Articles Comments

SENTRY JOURNAL » Uncategorized » Bernanke’s Charge: Send in the Reserves

Bernanke’s Charge: Send in the Reserves

Bernanke knows how to protect us from another economic collapse, and being the head of the Federal Reserve, he plans on taking the whole burden himself.  How so?  Well, he will just become the overseer and approver of all capital distribution.

In a new capital plans regulation proposal, the Federal Reserve is asking for the power to approve banking capital plans on an annual basis before making any capital distributions.  This is piggybacking the Dodd-Frank Act which already requires stress tests on large bank holding companies. Now these stress tests or capital planning strategies aren’t only submitted to the fed, but submitted specifically for the approval of banking dividends or repurchase practices. 

Friends, how much further do we need to move in order to say that the federal government is in charge of our banks?  How far are we from having a national banking system?  No doubt that this push, which is taking place under the radar, will be written off as a necessary regulation.  Too many people lost money and are willing to blame the banks.  Their suffering must mean our gain.  Liberals know this sentiment is real because they helped perpetuate it, if for no other reason, to gain ground for their financial takeover. 

Unfortunately, the common man doesn’t understand WHY the banks failed in the first place.  A commonly accepted phrase is that they were greedy.  Well, so are you Mr. Investor or Mr. Borrower.  What you don’t see is that much of the financial meltdown was due to federal regulations that inhibited proper banking practices.  The same federal government that wants to approve capital plans is the same federal government that required banks to give bad loans to individuals who couldn’t afford them.  Now, with plans being reviewed annually, how much more will such terrible social agendas be pushed through the bank? 

In the 90’s the social agenda was putting minorities into houses in spite of their monetary means.  The fed forced the banks to make these bad loans and a decade later the cards came tumbling down.  Loans went bad in record numbers and the banks couldn’t collect.  This started a whole mess that eventually contributed to our financial meltdown.  Now, if this regulation is approved, the entire distributed capital planning of banks would have to be reviewed by the fed.  The result would create a new path of social engineering through the banking system.  If you want to have capital distribution approval, perhaps you have to give “green loans”.  For the liberal out there, imagine if there are republicans who won’t approve the plans unless they are giving loans to oil companies.  This can all be done without specific legislation or congressional approval since this regulation would give approval power to the Federal Reserve.  (It’s important to note that this isn’t part of the rule, but more easily implemented through the broader powers.)

If this isn’t reason enough to hate this proposed rule, there’s more.  Shah Gilani of Forbes reports,

“To start off with, “the one-time implementation burden for these requirements is estimated to be 432,000 hours.” After that, “the annual burden for this reporting requirement is estimated to be 450,000 hours.” And, “the total annual burden for this proposed information collection is estimated to be 887,624 hours.”

Those numbers are only for the initial phase which monitors just 35 banks!  That is almost a million hours in the first year just to implement the rule on a hand full of private institutions.  After that initial phase, they will expand to more banks, meaning more hours spent reviewing their plans.  It sounds like the fed is going to have to grow in order to implement such a rule which means…JOB CREATION! 

This is an insulting proposal that gives too much power to a regulatory branch of government that directly affects your pocket book.  Bernanke, or whoever sits at the chair, cannot be trusted anymore than the CEO of Goldman Sachs.  The difference is that Goldman Sachs’ CEO is regulated by capitalism – you can take your money elsewhere.  If and when the fed fails, you’re stuck in a battle without a weapon. Luckily, you’ve got Bernanke leading the charge.

Share
Facebooktwittergoogle_plusredditpinterestlinkedinmail
RightHandMan

Written by

Yeah, I tweet. If you want to follow me on Twitter, just click on the link below. I hope you do.

Filed under: Uncategorized

opinions powered by SendLove.to
Comments
  • Steve Dennis June 15, 2011 at 5:21 AM

    The FCC, the EPA, the FBI, DHS, and ICE are all expanding their power and their reach and now the government is in the process of trying to create a national banking system? Americans had better be paying attention to thisif we give Obama another four years there is not telling where the federal power grabs will end.
    Steve Dennis recently posted..The FBI looks to expand its investigative powerMy Profile

  • Infidel de Manahatta June 15, 2011 at 9:16 AM

    Oh those wacky Feds. What will they think of next?
    Infidel de Manahatta recently posted..Yankees Win Again; Jeter Put DownMy Profile

  • Bunkerville June 15, 2011 at 6:31 PM

    This is really going to be the last stop I am afraid. Good post.
    Bunkerville recently posted..Panetta and his Communist ties- a real scandal in the makingMy Profile

  • Jim at Conservatives on Fire June 16, 2011 at 12:26 PM

    An excellent essay, RHM. All big businesses are required to follow Generally Accepted Accounting Practices (GAAP). They also must hire a private accredited auditing firm to audit their books every year. The same could be done for the banking industry. Keep the Feds and Dodds-Frank out of it.
    Jim at Conservatives on Fire recently posted..Martial Arts vs. The Bully Boy (Obama)My Profile

  • Bob Mack June 17, 2011 at 7:05 PM

    If anyone thinks we’re not in the middle of a coup d’etat, they’re not paying attention.

  • […] Bear named ‘Bearack Obama’ and How Liberal Policies Are Affecting His Brother Bears TooBernanke’s Charge: Send in the ReservesObama’s Solicitor General Neal Kumar Katyal: Life Under LiberalsWhat EV “Enthusiasts” Do For […]