Saturday, January 23, 2010

Populist Attack on the Banks

As bad a money manager as banks are – and they are TERRIBLE money managers – EVEN they know that if you can borrow money from the Federal Reserve at ZERO interest, and invest in government paper at 2% or 3% with ZERO risk, you can make a lot more money than loaning money with risk!

Guess who set up that system? Yep! The Obama administration!

I don’t blame the banks for using the very system the administration devised…I would do it in a New York second!

Of course I’m shocked that the market is responding negatively to the nasty attitude of President Obama.

Our President comes from the “Whip that mule” School of Politics. He has gone populist to change the political climate, hoping that people hate the banks and Wall Street more than they hate his ObamaCare, Cap and Tax, Immigration, etc.

It is a risky policy. As much as people appear to hate the banks and Wall Street, their 401(k) is in there, and EVEN liberals (or at least some liberals) understand the inadvisability of trying to get banks to do his bidding by punishing them.

Obama’s base already hates the banks, and already loves him. (Although his “Messiahship” is slipping fast.) Efforts to move the independents with populism is a losing bet…independents are a smarter group than his base.

The “Chicago” is showing through.

[Via http://usna1957.wordpress.com]

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