Banks Don’t Want Bailout Anymore

by Sal on March 12, 2009

in Economy,Politics

Banks are looking to return bailout money as Congress and the President attach more and more strings to the money.  It seems that the banks are just happy to go on their own when the Federal Government starts to put restrictions on how to run a business.  Besides restrictions on executive pay, which would seriously hinder the ability of banks to hire good talent, the measure would also prohibit banks from continuing their involvement in community support or outreach, charitable donations, and would prevent banks from making decisions to help improve their situation.  Instead, these banks, many of whom were forced into receiving bailout money, want to make a go of it on their own. They find the forced mortgage restructuring provisions of the Obama Mortgage Bailout Plan especially troubling, as it will take a bad situation in regards to their balance sheets, and make it even worse.

This is a perfect example of why government ownership of anything is a bad idea.  Businesses are interested in their shareholders and profits, while government is interested in social engineering.  The two ideals are diametrically opposed, as social engineering will prevent banks from again making a profit, thus preventing banks from fixing their balance sheets and addressing the real problems associated with their business.  Bailout money was never more than a crutch, and now that crutch comes with massive strings attached.  Let this be a warning to any company that is thinking of selling its soul to the government.  A business is better off closing its doors than surrenduring its freedom to the Federal Government, as no good can ever come from that.

Leave a Comment

You can use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Previous post:

Next post: