National Debt Clock

Tuesday, March 24, 2009

U.S. Seeks Expanded Power to Seize Firms

"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"

Be very worried because what collapses today the government deems damaging will change with the political wind. Once they start helping some companies, others will be coming to the table asking for more. In addition, when you give something freely, it tends to not be taken care of as well as if it were your own. These companies on the verge of collapse are essentially getting rewarded for doing a bad job.

"...use a range of tools to prevent its collapse, such as guaranteeing losses, buying assets or taking a partial ownership stake"

I wondering if they will offer this kind of service to companies that aren't on the verge of collapse, who played by the rules, and who through their own power are successful? You may say, well they don't need it, maybe not at first, but how are these companies to compete with a company that is backed by the US Government and is being helped along by such tools?

This is not the American way and many in Washington have forgotten this. We didn't become the greatest country in the history of the world in only 200 years because the government intervened in our business...

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