By Clark S. Judge
Texas Insider Report: Washington DC It sounded like such a soft even conservative speech.
But let me get this straight: 1) Banks will be punished (do I understand this right by a committee headed by Eric Holder?) if their lending is too risky and ... 2) They will be required (by the same committee) to give more home loans (meaning it must be to people who would otherwise not qualify for the loans or else the government would not have to be involved) at lower rates (which means rates that do not compensate them as much as
the market says they need to be compensated for the risks they are taking all of which sounds like a new edition of the policies that brought on the financial collapse).
This leads to 20 more let me get this straights".
So continuing if 1 and 2 are true that
3) must mean that they will have to pull back on risky lending someplace other than homes
4) the only place that most banks would be able to pull back on riskier customers would be loans to small and new businesses
5) but these are the businesses that have created just about all the jobs over the last 20 years and he said early in the speech he wants to encourage them
6) so maybe their growth capital will come from selling stock to the kinds of people who invest in new and small businesses
7) but through the Buffet Rule hes going to double the tax rate on investment income for those people meaning that like the banks they cant be fully compensated for the risk of backing small and new businesses
8 ) so they will not invest more in small and new companies but in big established firms
9) so more of those small and new firms will have to turn to the government for capital
10) which luckily he said would up its investing in early stage businesses with the best" ideas
11) the best" ideas meaning I guess as with Solyndra ideas that advance his agenda through companies whose owners support his candidacy
12) or maybe it would be companies that agree to invite unionization (since the unions have failed to organize the new and dynamic sectors of the economy which is why they have been shrinking)
13) but then with the big businesses he wants to punish American companies if they invest overseas
14) and he wants to increase exports
15) but being competitive in the global markets often means having part of your production near your markets which is why many companies have opened production facilities abroad and many foreign companies (BMW and Honda for example) have opened their facilities here
16) so hell make these companies less competitive meaning less able to export anything that might be paired with some other product the company makes abroad in order to attract buyers
17) and it also means hell have the U.S. ignoring many of the international trading rules of which we have been the principal sponsor since the end of WWII rules that have led to an incredible growth in widely shared wealth all over the planet
18) which means that if he follows through hell blow up the post-WWII global economic system
19) which in the very short run may help the uncompetitive American labor unions but in the not-so-long run would devastate every economy on earth
20) but it would also mean he would be in a position to decide where big companies could invest and when just as hell be in control of all new and small businesses too
21) meanwhile he is going to tell states and localities what their budget priorities should be
22) and make them adopt his policies for running their schools leaving me to wonder when
hes through what wont he control?
I believe thats what I heard the president advocate Tuesday night. But one term I didnt hear maybe I missed it: The Constitution."
Then again wasnt he suggesting that in brave times like these we need to put aside those old rules.
Do I have this straight?
By Clark S. Judge <http://www.clarkjudge.org/author/cjudge/>
