Today Wells Fargo announces record profits in the first quarter 2009. Well Fargo has always be a quality company and it is no surprise they would announce a profit well before other banks. But… did you know that Wells Fargo was forced to take TARP money or “bailout money”? Wells Fargo declined to take the money, but the Feds, ie Obama through Treasury forced Wells Fargo to take money. By taking money, Wells Fargo becomes subject to Federal rules regarding their operations. I am not making this up… a perfectly healthy company was required to take bailout money. By taking this money two things happen: 1.) The Treasury now has far greater oversight of the banks activities and 2.) the Treasury now owns stock in Wells Fargo.
Exactly why would Wells Fargo be forced to take money? I am not sure… but it smacks of another backdoor attempt at controlling our economy through bank oversight and ownership. What comes next? Nationalizing of the banking system? AIG is owned 80% by the Treasury…
While I would not profess to have expertise in economics or economic models, but when I see the Federal government increasingly owning businesses, I shudder. A careful examination of these transactions suggests to me, a goal of “owning the means of production” and the means of financing production… which my friends is SOCIALISM!!! Socialism is an economic model where the government controls the economy… and when did our government ever do anything correctly and efficiently?
My friends, another day of captivity to the socialist policies of Obama has passed un-noticed by the media. And while at the moment our captivity is at a macro-economic level, with each passing day, the encroachment of government is moving down the economic ladder. Someday, when your rung of the ladder has been invaded, you will recoil and protest the invasion of government, but regrettably it will be far far too late to change. And I fear we will all look back and say we knew this was happening, but we were too engaged in our personal “cones of silence”. Too bad… that was then this is now!!!!