From Bailout To Buyout

The New York Times is now reporting that the Obama Administration wants those banks who were given bailout money to convert the amount of their loans into common stock (See Full Story). If this happens, the banks become, in most cases, majority owned and controllable by our Federal government. In effect, our government has decided to become a "corporate raider" and elected to no longer be creditor as was originally intended and as authorized by Congress. Anyway you shake it, it is the nationalization of our banking system in an end-around fashion. While it might be less heavy-handed and less obvious than Chavez's "eminent domain" kind of seizure of strategic businesses in Venezuela, it is still a form of nationalization and socialization of a key industry in our country.

This is more than just the simple helping back to health of a failing industry. Instead, this is a power-play that is intended to control all businesses in America. That's because all companies and all businesses, at some point in time, need credit from our banks to conduct their business and to expand. If our government is "the bank" by virtue of its majority ownership, that bank can impose strict demands on any business wanting a loan. Those "impositions" can include restrictions on pay and executive compensation. It could mandate "green-only" business operations. Businesses could be told that they won't be given a loan unless or until they cease their overseas operations. Furthermore, just focusing on the bank itself, with the government effectively owning that bank, they can decide who runs that bank; who the board of directors are; and, what business operations that bank can or can't get into.

To me, this is a subversion of any concept of our system of capitalism and the first steps creating a French-like revolution towards a socialist society. Apparently, this has been Obama's plan from the very beginning. Anyone who can't see this is just a fool; and, apparently, there are just too many fools in this country who are willing to let him get away with it.