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Monday, January 04, 2010

The dangers of ‘Crony Capitolism'

Our economy will recover. It always does. Every recession we have ever had in our 235-year history has resulted in an upturn. President Obama has already started to crow about some signs that business is picking up — in a recession made worse by his opportunistic policies.

But the real damage done by his taking control of our major banks and car companies (and now one-sixth of our economy with his health care grab), is that private capitalism, one of the great drivers of our country’s abundance for all of us, has been damaged.

A good example of "Crony Capitolism" is GE under the failed leadership of Jeff Immelt. Having seen the stock drop by 90%, Immelt decided that his only hope for keeping the corner office was to suck up to Obama and tie the fortunes of GE to government policies. Long time GE shareholders are dumping the stock. Few see the salvation of the company in the windmill business and "Cap-N-Trade." When you are running a business, you don't have much control over what Congress decided to do with you or your plans.

Obamagate – The tangled web of Obama, GE, Immelt, Cap & Trade, GE Healthcare and Daschle part II

Obama has an Economic Advisors who stands to make billions for the company he is the CEO of if Cap & Trade passes. Should an economic advisor be giving advice to a President if the advice would certainly create a windfall of cash to the advisor’s company? Isn’t there some type of ethics violation in here somewhere? How about the deceit of the American people? It’s not that Obama or Immelt are hiding any of this, it’s that neither of them are telling the people that GE and other big corporations plus Wall Street will make billions and even trillions if Cap & Trade passes and it boils down to being at OUR expense.

Cap-N-Trade won't pass and Immelt's visions of billions from trading greenhouse gases is going up in ... smoke? He's hitched his wagon to a falling star and will fall with him. It's too late to turn loose.

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