So, remember when the government decided it would be a good idea to spend $700 billion bailing out the banks? It turns out, we might actually get some of that back. Obama announced recently that he would be implementing a policy in an attempt to regain much of that $700 billion spent last year. However, he is meeting a great deal of opposition, especially from the four major banks: Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Bank of America. The banks are upset by Obama's proposal that a tax be implemented on the banks revenue. However, the banks contest that they were initially told to loan to small businesses to help the recession, and now, the tax will limit their ability to do so. No official legislation has been proposed, but a 2-day hearing including testimonies from those four banks will begin on Wednesday.
I think it is a great idea to try to decrease the deficit, obviously. A tax seems like the only real way to go about this unfortunately. It may seem like a socialist idea, but in times of need, sometimes you have to tax the rich to avoid the collapse of the whole country. However, I think Obama should be wary that the tax not severely damage the growth of the banks, or the economy will continue to stagnate.
Links:
http://www.nytimes.com/2010/01/12/business/economy/12bailout.html?ref=politics
http://www.cbsnews.com/blogs/2010/01/11/business/econwatch/entry6084139.shtml
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