Private Capital is the Right Way!

Again, the LOUC has come to bear on the current financial crisis in the form of the BHCA of 1956 (Bank Holding Company Act) which says that if a private equity fund buys a bank, it must divest itself of all non-financial assets and never purchase any more while it is holding the bank assets.

Well, this sounds all nice and good for the problem that it was suppose to cure back in 1956, but it has kept private equity money from helping out in this credit crisis since no one wants to become just a bank under the thumb of the US Government. So, while there is plenty of private money that would love to come in and buy up this banking assets to keep them from becoming a problem on the government's balance sheet, the LOUC by the US Government's own actions prevents that from happening.

This means that only the Government can help out and this is exactly where it wants to be especially with a socialistic mindset coming to Washington in the fall. This will give them the perfect opportunity to say, and I have already heard it from Pelosi, Frank, and Reid,

"well, the free-markets aren't doing a good job of monitoring or regulating themselves, the government (read that US) has to do the job..."

These people are sneaky like a fox, eh? Make the regulations that cause the problems, and take over the private property (dumping almost $500 Billion in stock equity) if that isn't government socialization of the financial markets, I don't know what is!

By taking over companies like Fannie, Freddie, AIG, etc, these companies shareholders lost everything. I know that it is the risk involved with stock ownership, but when the government does the actions that cause the equities to go to 0, and then step in and take them over, its a rigged system.

In a socialized political system, the government controls the means of production (read that credit markets) in the USA and "to protect the taxpayer..." the US Government is moving head long towards a socialist format.