On Obama's Bank super tax:
(Bloomberg 2010-01-15) Obama yesterday cautioned major banks that passing the cost to consumers would backfire.A couple of days ago:
“I’d suggest you might want to consider simply meeting your responsibilities and I’d urge you to cover the costs of the rescue not by sticking it to your shareholders or your customers or fellow citizens with the bill, but by rolling back bonuses for top earners and executives,” he said.
(WSJ) Alarmed that there might not be the 60 votes in the Senate needed to extend Mr. Bernanke's term beyond its Jan. 31 expiration, the White House entered the fray publicly for the first time, with officials trying to win support among Democratic senators. President Barack Obama "has a great deal of confidence in what Chairman Bernanke did to bring our economy back from the brink," deputy White House press secretary Bill Burton told reporters aboard Air Force One. "And he continues to think that he's the best person for the job, and will be confirmed by the United States Senate."It is time to read again this piece from Mish where he modified a Washington Post report:
Venezuelan President Hugo Chavezdeliberately intended to sabotage his nation's economy, he would be hard-pressed to do anything different from what he is now doing to his country.
It has been widely reported that
Mr. Chavezhas been increasingly taking control of the oil, telecommunications and energysectors, as well as the media. What has not been reported is the full extent of the corruption in Venezuelathe and how this ultimately will destroy the economy.
The financial scandal taking place is far bigger than Enron, and may ultimately even exceed the U.N. "oil-for-food" scandal, the biggest financial disgrace of all time.
Since 2004, the
Venezuelan Central Bankhas transferred about $22.5 billionto accounts abroad by the Chavez government, and about $12 billionof that remains unaccounted for. It has also been reported that the gold reserves have been removed from the Central Bank.
While the rest of the world has been moving away from socialism for the last quarter-century for good reason,
Venezuelathe is becoming socialist. We know governmental use of central banks to basically print money to cover expenditures results in rising inflation and eventually monetary meltdown.
And, finally, we know that when a state becomes totally corrupt an economic collapse always follows.
Mr. Chavezand his cronies had already been spending far more than they were taking in and you can bet the blood from the innocent Venezuelan peoplewill be drained long before those on the take from Mr. Chavezagree to have their looting stopped.