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From Each According To Their Ability...

President Obama has announced his plan to recover the money the government gave to banks through the TARP program: a tax on banks that should recoup up to $120 billion.

That's a tax on all the big banks, of course. Not the little banks. And not the banks run by GM and Chrysler.

Just the big banks.

Whether or not they took any TARP money in the first place. Or, if they did, whether or not they paid it back.

This isn't about recovering the people's money. It's about increasing the government's control over the banking business. It's about "punishing" the banks that paid their top folks more than the government thinks they should. It's about the government making certain it has control over the banking industry.

It tried with TARP, but it only roped in a few. And some of those squirmed off the hook by paying back the loans (despite the government's initial refusal to accept repayments).

So now we have the Obama administration's plan to recoup the money that most of us wrote off the instant it was paid out -- from the pockets of the innocent and the guilty alike. The sole criteria is which ones can pay, and haven't already completely surrendered their independence to the Obama administration.

Is this the "change" so many voted for?

I fear it is.


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Comments (29)

Gangsters.... (Below threshold)


Marxist gangsters.... (Below threshold)
P. Bunyan:

Marxist gangsters.

and we hear today that the ... (Below threshold)

and we hear today that the Unions are to be exempt from the "Cadillac Health Plan Tax".

All animals ARE equal*
*some animals are just MORE equal than others

Sorry, Jay Tea, but i can't... (Below threshold)
James H:

Sorry, Jay Tea, but i can't sympathize here. Those yahoos nearly wrecked the world economy, virtually stuck the taxpayers with the tab, and they're on track to pay record bonuses? Something's rotten on Wall Street.

If the government can get a... (Below threshold)

If the government can get away with setting a punitive tax based on how much money a bank has in its vault, what's next? So, for now, this is only for banks with $50 billion or more. Then as the gov't needs more revenue it slides that scale down. Once this is in place they can then go after all types of corporations that have lots of cash on hand. And, because one of the things that makes this country great is that corporations are treated as legal entities like an individual, that's where they go next. They go after taxing individuals that have lots of cash in savings. It will start with the likes of Oprah, Buffet and Gates with billions in their names. And, once that's exhausted they will come to tax folks like you and me that work hard and save for the future and retirement because we know the gov't will be broke when we file for social security.

That's the problem with socialism, eventually you run out of other people's money!

When the gov't comes to take hold of MY savings, that's when GLOD fights back.

Give Liberty Or Death, GLOD

So, should somebody kneel b... (Below threshold)
james H:

So, should somebody kneel before GLOD here? Or are you on a mission from GLOD?

funny how all the TARP fund... (Below threshold)

funny how all the TARP funds that are expected to be lost will be lost at GM, Chrysler and AIG and not at the firms who were forced to take some money (most of whom have paid it back with interest)

Should'nt we be taxing GM, Chrysler and AIG instead if we "want our money back" ?

and Obama was the candidate with the "towering intellect" ?

James H,The big ba... (Below threshold)

James H,

The big banks have have been paying back TARP with interest Goldman paid 20.0% and American Express 23.4%.
So you are given money, all of sunned new restrictions are placed on you, salary restrictions, people encourage to work for little money, you pay with interest make profit Now they want to punish the Banks that paid the money back?

Where is TARP money that the Tim got back?

Where is the Taxpayer not being made whole?
AIG, FM/FM GM and Chrysler? Why not Target them?
Because all the people at those institutions are appointed by BHO.

Hope and Change = FACISM

Any company that has its ta... (Below threshold)

Any company that has its taxes increased just passes it on to its customers.

So...they tax us to bail out the companies and then tax us again (through the companies) to get back the money that they taxed us for in the first place.

I'm going to stop bending over because it's really starting to hurt...

Hccc ... You forgo... (Below threshold)
James H:

Hccc ...

You forgot a couple things ... Goldman Sachs and others were reimbursed dollar-for-dollar on credit swaps with AIG.

Also, a portion of the "recovery" came from revisions to mark-to-market accounting rules.

Also, this tax is aimed squarely at banks that encourage risky investment strategies (which nearly wrecked the economy the first time around)

And this doesn't even get into the societal implications of the vast, growing income gulf between rich and poor.

Despite what I've said abov... (Below threshold)
James H:

Despite what I've said above, I am at least somewhat sympathetic toward Wall Street as well. Steven Pearlstein calls out some of the demagoguery against Wall Street and offers a plausible alternative -- a transaction tax.

"...plan to recoup the mone... (Below threshold)

"...plan to recoup the money that most of us wrote off the instant it was paid out..."-jay tea

"Most of us wrote off" is a dodge. The fact is (and you may know this, thus your...dodge), the taxpayer money used for TARP via Treasury, has been "paid back" to Treasury (paper entry), but NOT_Paid Back_per the fund to the taxpayers.

BILLIONS of dollars are and have been stolen in this way over the years. The inside thieves allow the settlement meme reliant on government press releases to become received wisdom (due to notorious press ignorance and laziness)by the pretense that accounts have been settled and thus the subject is no longer up for discussion. Joe Q Public assumes that's that. After all it's been "paid back" to Somebody.

So right now, the take is being cut up somewhere by Somebody and the cops are no concern at all. Like Hitler always preached, "Audacity!"

James H ... maybe... (Below threshold)

James H ...

maybe its not obvious to most but there are already transaction taxes applied to most Wall Street securities transactions ... its fairly small ...

a large transaction tax would do the exact opposite of what is desired ... it would encourage MORE risk taking not less ... if you make eack transaction less profitable (a tax does that) you push people to do less of them so them will try riskier transactions to hit home runs because base hits will incure too many taxes on each hit ...

The market already has the tools in place to reduce the number of risky transactions ... its called failing and going out of business ...

Think about the number of "risky transactions" allowed to occur in the real estate market. How many foreclosures resulted in the ex-homeowner going broke ? Not many as most simply walk away from their mortgage and someone else takes the financial hit. Why didn't the banks stop laoning to risky borrowers ? Could it be they were forced to make those loans by the Feds ? Maybe yes ...

Also if Fannie and Freddie had correctly valued those loans as junk the banks would have not been able to make so many of them ...

The "risky investment strat... (Below threshold)
Jim Addison:

The "risky investment strategies" are those mandated by Congress and fostered by Fannie Mae and Freddie Mac at the behest of Dodd, Frank, Rangel, and Pelosi.

If banks didn't loan enough in minority neighborhoods, Congress menacingly spoke of regulating "redlining" but when they structured loans which allowed more poor credit risks to qualify they were accused of "predatory lending" practices by the Democrats.

As noted by hcddbz, the bailout beneficiaries who haven't paid back any money are those who aren't touched by this. However, it is useless to attempt to discuss this with the leftists, as they are corrupt to the core and don't give a rat's patootie about the truth.

James H and BryanD.......th... (Below threshold)

James H and BryanD.......the consumate Kool Aid drinkers. Probably tapped right in to WhiteHouse.gov so that they can instantly respond to their master's voice as to who to "HATE" next.

Hey ya fucking dumb asses. Any HATE there for Fannie Mae and Freddie Mac? Any HATE for the unions?

Heil Obama!A money... (Below threshold)

Heil Obama!

A money grab plain and simple. ww

Grandfan,Hate make... (Below threshold)


Hate makes the world go round. Just make sure you hate the right people.

Talk about a drinker...have you ever said anything positive about someone you do not agree with? Or do you just call them names?

I hate Obama! Did I get it right?

heh worldcitizen ...<... (Below threshold)

heh worldcitizen ...

what are your world taxes like ? do you get a cool passport as well ? do you get free health care ? free housing and food ?

sounds so cool to be a citizen of the WORLD ...

why not universe citizen ? or would that be milkyway citizen ?

I love how, to a liberal, disagreeing with someone means you must also hate them ... nice mindset ...

James H,what risky... (Below threshold)

James H,

what risky investment strategies are you refering to ? investing in CMO's backed by Fannie and Freddie ? CDS's on those CMO's ? Which ones and which "banks" specifically caused the crisis ?

If the point is to punish those that caused the crisis shouldn't we at least be sure we hit the right targets ?

Do you know anything about what you are talking about or are you just parroting talking points ?

"Probably tapped right in t... (Below threshold)

"Probably tapped right in to WhiteHouse.gov so that they can instantly respond to their master's voice as to who to "HATE" next."-garandfan

I'll grant that my post could have used a rewrite for clarity. I wrote that the payback is a mirage but the "private enterprise" lendees are legally off the hook. Obama and his confreres in the Fed and Treasury Dept are essentially cooking the books.

"Hey ya fucking dumb asses."-garandfan

Oh, that reminds me! Has anyone else noticed William Kristol getting progressively more bent out of shape on Fox News Sunday?

Things are looking up, neoconservatively speaking, week by week since Jan 1, yet first Kristol breaks his own Straussian aura by cussing at Juan Williams for a couple of weeks in a row over nothing; and now (last Sunday?) Kristol is acting out scenes from Altered States.

I credit Obama the quotidian nerd, plus the dissapointing Tea Party corralling attempts by New York-Washington interests for harshing the neocons' *self-entitled* buzz.

"Any HATE for the unions?"-gf

Some are good, some are crooked. I was in the USWA for a while holding down the USA's lead over China and Brazil in the lucrative and important manufacture of sucker rods for oil drilling. All sucker rod plants in the USA are union as far as I know (there aren't many; perhaps 2 American producers). And we're Still #1.

Now, YOUR mission--should you choose to continue it--- is to consume mass quantities of salty snack foods, preferably the overpriced offerings by premier American food product supplier Frito-Lay, Inc.

U! *crunch*
S! *smack*
A! *swallow*

Oh, Jeff you cut me to the ... (Below threshold)

Oh, Jeff you cut me to the quick. I understand that I am the only one on this site that does not use my name to post comments so that makes me the odd man out.

About the hate, I was commenting on the post by Grandfan, if you did not notice, and specifically I was addressing his need to call people "fucking dumb asses". And I think he was using that language because he did not agree with the commenters he was addressing.

I love how you make broad generalities aka stereotype. Makes things simpler doesn't it.

P.S. I don't pay world taxes. I pay US taxes that get sent all over the world.

james h "Also, this ta... (Below threshold)

james h "Also, this tax is aimed squarely at banks that encourage risky investment strategies (which nearly wrecked the economy the first time around)"

Really? So everyone who gets hit with this tax did business in the shady ways as proscribed by barney frank et al?

You know this for sure, how?

that aside if anyone deserves this hit to the bottomline is both fannies in addition to frank and all the other politicians that encouraged these lending practices.

World citizen"Talk... (Below threshold)
retired military:

World citizen

"Talk about a drinker...have you ever said anything positive about someone you do not agree with? Or do you just call them names?"

I positively disagree with Obama.

worldcitizen "I unders... (Below threshold)

worldcitizen "I understand that I am the only one on this site that does not use my name to post comments so that makes me the odd man out."

Not very observant are you?

At time of your comment there were no less than 4 others not using their real name.

The reality is you're just an odd man, not an odd man out.

Does Barry know how to do a... (Below threshold)

Does Barry know how to do anything accept Tax, spend and seize?


hey, epador is my real name... (Below threshold)

hey, epador is my real name


"Most of us wrote... (Below threshold)
"Most of us wrote off" is a dodge. The fact is (and you may know this, thus your...dodge), the taxpayer money used for TARP via Treasury, has been "paid back" to Treasury (paper entry), but NOT_Paid Back_per the fund to the taxpayers.

The Treasury is under the Executive Branch so BHO has the power to pay back the tax payer.

Which means that the rich should get their money back.

The top 1% pay 40.4% of all Federal income Taxes.

So higher earners bear a disproportional part of the tax burden.
Now if the government allowed GS and other to pay bonus what would happen?

Well the fed gets collects 35% for income
NY gets 8.9%
NJ get 10.25%
NYC pays 14% surcharge and then 3.658%
OASDI 6.2 upto 120K
The employer then pays 6.2 and 1,450

Then NY,NJ,CT get back about 40 cents for every dollar they send to Washington.

So all the tax does is
deny revenue for Medicare, SSN, state and local governments not to mention deny spending in the local economy which decrease revenue from sales tax.
Not only that it will discourage growth.
What will BHO use the 120 billion for?
Hey you want tax payer to be whole?
Any exec at any company that engage in illegal actives prosecute them. If you cannot then BHO should STFU and work on War on terror while he does the following:
Fix Medicare/Medicare
Fix SS

Elimante minimum wage.
Eliminate CRA
Elimante FM/FM
Remove government from student loans.

Reduce Spending
Eliminate pork, waste and abuse.
Restrict power of EPA and OSHA
Allow Right to Work
make countries accountable for every foreign aid dollars given and if the can not account pull it.
Work to have strong dollar

Let have White house Senate and congress work for 1.00 a year.

Heh. Yep the greedy ol' Wal... (Below threshold)
Les Nessman:

Heh. Yep the greedy ol' Wall Street baddies. Never gets old, seemingly.

I love how the greedy/stupid people who scammed to get these loans are let off the hook.
I also love how the greedy/stupid govt gets let off the hook, too. They make laws, enforce them (or not) and force banks to make loans they wouldn't have normally made.

The fact is all three (loaners, loanees and govt) are to blame. Wall Street wasn't alone in causing this crash.

Does anyone else notice tha... (Below threshold)

Does anyone else notice that both the pretender and congress both are passing or attempting to pass legislation in direct violation of the Constitution?
All laws that affect the states are to affect them equally - where does it say the pretender can tax any one/organization on his own say so - where does it say that religious sects can be exempted by the legislature - where does the Constitution say we are entitled to Health Care - where does it say Congress can fine you for NOT buying something?????????

Even you foaming at the mouth dumbocrats and repugnants can't help but see this.

For those of you who think they are going to get a free ride on ANYTHING this current crop of thieves are dumping on us - already energy prices are rising, look at the taxes on liquor and tobacco products, the government wants to take over the internet, tell you what you can/can't eat, how to raise your children ad naseum, ad naseum.







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