Big Government Too Far In Business’s Business
by Bret JacobsonWe’ve been discussing the Democrats’ scheme to shift to a regulatory agenda. Gallup says that might not meet with much approval, as “Americans Leery of Too Much Gov’t Regulation of Business.”
What do you think?
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66 Comments
Gov't is the servant of the people.
Start serving Bama, take a bow to US the American People for a "change".
DTOM!
http://RightWingStuff.com
Gov't is the servant of the people.
Start serving Bama, take a bow to US the American People for a "change".
DTOM!
http://RightWingStuff.com
The question is far too broad. If it were narrowed down to "Should government regulate the financial industry more" I'll bet the vast majority would say yes. We didn't have these 'too big to fail' firms with crazy schemes before the Glass-Steagal Act was repealed in 1999.
Let me just ask one question. If the banks would have to hold the mortgages they approve would they verify identify and income before they write the check? We need to get rid of Fannie and Freddy and reintroduce the free market with all the risk and rewards attached.
Less regulations and less involvement in EVERYTHING! Government is like cement boots when trying to swim across a lake. It drags you down.
Having recently retired from a small business…GOVERNMENT IS WAY TOO DEEPLY INVOLVED!
If progessives put as much effort into 'separation of government & state' as they do 'church & state', our economy would grow faster than a teen-age boy on a Nebraska farm.
The test is to look at the businesses that the government runs now. THEY ALL, REPEAT ALL, ARE HUGE FAILURES! Government must stay out of businesses yet uncrippled, and get out of businesses they have crippled NOW!
DTOM
Dump The Obama Madness
This government was never set up by the founders to run everything. They knew then it doesn't work and leads down a road they had to fight to get out of! How many govt programs are successful besides the military? The Post Office, AMTRAK, Social Security, Medicare, Medicaid are these all now in the black did I miss something? The problem is you have individuals in government, which is really like a huge corporate conglomerate, who have zero experience running a lemonade stand now trying to run something the equivalent to GE (lets ignore GE's position/role for now to the BHO admin).
Would you hire this person? You are a major stockholder with a global conglomerate company, XYZ Corp, seeking a new CEO. They do everything from making toasters, have a finance/banking division to building defense systems, so they have many divisions and a lot of chiefs. Yes this company is identical to GE just without the politics as of late. The company is very open about their search and is looking at many candidates for the CEO position. Now within the company you have this guy, Mike, that has been working there for only 6mos. He is an out of the box thinker and responsible for all the wholesale sales btwn the company and major retailers like Best Buy, Lowes, Sears etc. He is the point man you go to to make an order for products produced by XYZ Corp. and he has a team(3) of people under him he is good at what he does. Now Mike gets wind of the company seeking a new CEO and he applies for the position. Mike has his pedigree from an ivy league school (BA, MBA) , he helped a start up company fresh out of grad school and they turned profit within the 2nd yr of operation, then he took a vp position with another startup company for a year from there he came to XYZ Corp and is at his current director role with them again for only 6mos. Now you find out he has done some unorthodox things for the first startup company and the second startup he helped using some questionable backers. Would you as a major stockholder want Mike as the new CEO(runnning YOUR company)?
Your playing their game STOP and play your game through http://www.savingtherepublic.com
Yeah right. Lax regulations really worked out swell under republican rule.
American’s are idiots. And deserve everything they get. No increase in real wages for a decade. Check. Health care that is 3 times more expensive than the rest of the world. Check. Bail out the bankers and Wall Street at taxpayer expense so they earn billions. Check.
Good Lord. We’re screwed. Idiots, the whole lot of you and then some.
While we’re at we might as well get rid of those silly rules banning lead paint from toys. Kids ingesting lead is sure to spawn more republicans.
Really?! in 1975 we bailed out NYC because their Union contracts had bankrupted them-essentially bailing out the Unions. In the 80's we had to bail out Chrysler, Citi-Bank, Chase Manhatten and Bank of America. In the 90s we bailed out the Mexican, Thai, Indonesian and South Korean governments so that our financial institutions (specifically Goldman Sachs) wouldn't lose on their investments in those countries. We've been bailing out companies for a long time. When the gov't gets involved in the day to day operations of a business (eg regulations) the gov't assumes some responsibility for the solvency of those businesses it has taken control of.
"Limited government" was the design of our forefathers….so to me it is obvious. Regulation of business has put us in the mess we are in now. Politicians have manipulated capitalism to their own means, thereby eroding our free market to its present point, not a true free market. Poor decisions are rewarded by bailouts for big businesses, putting temporary fixes in place that will come back to haunt us. Meanwhile they stifle small business which is the economic backbone of this nation. We think we are in trouble now but we haven't seen anything yet. We will not avoid the economic chaos to come that has been deemed by our government as fixed. People we need to wake up and heed the philosophy of "Limited Government" or we are doomed as a nation!
Amen! A true free market!
Hopefully the business will wake up and move away from cozy-cuddling to the government. If the business still feels comfortable in their relationship with the government – after Obama's treatment of business – we are doomed!
I feel bad for jharp. His must be pretty awful. Stuck, powerless, in a world full of fools he'd love to rule.
Where's my damn bailout.
Isn't enough enough?
AIG, founded in 1919.
Why do you hate our country?
What do I think? Go ahead and make it 51%…
It is obvious how little knowledge you have about the history of politics in the USA. The root of many problems in the banking industry, in general and the mortgage business, specifically are a result of the Community Reinvestment Act which was signed into law by none other than Jimmah Cahter in 1977. This act has been "progressively" bastardized since that time by the likes of Bwarny Fwank.
Now, if you are from a different country than the US, I suggest you learn some manners. If you are, indeed, an American, you should find a better place to live since this is such crappy place. As far as health care goes, perhaps you should visit Cuba where it is reputed to be very inexpensive as you stated and with a similar view previously voiced by Michael Moore.
It is obvious, regardless of your national origin, that you are a pathetic libtard troll. So, hurry up with your milk and cookies so you can brush your teeth and catch the short bus home.
PS. The toys containing lead paint were produced in southern China. It did not affect any conservatively raised kids, since we teach them to read and also some etiquette.
Letting your Progressive Big Government regulate has got us in this recession depression mess. The Community Reinvestment Act, pushed by the Progressives, is the cause of the Mortgage Crisis. The Federal Reserve and Treasury have manipulated interest rates to screw up the Free Market.
The main reason, as I see it, for the government to continue to exercise increasing control on business is so they can justify take a larger cut. Why else would the government restrict health insurers to individual states and yet exempt them from anti-trust laws? Seems like they are keeping the health insurers on a short leash. Now with the so called "health care reform" effort we see that by forcing the population to buy health insurance they can open a new cash flow via taxation on those policies. You see? For them money is power and the more they can bring in the more they can spend. Again what is not mentioned is the cushy no-bid contracts that go to their spouse's company or to the company that the lot of them just each invested 10 million each on. The point is there always seems to be something in it for someone in Washington. How else do you think so many of our so called representatives are millionaires? Politics has become a lucrative business and we the people are caught in the middle between two power/money hungry groups passing themselves off as political parties.
Yes, and they weren't too big to fail then.
Problem is, how do you undo the debacle. As of 2008, Fannie Mae and Freddie Mac owned or guaranteed about half of the U.S.'s $12 trillion mortgage market. (who knows what it is up to now)
They were always in bed with the government, now they're married.
I see. So your logic is:
1. When they weren't too big to fail, they weren't
2. When they were too big to fail, they were
Brilliant insight.
Regulations are like a repair of a small leaky pipe in old plumbing.
You want the leak to be stopped, but than when you tamper with old plumbing pipes, you just might create a gusher.
We live in a very complex social /political / economic society and we all recognize that repairs and adjusments may be in order at times.
But relying on the Federal Government at all times reminds of the skit when the "Three Stooges" were summoned to fix a pipe leak.
"not to worry folks, we'll have it fixed in a jiffy".
A common law marriage of inconvenience. Lovely.
I was taxed out of my business here in Michigan. Plus the city of Detroit had added costs to 10 inspections of my building and business that were free ( property taxes paid that before).
Big Government is looking to control small businesses also. The Progressive/Socialist want to use the TARP money that is being paid back from the banks to set up an Federal agency to "loan" money to small businesses. I can only imagine the kind of strings the government would tie to those loans. We are in the middle of a stealth Progressive/Socialist Revolution.
The government is too far in peoples business? Who woulda thunk it?
I have an idea. How about a little net "neutrality!"
Hey jharp why don't you do yourself a favor and take 4 minutes to watch this video it tells the truth about who put us in this mess. Maybe then you can do more research on the Community Reinvestment Act, if you do then you will begin to understand the problem and the fact that the foxes are in the hen house and until they are dealt with things are only going to get worse.
Timeline shows Bush, McCain warning Dems of financial and housing crisis; meltdown
" …putting tempory fixes in place …"
You must mean like them raising the US debt limit just last DEC. by 290 billion and now expected to hit the debt ceiling of 12.374 trillion dollars within days. Now they are voting to borrow another 1.9 trillion dollars that will raise the debt limit to 14.3 trillion dollars.
Hell, they might as well raise it to 500 zillion so they don't have to do it so often!
Time for a history lesson for you.
In its first term the Reagan administration substantially reduced the staffing and budgets of the regulatory agencies. The number of full-time equivalent employees of federal regulatory agencies declined 16 percent, from a peak 121,791 in 1980 to a low 102,192 in 1985. Since then, the upward trend has resumed, reaching a total 129,955 in 1995 (see Table 1).
Some analysts have argued that the administration’s focus on process reform prevented a substantial reduction in the regulatory burden. The timidity with which the administration approached environmental regulation has been contrasted with its bold action in changing the enforcement of the antitrust laws. From this viewpoint, the Reagan administration seemed to settle for minor corrections and procedural changes. In fact, any major effort to reform the regulatory system via legislative changes was deliberately deferred by the White House in order to avoid diluting support for the administration’s ambitious and controversial agenda of tax-and-spending cuts.
Now some common sense. Since those reduction in regulation, has well as lower taxes and spending, by the Reagan administration launched the longest period of economic prosperity and brought the country from the brink of Economic ruin caused by FDR, The Great Society Programs, and the rest of the Progressive/Socialist presidents from Wilson to Carter.
"The root of many problems in the banking industry, in general and the mortgage business, specifically are a result of the Community Reinvestment Act"
Yeah right. It was Carters fault.
And there is no way the republican controlled Congress since 1994 and 8 years of George Bush could have done anything about it.
Take a look at the repeal of Glass Steagle, moron. And yes, Clinton signed that into law.
Not all conservatives are stupid, yet most stupid people are conservatives. Living proof. Right here. Every day.
Um, try again.
Again, this poll gives a god indication of peoples general thoughts on government involvement. Specify "banking industry" and i think the numbers would be pro-regulations, for better or worse.
Why? I got it right the first time.
…and the second time, too.
I always like to think of this analogy when it comes to the government trying to fix something. Imagine a car that has four flat tires. Most people would say that the easiest way to go about it is to simply change all of the tires out for new tires, it's cheap and very effective. Government would rather just buy a new car.
Dude… Congress, the group the controls the money, went democratic/progressive/socialist in 2006!!! At the same time the economy started to tumble to where it is at now.
Cross-blogged at http://www.repubx.com .. first in news and home to IntelliFETCH private search – check it out!
Blaming the mortgage crisis on one thing is definitely not an answer. At least you see that the Fed is part of the problem, although calling it "progressive" really misses the picture. Keynesian central bankers don't care what kind of government is in power as long as they control the money.
Let them suffer the consequences of their actions. I was in a huge amount of debt, and now I'm paying it off. I'm still in debt, but it's a lot less debt than it was a year ago. All that means is that I tightened my belt, went without luxuries, dealt with the consequences of my actions.
It's time to let the corporations and government deal with their consequences too. It'll be a sucky adjustment period for everyone in the country, but like puberty, things will be better on the other side.
It's way past enough.
We have 2 choices. Either the gov't gets involved in the operations of a business and is therefore responsible for the solvency of the business, or gov't keeps it's hands off the business and the business is responsible for their own actions.
Geez, I really have to spell it out for you? Before 1999 AIG could not be a commercial bank and investment bank all in one. After 1999 they could do this and came up with mortgage backed securities, credit default swaps…the crazy schemes that contributed to the collapse.
Oh and it was Glas-stegal that caused all this mess? Try the government's good intentions of helping out the mortgage market and FNMA and FHLMC (i.e fannie and freddie). This was even made worse after the mess at the S&L's which was before the repeal of glass steagal. It wasn't crazy schemes if you don't understand CDS (which have been around since the 1400's) then don't opine on them. As for Mortgaged backed securities, I would take a good hard look at Fannie and Freddie again, and Bawney Frank for this mess.
You just proved your ignorance….the central bankers are more likely to be followers of Friedman Money Supply theory not Keynes and his deficit spending policies that Odumbo and his crew of ignorant academics follow.
Exactly! Cloward and Piven strategy, overload the system….they are well on their way unless we can block every piece of legislation these b@$t@rd$ throw at us in the next year.
So Geithner, former head of the New York (Wall St.) Fed and current Treasury head, did not suggest the Keynesian deficit spending? And Bernanke did not just dole out trillions in the same way? Maybe your desire to blame everything on Obama and liberals is a hindrance?
Lobren, this b@4t@rd$ is is totally unlike you, let the dirty fighting these BASTARDS for me.
Kristine, they don't even bother trying to be stealthy that much anymore. They are like piranhas that have smelled blood in the water.
Sorry Chicago Ralph! I am very passionate about my country as you are! I got carried away!
So this country is 50% Free, a solid 24% Fascist, 23% Ignoramus and 4% Catatonic?
"…Blaming the mortgage crisis on one thing…"
Didn't you just try to do that with Glass-Steagal? (Clinton's doing BTW and, indeed part of it)
I don't think that they think… rationally, anyway.
Not all conservatives are stupid, yet most stupid people are conservatives. Living proof. Right here. Every day.
Well at least you admit it.
This is why there will be no serious drop in unemployment ant time soon.
What about the gov'ts schemes forcing banks to lend to those who couldn't pay them back? The CRA under Carter eliminated "red-lining". That is, banks were then forced to lend as much to poor neighborhoods as they did to middle-class and wealthy neighborhoods. Of course the poor are less likely and able to pay back their debts. What about the expansion of CRA under Clinton (written by ACORN) that forced banks to eliminate down payment requirements, disregard past defaults, accept unemployment, welfare and child support as proof of income and rated banks (set their interest rates and ability to do business) by how many loans they gave to "under-served" groups? I suppose none of those schemes were to fault for the housing crash which was caused by the bad loans banks were forced to give out. It must just be the evil greedy banks who tried to get a return on their customers money. That's right, the gov't forced your bank to lend your money to those who were less likely to pay you back. And when they didn't pay you back you come out blaming the bank for being greedy.
Don't forget about Acorns hand in this mess. Again Bawney Frank, and Chris Dodd!!!
Exactly
24% want more govt. regulating business, can they explain to me how this will benefit them in any way? what are these people thinking…maybe I'll get a govt. job as a regulator? maybe the regulation will cause costs to rise and i can pay more for goods and services?
Or maybe you need to be educated on Economics. Bernanke is printing money i.e. money supply and what he is doing is not the same as deficit spending. You can print money and have a budget surplus, they are not one in the same. It was the easy money policy that by the way we had since before Clinton was in office (budget surplus) that really got us in this mess(that and poor policy, i.e. Fannie and Freddie securitizing mortgages so every moron could have a mac mansion). Geithner is odumbo's treasury secretary and is following Keynes in defiict spending and that is the Administration's policy a policy that was disproven in the great depression.
Not only is the government intruding too far into business, it is currently in a massive conflict of interest as it 'investigates complaints' against Toyota for alleged failures of gas pedals and brakes.
To be an impartial investigator, the government must investigate complaints against ALL auto companies, and publish the failure rates of ALL of them side by side. Obviously, these investigations are not impartial.
The government, majority owner of GM and Chrysler, and its UAW cronies whose jobs were rescued by its seizure of those companies from its lawful creditors, benefit hugely from the daily media hammering on its direct competitor Toyota. It is in the government's interest to reduce Toyota's sales so that they can be transferred to GM and Chrysler. Nothing better shows crooked Chicago politics in action, than this media campaign by the MSM branch of the Democratic party against Toyota.
That's one choice.
Idiot.
So Obama is going to free up the loans to small businesses?
The Banking System Doesn’t Need More Money
As a small business owner with a lot of friends who also own small businesses, I get tired of hearing all the news stories about how small business lending is going to get a shot in the arm from President Obama’s programs or any other source in the foreseeable future. Yesterday I listened to a speaker from one of the large banks talk about how many loans the bank was making, doing its share to get the country moving again. All the banks are simply not making business loans unless they are absolutely gold-plated. Period. This isn’t because they don’t want to make loans; it’s because they’re being criticized by examiners.
The regulators have made it clear to banks that they will be criticized for any loan where the borrower takes out any cash, regardless of the underlying fundamentals or collateral. This is nonsensical.
I understand that real estate is depressed, and that values are uncertain, and that tenants are moving, and all the other fundamentals.
The answer is simple: The regulators need to relax—not on every loan, but use some common sense!
I feel for all the small businesses in America that are crippled. They dont understand why their debt free building isnt worth anything for collateral on a loan, or why their receivables which have deteriorated only slightly are now not worth anything as collateral.
Here’s the simple truth from one of the “little guys” in a small business who sees the misery here in the street, and just can’t relate to our government’s plan to put more money in the system. There is plenty of money out there; someone just needs to stop sitting on it, after the regulators tell them it’s ok to lend some with solid underwriting policies.
This story has been truncated, see the whole story at: http://www.mrmissionpossible.com/blog/auto-salvag...
Ron Sturgeon
5940 Eden
Ft. Worth TX 76117
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