More Obamanomics Lessons

By Kevin C. Donnelly

Obama talks, the markets listen. From Market Watch:

The dollar gave up earlier gains in afternoon trading on Thursday in a volatile session marked with conflicting signals from economic data, and stocks dropping as President Obama outlined plans to rein in banks. "Talk from the president of a major overhaul of how banks can operate appears to have scared foreign interest away from the greenback," said analysts at Action Economics.

I have written before about Obama’s horrific plan to handicap financial institutions and drag down the economy.  Today, Obama took some time and expanded on his tax raising, job killing scheme and the markets, as expected, responded negatively.  It’s a shame those “fat cats” in the White House don’t have a 401(k) like the vast majority of Americans, or maybe they’d have been personally affected by this proposal like so many us have and will be should this idea pass.

Fox News has a bit more of the detail of his plan:

Obama is placing a new emphasis on Wall Street regulations, with a goal of limiting the financial sector to smaller, less interconnected firms.

…

The proposal would seek to limit bank consolidation and ensure that banks, and financial institutions that contain banks, cannot invest in hedge funds or other funds "unrelated to serving customers" for profit. 

I have a goal too, to make government less complex, small, and less interconnected to the rights of individuals.  Of course that goal makes sense and empowers individuals and embraces the free markets.  Therefore, do not expect any liberal to endorse that particular idea.

All financial transactions involve risk and every single corporation has a duty to its owners (the shareholders) to maximize profits.  Financial decisions are based on a risk/reward matrix and each individual falls somewhere within this matrix.  You are willing to accept a certain level of risk in order to reach a certain level of POTENTIAL profit.  This is understood.  Now, however, Obama is essentially saying that owner of a corporation and the individuals who are consuming this product (in this case banking products) should not be allowed to make decisions based on their own needs and risk levels.  Additionally, the taxes Obama is proposing will be directly passed on to the American consumer, it is simply a lie for the Administration to state otherwise.  Furthermore, this will limit the freedom and choices available to consumers.  This is socialist, or at perhaps statist, but it runs counter to freedom.

Lastly for tonight, let me just mention that the Associated Press and every other liberal outfit in the land needs to pull their heads out of the sand and recognize that the economic policies that Liberals have imposed on this country are a complete and utter failure.  They have damaged our nation and put us into a depression.  Further, more, articles such as this one, where initial claims for unemployment increase yet again, are not “unexpected.”  This is precisely what I and others have long said would continue to happen as government intervention hampers the ability of the economy to rectify itself through the free market.  As I have long said, the economy will recover in spite of, and not because of, the role of government in the marketplace.

[Via http://toourrepublic.com]