The Banks, and what I think Obama will do.....

Below is the first part of a story on what's happening on the banking front. Below that I've linked to the complete story so you can make up your own mind.....Below that is some commentary.....

By David Lawder David Lawder
Sat Feb 21, 7:51 pm ET

WASHINGTON (Reuters) – Financial regulators will soon launch a series of "stress tests" to determine which of the largest U.S. banks should get bigger capital cushions in case of a deeper recession, a person familiar with Obama administration plans said on Saturday.

The person, speaking on condition of anonymity, said if institutions were found to need additional capital, financial authorities would provide them with an "extra cushion of support."

Banks are expected to receive additional information about the tests in the coming week from regulators.

The largest U.S. banks are "well capitalized" for current conditions, the source said, but the Obama administration wants to ensure they can withstand a more severe economic climate and play an important role in helping restart the flow of credit.

Initial plans for the stress tests were announced on February 10 as part of Treasury Secretary Timothy Geithner's bank stabilization plan, but the source on Saturday for the first time linked the tests to additional government support for large banks. That person did not specify what form any extra capital cushion may take.

Little is known about the form of the stress tests, but the person described them as "consistent, forward looking and conservative."

The Obama administration tried on Friday to ease market fears the government was poised to nationalize some large banks that are struggling with losses and a lack of confidence, notably Citigroup and Bank of America.

Bank shares fell sharply, with Citigroup plunging 22 percent to below the $2 fee of a typical automated teller machine, or ATM, and Bank of America trading around the $4 level.

http://news.yahoo.com/s/nm/20090222/bs_nm/us_financial_banks_capital;_ylt=AgAHVvofAFtrnJbHrTZEJ9fZn414

From Yahoo buzz....

Bruce W: Regulatory designed stress tests did not work for the 20 years that I worked as a bank regulator. These are just some economist's best guess on how things react. It comes down to the member's trust and the quality of service that a financial institution instills on it's coustomer.

......and my response......

Bruce....You're not thinking like a good little communist. The banking stress tests Obama has in mind have nothing to do with "safety and soundness" and everything to do with saying "Bank 'X' can't survive without more government intervention so we the government are going to take over the bank." People at Citigroup and BOA are scared as hell, just as are people in the markets.

It will start this way.....Obama's henchmen will decide that a few big banks are going to fail so the Gov. will nationalize them "short term". The sheeple will buy into it, even while knowing that the Gov. never does ANYTHING short term. After grabbing a few big banks they will move on to the regional banks, and so on and so on until they have control of most of the available financial resources that business relies on. When hyperinflation sets in from their latest spending spree they will devalue the dollar and create a new currency.....

With the new currency in place they will offer 10 cents on the dollar for all 401k plans and money market funds. But they will use funny math and offer that money based on the August or September 2008 value of your holdings. Those plans will then be dissolved since the "old dollar" is completely worthless.....At that point virtually everyone's finances will be under government control, then the government can pretty much do whatever it damn well pleases.

If they move too quickly there will be backlash, and the 2nd amendment certainly gets in the way. That's where martial law, troops in the streets, and government confiscation of firearms comes in. The last issue they need to address is the Military's oath to "Protect and Defend the Constitution of the U.S. from ALL enemies Foreign and Domestic".

They're already trying to dull that down by proposing to change that oath to swearing loyalty to the President instead of to The Constitution. The "liberals" will try to tell you that it's just a matter of semantics, but any thinking person knows better.

For crying out loud you just had Nancy Pelosi over in Rome telling the Pope that his stand on abortion was wrong.....You have Hillary in Communist China telling that country's leaders that we will work together on economics and the environment. (Don't forget how many classified documents landed over there during Bill's presidency.)

What I've stated above is what I would tend to think of as a worse case scenario, but not at all out in left field. Rahm Emmanuel himself has said that "you don't let a good crisis go to waste". The way these people think makes me nervous.

This administration is divisive and perpetuating class warfare, trying to create divides on racial and economic lines. There is nothing inclusive, open, or transparent about anything they are doing at this point. The media can spin it what ever way they want, but this is one middle class citizen that ain't buying.

That's my take on the thing.....believe it or don't.....

The beauty of writing something like this is that if it doesn't happen then I can say that I helped prevent it. If it does happen I can say I was right.

Good Day!!