The Obama administration is intent on rewarding the irresponsible members of our society. This includes irresponsible borrowers and irresponsible lenders. Resentment is building up among the responsible.
Lenders who steered away from reckless lending are now being forced to bailout their reckless peers. As you might guess they are not happy about this prospect.
TCF Financial Corp., the Wayzata, Minnesota-based bank that never made a subprime loan and hasn’t lost money since 1995, is asking why it should help clean up the mess made by Wall Street.
“I’m kind of bitter,” said William Cooper, chief executive officer of the 448-branch bank, adding that over the years TCF has invested about $1 billion in the Federal Deposit Insurance Corp.’s fund that guarantees bank deposits. “We pay for the excesses of our competitor over and over again.”
The FDIC fees keep increasing. If we were capitalists the bankers like William Cooper would be scooping up market share as the irresponsible giants stagnated or failed. Instead we allow those most responsible for this economic crisis to survive, even profit from being so incompetent that they would cause politically unacceptable fallout if they failed.
In every segment of our economy those who pull their own weight and live with the consequences of their actions are forced to socialize the losses of the irresponsible. This is NOT RIGHT! This is a grave injustice that will have devastating long-term consequences.
Another important observation here: Obama and other socialists are insisting that our economy has no life. But institutions like TCF Financial Corp- not a small lender by any means- is alive and well without any government support. Actually government support is hurting it as TCF is forced to subsidize its rivals.
This is not capitalism that we are living under.