Ace of Spades HQ

March 19, 2010

You Know What We Need? State Owned Banks!
— DrewM

North Dakota has a state owned bank, in fact Kent Conrad tried to get an exemption for it from the federal takeover of student loans, now other states are considering it.

What in the world could go wrong with this idea?

Bank of North Dakota officials said that at least 10 states have turned to them for guidance, including some states, like Michigan, hardest hit by the financial crisis. They include California, Florida and Illinois, where a bill to create a state bank already is under consideration by the state legislature.
Michigan State Sen. Hansen Clarke hopes his state will be the first to follow North Dakota's lead and establish what he and others call an economic development bank.
Michigan currently carries the dubious distinction of having the highest unemployment rate in the nation.
"What I'm trying to do is help create jobs for probably one of the most economically-depressed states in the country," Clarke said. "The state economic development bank would be one way to be able to provide small businesses the capital they need to expand and create jobs."

The people who have run their states into financial holes so deep they can't even see the sky anymore think they are qualified to run a bank? It would be funny if it weren't so damn scary.

And gee, what are the odds that a bank run by a state government would wind up pushing loans to politically connected individuals or groups? Can you imagine what kind of loans say, the State Bank of Illinois would be making to ACORN approved groups or Tony Rezko connected politicians for home purchases?

Guess who would be on the hook for those bad loans? Yeah, all of us.

Insanity.

Posted by: DrewM at 09:43 AM | Comments (50)
Post contains 303 words, total size 2 kb.

1
And more casinos!

That'll solve everything.

Posted by: This is Vince from Slap-Chop at March 19, 2010 09:46 AM (z37MR)

2 North Dakota seems to be doing pretty well with employment and state debt. Maybe that state bank socialism works.

Posted by: Andy Rand at March 19, 2010 09:46 AM (mhD2v)

3 Lies about Doc Fix: Dems Plan to add $371 billion more to OCare

Posted by: IreneFingIrene at March 19, 2010 09:47 AM (MFQJZ)

What could possibly go wrong with this?

Posted by: runningrn at March 19, 2010 09:47 AM (CfmlF)

5 And gee, what are the odds that a bank run by a state government would wind up pushing loans to politically connected individuals or groups?

And that would differ from what has already happened exactly how? For all intents and purposes this has already happened. It certainly shouldn't be expanded but honestly that ship has already sailed.

Posted by: sharrukin at March 19, 2010 09:47 AM (593B8)

6 We have the funnel set up and are ready for large amounts of cash to be poured into our offices.

Posted by: ACORN at March 19, 2010 09:48 AM (UA4gE)

7 So...we no longer like The Constitution and the Bill of Rights...and now we love the Fed, the Treasury and federal ownership of banks???

...'cause that's what yer sayin', here.

Posted by: Warren Bonesteel at March 19, 2010 09:49 AM (ZV4dD)

8
Class, now tell me what always follows the expansion of government?

Posted by: This is Vince from Slap-Chop at March 19, 2010 09:50 AM (z37MR)

9 what are the odds that a bank run by a state government would wind up pushing loans to politically connected individuals or groups?

Well, yeah, that's the downside. But look at the upside. If you make the right friends, you get your money for nothing and your chicks for free.

Posted by: WalrusRex at March 19, 2010 09:50 AM (xxgag)

That would make things a lot easier for the State of California I guess. Instead of having to wait and withold your tax refund check because they can't afford it, the politicians could just have you deposit all your money in their bank, and then not let you withdraw it because they need it to pay off yet another monster spending bill.

Posted by: StuckOnStupid at March 19, 2010 09:50 AM (e8T35)

11
That's right, Class. Unionization.

Bank tellers will need their own union, of course.

Posted by: This is Vince from Slap-Chop at March 19, 2010 09:51 AM (z37MR)

12 Five year plan.

Posted by: Mal at March 19, 2010 09:52 AM (Z+qzA)

Not insane, just a mountain of BS says the NYT and WashPo about the CBO numbers.

Really. No shit.

Via instapundit

Posted by: Hussein the Plumber at March 19, 2010 09:53 AM (r1h5M)

14 Hell, that's still better than the federally-owned banks we have now.

Posted by: The War Between the Undead States at March 19, 2010 09:53 AM (lk70u)

early on in the history of my State (Illinois) a State bank was created for the purpose of creating economic activity (basically to fund the Chicago Canal)

it failed miserably and put Illinois to the hole for generations.

State controlled banks are a horrible idea that never end well and that includes the Fed.

Posted by: shoey at March 19, 2010 09:54 AM (Ed9Xn)

16 Maybe it'd work in Michigan if they had about 1/6 their present population and were sitting on a big old ocean of oil.

Posted by: notropis at March 19, 2010 09:55 AM (4myGJ)

17 Rush said this bank was some sort of weird co-opt hippie communist bank and the governor would like to see it go.

Posted by: dagny at March 19, 2010 09:56 AM (0TrEd)

18 O/T: Turned on Rush just as he was saying that member of the House are being told to lie?

Posted by: curious at March 19, 2010 09:56 AM (p302b)

19 OVER at Drudge there is a leaked memo from the D leadership.... could help us!!!

Posted by: ford at March 19, 2010 09:56 AM (Ki7fm)

20 Yes,, the lies are part of the memo that POLITICO have just released and it is posted at the top of Drudge.

Posted by: ford at March 19, 2010 09:57 AM (Ki7fm)

21
First Uncooperative Bank

Posted by: This is Vince from Slap-Chop at March 19, 2010 09:58 AM (z37MR)

22 The people who have run their states into financial holes so deep they can't even see the sky anymore think they are qualified to run a bank? It would be funny if it weren't so damn scary.

Banks have money. The state needs money. Therefore, the state needs to get access to those banks, since banks have money, and the state needs money.

Plus, a bank is where money is squirreled away by rich fat cats. We all hate rich fat cats, because they look out for Wall Street, not Main Street. And by "rich" we mean any family with a combined gross income of over $80,000.

Posted by: Barbara Boxer at March 19, 2010 09:58 AM (2p0e3)

23
Slavings & Bone Bank

Posted by: This is Vince from Slap-Chop at March 19, 2010 09:58 AM (z37MR)

24 2 North Dakota seems to be doing pretty well with employment and state debt. Maybe that state bank socialism works.

It is a strange thing with Midwestern states. A lot of them do have a great deal of socialism, which is one reason why so many middle America red states have so many Dem senators and reps. But it all comes down to the character of the people running those states. North Dakota is not known for being a hotbed of corruption and cronyism. The state I'm most familiar with is Nebraska, and there, if you spend state money or are involved with a state agency, your finances and actions are scrutinized to within an inch of your life, as they should be, to ferret out waste and illegitimate activities. These places can accommodate "big government", for a while, because the people there are responsible enough not to use it for their own personal cash cow. This is different from a place like, say, Illinois, where using state funds for personal and/or corrupt uses is considered a perk of the job.

The problem, of course, is that socialism inevitably erodes the character of the people over time, as they become dependent on the state, and the people ask the very logical question "well, why NOT tax the rich more to provide more bennies for me?" So socialism slides into looter-ism.

That is the most dangerous part of the big-government statism that Obama et al. propose. That it will become irreversible not just politically, but also culturally.

Posted by: chemjeff at March 19, 2010 09:59 AM (Gk/wA)

25
Who was that governor Rush just played in that clip?

Posted by: This is Vince from Slap-Chop at March 19, 2010 09:59 AM (z37MR)

any financial enitity created by the government for the government will ALWAYS end up being a slush fund for the power elite, who will use it for their own interests until it collapses.

... and guess who gets to pay off the shortfall.

Posted by: shoey at March 19, 2010 10:00 AM (Ed9Xn)

27 Yeah. Read the leaked memo. You can get the pdf copy at the Corner too. The lies are there and the language is awesome: "right wing fringe" "republican operatives".

Posted by: dagny at March 19, 2010 10:00 AM (0TrEd)

28 O/T: Just watched megyn kelly eat NYS representative Ortiz for lunch. You could pinpoint the exact moment when she actually began to feel sorry for the guy. How does anyone defend the government deciding to ban food substances? Eventually she said "so this is a publicity stunt so Beck would mention you and you would get on this program".

I've seen two NYS representatives today and I have to wonder what NYer's are thinking when they are electing these people. Both seemed to just be spouting talking points. Ortiz was busy trying to make her understand that salt causes strokes and strokes are expensive and then health care costs go up. Never saw her show. This, this was too funny.

Posted by: curious at March 19, 2010 10:03 AM (p302b)

29 I keep hearing Obama quotes from his George Mason visit. I took my son to look at it this winter and the flippin' tour guide had pierced lips which turned him off. She kept mentioning that Obama had come there during his campaign. The fourth time, I got next to her and said, "It's your job to try to sell the school. Mentioning Obama to Virginians only irritates most of them." I'm sure fatty mcpiercings is over the top today. We didn't even apply.

Posted by: dagny at March 19, 2010 10:05 AM (0TrEd)

30 Ortiz was busy trying to make her understand that salt causes strokes and strokes are expensive and then health care costs go up.

Breathing causes death. Therefore ban air. For the CHILDREN!!!!!!!!!

Posted by: chemjeff at March 19, 2010 10:05 AM (Gk/wA)

31 And by "rich" we mean any family with a combined gross income of over $80,000. $40,000.

FIFY.

I have to wonder what NYer's are thinking when they are electing these people.

They're checking the box the nice ACORN lady told them to check if they want to keep their state checks.

Posted by: HeatherRadish at March 19, 2010 10:06 AM (mR7mk)

32 I thought it was illegal for any state to own a bank. Isn't that in the Fed charter?

Posted by: wtfci at March 19, 2010 10:06 AM (+zo63)

33 Ortiz was busy trying to make her understand that salt causes strokes

Except it doesn't, unless you already have high blood pressure, and even then it's only a problem for about half of 'em.

Posted by: HeatherRadish at March 19, 2010 10:08 AM (mR7mk)

34 Thomas Jefferson letter to Albert Gallatin, 1803.
Online Library of Liberty.

Jefferson's opinion was:
"The incorporation of a bank and the powers assumed have not, in my opinion, been delegated to the United States by the Constitution. They are not among the powers specially enumerated."

However, most of us have become used to a credit, consumerist, Keynesian lifestyle, which Jefferson and colleagues would never have approved.

Most of the things we rely upon or take for granted, including our lifestyles and the many government services to which we are accustomed, would simply disappear under a plain and simple reading of The Constitution. These services, if available at all, would be provided by privately owned businesses. Others would revert to state control.

Most would simply disappear...including easy credit. (Without assets or real property - collateral - a bank would provide no credit.)

In a sense, be careful what you wish for. Freedom comes with numerous inbuilt costs.

Posted by: Warren Bonesteel at March 19, 2010 10:11 AM (ZV4dD)

35 A Roach Motel - your money check in, but it never checks out.

Posted by: Purple Avenger at March 19, 2010 10:11 AM (w5ptJ)

36 Awesome. We can be just like China. Yeah crony capitalism.

The private sector is for suckers. Obama and Rahm are rich.

Posted by: bobbo at March 19, 2010 10:12 AM (+ABdJ)

37 O/T: rush just said that Nancy P is praying to St. Joseph asking him to please pass the bill.
So pray to Saint Joseph to ask him to please ignore nancy pelosi and her dumb bill.

Posted by: curious at March 19, 2010 10:13 AM (p302b)

38 I don't understand what you fright wingers are screaming about, tovarisch.

Posted by: Gosbank 1923-1987 at March 19, 2010 10:14 AM (I/MqP)

39 I Disagree. I think State banks are a good idea. Respectfully, I don't think any of the arguments you made are very good. Which is not the norm, because I usually like your arguments on most subjects. However, I don't have time to go into it. Healthcare. Bring up the subject again. It's important, but not now.

Posted by: LiveFreeOrDie at March 19, 2010 10:21 AM (7z7bU)

North Dakota is doing well because they have a prohibitive 11% tax on their oil production (soon to be dropped down, however). They fret about how to spend their large surplus. A little behind the free-market ball up there.

I'm sort of a local, btw - I am active in the exploration biz there and am quite politically active in ND politics.

Gov. and soon-to-be Senator Hoeven is a big-govt. RINO. He used to be the head of the North Dakota-owned bank. Not a good sign.

Posted by: TexasJew at March 19, 2010 10:28 AM (KXW8j)

41 Buy gold. We're done.

Posted by: feeling defeated at March 19, 2010 10:34 AM (fGMGp)

42 Very OT, but somewhat related:

I follow the web bots (for entertainment purposes only!) and, if you listen to what they say, we are in for a rocky, rocky ride.

First meme:

Death of the Dollar.

next:

R*volution.

Key dates are July 8th and early November.

It's a scary time.

Buy more ammo and can some food.

Posted by: shibumi at March 19, 2010 10:59 AM (OKZrE)

43 What this patient needs is an immediate and thorough bleeding. Too much blood is what ails him.

Posted by: Cautiously Pessimistic at March 19, 2010 11:11 AM (pZEar)

44 For a good reason why no government should own a bank, see the former Bank of the United States. Andrew Jackson was right to shut it down. The current administration's shennanigans are proof he was on the right track.

Posted by: exdem13 at March 19, 2010 11:12 AM (lYKj1)

45 Is this really a bad thing? If this stays in the house Bill, Konrad and Dorgan may vote against the health care bill, 2 -Dems voting no! Not saying it's going to work, but it's still possible.

Posted by: cashin at March 19, 2010 01:09 PM (RJ9mi)

Illinois already has a "state owned bank" in a sense. Broadway Bank in Chicago is owned by Alexi Giannoulias' family, Alexi is the Illinois Treasurer (a statewide elected office). Alexi is also the democrat candidate for US Senate from Illinois for Obama's old senate seat (the one Blago wanted to sell because it was worth 'fn gold').

Broadway Bank is about to be taken over by the feds, it's connected to the mob for making loans to the mob at favorable terms, and his family has sucked maybe $15 million out of it recently.

That's what any state owned bank in the US will turn into, a giant sinkhole of corruption, waste, graft, and hard earned tax dollars going to politicians and the mob. Great.

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