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Thursday, May 20, 2010

More crony capitalism

Fox business is reporting that Shore Bank in Chicago is getting bailed out by the infusion of millions of dollars from a number of large banking institutions and the federal government. Shore Bank is failing and normally would be closed and taken over by the FDIC; however, Shore Bank has something that all the other failing banks do not have -- a friend in the White House. Valerie Jarrett is a former director of the bank. Obama himself has singled the bank out for praise on many occassions -- they made loans he wanted while he was still in the senate. The investments from Citibank (a government controlled entity), Goldman Sachs (under investigation by the government, and others were made -- according to the investors -- under pressure from the White House to put in the cash. So there you have it: a failing bank gets a bail out just because it is a friend of Obama's. The government is again picking winners and losers. That is crony capitalism at its worst. Why should Shore bank in Chicago get saved -- thereby helping its owners, the friends of Obama -- while many other banks that are similarly failing just go under? The clear answer is that this should not be happening. It is corruption and it should not be allowed.

Obama has got to go!

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