Monday, April 19, 2010

“Too Big to Fail” does not apply in a Free Market society

Last Friday the following letter was sent to me, and million others, by President Obama on the need for Wall Street reform. The new battle on Capitol Hill is pitting American's vs. Wall Street. Perhaps Obama jumped the shark as a recent Pew Institute,; poll resulted in the trust in government hitting all-time low. What one will not see in the letter below is the slush fund and unchecked power attempting to be passed by the Obama administration. "Too big to fail" is a misnomer and should never be uttered again. The repeal of the Glass-Steagall Act under President Clinton kicked off the derivative fiasco that caused the "financial meltdown". Combine the repeal and artificially low interest rates led by Alan Greenspan, we have meltdown that all of us experienced.

Had our government left the Glass-Steagall Act alone and not felt that every American had the right to own a home despite being unable to pay for them, we would not have experienced the "meltdown". Government is not the answer to all of our ills. We do need to regulate the industry but it needs to be done judiciously and not without a check-n-balance or slush fund system which is being proposed by Democrats. Ask yourself why did the SEC file a civil suit against Goldman Sachs on the very day that Obama sends out this email?


Chris --

It has now been well over a year since the near collapse of our entire financial system that cost the nation more than 8 million jobs. To this day, hard-working families struggle to make ends meet.

We've made strides -- businesses are starting to hire, Americans are finding jobs, and neighbors who had given up looking are returning to the job market with new hope. But the flaws in our financial system that led to this crisis remain unresolved.

Wall Street titans still recklessly speculate with borrowed money. Big banks and credit card companies stack the deck to earn millions while far too many middle-class families, who have done everything right, can barely pay their bills or save for a better future.

We cannot delay action any longer. It is time to hold the big banks accountable to the people they serve, establish the strongest consumer protections in our nation's history -- and ensure that taxpayers will never again be forced to bail out big banks because they are "too big to fail."

That is what Wall Street reform will achieve, why I am so committed to making it happen, and why I'm asking for your help today.

We know that without enforceable, commonsense rules to check abuse and protect families, markets are not truly free. Wall Street reform will foster a strong and vibrant financial sector so that businesses can get loans; families can afford mortgages; entrepreneurs can find the capital to start a new company, sell a new product, or offer a new service.

Consumer financial protections are currently spread across seven different government agencies. Wall Street reform will create one single Consumer Financial Protection Agency -- tasked with preventing predatory practices and making sure you get the clear information, not fine print, needed to avoid ballooning mortgage payments or credit card rate hikes.

Reform will provide crucial new oversight, give shareholders a say on salaries and bonuses, and create new tools to break up failing financial firms so that taxpayers aren't forced into another unfair bailout. And reform will keep our economy secure by ensuring that no single firm can bring down the whole financial system.

With so much at stake, it is not surprising that allies of the big banks and Wall Street lenders have already launched a multi-million-dollar ad campaign to fight these changes. Arm-twisting lobbyists are already storming Capitol Hill, seeking to undermine the strong bipartisan foundation of reform with loopholes and exemptions for the most egregious abusers of consumers.

I won't accept anything short of the full protection that our citizens deserve and our economy needs. It's a fight worth having, and it is a fight we can win -- if we stand up and speak out together.

So I'm asking you to join me, starting today, by adding your name as a strong supporter of Wall Street reform:

Thank you,

President Barack Obama