The President WantsTo Dictate The Running Of Banks
In a move on Thursday that is designed to appeal to the masses, President Obama wants to put a limit on the scope of business that financial institutions will be free to transact. There is no arguing with the fact that loose regulations and lenders greed combined to contribute mightily to the financial crisis that we now find ourselves in. There needs to be a limit, however, to the extent that a government in a free and capitalist society can dictate the business model of private firms.
At a time when the economy as well as individuals depend greatly on some semblance of stability, the action in the stock market today clearly shows that this new plan could throw a wrench into an already damaged machine. It appears that the strength of President Obama's words in this instance come as a response to other events, such as the near death knell for his healthcare bill, as well as the loss of the Massachusetts Senate seat to Republican Scott Brown.
Populist statements such as the one he spoke today; “We should no longer allow banks to stray too far from their central mission of serving their customers,” will do little to to endear him to the American public. What the people want is a stable economy, jobs and homeland security. These newly proposed rules would accomplish none of them.
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