Government Morality
In the news today…..
Citibank – is paying back $20B of its $45B TARP money – and this will get them out from under the Treasury’s thumb. What happened to the other $25B? It was converted into Citibank shares. So, we, the taxpayers, own 31% of Citibank – not enough to control them, but enough to be on the hook. Was it a good idea for the government to allow Citibank to pay off its TARP debt? I DON’T THINK SO!!!!!! Citibank now has NO controls by the US Government. They can go out, and make more bad loans – just like they did before – nothing is stopping them. What happens if their loans go bad? The taxpayer MUST bail them out – as we are the shareholders and they are “too big to fail.” I personally think this stinks. We haven’t solved the toxic debt problem – the banks still hold that crap, but they don’t have to “mark to market” so they don’t have to recognize the “real” value and declare their bankruptcy. The FED still has zero interest rates going, and banks can lend out at 3%, so they are making a fortune – AS LONG AS the Fed continues this policy. When it stops, the banks will be back in a tough position – small incomes and bad debts.
Dubai – has been saved from default by Abu Dhabi which has given it $10B. This is good from a crisis viewpoint – as a sovereign nation won’t be defaulting this week.
Federal Government Morality – this is an interesting subject. Where does morality come from? I believe it comes from the people to exercise that morality. Let’s look at government employees. It was reported today that Federal employees owe 2008 taxes of $3B. So, even Federal government workers don’t pay up to their tax bill. So, the government which pays these employees, can’t collect on the taxes due. Sounds like a very ineffectual organization to me. But, don’t worry, this is the same organization that wants to run your health care, and to tax CO2 emissions, and to increase the nation’s debt by spending without morals. I believe the government should stick to what it’s chartered to do – pass laws, and then enforce those laws. That massive power (the ability to pass and enforce laws) is what points the way for America. Those laws are passed by our “representative” government, and if we don’t like the laws, we don’t re-elect our representatives. That’s how it works. The Administrative branch of government has powers too (they are supposed to carry out the laws, and provide the enforcement arm), but coercion isn’t one of them. For the Administration to hold a gun to Congress’ head in the form of EPA CO2 emission controls is immoral. Congress must stand up an take back its power – by eliminating CO2 specifically from the list of gases that the EPA can control.
Here are the last numbers for today:
Dow Jones 30 Industrial – 10,501 (up 30 points)
10 Year Treasury Bond – 3.55% (up 0.01%)
Euro – $1.4652
Gold – $1123 (up $5)
Oil – $69.64 (up $0.13)
Gasoline – $1.84 (no change)
