Harry Reid Wants to Seize a Bank Near You

Supposedly, Harry Reid is close to invoking a cloture vote on a financial regulation bill. This is an opportune time for the Republicans to truly grasp this issue and say no to more Democrat inspired crony capitalism. The GOP appears fearful that they will be tarred with a pro-Wall Street taint if they oppose the supposed increased regulation of the financial sector. As my readers are aware, I am no fan of the cozy relationships that allow the banks and other financial firms to get away with gambling with taxpayer backed dollars and then receiving bailouts when things head south. But the "Restoring American Financial Stability Act of 2010" does not such thing. Instead it grants the administration, of either party in power, the authority to take over any darn business it feels like. From the WSJ,

The federal government would get the power to seize teetering financial giants and dismantle them, just as the Federal Deposit Insurance Corporation now seizes failing banks.

The Republicans need to unite, now, against that one aspect of the bill. Think about the horrible power we are investing in the federal government. First, let's say your a big bank executive and you criticize the administration; whose to say if you aren't "teetering;" perhaps an emergency audit might show you are, so watch what you're saying. Second, and more worrisome, is that whole "dismantle" option. Whose to say how much dismantling is really dismantling. What if you are Bank of America and you just bought Merrill Lynch. Let's say that it turns out that was a dud buy. Let's say you make some big campaign donations. Let's say you get "dismantled" by the government buying Merrill Lynch and taking it off your hands.

I really don't care that much about the rest of the bill; it's probably crap too, but on the same order of crappiness that we are currently living with, so who cares. I just want the stinking bailouts to end. Is that too much to ask? Call your congresscritter and let them know that we just want the bailouts to stop. We want all power to bail out financial firms stripped from this legislation.

P.S. What is wrong with Republicans? The no bailouts argument is compelling and easy to understand. They could be kicking butt by making it. Instead they are cowering in abject fear that a vote on this stupidity will make them look bad. Well of course it will; if they continue to act stupid.