work its will on the financial system to unprecedented degree. That's what's happening right now.

Here's a true story first reported by my Fox News colleague Andrew Napolitano (with the names and some details obscured to prevent retaliation). Under the Bush team a prominent and profitable bank, under threat of a damaging public audit, was forced to accept less than $1 billion of TARP money. The government insisted on buying a new class of preferred stock which gave it a tiny, minority position. The money flowed to the bank. Arguably, back then, the Bush administration was acting for purely economic reasons. It wanted to recapitalize the banks to halt a financial panic.

Fast forward to today, and that same bank is begging to give the money back.

http://online.wsj.com/article/SB123879833094588163.html

[w4rma]

1. With Geithner and Summers at the helm, I highly doubt this is the case. (nt)

[underpants]

2. WSJ? aside from that- for all that top pay "talent" they sure get played easily

just saying

[w4rma]

3. Propagandists play others. Rupert Murdoch's WSJ isn't being played. (nt)

[underpants]

4. I was referring to the "talent" on the top floors in Detroit and the banks

the "MBA President" got played at every turn so this is no surprise

[Name removed]

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[Hawkowl]

6. I hope so

I believe there is a power struggle going on right now between Obama and Wall Street. Wall Street has been pulling the strings for the last 25 years and I hope that they are finally being brought to heal. I don't expect President Obama to be able to get the Wall Street fraudsters even in the first year. I think he has to pretend to go along with the bankers, while accumulating some political victories and the corresponding political power with said victories.

I think that this latest bailout plan by Guenther and Summers may just fall under the "give them enough rope to hang themselves". There is simply no way for this plan to truly succeed and certainly somebody in the Obama administration has told him this. Once Obama gets health care under control, the auto companies, and foreign policy (the wars) stabilized and moving in the right direction, I think he WILL pull the plug on the life support machines for Wall Street.

At least I hope this is the scenario.