Rush's Morning Update: Main Street
July 1, 2010
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Sarah Wallace is chairman of the board of the First Federal Savings and Loan Association, in Newark, Ohio. Wallace has writtena Wall Street Journal opinion piece that takes a grim view of Democrats' so-called comprehensive financial reforms.
Mrs. Wallace says that the legislation "could signal the end of community banking"because the Federal Reserve gains more power to regulate how these institutions do business. If she's right, this could directly affect you. Credit will dry up, and the cost of doing business will increase. "Regular people who were creditworthy in the past" will find they are no longer creditworthy. Mrs. Wallace predicts that more small community banks are going to fail-- or, at least,will be forced to merge-- because of what she calls "voluminous regulation."
There's another aspect that some of you may find hard to believe. Despite the image some have of bankers,thanks to the continual demonization by Democratsliberals,Mrs. Wallace says that her bank actually utilizes a "significant portion" of their profits to give to worthy community organizations and projects. Yes. "Give". Not "lend". If banks like hers fail,it'llharm the very fabric of the communities they serve.
Now, remember how "reform" got started. People were fed up with Wall Street bailouts, so Obama and his Democrats claimed they were going to teach their big contributors on Wall Street a lesson. But Wall Street banks aren't worried --Main Street bankers are.
What does that tell you? Hmm?