The Over Reaching Arm of the Fed

The fed is seeking to expand its reach and tighten its grip.

For all the talk of fascism during the Bush administration we are seeing actual moves in that direction right now and the word never comes up in the MSM or from those who were supposedly in fear of Bush bringing fascism to America.

I of course do not know that fascism is the Obama administrations desired end but when all the moves against business by this administration are considered, you have to wonder if fascism is not on the way.

This is but one more example of the fed over reaching.

Washington Post

The Obama administration is considering asking Congress to give the Treasury secretary unprecedented powers to initiate the seizure of non-bank financial companies, such as large insurers, investment firms and hedge funds, whose collapse would damage the broader economy, according to an administration document.

The government at present has the authority to seize only banks.

Giving the Treasury secretary authority over a broader range of companies would mark a significant shift from the existing model of financial regulation, which relies on independent agencies that are shielded from the political process. The Treasury secretary, a member of the president’s Cabinet, would exercise the new powers in consultation with the White House, the Federal Reserve and other regulators, according to the document. […]

The government also would assume the authority to seize such firms if they totter toward failure.

I would much prefer, and believe it better for the economy in the long run (consider the finical crisis in the 1920s) if the government would allow failing businesses to fail.

Propping these businesses up does nothing more than delay economic problems and increase the intensity of the pain that will be experienced when the house of cards comes down.

 

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