O-mama - Opinionated Moms

Seriously?!  Do the spoiled brats on Wall Street need a spanking?  ARGGH.  They are so frustrating!  But we know, we know…a spanking "will hurt us, more than it’ll hurt them," right?  It’s only a short-term solution, not a long-term solution…blah, blah, blah.  

If our children were acting like spoiled brats, we’d dig deep and realize some how, some way we fell down on the job.  We did not clearly set expectations, outline boundaries, define consequences or follow through on them.  We let it get out of hand, right?  The mom’s of America would do something to immediately stop the bratty behavior (a look, a time out, grounding, whatever worked), and then we’d figure out how to solve the behavioral issue so they didn’t happen again in the future.  That is what is supposed to be going on with financial reform.  

But, what would we do if our kid crossed the line again?  Bratty behavior with no regard for anyone but themselves?  If they pushed us too far, again and again, we might lose it…we all lose it once in a while...and we might scream at them or give um a swat in the pants.  Uh huh.  Oh yes, we would!  And, that’s about how we feel about Wall Street right now.  We are about to lose it.

The banks are swimming in TARP money and Treasury money.  The purpose of the American taxpayer forking it over was to keep responsible people solvent and responsible businesses able to participate in the recovery.  Not for bankers to line their pockets at our expense. It’s a buyers market and interest rates are down.  So, why can’t the average American taxpayer get a loan?  The banks were failing, the taxpayer bailed them out, but the banks won’t loan us back our own money?  That is a literal "redistribution of wealth." Hmmm?

If our kids misbehave, we don't lock them in a closet or tie them to the bedpost, so financial regulation shouldn't do that either.  But, we do set expectations, give them boundaries and follow through with appropriate consequences.  We don't let our kids take advantage of others, endanger themselves or our community and we certainly don't put up with bratty behavior.  So, why do we put up with the sassiness of our big banks?  If our child was unappreciative of all we did for them, we'd remind them to use their manners and say "thank you," right?  If we gave our child money for new shoes and they used it to buy a toy, we'd be disappointed, right?  That's how we feel...really disappointed in their attitude and their priorities.

So, what is going on?  First the banks are giving out money hand over fist, and now their fists can’t be pried open.  Where is the balance?  Why are they still too big to fail, but we are expendable?  Why aren’t we, “the government for the people and by the people,” breaking them down into smaller entities that can survive or fail on their own merits without taking down the entire economy with them?  Think of it like unknotting our kids double knotted shoe laces and then teaching them how to do the bunny ears - we help them get it straightened out, show them how to do it and then they're on their own.  The idea behind the stimulus package was to stimulate the economy.  To keep average folks buying homes, refinancing, spending what they can afford and generally staying on track.  To keep small businesses re-training, re-tooling, re-inventing the things the American people need and want.  Hmmm?  We feel like someone got some new velcro sneakers and we got stuck with the smelly, ratty ones that we can't untie.  How do we get the message to the banks that we need a quality shoe with a good "sole," not a kick in the gut.

Deb's parents have been trying to get a loan for months.  They have perfect credit scores, own property, have lived in the same home which is paid for, for 45 years.  They have plenty of money in the bank, lots of investments, even income properties.  They went for the loan because a friend encouraged them to do so.  Interest rates are low and they thought, what the heck?  Lower rate, fixed, easy.   Now it’s months later, and still no loan.  Lots and lots of paperwork, more fees, but no loan.  Hmmm?  Why do banks get to borrow money with no interest, but a responsible tax payer cannot?  It makes no sense...or dollars for our economy. The more money Deb's parents had in their pockets, the more they'd spend, right?

It’s been awhile, so we looked it up. “We the People” have loaned $134 billion dollars in bank capital, plus $45 billion specifically to Citibank and Bank of America. So, where is the money we gave these banks to keep US solvent?  Not the scammers who try to cheat the system, not the unemployed or the partly employed, but the people who go to work every day and actually pay their bills and taxes?  We fear that the banks are more concerned with increasing our fees, so they can post big profits and line their pockets than they are with actually fixing what’s tying up our banking system.  They have not done what they were supposed to do. TARP shmarp. They have been self-centered and disrespectful to the American tax payer.  And, for that, they need a time out!