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Cenk and O’Hara agree that if the fed gov’t doesn’t have to bail the banks out, the banks should not be limited in their leverage. That is, if lending out $100 for every $1 deposit were not a formula for “blowing up,” as Cenk says, then it would be only the banks’ business.
I disagree. Allowing the banks to lend out more money than they have is in itself a huge benefit that the government gives the banks, and it is the source of most of the banks' profits. The people pay for it indirectly by having a money supply that is created by the banks for the banks' benefit, rather than by the government for the people’s benefit. So it is the people's business and the government has a right to regulate.
True free market libertarians, like Ron Paul, understand this and want to change it. And no, I am not a Paulie; I have serious, fundamental problems with Ron Paul -- but I do think the man makes some good points and is sincere. O’Hara’s argument, as Cenk points out, is to have government involved with the banks when and only when that works for the banks.
The Tea Party movement has some true grass roots. But some of its spokespeople are corporate shills who try to take advantage by pretending to be populist.
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