By Mr. Curmudgeon
The quasi-governmental financial institutions Freddie Mac and Fannie Mae may be next on Congress’ to-do list now that President Obama signed the financial regulatory reform act into law. The two agencies at the heart of the global financial crisis were conspicuously left out of the overhaul of the nation’s financial system. And there was a reason…Rep. Barney Frank and his Congressional friends needed first to establish a replacement.
Deep in the new financial regulations is a provision establishing a fund that will funnel billions of dollars into small banks for the lofty purpose of making loans to small businesses. The big-government Santa Clause headquartered at the Fed will grant loan requests provided the “applicant’s business strategy and operating goals will allow it to address the needs of small businesses in the areas it serves, as well as a plan to provide linguistically and culturally appropriate outreach...” Huh?
Small business will have access to the government’s $300 billion fund provided they are willing to become a branch of ACORN. Remember the Community Reinvestment Act that forced banks into making sub-prime loans that Freddie and Fannie bought and repackaged as mortgage-backed securities? The new Small Business Lending Fund assures the practice continues. The more loans these specialized banks make that meet Obama’s criteria, the more money they will have access to – with the Federal Reserve taking the place of Freddie and Fannie.
The monstrosities that emerge, replacing America’s productive small business – which once employed over 80% of Americans – will be replaced by Obama-approved redistributors of income. Now that’s what I call transformative change.
Once upon a time, the business of America was business. In Obama’s brave new world, with a big assist from the Federal Reserve, the business of America will be community organizing.
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