President Obama and his lackeys on the left will do and say anything to destroy our capitalist system that has made us the greatest nation to ever grace this earth. Let’s face it; the President is a utopian idealist, who has no real world experience working with the “free-market” system.
His primary purpose is to push his agenda of “fair-share” and to increase the individual’s dependency on “Big Government”. With the Justice Department today indicating they are launching a criminal probe into a $2 Billion trading loss at JP Morgan, the President’s Administration is at it again.
JP Morgan Chase recently lost two billion dollars of Company money in roughly six weeks. This on the surface seems like a lot of money, but looking at their overall numbers this bank is a 2.3 trillion dollar company with a $190 billion capital base. The money Obama is making a big deal about is roughly 1% of its total capital base. It is uncanny how we haven’t instead heard more from the White House about the unemployment rate sitting at over 8% (with the real U-6 unemployment number over 14.5% according to the Bureau of Labor Statistics).
A criminal inquiry is underway now as regulatory pressure rises on JP Morgan. On Tuesday our Treasury Secretary, Timothy Geithner, pushed the need for more financial regulation reform by saying regulators, ”are going to take a very careful look at this incident.” This is just the type of “crisis” the Administration is using to insist on more regulations that are crippling small businesses, which make up the majority of total businesses in America. Even though J.P. Morgan is a huge entity, regulations created for the largest of entities tend to roll downhill inequitably onto the smaller businesses. Let me give an example of the increasing regulations we are being forced to swallow as American businesses.
2009: 3,503 new Federal Regulations
2010: 3,573 new Federal Regulations
(about 10 new regulations per week on small business)
The U.S Small Business Administration reports the average regulatory cost burden on U.S firms of any size to be approximately $161,000. The manufacturing sector is being pummeled by Obama’s ridiculous government regulations with the cost at roughly $688,944 per manufacturing company.
Connecting the dots here is simple, with the continuous adding of harsh regulations and Obama’s socialist views he will continually push for “government knows best” bailouts and stimulus, (i.e: TARP, QE 1, QE2). This drive towards socialism is leading to government ownership of these companies and is killing the engine of this country, which is small business and private sector economic growth.
A careful look at the government gutting of Chrysler shows the danger that can happen to investors when the government assumes it knows best. While the unions fared pretty well in The Chrysler Deal – it was a “tails you lose heads I win” situation for the bondholders and shareholders. If more “Big Government” was the answer how does one account for such programs as Social Security, Medicare, and the U.S. Post Office? All of this becomes a cascading “self fulfilling prophecy” as more regulation hinders growth, which causes a loss of jobs which necessitates more government aid, which causes bigger government…which makes more regulation.
Capitalism is a historically proven system and liberals try to attack it by going after companies with rhetoric that is twisted in its thinking. These liberals chastise companies by saying that making money is “greedy”. What they don’t get is some businesses work and some fail, but in this country you will most certainly have the opportunity to try again.
Scott Iskowitz. "U.S. launches criminal inquiry into $2 billion bank trading loss." Houston Chronicle [Houston] Wednesday, May 16th, 2012.