Private emails detail Obama admin involvement in cutting non-union worker pensions post-GM bailout

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What was that Obama said about NOT being involved in the everyday decisions at General Motors?

New emails obtained by The Daily Caller contradict claims by the Obama administration that the Treasury Department would avoid “intervening in the day-to-day management” of General Motors post-auto bailout.

These messages reveal that Treasury officials were involved in decision-making that led to more than 20,000 non-union workers losing their pensions. (General Motors not eager to be political talking point in 2012)

Republican Reps. Dan Burton and Mike Turner say that during the GM bailout, Treasury Secretary Timothy Geithner decided to cut pensions for salaried non-union employees at Delphi, a GM spinoff, to expedite GM’s emergence from bankruptcy.

At a Wednesday hearing, the House Oversight Committee’s Subcommittee on Regulatory Affairs, Stimulus Oversight and Government Spending started pushing the Treasury Department for answers on the effects of the bailout and on how much of a role the department played in picking winners and losers.

The key point of the Wednesday hearing was to show that the Obama administration advised GM on how to eliminate the Delphi workers’ pensions. The evidence suggests Geithner’s team played a significant role in that process, despite claims to the contrary.

In 2009 congressional testimony, senior Obama administration official Ron Bloom said the president told the Treasury Department to stay out of the management of these companies and downplayed any administration intervention.

“From the beginning of this process, the President gave the Auto Task Force two clear directions regarding its approach to the auto restructurings,” Bloom said then. “The first was to behave in a commercial manner by ensuring that all stakeholders were treated fairly and received neither more nor less than they would have simply because the government was involved. The second was to refrain from intervening in the day-to-day management of these companies.”

But the emails TheDC obtained show high-ranking Treasury Department officials, including Matthew Feldman of Treasury’s Auto Task Force, corresponding with senior GM officials on how to make certain decisions regarding who was going to win and who was going to lose.

Read entire article @ Daily Caller

 

Thanks For The Bailout Suckers; GM to invest extra $540 million in Mexico to build motors

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Well here’s the thanks for US taxpayer’s bailout:

US giant General Motors will invest $540 million to produce two low-emission motors in central Mexico, the company announced here Thursday, accompanied by President Felipe Calderon.

The latest project for GM in Mexico would create 500 direct and another 500 indirect jobs in its plant in Toluca, Calderon said.

GM has four plants in Mexico, and has invested some $5 billion here since 2006, Calderon said.

GM was left reeling by an industry slump when the global economic crisis hit. It received 49.5 billion dollars from the US Treasury and emerged from a bankruptcy restructuring in 2009.

It successfully returned to public trading last November by raising 23.1 billion dollars in an initial stock offering — the largest in history. (Actually GM did not repay the loans with money it earned from selling cars. Instead, GM repaid the TARP loans with money it withdrew from another TARP fund at the Treasury Department.The day before the GM story broke, Neil Barofsky, the government TARP watchdog, testified before the Senate Finance Committee. He explained that GM did not use earnings to repay its TARP debt. The April quarterly report to Congress from his office stated: “The source of funds for these quarterly [debt] payments will be other TARP funds currently held in an escrow account.”)

 

Thanks For The Bailout Suckers; GM to invest extra $540 million in Mexico to build motors

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Well guess for right now the joke was on us………….many of us were the suckers. Just goes to show you, now days when they tell you a bill will do a certain thing, be careful it may do the opposite.

Thanks For The Bailout Suckers; GM to invest extra $540 million in Mexico to build motors

US giant General Motors will invest $540 million to produce two low-emission motors in central Mexico, the company announced here Thursday, accompanied by President Felipe Calderon.

The latest project for GM in Mexico would create 500 direct and another 500 indirect jobs in its plant in Toluca, Calderon said.

GM has four plants in Mexico, and has invested some $5 billion here since 2006, Calderon said.

GM was left reeling by an industry slump when the global economic crisis hit. It received 49.5 billion dollars from the US Treasury and emerged from a bankruptcy restructuring in 2009.

It successfully returned to public trading last November by raising 23.1 billion dollars in an initial stock offering — the largest in history.

Red White Blue News

Congress is NOT authorized by the Constitution to pass any law on any subject

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Here’s is another great article by my friend Publius Huldah in the Canada Free Press. She is a retired Constitutional Lawyer, retired and lives in Tennessee. Here she  explains and proves the enumerated powers of Congress.  Lawfully, their powers are very limited!  In addition,  I have previously studied things on FDR and the founding fathers wanting to abolish slavery and Ms PH’s explanation on both are accurate. As a matter of fact the Southern Colonies are what prohibited Slavery from being abolished at the time of the ratification of the Constitution as many of the founders wished.

Congress’ enumerated powers

By Publius Huldah  Sunday, October 17, 2010

1. With the U.S. Constitution, We The People created the federal government. It is our “creature”, and has no powers other than those We granted to it in The Constitution.

Webster’s American Dictionary of the English Language (1828), says re “constitution”:

…In free states, the constitution is paramount to the statutes or laws enacted by the legislature, limiting and controlling its power; and in the United States, the legislature is created, and its powers designated, by the constitution.

If you, dear Reader, will study this paper and read the Constitution, you will know more about it than most State & federal judges, most law professors & lawyers, most who spout off on TV & radio, and anybody in Congress (except for Michele Bachmann and perhaps a few others). And you will certainly know more than anyone currently occupying any office in the executive branch of the federal government.

2. The federal government * has three branches: Article I of the Constitution creates the legislative branch (Congress) & lists its powers; Article II creates the executive branch & lists its powers; and Article III creates the judicial branch & lists its powers.

In this paper, we will consider only the enumerated powers of Congress. But the powers of the other two branches are likewise strictly limited and enumerated.

3. Congress is NOT authorized to pass any law on any subject just because a majority in Congress think the law is a good idea! Instead, the areas in which Congress is authorized to act are strictly limited and defined (“enumerated”). Article I, § 8, grants to Congress the powers:

  1. To lay certain taxes;
  2. To pay the debts of the United States;
  3. To declare war and make rules of warfare, to raise and support armies and a navy and to make rules governing the military forces; to call forth the militia for certain purposes, and to make rules governing the militia;
  4. To regulate commerce with foreign Nations, and among the States, and with the Indian Tribes;
  5. To establish uniform Rules of Naturalization;
  6. To establish uniform Laws on Bankruptcies;
  7. To coin money and regulate the value thereof;
  8. To fix the standard of Weights and Measures;
  9. To provide for the punishment of counterfeiting;
  10. To establish post offices and post roads;
  11. To issue patents and copyrights;
  12. To create courts inferior to the supreme court; and
  13. To define and punish piracies and felonies committed on the high seas, and offenses against the Laws of Nations.
  14. Other provisions of the Constitution grant Congress powers to make laws regarding:

  15. An enumeration of the population for purposes of apportionment of Representatives and direct taxes (Art. I, § 2, cl. 3);
  16. Elections of Senators & Representatives (Art. I, §4, cl. 1) and their pay (Art. I, § 6);
  17. After 1808, to prohibit importation of slaves (Art. I, § 9, cl. 1); **
  18. A restricted power to suspend Writs of Habeas Corpus (Art. I, §9, cl. 2);
  19. To revise and control imposts or duties on imports or exports which may be laid by States (Art. I, § 10, cl. 2 &3)
  20. A restricted power to declare the punishment of Treason (Art. III, §3, cl. 2);
  21. Implementation of the Full Faith and Credit clause (Art. IV, §1); and,
  22. Procedures for amendments to The Constitution (Art. V).

The 13th, 14th, 15th, 16th, 19th, 23rd, 24th, & 26th Amendments grant additional powers to Congress respecting civil rights & voting rights, the public debt [lawfully incurred], income tax, successions to vacated offices, dates of assembly, and appointment of representatives from the D.C.

The Constitution authorizes Congress to exercise throughout the States these and only these powers!

4. Two provisions of the Constitution grant to Congress broad legislative powers over specifically defined geographical areas:

a) Article I, §8, next to last clause, grants to Congress “exclusive Legislation” over the following geographically tiny areas: the seat of the government of the United States (not to exceed 10 square miles), forts, arsenals, dock-yards, and the like. As James Madison said in federalist no. 43 at 2., it is necessary for the government of the united states to have “complete authority” at the seat of government, and over forts, magazines, etc. established by the federal government.

b) article iv, §3, cl. 2 grants to congress power to dispose of and make all needful rules and regulations respecting the territory or other property belonging to the united states (as opposed to property belonging to individual states). as these territories became states, congress’ powers under this article were terminated.

5. thus, congress has no authority to bail out financial institutions, businesses, and homeowners who don’t pay their mortgages; no authority to take control of our health care; no authority to pass laws denying secret ballots to employees who are solicited for membership by labor unions; no authority to take away your ira’s and other retirement accounts, no authority to pass laws respecting energy consumption or “emissions”, education, housing, etc., etc., etc.

Therefore, the laws which Congress has passed on such topics are unconstitutional as outside the scope of the legislative powers granted to Congress by The Constitution. We the People did not give such powers to Congress when we ordained & established the Constitution, created the Congress, and listed its 21 enumerated powers. And these powers are not granted to Congress in any of the Amendments.

6. If you look at The List of powers We granted to Congress, you will see that Congress’ legislative powers fall into three categories:

a) International commerce and war;

b) Domestically, the establishment of an uniform commercial system: weights & measures, patents & copyrights, a monetary system based on gold & silver, bankruptcy law, a [limited] power over interstate commerce, and mail delivery. Congress also has the power to establish lower federal courts and make rules for naturalization.

c) Protection of civil and voting rights.

That’s about it! All other powers are retained by the States or the People!

7. You ask, “How can Congress make all these laws if they are unconstitutional? How can what you say be true?”

Congress gets away with it because We are ignorant of what our Constitution says; and We have been indoctrinated into believing that Congress can do whatever they want!

But consider Prohibition: During 1919 everyone understood that the Constitution did not give Congress authority to simply “pass a law” banning alcoholic beverages! So the Constitution was amended to prohibit alcoholic beverages, and to authorize Congress to make laws to enforce the prohibition (18th Amdt.).

8. But during the regime of Franklin D. Roosevelt (FDR), all three branches of the federal government abandoned the Constitution: FDR proposed “New Deal” programs; Congress passed them. At first, the Supreme Court ruled (generally 5 to 4) that these programs were unconstitutional as outside the legislative powers granted to Congress. But when FDR threatened to “pack the court” by adding judges who would do his bidding, one judge flipped to the liberal side, and the Court started approving FDR’s programs (5 to 4).

9. Since then, law schools don’t teach the Constitution! Instead, they teach decisions of the FDR-dominated Supreme Court which purport to explain why Congress has the power to regulate anything it pleases. The law schools thus produced generations of constitutionally illiterate lawyers and judges who have been wrongly taught that three clauses, the “general welfare” clause, the “interstate commerce” clause and the “necessary & proper” clause, permit Congress to do whatever it wants!

10. “Well”, you ask, “what about ‘the general welfare clause’? Doesn’t that give Congress power to pass any law on any subject as long as it is for the ‘general Welfare of the United States’ “? NO, IT DOES NOT!

First, you must learn what “welfare” meant when the Constitution was ratified: “Welfare” as used in the Preamble & in Art. 1, §8, cl. 1, U.S. Constitution, meant

Exemption from any unusual evil or calamity; the enjoyment of peace and prosperity, or the ordinary blessings of society and civil government (Webster’s, 1828).

But The American Heritage Dictionary of the English Language (1969), added a new meaning: “Public relief—on welfare. Dependent on public relief”. Do you see how our Constitution is perverted when new meanings are substituted for original meanings?

Second, James Madison addresses this precise issue in federalist no. 41 (last 4 paras): madison points out that the first paragraph of art. i, §8 employs “general terms” which are “immediately” followed by the “enumeration of particular powers” which “explain and qualify”, by a “recital of particulars”, the general terms.  so, yes! the powers of congress really are restricted to those listed hereinabove.

OUR FOUNDERS UNDERSTOOD that the “general Welfare”, i.e., the enjoyment of peace & prosperity, and the enjoyment of the ordinary blessings of society & civil government, was possible only with a civil government which was strictly limited & restricted in what it was given power to do!

11. “OK”, you say, “but what about ‘the commerce clause (Art. I, §8, cl. 3)?  Doesn’t that give Congress power to pass laws on any subject which ‘affects’ ‘interstate commerce’ “? NO, IT DOES NOT! In federalist no. 22 (4th para) and federalist no. 42 (11th &12th paras), alexander hamilton & james madison explain the purpose of the “interstate commerce” clause: it is to prohibit the states from imposing tolls and tariffs on articles of import and export—merchandize—as they are transported through the states for purposes of buying and selling. that’s what it does, folks; and until the mid-1930’s and fdr’s “new deal”, this was widely understood. ***

12.“well, then”, you say, “doesn’t the ‘necessary & proper’ clause’ (Art. I, §8, last clause) allow Congress to make any laws which the people in Congress think are ‘necessary & proper’?” NO, IT DOES NOT! Alexander Hamilton says the clause merely gives to Congress a right to pass all laws necessary & proper to execute its declared powers ( federalist no. 29, 4th para); a power to do something must be a power to pass all laws necessary & proper for the execution of that power ( federalist no. 33, 4th para); “the constitutional operation of the intended government would be precisely the same if [this clause] were entirely obliterated as if [it] were repeated in every article” ( federalist no. 33, 2nd para); and thus the clause is “perfectly harmless”, a tautology or redundancy. ( federalist no. 33, 4th para). james madison agrees with hamilton’s explanation. ( federalist no. 44, 10th-17th paras). in other words, the clause simply permits the execution of powers already declared and granted. Hamilton & Madison are clear that no additional substantive powers are granted by this clause.

13. The 10th Amendment states:

The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

So! If a power is not delegated by the Constitution to the federal government; and if the States are not prohibited (as by Art. I, § 10) from exercising that power; then that power is retained by the States or by The People. And WE are The People”!

14. Our Framers insisted repeatedly that Congress is restricted to its enumerated powers. James Madison says in federalist no. 45 (9th para):

The powers delegated by the proposed Constitution to the federal government are few and defined. Those which are to remain in the State governments are numerous and indefinite. The former will be exercised principally on external objects, as war, peace, negotiation, and foreign commerce; with which last the power of taxation will, for the most part, be connected. The powers reserved to the several States will extend to all the objects which, in the ordinary course of affairs, concern the lives, liberties, and properties of the people….[emphasis added]

In Federalist No. 39(14th para):

…the proposed government cannot be deemed a national one; since its jurisdiction extends to certain enumerated objects only, and leaves to the several States a residuary and inviolable sovereignity over all other objects.

and in Federalist No. 14 (8th para):

…the general [federal] government is not to be charged with the whole power of making and administering laws. Its jurisdiction is limited to certain enumerated objects…

15. In all its recent legislation, Congress ratchets up its concerted pattern of lawless usurpations. The executive branch and the federal courts approve it. Such is the essence of tyranny. They are “ruling” without our consent, and hence the federal government is now illegitimate. PH


* “Federal” refers to the form of government: An alliance of States with close cultural & economic ties associated in a “federation” with a national government to which is delegated supremacy over the States in specifically defined areas.

** Some object that our Constitution endorsed slavery. During the 18th century, slavery was universal. Article I, § 9, clause 1, is our Proclamation to the World that WE would abolish the slave trade! Of course, James Madison wanted the “barbarism” & “unnatural traffic” of the slave trade abolished immediately ( Federalist Paper No. 42, 6th para).

*** See Justice Clarence Thomas’ concurring opinion in united states v. lopez (1995). justice thomas’ opinion shows why those disposed to usurp attack him so virulently.

Canada Free Press

Is the US government taking over our private pension plans?

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Here’s something I’ve been hearing about for some time now, but didn’t post anything because it would sound so far out before now. Now the Government is beginning to announce this to smooth it over and sound good…..like the bailouts. The government to the rescue of your pension plans? Hardly……watch out America.

US government taking over our private pension plans?

Long planned, the current economic storm erupted violently in late 2007. It wasn’t by accident. It was engineered years back, so financial racketeers could profit from wrecking global economies and destroying their middle class, including America’s.

On February 1, 2009, former high-level Wall Street and government insider, Catherine Austin Fitts, explained it an article headlined, “Financial Coup d’Etat,” saying:

A global financial cabal “engineered a fraudulent housing and debt bubble; illegally shifted vast amounts of capital out of the US; and used ‘privatization’ as a form of piracy – a pretext to move government assets to private investors at below-market prices and then shift private liabilities back to government at no cost to the private liability holder….Clearly, there was a global financial coup d’etat underway,” its magnitude overwhelming and incomprehensible to most people, as planned.

Many trillions of dollars have been stolen, shifted from public to elitist private hands – by far, the greatest ever wealth transfer in history, a global heist, sucking capital out of one country after another, including America. It’s an ongoing “de-moderniz(ation)” process, transforming Western countries into third world ones – in real time, in plain sight, yet few people understand.

In stark terms, Fitts says it’s more than just “a process designed to wipe out the middle class. This is genocide (by other means) – a much more subtle and lethal version than ever before perpetrated by the scoundrels of our history texts.”

It’s a government-business cabal for enormous profits through “legislation, contracts, regulation (or lack of it), financing, subsidies,” and massive handouts to Wall Street favorites. Carefully rigged for powerful elitists, the public is so cleverly harmed that few understand what’s happening – literally that their livelihoods, welfare and lives are being destroyed in real time. The America older generations knew no longer exists, the dream of millions wiped out, and it’s also happening throughout Europe.

In his September 30 article titled, “The Neoliberal Experiment and Europe’s anti-Austerity Strikes,” Michael Hudson explained sinister plans “to drastically change the laws and structure of how European society will function for the next generation. If (successful, they’ll) break up Europe, destroy the internal market, and render that continent a backwater. This is how serious the financial coup d’etat has become. And it is going to get much worse – quickly….The bankers are demanding that (governments) rebuild their loan reserves at labor’s expense.” It’s also Obama’s scheme, shifting greater wealth to the rich, impoverishing the rest.

Throughout the West, neoliberals are in control. “From Brussels to Latvia, (they) aim to shrink their economies to roll back wage levels by 30 percent or more – depression-style levels – (for) ‘more surplus’….to pay in debt service,” tribute to global bankers, turning Europe “into a banana republic.” It’s also planned for America.

“This requires dictatorship.” Labor is targeted for destruction. “Europe (like America) is entering an era of totalitarian neoliberal rule.” So-called “free markets” aren’t possible without it. But wait – “This is economic suicide, taxing labor, not the rich, and at the same time “slash(ing) wages and pensions, cut(ting) back public spending and employment, and shrink(ing) the economy,” turning Western societies into dystopian backwaters, a dark future unfolding in real time.

In his October 2 International Forecaster report, former insider and long-time financial expert Bob Chapman adds more about America, saying:

“There is no question that those who control our government from behind the scenes are bound and determined to take over the $6 trillion in private pension plans. Whether they’ll be successful remains to be seen. The Department of Labor wants to force all IRAs and 401ks into the arms of a corporate fascist government, that knows (best what’s) good for you.” They want public investments exchanged for “a guaranteed, government annuity that is not worth the paper it is written on.”

“Small amounts would go into” government retirement R-bonds, the larger portion earmarked for Wall Street – the usual suspects profiting, including Goldman Sachs, JPMorgan Chase, Citigroup, Bank of America, and other giants for even greater market control than already, and far more capital to manipulate for profit. Chapman calls it “monopoly control and subjugation of worldwide investments, a total hold on the control of all investments” to scam the public more than ever and head them deeper into poverty, exactly what Washington and Western governments propose.

On the pretext of reform, destroying Medicare and Social Security are also planned by privatizing them, earmarking them for Wall Street, the same way 401ks killed corporate pensions.

The House Republicans’ “Pledge to America” aims to wreck them by promising to save them, including by “reviewing Social Security and other entitlement programs” – meaning, let Wall Street bandits, not Washington run them.

A longtime GOP priority, congressional Republicans, Reps. Paul Ryan, Kevin McCarthy, and Eric Cantor explained it in their book, titled “Young Guns: A New Generation of Conservative Leaders,” proposing privatizing Social Security and replacing Medicare with a voucher system that amounts to the same thing. If enacted, of course, it will leave workers and seniors high and dry by providing Wall Street racketeers with a new opportunity for pillage.

Democrats have the same plan, to be unveiled in the lame duck session on the pretext of deficit reduction and fiscal austerity, ideas Obama endorses. On February 18, he signed an Executive Order, establishing a “bipartisan National Commission on Fiscal Responsibility and Reform” (a deficit reduction commission) to slash social spending, focusing heavily on Medicare and Social Security. (I might add, have you noticed that Social Security recipients didn’t get a COLA raise last year and it has just been announced that next year 2011 they will not get a raise either. With prices going up on everything, people on fixed incomes aren’t getting a raise? I guess that’s one of the few cuts in spending from the Obama administration……Senior Citizens.)

America’s Economic Landscape

On September 19, the Business Cycle Dating Committee of the National Bureau of Economic Research (NBER), “determined that a trough in business activity occurred in the US economy in June 2009. The trough marks the end of the recession that began in December 2007.”

Stacked with corporate economists (practicing what Michael Hudson calls “junk economics”), the types featured on business channels and in mainstream publications, the NBER is a Wall Street tool.

Non-member David Rosenberg has another view, saying “it is very difficult (getting) excited about (today’s) economic landscape.”

Unemployment is dangerously high. It’ll worsen, not improve, and there’s “absolutely no recovery in bank lending – especially to households.” In fact, consumer loans and real estate credit keep dropping, hardly a sign of recovery, besides disturbing consumer sentiment levels, a deep housing depression, and any number of other indicators showing a hugely troubled economy. It’s why independent observers like Hudson and Chapman expect worse to come, a tsunami of economic pain, hitting ordinary people hardest.

A Final Comment

On September 28, the US Census Bureau provided more evidence of economic trouble, reporting America’s highest ever income gap. In 2009, median household income fell nearly 3% from $51,726 to $50,221, the second consecutive annual drop.

Moreover, among all developed nations, America has the highest income disparity, and it’s showing up in record numbers needing Medicaid, food stamps, and emergency food help. In addition, higher levels of poverty, homelessness and other worrying signs show economic weakness, not strength.

Yet, with growing human depravation, bipartisan indifference cares only about serving wealth and privilege. Expect that attitude to harden post-election, leaving growing millions on their own, out of luck, and if new legislation passes as expected, eventually without Social Security and Medicare, once Wall Street bandits gets their hands on them.

On September 18, Obama explained it when he told the Congressional Black Caucus, “You didn’t elect me to do what was popular. You elected me to do what was right,” his hidden message meaning populism will be sacrificed for privilege. As a result, expect lots tougher times ahead because political leaders plan it – wrecking the American dream for business at the public’s expense unless enough outrage erupts to stop it. (I’m going to add…..that is what is being generated among the Tea Partiers……outrage!)

Baltimore Chronicle

U.S. Congressional leaders agree on financial reform bill giving feds power to seize private companies

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Although there are some good points about this bill as Steve has already posted relative to the oil speculators which need to be reigned in, I’m afraid this bill may not be completely what it appears to be on the surface, but instead is possibly another government takeover of the financial system and will determine who succeeds and who fails based not on Congress, but unelected bureaucratic appointees. When we people learn these recent “crisis” have been caused by the government, then the government moves in and says we’ll be your ‘savior’, take over and make everything ok.

“It’s a great moment. I’m proud to have been here,” said a teary-eyed Sen. Christopher J. Dodd (D-Conn.), who as chairman of the Senate Banking Committee led the effort in the Senate. “No one will know until this is actually in place how it works.” (Now where have we heard this before? Nancy …”you won’t know what’s in it until it’s passed.”…Pelosi….that’s where.)

Financial Reform Is a Disaster For Banks, Consumers

New financial services regulations will be so disastrous that Congress will need to repeal them to undo the damage they will cause, banking analyst Dick Bove said Monday.

Calling the proposal “The Anti-American Finance Act,” Bove paints a grim picture of its consequences: Millions of consumers losing their bank accounts; costly and needless bureaucracy; an onerous restriction of money growth; and reduced US competitiveness in the global financial system.

“The Congress has created legislation to solve problems that may not exist and has not created legislation to deal with real problems,” Bove, of Rochdale Securities, said in a note to clients. “The consequences will be quite negative. The bill is so bad that it is certain to be reversed in subsequent Congressional sessions.”

While the proposals have yet to take final form, the legislation calls for more stringent regulation on risk-taking and capital requirements and establishes consumer protection in ways that Bove calls actually counterproductive.

But Bove said lawmakers and policy chiefs have overreacted to the crisis and come up with a set of laws that will ultimately harm the system, the economy and consumers.

“There is no doubt in my mind that in two years, the Congress and regulators will be scrambling to figure out how to undo what they have done with this legislation,” he wrote. “Banks need to lend, so money supply can grow. Forcing bank balance sheets to shrink does nothing to aid the United States economy.”

Higher capital requirements will shrink the money supply, which in turn will trigger deflation, lower incomes, unemployment and a contracting economy, he said.

“No one who is mandating higher capital in banks is considering this,” he said. “In fact, the policymakers are united in their view that the global banking industry needs more capital. It is more likely that the taxpayer is buying a new structure that will be as unworkable as the old one,” he wrote.

As for consumers, price controls and increased regulation will force banks to charge fees for routine services, which will be cut as well.

“Millions of people will lose their bank accounts,” Bove said. “The cost of banking will go up for everyone as the banks apply monthly maintenance fees to all of their customers. Credit availability will be reduced and credit, which is available, will cost more to everyone.”

The only winners in a newly-reformed financial system may be the banks themselves, Bove told CNBC late Monday.

“They’ll get their money,” he said. “It may be a lag of six to 12 months, but they’ll get the money back that they lose as a result of this bill.”

For investors, this means limiting exposure to banks that are largely consumer-oriented. Better bets, Bove said, are the institutions serving the “commercial customer,” like Comerica.

“Those banks look extraordinarily good at the present time,” Bove said.

CNBC

Michelle Bachmann on the government takeover of the Financial Services Industry

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Please listen to this video and send out to all. Send letters and call Congress reminding them that they are making themselves unnecessary to this power-hungry federal administration!!!!!

Once it has all the power, it no longer needs Congress and they are completely expendable!Summary: Barney Frank came out end of last week ( after Congress left town ) and introduced the Bill for the Government to take over the Financial Services Industry. What does it do?

1. Makes Bailouts permanent whereby the President no longer has to go to Congress anymore, he can go directly to the Treasure Secretary and ask for any amount of money to give to ANYONE he wants.

2. Massive job killer3. Massive government takeover besides health care and cap and trade.Because we ALL make financial transactions it will all be controlled by government and will ration capital and the government will decide who gets it!

They will have a 5 person Oversight Board that will oversee the entire United States Financial Industy and ACORN or an ACORN like organization will be one of those 5 people.They are voting on this in the House today, so that means we must now focus on the Senate.Bachman is begging for us to call , to melt the phone lines, to go to district office.

To get perspective:They have calculated that in July of 2009, the government had already taken over 30% of the economy. Add Health Care at 18%, another 15% for the Financial Services Industry which is ALMOST 70% OF THE ECONOMY IN 18 MONTHS!! (That my friends is a fascist/communist country! This is not what our founding fathers gave us!)

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