Thursday, April 22, 2010
Locking up the Wheels that turn America HR 4173 or Obama
Locking up the Wheels that turn America
HR 4173 or Emperor Obama will collapse Wall Street
If you’ve ever run a business the incentive for good decisions is failure. Fear of Failure is what makes ‘good decisions’ more likely. The lack of failure provides an incentive for bad decision because of the lack of a penalty. Companies, who have learned this, have come to manipulate the Government as a saving agent for bad decisions and thus presumably gain control of the Government. Its irony, bad financial decisions equals control of the Government, and thus The People.
HR 4173 is akin to a Wallmart threatening to let out violent offenders of the penitentiaries, if the State doesn’t give them more money. It amounts to black balling the Government and I think Barrack Obama’s too stupid to figure that out, or he is essentially in collaboration to collapse WallStreet and thus MainStreet America. Hey, wait a minute; doesn’t The People control the Government and thus the penitentiaries?
Another thing, does the needs or model for business change all that much from the time a business is small to the time where it becomes 1 of the 50 biggest? So… how can the word failure not be applied to a large holding as it does to a small holding? When a large holding fails, there are smaller ones under it to catch the debris as it falls. It’s not the end of the world as we know it.
Here are a few details of HR 4173 that are enough to dry up the grease in any business wheel barring and lock’em up.
EMERGENCY EXCEPTION TO MAJORITY VOTE OF COUNCIL REQUIREMENT
[If each of the Secretary of the Treasury, the Board, and the Federal Deposit Insurance Corporation determines that a financial company must be subjected to stricter prudential standards in accordance
with this section immediately to prevent destabilization of the financial system or economy, the Secretary, the Board, and the Corporation may, upon approval by the President, subject such company to stricter prudential standards under this section.] What the hell does he know?
[The heightened standards imposed by the Board under this section shall include— risk-based capital requirements; leverage limits; liquidity requirements; concentration requirements prompt corrective action requirements, resolution plan requirements, overall risk management requirements; and may establish short-term debt limits] Can you say every facet is covered?
[In order to limit the risks that the failure of any company could pose to a financial holding company subject to stricter standards and to the stability of the United States financial system, the Board, by regulation, shall prescribe standards that limit the risks posed by the exposure of a financial holding company subject to stricter standards to any other company.]
That sounds like Main Street to me and it really sounds like financial holding companies can’t even ascertain the legitimacy of smaller businesses assets and liabilities, how’s the Government going to be able to?
(Limits credit exposure to 25% of credit stock.)
If you’ve ever been a CEO, and realized a downturn, you probably went out on a limb over the 25% just to make payroll, are we going to let the government all of a sudden collapse a business because an owner is trying to make payroll?
Oh and hey you’ll die laughing, well not really, when you get to the incentives for whistle blowers, and the superimposed binding judicial branch of Government created right inside HR 4173.
If you’ve ever run a business, you have ideal standards and then the reality standards. Most times the reality standards aren’t ideal, but they get you buy, make a payroll, and squeak you by in the ebb and flow of fluctuating business markets that cannot be controlled or calculated for say things we have no control over, the weather, population shifts, seasons, and even more flippantly the style or taste, or desire of demographic populations that constantly change.
If the government can’t tell businesses that ultimately they will not bail them out and failure, or some bankruptcy court, is the ultimatum then you know the Government has succumb to the Giant Corporation or Banker’s wishes, and thus the printing of currency has shifted from the Government to the Banks.
Regulatory framework is already in place but the political will to enforce it has been absent, thus creating a new bureaucratic Council is really a waste, accept for the ‘control’ of Government, which gains quite handsomely.
In the simple gathering of information in order to verify what an institution or financial company is all about, no less the 50 biggest U.S. companies and sub companies on down, would take something bigger than the IRS if you just think about it. The audits are legal to actually just see “if” you pose a threat to financial security.
Not limited to U.S. Markets, the Financial Services Oversight council controls anything remotely within the concept of U.S. Financial Markets and also has to oversee World Markets to determine and assess U.S. competitive disadvantages that might be working. If there ever was another Kraken in the Ocean besides Healthcare, the release of this beast is it.
While the Kraken monstrosity in Clash of the Titans was turned to stone by the head of Medusa; in theory, the head of Medusa should be held by the Government in the simple word “Failure”, because you’re not too big to fail.
Government should never forget the “key” to businessmen making good decisions themselves is the ultimate penalty of failure and not Government regulation in business they know less about and The People should not blame the government for the freedom to fail as it also provides the key to success.
Thomas Jefferson related, ‘A wise and frugal Government which shall restrain men from hurting one another; shall leave them otherwise “free” to “regulate” their own pursuits of industry and improvement.
Read the Bill HR 4173 http://docs.house.gov/rules/finserv/111_hr_finsrv.pdf
updated: video regarding HR 4173 and Obama's push