Thursday, January 14, 2010

The White House's New "fiscal crisis responsibility fee" is REPREHENSIBLE.

This administration has officially jumped the shark.

To be an equal opportunity basher, let me preface by saying that George W. Bush was a major contributor to the housing debacle, as he stressed an "ownership society" that could've been called a "leveraged society." In countless speeches, he implored banks to lend to people who otherwise were completely unqualified to be taking out loans, elevating home ownership to nearly a Constitutional right. The push toward universal homeownership might be the most damaging economic idea of the last half century.

On to the current president. The recent news of his proposed "fiscal crisis responsibility fee" borders on

The president appears to be confused, claiming "we want our money back," despite the fact that most of these banks have already paid back TARP, plus interest. From the WSJ:

WASHINGTON— President Barack Obama, declaring "we want our money back," said banks have a responsibility to make taxpayers whole for the financial-sector bailout and should pay a proposed tax by rolling back big bonuses.
Mr. Obama, formally unveiling the plan at the White House Thursday, said his goal was not to punish banks, but to prevent them from a behavior of excess, including new employee bonuses he called "obscene."

"To make taxpayers whole?" But that's not exactly what the money goes toward. Incredibly, the money will "offset" the funds given to General Motors and Chrysler.

"The taxed firms are expected to pay the cost of bailout money that went to General Motors Co. and Chrysler LLC, which are exempt from the tax. The administration official defended the omission by contending that U.S. auto makers collapsed in part because of a financial crisis of the banks' making."

Remember Chrysler? That's the company who's bondholders stood up for the rule of law when the government attempted to illegally push them down the capital structure and the United Auto Workers UP the capital structure in awarding the union a higher percentage of the post-bankrupt equity. In response, the President of the United Sates took to their airwaves to personally trash them for their stance.

And if you're not familiar with the UAW, that's the union that drove the domestic auto industry into the ground, and it also happens to be where Barack Obama spent a sizable chunk of election day 2008, manning the phones of his biggest money-raisers:

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