About two years ago I wrote about a kid named Barack Obama who made an announcement in Springfield, Illinois that he was going to do us all a favor and run for President of the United States.
I made the obvious comparison to the TV character Doogie Howser.
Well, the kid got himself elected President, and, listening to Tuesday’s press conference you’d swear that Doogie Howser is now President.
Barack Obama is a bright guy.
But, what he knows about how our economy and how business works would almost completely fill a highball glass with room left over for a lot of ice.
His latest idea is that the Federal Government should be entitled to simply take over firms which might pose a risk to the economy like the FDIC takes over banks.
Forget for a moment that the Supreme Court told Harry Truman that he could not nationalize the steel industry during the Korean War.
And, forget for a moment that the FDIC is a purely voluntary deal between a Federally run insurer of last resort and the nation’s banks where a bank agrees to be insured and then gets to offer absolute insurance to its depositors. The quid pro quo is that if a bank fails, the insurance kicks in and the FDIC takes over the bank.
Remember that Barack Obama now wants to play the game just like the Russians do.
This nonsense came about as a result of the idiotic decision by the Bush administration to bail out AIG.
The logic was—coming from a former head of Goldman Sachs who was then Treasury Secretary—that AIG’s failure would have brought the financial system to its knees. That the credit markets would freeze and nobody would be able to borrow money. (We sure fixed that, right?)
So, instead of allowing that to happen, the taxpayers pumped about $180-Billion into the company.
That is as opposed to doing things the old-fashioned way—in bankruptcy court.
And, now, seeing what a success the Treasury Department made of that deal, they want the power to take over any firm.
Here’s a list of some of those firms:
General Electric, Wal-Mart, Microsoft, Boeing, for starters.
Now really. It’s bad enough that GE’s NBC Television Network is in the left wing tank, but would you really want the Department of the Treasury taking over GE because it posed a “systemic risk” to the nation’s financial system? It could easily happen under the current proposal because fully half of GE’s business is finance.
Never happen? They would have said that about AIG a year ago.
What about Wal-Mart?
You could make a case that the world’s largest company is simply too big to fail.
Do you really want Barack Obama running Wal-Mart?
Microsoft makes the software which runs most of the world’s computers. A failure might turn the world off line according to Obama’s logic.
Sometimes it’s bad enough Microsoft runs Microsoft. Do you want the Government running your computer’s operating system?
And Boeing’s failure would wreck defense procurement. Or that’s what they would tell you, anyway.
Do you want to fly in a 737 built by the Obama Administration?
It’s the dumbest idea we’ve ever heard. And the only thing between us and communism is the fact that such an idea is unconstitutional.
That, however, is merely an inconvenience to Doogie and his friends.