Treasury Secretary Steve Mnuchin went head-to-head with CNN’s Jake Tapper this morning:
Following the 2008 stock market crash, Barack Obama was elected president. In July 2010 The Dodd-Frank Wall Street Reform and Consumer Protection Act was passed into law by Democrats who controlled Congress with a veto proof majority.
Many labeled Dodd-Frank a misguided attempt to force the remaining banks to maintain greater liquidity reserves. We always felt that was being too generous.
At the center of the safety measures was the concept of “too big to fail”… Banks that passed the liquidity test would automatically qualify for bailouts during future times of economic crisis.
At the time there were approximately 17 banks that qualified for “too big to fail” status. Predictably, ensuing mergers and mega mergers have left us with only four banks.
The four to six big banks (JP Morgan-Chase, Bank of America, Citigroup, Wells Fargo, US BanCorp and Mellon) now control $9+ trillion in assets… They now control most of the U.S. financial market.
Not only does this limited number of super banks pose an even greater risk to the financial system, they have amassed great power to influence policy.
We believe this was by design… not be accident or poor aforethought. This is the way the Obama administration planned to take over control of the financial markets when the opportunity presented itself.
President Trump and Secretary Mnuchin realized this weakness in the system for small and mid-sized businesses and began implementing a solution to this problem shortly after taking office by creating a parallel banking system of smaller community and credit union banks.
These banks and credit unions are not held to Dodd Frank regulations and are more connected to Main Street able to act as the primary commercial banks for small to mid-sized businesses.
These are the banks that fueled Main Street’s great economic resurgence and drove unemployment across all demographics to historic lows.
The competition for labor drove wages higher, great for Americans and their families, but one more thing that hasn’t endeared the growth of small business to their larger brothers.
Now it appears the remaining super-banks are using that influence to undermine small business by working with their Democrat minions in both the House and Senate to refuse funding to the Payroll Protection Program (PPP).
We don’t need those pesky small businesses nipping at our profits, do we?
Democrats’ refusal to fund the PPP leaves these smaller banks and credit unions unable to fulfill their mandate.
When these smaller businesses fail, as surely many will, wages will plummet satisfying large corporations’ thirst for profits and Democrats come closer to their goal of culling the herd so that an eventual government takeover may become politically expedient.
Think about it. It’s easy to hate large corporations and their automated customer service that almost always leaves you screaming at the phone and pounding the keypad in disgust.
The small business owner in your small town who sponsors your kids little league team, or who is a member of your church’s choir… not so much.
That hate is what powers the support for the party’s out front progressives who advocate for the complete takeover of industry by government. Make no mistake, they are today’s Democratic Party. Remember…
“If you’ve got a business. you didn’t build that.”