SOLO-International Press Release: Bail out of these Banks!

Aaron's picture
Submitted by Aaron on Tue, 2008-10-14 23:04

SOLO-International Press Release: Bail out of these Banks!

October 14, 2008

"Today's $250 billion bank bailout is simply appalling," says SOLO spokesman Aaron Bilger.

"It's the latest step of the $700B bailout Congress approved, and gives tens of billions of dollars directly to each of nine major banks, in exchange for the government getting eternal, preferred shares in the respective banks. At the expense of American citizens, this achieves massive corporate welfare, subsidization of failure, and nationalization of banking all in one fell swoop.

"There's probably little to be done about this newest fascism on the government side. Many citizens already wrote their Congressmen - vocally opposing the bailout by a wide margin weeks ago - only to be ignored.

"However, people can send a message to the other half of the equation, the major banks complicit in this quasi-nationalization. The culprits:

$25B - Bank of America
$25B - JPMorgan Chase
$25B - Citigroup
$20B - Wells Fargo
$10B - Goldman Sachs
$10B - Morgan Stanley
$ 3B - Bank of New York
$ 3B - State Street

"There have been some anonymous apologetic claims after-the-fact saying that Paulson offered bank heads a 'Take it or take it deal', but unless they are willing to point out how they were threatened and truly signed under duress, we can assume their actions were voluntary. At best, the federal government forced this money upon them, gaining a significant stake in these banks - in which case we have no reason to use these now semi-nationalized banks in preference to other, freer ones. More likely these banks were voluntary recipients of this corporate welfare, eagerly receiving money taken from us the taxpayers by force - in which case they amount to thieves and absolutely do not deserve our business. Fortunately we do still have the choice to bank elsewhere.

"I'm removing funds deposited in Bank of America and Chase, and canceling credit cards with them as soon as possible, and letting them know why. I'd previously been a happy customer of both, but cannot condone their taking stolen funds and contributing further to the destruction of the free market. I hope anyone else who opposes this latest slide toward fascism will also move their accounts, cards and if possible, mortgages, from this band of thieves as well. The government picked our pockets for them; they don't need our business," Bilger concludes.

Aaron Bilger aaronbilger@gmail.com

SOLO (Sense of Life Objectivists) SOLOPassion.com


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Suma- Nice, I'll check it

Aaron's picture

Suma-
Nice, I'll check it out! I wonder if it's affiliated with Russell Means - he's got some odd beliefs of his own, but has been a long time Indian activist, big on getting them to see government handouts as poison that make them dependent, contended (against Ron Paul) for the '88 Libertarian presidential nomination, and led the 70s stand-off against the federal government at wounded knee. I have a lot of respect for the guy, and since he's of the Lakota I'm wondering if he has something to do with this.

Aaron

Very good, Aaron!

Jameson's picture

Lance... I searched for it - couldn't find it anywhere.

Aaron

Suma's picture

Here is a promising bank: http://freelakotabank.com/

The "About" page has the following quote:
"Money is the barometer of a society's virtue. When you see that trading is done, not by consent, but by compulsion...when you see that in order to produce, you need to obtain permission from men who produce nothing...when you see your laws don't protect you against them, but protect them against you...when you see corruption being rewarded and honesty becoming a self-sacrifice...you may know that your society is doomed." "Atlas Shrugged"

The "Loans & Investments" page starts off with:
Do you have the moral integrity and character of a person that deserves a loan from the Free Lakota Bank?

Looks good.

Excellent, Aaron!

mvardoulis's picture

A great commentary!

Aaron

Suma's picture

The blog posts were an interesting read. Thanks for the links. Yes, the statement in support of the bailout is damning. The second post provided good context, and is more in sync with my own non-opinion on the matter. I have in fact never heard or read anything by John Allison, and only heard of him when I got to know of BB&T's stand at the time of the Kelo decision; for me (at least for now) he continues to be proof that being a successful businessman and an Objectivist are not mutually exclusive! Evil

Here's a couple good blog

Aaron's picture

Here's a couple good blog posts concerning Allison and the bailout that a friend referred me to:

http://ruleofreason.blogspot.c...
http://ruleofreason.blogspot.c...

Certainly Allison has done a heck of a lot of good and this doesn't erase the past. There is a good point that maybe the Board of Directors were the ones with the power to make the decision in this case, and maybe Allison will have some great things to say when he steps down. Also, though I think he's slipping, fortunately it's still a loooong way to become Greenspan. Smiling However, I definitely agree with the first blogger that Allison went beyond silence or 'hands are tied' behavior by not only not publicly opposing the bailout in general or with regard to BB&T in particular, but in stating approval of it.

Aaron

BB&T

Suma's picture

My guess is that BB & T has been forced into these decisions.

I did read someplace that the government was giving bailout money to healthy banks to spare the failing banks the "stigma" of having taken a bailout. No idea what kind of arm twist that was. I guess since a lot of people opposed the bailout they (gov't & failing banks) were afraid of a reaction along the lines of this press release. That plan seems to have succeeded in tarnishing everyones name, has'nt it!

I agree, we should wait to hear what John Allison has to say.

Aaron, John Allison is

Lanza Morio's picture

Aaron, John Allison is definitely one of the good guys.

Weird, weird things are going on in banking these days. My guess is that BB & T has been forced into these decisions. And if he were to fight it they would find a way to cripple the bank - which would negatively affect people there who are important to him.

He will be stepping down as CEO of BB & T on Dec 31 of this year. Let's see what he has to say in a few years.

BailoutSleuth

Suma's picture

http://www.bailoutsleuth.com Mark Cuban's bailout transparency website.

I'd intended to follow-up on

Aaron's picture

I'd intended to follow-up on this before, and forgot about it for a couple weeks.

Unfortunately, at the end of October, the US federal government issued a second round of about $34B 'bailout' money to 21 smaller, more regional banks. This included essentially any significant bank I was considering including, most dishearteningly, BB&T, which is where I also already had an account and was planning to move my other banking.

Many of you may already be aware that BB&T is headed by John Allison, a proclaimed Objectivist who's supported the ARI and spoken at ARI conferences. Managers at BB&T supposedly have to read Atlas Shrugged, and the bank has an Objectiv-ish 'corporate philosophy' page. Allison's given money to universities to fund capitalism education programs, and following the Kelo vs. New London eminent domain Supreme Court decision, BB&T announced it opposed forcible takings and would not knowingly lend money to developers attempting to obtain land via eminent domain. I long considered him strongly one of the good guys. However, Allison has now come out in favor of the bank handouts, and the bank he heads has accepted $3.1B of it. I admire his past support of Objectivism, but fear Allison is on his way to becoming another Greenspan who will only sully the cause.

Apparently there are no significant banks with enough integrity to not take the money picked from our pockets, and I know of none where I'd advocate moving money, mortgage, credit card, etc. to. At this point I consider the banking industry corrupt, and using them at all only a necessary evil.

Aaron

Now that's a title, perfect.

Bosch Fawstin's picture

Now that's a title, perfect.

http://fawstin.blogspot.com/

Submitted to Real Clear

Lance's picture

Submitted to Real Clear Politics go there now to vote for the article. Unfortunately you can't link directly to the SOLO submission, only the "reader's articles" page, so you may need to search for it.

10 votes gets the SOLO submission bumped to the front page and drives traffic back to here.

You need to register to vote, if you haven't already done so you can register here.

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