The Washington Post reports that Treasury Secretary Timothy Geithner is supporting a broad power for the Federal government to seize non-bank financial institutions:
“Treasury Secretary Timothy F. Geithner today told Congress the administration will seek unprecedented power to seize non-bank financial companies whose collapse could jeopardize the economy, a move Geithner said would have allowed the government to bail out insurance giant American International Group at a far lower cost to taxpayers. “
The proposal appears to be getting the backing of Rep. Barney Frank, chairman of the House committee governing banking legislation.
As I recall, a good working definition of Communism (as it was practiced) was seizure and control of manufacturing and financial institutions by the government. Oh yes, I know, it’s just the banks and the other financial companies. But manufacturers and service industries, watch out. Your turn is coming.
The slippery slope just keeps getting slipperier.