Obama weighing new levy on banks

Obama weighing new levy on banks

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By PHILIP ELLIOTT
Associated Press Writer

WASHINGTON (AP) -- President Barack Obama is weighing a levy on financial institutions to help recover shortfalls in a $700 billion bank bailout fund and to help balance a budget that is looking increasingly grim amid an ongoing economic crisis.
A senior administration official said Monday that Obama would seek modifications to the law that sent billions in bailout money in 2008 and 2009 to a flailing Wall Street that was approaching collapse.

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Well this is a pretty interesting story on a couple of different levels, the first being the increasing desperation of the Government to obtain funds.

The second is that the Troubled Asset Relief Program allows for taxes and levies to be legislated to recoup unpaid TARP funds but not until five years after the funds have been issued.

While it’s no surprise that AIG the troubled insurance giant that received hundreds of billions of dollars in TARP funds likely will never be able to pay that back, Administration Officials are also claiming that the Auto Industry will never pay back the TARP funds given to it, despite the news today that the new General Motors Chairman is reopening some factories due to increased demands and promising Taxpayers will actually make a profit on the funds loaned to General Motors.

A number of the big banks have already paid back their loans after paying dividends on the influx of government cash to shareholders in order to get out from under the increased government oversight owing TARP loans creates.

Just how bad of a position is the Federal Government cash wise and how much might that have to do with the Audit the Fed Bill winding its way through Congress that was written and sponsored by Ron Paul?


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An industry official said consideration of a levy now would be premature.

"Current law doesn't trigger this tax proposal for another four years," said Scott Talbott, chief lobbyist for the Financial Services Roundtable, an industry group for some of the largest financial firms.

"We look forward to seeing the details of the complexity of the formula, of who it's applied to and what the assessment is based on and when it is applied," he said.

With all the complex Ponzi Schemes and frauds that have gone on in the last few years, it’s beginning to look like Washington might have the biggest one of them all going, as it pays out money it doesn’t have and then looks for ways to take it back to pay out more.

Of course ending the War on Terror and Foreign Aide and stepping down our military presence across the world sure would save some money as well as curtailing the drive to socialize more services and let government run them.

Things like the Health Care initiative in my humble opinion is just cash strapped Washington’s way of muscling into one of the few lucrative businesses that there are during these troubled economic times.

I suppose it’s good news that they are looking for ways to replenish the looted treasury dependent on whether its just to loot it some more or not.

While it might appeal to some that they are going after the banks for money instead of the cash strapped citizens there is little chance the banks simply won’t raise their fees and cut savings rates, and raise interest rates on borrowing to make up the shortfall, so no matter how you slice it we the people as usual will end up paying for it just as we did with the Bailouts.

Originally posted by ProtoplasmicTraveler[color=lime]
With all the complex Ponzi Schemes and frauds that have gone on in the last few years, it’s beginning to look like Washington might have the biggest one of them all going, as it pays out money it doesn’t have and then looks for ways to take it back to pay out more.

You hit the nail on the head here! Something that concerns me is what are we going to do when China comes calling for their money back? Hand them the keys to the house and let them foreclose????

He's modifiying it after all that money was sent??? soudns fishy to me* for all we know obama himself stuck his hand sin the cookie jar, and to cover his butt in the public limelight, does things liek 'modifiy' clauses as to not so guilty* not aying it is, but it could be possible.

Originally posted by Signals

Originally posted by ProtoplasmicTraveler[color=lime]
With all the complex Ponzi Schemes and frauds that have gone on in the last few years, it’s beginning to look like Washington might have the biggest one of them all going, as it pays out money it doesn’t have and then looks for ways to take it back to pay out more.

You hit the nail on the head here! Something that concerns me is what are we going to do when China comes calling for their money back? Hand them the keys to the house and let them foreclose????

Very well could be though of course the hysterical thing is that it is all really just political theatre. All of it.

Our money is simply paper, it's fiat de facto instrument of debt currency attached to nothing of intrinsic value.

It's no different than monopoly money. It's just part of an elaborate scheme of control over us. Not only do they make us worry about our own money and do everything you could imagine to get it, they make us worry about their money and make us do every thign you could imagine just to get them to print it!

It's a crazy world friend.

Thanks for posting.