I recently was privileged to have an open,frank and honest discussion with our Representative,Speaker of the House,David Clark. He responded to an e-mail sent to him,with a personal phone call and asked simply,“How can I be of help.”
We discussed several topics,which will appear in this publication over the coming weeks. I am impressed with Mr. Clark’s willingness to discuss issues,dispel myth,and offer constructive input as to how we can make the changes necessary within our government.
Our discussion started with the financial fiasco that our President has implemented;the “TARP” funds. Here,in part,is some of the discussion and viewpoints of Mr. Clark.
These TARP monies,in the beginning,had a purpose. That purpose was to buy the ‘toxic’ assets of banks and financial institutions. In lay terms,our president’s goal was to buy up bad loans and investment portfolios from those who had made questionable or risky business decisions in order to maximize profits.
Greedy mortgage lending practices,adopted and utilized to produce as much revenue for the writers of the mortgages,brokers,and lenders of the monies as possible,while ‘white washing’ the practical and sensible considerations as to credit worthiness and re-payment abilities that were used successfully in the past. Why buy bad loans?
President Obama,steps in to save us. Save? Consider this. As Mr. Clark stated,there was no option for taking,or,not taking these funds. Even banks with no financial trouble,who tried to ‘gracefully’ pass on the offer were told,‘…you will take the money.’
How does that affect you and me? The banks cannot afford to lend at a rate lower than the cost to them. So now we face higher rates on money,we may borrow,for homes,cars or business!
Can unlock of these governmental golden handcuffs? Not easily,because,the government doesn’t want the money back!
You see,it is not a matter of money. It would make sense for the government to take back the money and pay down the debt,but that is not the intent. It is a matter of power and control.
Unlike a regular contractual arrangement,this relationship with the government has no rules. The stipulations and requirements for repayment are in a constant state of change. Our government wants control of corporations and institutions. Example,a position on the board of directors as part of the ‘terms of re-payment.’
We no longer have the invisible hand of the free market place. We feel the heavy hand of government. In a word,socialism.
Is this a harsh analysis? Join us next week,as we explore further,“Government Control of Banking and Business”.