Tweakenomics: A Financial Poem
President Obama is threatening to shrink big banks and re-institute the Glass-Steagall Act, enacted by Congress in 1933 after the Depression, creating a clear dividing line between banking and brokerage firm activities to curb speculative practices by the banks. (The FDIC was established at the same time.)
European leaders are nodding their heads in agreement with the President's view that the U.S. economy needs further "tweaking." America's economic engine is still sputtering. Unfortunately, the economy isn't really an engine and banks aren't big blobs of clay that can be remodeled to a desired shape.
I consider myself a serious writer on financial education, however the headlines of the last two days' events have inspired me to plumb the depths of my poetic abilities. Hopefully you will indulge my not so serious outburst.
Obama is trying to control the big banks.
If they're too big, too risky, well no thanks.
With guys out of work their credit is shot.
Give small business loans, the banks better not.
Who gets the money and who takes the chance,
No lending, no trading, there's no one who'll dance.
People aren't working, their credit cards maxed.
But Washington will see that the fat cats get taxed.
Capitalism and free enterprise who cares?
We must lower the greed but lift up the shares.
The government knows how to handle all things,
Except for the cost that their oversight brings.
It's lucky today the media uncovered
That a new anti-diarrhea medicine was discovered.
Banks need to do what banks should do: collect deposits, responsibly manage their funds, and lend money to credit-worthy customers. Other than that, the truism applies to Wall Street and to Main Street: There will always be bulls, bears, and pigs.