Thursday, October 2, 2008

Politicians Use Bailout to Grab More Power

Title Article by Johnathan Hoenig
addresses the "Bailout Bill" from an investors perspective:
Power is precisely what the "bailout" bill, which cleared the Senate Wednesday night, is ultimately about. Uncle Sam wants even greater control over the economy, your money and your life.
But as I've pointed out repeatedly over the past few weeks, what has caused the market's volatility isn’t the lack of government action, but fear of it. After all, it's the short-sided, pragmatic rush to pass a bill -- any bill -- that spawned Sarbanes-Oxley and the Patriot Act. And while there's no way of precisely knowing the economic fallout of not passing the bill, the unintended consequences of such a draconian scheme are equally unimaginable.

What Americans don't get, however, is that the goal of the bill isn’t to help Wall Street or Main Street, but to centralize power in Washington. Not surprisingly, that's where its biggest proponents just happen to reside.

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