Leave Fannie & Freddie alone – attack big banks

From Christian Science Monitor.

President Obama Thursday proposed new limits on banks’ size as well as their ability to take risks. The move is part of reform measures to avert a repeat of the practices that led to the financial crisis. The stock market fell in response to the news.

The banks have paid back a good portion of their bailout money. Fannie and Freddie? We will most likely never see a dime. And still no rule changes for the GSEs – the root cause of the crisis. If you don’t do something about Fannie and Freddie, it can all happen again. The offending organizations just will not be banks.

This is a classic example of fixing, or claiming, the blame while distancing any reference to the role of government in causing the crisis. Not that the banks don’t deserve some blame. The FED should have taken over the banks “too big to fail”. All those so called “Fat Cat Bankers” might be a lot more attentive to their liabilities in the future. And the major holders, most likely partners or high executives, would have taken a real bath!

Taxing the banks? You will pay any tax they put on the banks. The Executive branch suffers from EDD (Economics Deficit Disorder) just like Congress. Come on Paul Volcker; you are old but a big man. You most likely can take Obama, pin him to the ground, and tell him how the economy really works.

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