We have a government that creates the problems by its regulatory vigor, doesn't bother to count the cost of their actions on the future, and then blames everyone else but themselves for the mess that we end up with!
What kind of government leads its people in that fashion? Not a very effective one - and now we are seeing more of the bad fruit of their continuing actions.
Taken from "The Market Today Online" -
The treatment of Bank of America by politicians for its decision to raise fees on its deposit accounts has been remarkable. The President lashed into the bank Monday saying, “you don’t have some inherent right just to, you know, get a certain amount of profit – if your customers are being mistreated – that you have to treat them fairly and transparently.” He added that “This is exactly why we need this Consumer Finance Protection Bureau…somebody who’s sole job it is to prevent this kind of stuff from happening.” This was an alarming statement for the President to say that it is inappropriate for a private business to set its own fee schedule based on its costs – and that the CFPB would police that.
Senator Durbin followed suit by calling for a run on the bank from the Senate floor, telling Bank of America customers they should “get the heck out of that bank.” Representative Brad Miller introduced legislation that says banks cannot charge fees to customers who close accounts, implying that he is protecting the tide of people who will want to leave the bank. In a statement, he offered his understanding of economic theory saying that “That is the way things work in a competitive, free market as unrepentant banks are still trying to rake in vulgar profits.” Bank of America’s website has been down for two days. It would not be a surprise if there were a run taking place on the bank, although the bank denies that.
Politicians undermining confidence in a corporation for political purposes would certainly not be an example of a free market.
What kind of government leads its people in that fashion? Not a very effective one - and now we are seeing more of the bad fruit of their continuing actions.
Taken from "The Market Today Online" -
The treatment of Bank of America by politicians for its decision to raise fees on its deposit accounts has been remarkable. The President lashed into the bank Monday saying, “you don’t have some inherent right just to, you know, get a certain amount of profit – if your customers are being mistreated – that you have to treat them fairly and transparently.” He added that “This is exactly why we need this Consumer Finance Protection Bureau…somebody who’s sole job it is to prevent this kind of stuff from happening.” This was an alarming statement for the President to say that it is inappropriate for a private business to set its own fee schedule based on its costs – and that the CFPB would police that.
Senator Durbin followed suit by calling for a run on the bank from the Senate floor, telling Bank of America customers they should “get the heck out of that bank.” Representative Brad Miller introduced legislation that says banks cannot charge fees to customers who close accounts, implying that he is protecting the tide of people who will want to leave the bank. In a statement, he offered his understanding of economic theory saying that “That is the way things work in a competitive, free market as unrepentant banks are still trying to rake in vulgar profits.” Bank of America’s website has been down for two days. It would not be a surprise if there were a run taking place on the bank, although the bank denies that.
Politicians undermining confidence in a corporation for political purposes would certainly not be an example of a free market.
