As we watch bank CEO’s appear for Congressional hearings today I saw an interview of Steve Buster, CEO of Mechanics Bank that is located in northern CA. Mr. Buster just refused to accept $60 million in TARP funds. He stated that “the (proposed) lifeline turned into a noose.”
Nationalizing banks is a move towards Socialism. This entire stimulus plan is a Trojan Horse of the president that every American should view with open eyes and ears. It reminds us of the NRA.
No, not the National Rifle Association. I refer to the National Industrial Recovery Act of 1933 as part of FDR’s New Deal where we had an earlier “stimulus” that included bank regulation which sounds very familiar as we listen to today’s hearings.
At that time the government was creating fixed pricing. Henry Ford refused to go along with the program which resulted in his company not receiving government contracts. Every firm participating in the program included the blue poster indicating their being a member of the NRA with text stating “We Do Our Part.”
Following is some text from Wikipedia acknowledging the lack of Constitutional Authority and the effectiveness of the Act which was overturned by the Supreme Court in May of 1935.
Don’t let history repeat itself. At that time “some economists consider the act to be downright damaging to the stability of the economy as it weakened antitrust laws and allowed collusion.”
Sound familiar?
The full Wikipedia text is found at the following link:
http://en.wikipedia.org/wiki/National_Industrial_Recovery_Act
President Obama. “The Supreme Court. On May 27, 1935 in A.L.A. Schecter Poultry Corporation v. United States the Court, in a unanimous ruling, abrogated Title I of the NIRA as an “unconstitutional delegation of legislative power to the executive.” The NRA, perhaps the program most associated with the New Deal, faded out of existence, to the relief of most, including the Roosevelt Administration.”
Source: http://xroads.virginia.edu/~MA02/volpe/newdeal/nira.html
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