In the upside-down world of the media propagandists it appears that “raising the bar” means lowering your standards – at least as far as U.S. bank regulation is concerned.
The case in point is a piece of Reuters propaganda from Monday, titled “U.S. watchdogs want bar raised in failed bank reviews”. When I saw that headline, I was momentarily encouraged by what appeared to be an announcement from a U.S. regulator that it intended to do a better job.
Not so. In fact, what “U.S. watch-dogs” (now there is a non sequitor) want to do is to reduce their level of vigilance. Currently, a “review” is required any and every time a bank failure results in a pay-out of $25 million or more, from the Federal Deposit Insurance Corporation (“FDIC”). Now listen closely to the “logic” which comes from the Inspector Generals of three bureaucracies in the U.S. government.
Because so many banks are failing, they want to dramatically reduce the amount of time and effort they spend in determining why these institutions failed. They want to raise the minimum size of insured-loss which triggers a review from $25 million to between $300 and $500 million. Based on the previous, U.S. bank-failures to date, this would mean eliminating 90% of these mandatory reviews.
All three of these bureaucracies claim that they must do this – in order to meet their workload with current staffing levels, while not “reducing the watchdogs oversight of other urgent government programs to stabilize the financial system”. Forgive me for laughing hysterically.
There has been no “oversight” over the $12 TRILLION pledged or spent to bail out Wall Street and assorted other corporate miscreants. Obviously, it requires little to no “manpower” to do nothing. And there are further implications here which range from ominous to hilarious.
If these (so-called) “watchdogs” reduce their rate of reviews by 90% - but plan to spend just as much time as they did last year in performing such reviews (when there were no complaints of an “excessive work-load”) this obviously implies they are expecting at least ten times as many failures this year. There were 25 bank failures in 2008.
Then there is the obvious absurdity of being less vigilant in analyzing how these institutions imploded at a time when the number of bank failures is skyrocketing. In the first four months of this year, the U.S. has already had 20% more bank failures than in all of 2008 – and obviously these so-called “watchdogs” and “regulators” are expecting this trend to rapidly accelerate.
The final consideration which should immediately draw the ire of all Americans who still hold out the hope that they can have “responsible government” should be obvious to everyone. The Obama regime has announced a “$780 billion stimulus package” - explicitly designed to increase employment as much as possible.
With important government agencies reporting that they are drastically short in “manpower” to perform critical (and labour-intensive) functions, and with the U.S. financial sector having already terminated the employment of somewhere around 100,000 people with various forms of expertise, how simple would it be for the Obama regime to supply these bureaucracies with all the people they need to perform their duties responsibly?
There can be only three possible responses to this. The corrupt banker-servants in the U.S. government may have already decided to reserve all bail-out dollars for their masters in the U.S. financial crime syndicate, and their own, personal “pork” projects.
The Obama regime may have already decided to become even more negligent in oversight and regulation of the U.S. financial sector – while it repeatedly talks about doing the exact opposite.
Lastly, the (so-called) Obama “stimulus package” may really be nothing but “smoke and mirrors” with little “new” money available to provide spending in countless, crucial initiatives (such as putting a real “bottom” in the U.S. housing collapse).
Regardless of which option you prefer, the conclusion must be the same: the Obama regime has no interest in learning the truth about the multi-trillion dollar “Ponzi scheme” (known as the “U.S. financial sector”) which has now imploded. The Obama regime has no interest in spending the dollars of U.S. taxpayers in a responsible manner. And the Obama “stimulus package” is simply another U.S. government sham – designed to stall additional civil unrest, rather than stop the disintegration of the U.S. economy.