Moon Kil Woong

A New Goal for TARP Funds: Create Mutual Banks

I have a few comments about TARP. 1) How badly written TARP was. Congress rolled over so much that it can be spend without Congressional approval only by a congressional denial of spending it can they prevent more looting of our money (make no mistakes it's the public's money). Congress has given out all semblance of fiscal control. Any President can pass TARP for whatever reason they want and can only be blocked by a over-ridable veto (a 99% impossibility).

Second, why not just abolish all banks and let the Fed and Treasury become god almighty. Pretty much we are doing it already. If they are the lender of last resort, covers all risk in the system, and are the only buyer of mortgages using the wildly mismanaged company puppets Freddie Mac and Fannie Mae then basically there is no need for a bank.

If they use taxpayer money to infuse capital into every bank then why don't they be honest and admit that the banks they give too are government institutions. Barney Frank made it clear. Take government money and you do whatever we want. The defunct banks, financial institutions, and insurance companies are government institutions if the government so says so. And rightly so. Unfortunately they are still being run by the most terrible management in the world who keep paying themselves millions to loose billions upon billions of taxpayers money.

No wonder no one trusts anyone. No wonder there is uncertainty. No wonder the economy is in the dumps. Our economy has shown itself to be a complete fiasco with Trillions in losses hidden off balance sheet thanks to the Bush Jr. administration that allowed banks to hide all their losses off balance sheet using Base I accounting.

Even England couldn't have thought up a more crooked system. All they could think of to screw the Americans was a stamp tax and central bank. We should really think long and hard about what exactly is going wrong here. The Fed can pay interest on deposits, buy bonds, and inflate their balance sheet putting the US taxpayer on the line for trillions without disclosing it on the government's balance sheet. Soon they will ask to issue their own debt making them the same as the Treasury. They instantly have all the powers of the Congress, no accountability, and complete control over the value of your money. Not only are they just trilionaires but they will hold the keys to compete monetary power.

Is this really what the founding fathers envisioned? A Congress completely unaware of their power or responsibility. Compete delegation of fiscal policy. A population who doesn't care about the destitution of their children. Why not just sell 50% of our kids as slaves while we are at it? Because that is essentially what we are doing when our government deficit is 70% of GDP and we are trying to grow it to 125-150% in the next decade (the government expects it to be 100% without any extraordinary items like wars, stimulus, and Congressional stupidity).

I'll stop because to go on would make us all sick.