I was surprised this weekend when President Obama used
his weekly radio address (listen here) to attack nation's recovering banks
rather than talk about the U.S. response to the tragedy in Haiti or rally
support for a critical senate vote in Massachusetts this week.
Rather, he decided to let the American people know that “most of the banks have returned the money they borrowed.” He then went on to say (I am not making this up) that was "good news, but as far as I'm concerned, it's not good enough.”
What is good enough?
According to the Obama administration, "good enough" is a newly created tax that would suck $90 billion from the banking system over the next 10 years.
If I think back to a year ago, we were all hoping that the government bail out of our financial system would be effective enough to prevent a collapse of our financial system. We were hoping this wouldn't be an experiment that flushes billions of taxpayer dollars down the toilet. Well, in fact, the administration's flowing back into the treasury.of this crisis has been very successful. The stock market is in recovery and billions of dollars of TARP are
While business lending has yet to return, our financial system is in much better shape today than just a year ago, and it appears the crisis has passed. The FED and Treasury should be commended on their quick, decisive and creative solutions to this crisis.
There is still a sever-liquidity problem for many small business owners who don't have easy access to capital to grow and expand their businesses. Pleading with lenders to "take a third and forth look" at rejected loans as President Obama in December is not a solution. Government management of our banking system is not a solution. Creating new taxes on banks because they are once again profitable is not a solution, regardless of how much they decide to pay their executives.
There is no quick, easy road to recovery from a recession, regardless of the political climate. We are on the road to recovery, and new taxes on lending institutions will only serve as speed bumps on that road.