Executives from the top nine largest banks in the United States sat down with Treasury Secretary Henry Paulson yesterday. What was the purpose of this meeting? It was not to brief the executives, nor was it to negotiate any specifics of the recently passed bailout legislation and what kinds of actions were going to be taken. Instead, each of the banks was given a term sheet that gave the specifics of how the government was going to take a combined $125 billion stake in their companies.
I saw this story on the front page of The Wall Street Journal this morning, and immediately it struck my curiosity. You would think that someone would raise a protest, yet the only one who really put up a fight (if you can call it that) was Wells Fargo Chairman Richard Kovacevich, who did not understand how this was so necessary. But sure enough, after a few hours all nine had signed onto the plan.
What I find disturbing is that my deepest fears (and those of many others) are coming true - the bailout legislation gave the Treasury so much power that they are and will continue to hold a no-negotiation my-way-or-the-highway attitude. How far have we come in our country, now with the government using billions of taxpayer funds to intervene so blatantly into the private sector. This is a serious form of socialism that Americans should not be taking lightly. Any Republican who has voted and favored this legislation is not deserving of any conservatives vote, and my reasons for that statement can be seen simply by looking at the effects and implications of that legislation. It is without doubt the biggest government intervention into business, ever.
The NY Times has a pretty good article on this tragedy as well.
As always, you can count on Ron Paul to speak the truth about the bailout. This is a clip from him on Fox Business News Tuesday morning: