Newt Gingrich thinks it may be an over statement, but no question Geithner’s grab at Treasury to control financial institutions and Obama’s grab over at GM … translates into a power grab. Where will it stop?
Update 1: I never had the chance to comment on this. It is clear, after listening to Obama administration folks on TV today, that the control of GM is just the beginning and that this is but a warning shot. Obama’s folks feel flush with power over anyone that took bailout money, loan or not, and are not afraid to assert that power to reshape not just banking but corporate America as well.
Right now fear grips folks in banking and finance as well as on the street. Finance is frozen. You know, those people who you are asking for a loan, or invest your money for that new house, car or college. People in power in the industry most assuredly are not sure what moves to make on the chance that the government will either step in to void that deal in the name of “public good”. And while that fear freezes the financial system, my guess is its seeping into other industries as well, although I have no evidence that is the case.
The ends do not justify the means, so while some may be convinced that government asserting its will on business is the only way to cure a wounded system, Newt is right, in the end it will end the system itself.
Update 2: I apologize. I originally classified this under economics when in fact we are talking politics. My guess is it could be on either side, but I think it rightfully belongs here. Jim