They’re back and they just want to let it be known to one and all…”They’re from the Government and they’re here to help you!”
Whew!…or maybe that should be….Oh Ohhhh!
Yes those nice people who came in to fix the financial crisis. The ones that said…..Here, take the money, pay it back, no strings attached, we need you solvent. Well it seems they’ve decided to add a little more to the vig. ( That’s old school for interest.)
This is exactly one of the problems that I had mentioned last year in why I felt a recovery will be so hard to sustain in the coming year. Regardless of your political leanings, or if you feel it’s fair, and they deserve it. That doesn’t matter. I’m speaking purely from a business or enterprise side of the coin. If you’re an entry-level employee, or you’re the CEO of one of the worlds largest institutions you should be analysing the happenings that are taking place now, once again in real-time.
No one can run a business, or make decisions if the rules of the game change in midstream or at any time. You can’t run your own household budget that way so how could anyone expect that a business could. Oh..Sorry about that, The Government does, and that’s exactly why the opposite of anything they are trying to stimulate will not only stagnate, but just might wither and die.
The administration just announced today that it is planning on imposing a…Wait for it………$120 BILLION DOLLAR surtax on the banks, regardless if they paid back their TARP with interest or not. Once again this is not about right, left,middle. It’s about business. If you think they weren’t lending before i.e: the Banks, wait till you get a load of how little they’ll lend with that over their heads. Stock prices?…For Get About it!…Probably sooner than later any institutional plan that has invested in the financial sector thinking their might be some gains left to help repair all those 401K’s or other pension plans. (That would be You if your still invested in one…Remember if you’re invested the term Greedy Wall St. applies to you also, just doesn’t have the same ring as Fat Cat…I personally like that one!) These crazy people will try to, well I don’t want to sound silly or make you laugh but, they might just sell to protect your investment causing the shares of these so-called “Fat Cat Bankers” stock to go down, drawing everything else with it.
Oh yes, and just for kicks, let’s throw on top of it any other company who thought they were immune from such happenstance, looks like your matching Taxes for your employees might be going up, and might be retroactive, for when you think the coast is clearer later during the year. Oh yes, hire as many people as you can, but don’t worry about the cost, they’ll let you know…Trust Me!.. (pun intended.)
I know, all this sounds a little crazy or full of hyperbole, but I guess you could say they have the knowledge and the instinct to get business moving, and focus on the economy. It’s not like they would try to ban salt to keep your blood pressure down, and make up for the intrusion by spending a few million on pamphlets on how to properly take illegal drugs like heroin? No that would be nuts, I’m crazy right?