>>Obama Econ. Adviser Volcker Doubts President’s Plan – ABC News
Obama Econ. Adviser Volcker Doubts President’s Plan – ABC News
Like every thing Obama has proposed he is heavy on talk and very light on details so I haven’t been able to get a real handle on his plans for reforming the financial industry in the United States. But apparently someone is getting some information and that someone is Obama’s own designated Economic Advisor Paul Volcher. And he has come oput very strongly against the plan and for a very good reason.
In testimony prepared for a hearing Thursday morning before the House Financial Services committee, the former Federal Reserve chairman expressed doubts about the administration’s proposal to designate certain firms that pose a threat to financial stability, subject them to stricter supervision, and make them submit resolution plans in the event of failure.
The clear implication of such designation whether officially acknowledged or not will be that such institutions, in whole or in part, will be sheltered by access to a Federal safety net in time of crisis; they will be broadly understood to be ‘too big to fail’,” Volcker said.This designation, Volcker said, will only serve to encourage more risk-taking, thereby leading to even worse crises in the future.
“What all this amounts to is an unintended and unanticipated extension of the official ‘safety net,‘ an arrangement designed decades ago to protect the stability of the commercial banking system,” Volcker stated. “The obvious danger is that with the passage of time, risk-taking will be encouraged and efforts at prudential restraint will be resisted. Ultimately, the possibility of further crises – even greater crises – will increase.”
This of course is exactly what the Marxist expect and want to happen so that the financial institution become dependent upon the nanny and there fore beholden to the control of the nanny. So when the time comes for the nanny to turn them over to the One World Government or the United Nations there won’t be any complaints or hold outs among the big institutions, and who cares about the little banks since they won’t have that much power anyhow and can easily be absorbed.
Oh yes a tag of “too big to fail” is a sure affirmation of being a favored kid. Go ahead Johnny because you are “bigger and my favorite” spend your allowance any way you want and if you need more before next pay day just come to Uncle. But you little squirt Jimmy had better watch your spending because I won’t give you another penny no matter what. Johnny is going to spend like a drunken sailor just off the ship after 6 months at sea! Johnny will also be willing to do anything Uncle tells him to do because he knows if he doesn’t Uncle may treat him like Jimmy. It is so transparent! Do these people really believe the American people are so stupid? BB
Comments