President Obama Continues Assault on Banks

First, an extra tax on banks, whether they took bailout money OR NOT, just because banks (at least some) took bailout money--and now that most banks have paid the money back. This proposed tax would be on financial companies with over $50 billion in assets.
Except this tax would leave out those entities that took most of the bailout money--such as General Motors, big labor union companies who will not be expected to pay back their money to we, the people.
http://blog.heritage.org/2010/01/15/morning-bell-bank-tax-misses-the-real-bailout-deadbeats-in-detroit-and-dc/
Special interests, anyone?

Now Mr. Obama is proposing new regulations that would limit banks' investments as well as limit the size of banks.
Mr. Obama asserts that this would prevent near-meltdowns such as happened with the subprime mortgage crisis.
Several problems here:
1. The federal government itself caused the mortgage crisis by insisting that banks give these bad loans to people who could not afford said loans. In fact, Mr. Obama lobbied for these bad loans while a member of ACORN. http://www.heraldsun.com/pages/full_story/push?article-Sept-+25-+2009%20&id=3703361
2. Limiting the size of banks and their investments will only hurt banks in the world-wide financial markets. They won't be able to compete, which will in turn only harm our economy further.
3. The President doesn't have the power constitutionally to propose taxes.
4. Wall Street is in a complete tailspin not knowing what the White House is going to do next to harm them. Bye, bye birdie to our hard earned retirement funds.
5. And, not least, banks will just pass on the tax costs to us, the consumers--which will further hurt our economy. http://blog.heritage.org/2010/01/22/president-obama-and-the-war-on-banks/#more-24473

Basically, it all goes back to the premise that the government should get out of business. If the government didn't insist on bad loans, and also didn't prop up banks with TARP money, banks could act responsibly. Or fail, if the bank acts irresponsibly. Let's hear it for free markets!