Here you thought your government was out to protect you, “the guy in the street”, “the middle class” and all that the Populist Pinocchio in the White House wails about, like a cat in heat, repeating the same mantras over and over and over until you want to puke. Well folks, once again your interests were not protected but actually harmed by the Progressive Pimps of Power, seeking more and more governmental control of our lives in order to tell you AND to permit you to do only what THEY think is in YOUR best interests.
Well The Dodd Frank Law, has caused banks to loan less to each other, thus making loans to you less available. How does this happen you ask? Glad you did as it is caused by the Dodd Frank Fiasco, which limits these banks and other lending institutions from making loans to each other in order to put capitol at work where needed. They created these limitations, by upping the amount of cash reserve that these institutions must hold onto, thus curbing the amount available for interbank loans. Congress did so on the false premise that these interbank loans could cause a “domino effect” when an institution was “too big to fail”. When Lehman failed, this did not happen. The Dodd Frank Fiasco gives the largest banks a more favorable borrowing rate from the government, than their smaller competitors, thus another notch in the belt for “Crony Capitalism”. Just as FDR forced price fixing on business and using the “big players”, the largest capitalists to fix prices, thus forcing the smaller business to charge equally, even when they normally would charge less for a commodity. If the smaller company failed to do so, the owners were jailed. Labor had wages fixed as well. This is one of the reasons why FDR was thought of as the closest thing we have ever had to our own dictator. This is awfully reminiscent of Fascism, where the government played favorites with their friendly capitalists and told the populace how they must behave, live who to support, or else.
What does it mean when banks loan less? It means that we are limited with our resources needed to grow the economy. If there is insufficient borrowing ability, mortgages are harder to come by, business cannot find loans to expand and growth is slowed. Thank you Dodd, Frank and Obama for putting the brakes on our ability to earn, grow and thrive, part of the intent of “….and the pursuit of happiness”.
Now, I cannot tell you for sure that the Dodd Frank Fiasco was pushed through Congress as another means of Obama gaining more power to “help us run our lives and tell us what we need” as we being too stupid to know how, or that it is another failure of government under the auspices of “unintended consequences. When you are forced to listen to a political hack with the intelligence of a flea, which makes Bush look like Einstein, that “You must first pass the bill in order to know what is in it”, you surely can understand what happens when political bills are rushed through Congress in order to “put a finger in the damn”. Better we should have put a finger in Congress’ eye! This proves there can be something good in gridlock. At least it prevents hacks from screwing with our system.