Dinner at the White House – A Parable

Once upon a time, I was invited to the White House for a private dinner with the President. I am a respected businessman, with a factory that produces memory chips for computers and portable electronics. There was some talk that my industry was being scrutinized by the administration, but I paid it no mind. I live in a free country. There’s nothing that the government can do to me if I’ve broken no laws. My wealth was earned honestly, and an invitation to dinner with an American President is an honor.

I checked my coat, was greeted by the Chief of Staff, and joined the President in a yellow dining room. We sat across from each other at a table draped in white linen. The Great Seal was embossed on the china. Uniformed staff served our dinner.

The meal was served, and I was startled when my waiter suddenly reached out, plucked a dinner roll off my plate, and began nibbling it as he walked back to the kitchen.

“Sorry about that,” said the President. “Andrew is very hungry.”

“I don’t appreciate…” I began, but as I looked into the calm brown eyes across from me, I felt immediately guilty and petty. It was just a dinner roll. “Of course,” I concluded, and reached for my glass. Before I could, however, another waiter reached forward, took the glass away and swallowed the wine in a single gulp.

“And his brother Eric is very thirsty.” said the President.

I didn’t say anything. The President is testing my compassion, I thought. I will play along. I don’t want to seem unkind.

My plate was whisked away before I had tasted a bite.

“Eric’s children are also quite hungry.”

With a lurch, I crashed to the floor. My chair had been pulled out from under me. I stood, brushing myself off angrily, and watched as it was carried from the room.

“And their grandmother can’t stand for long.”

I excused myself, smiling outwardly, but inside feeling like a fool. Obviously I had been invited to the White House to be sport for some game. I reached for my coat, to find that it had been taken. I turned back to the President.

“Their grandfather doesn’t like the cold.”

I wanted to shout- that was my coat! But again, I looked at the placid smiling face of my host and decided I was being a poor sport. I spread my hands helplessly and chuckled. Then I felt my hip pocket and realized my wallet was gone. I excused myself and walked to a phone on an elegant side table. I learned shortly that my credit cards had been maxed out, my bank accounts emptied, my retirement and equity portfolios had vanished, and my wife had been thrown out of our home. Apparently, the waiters and their families were moving in. The President hadn’t moved or spoken as I learned all this, but finally I lowered the phone into its cradle and turned to face him.

“Andrew’s whole family has made bad financial decisions. They haven’t planned for retirement, and they need a house. They recently defaulted on a subprime mortgage. I told them they could have your home. They need it more than you do.”

My hands were shaking. I felt faint. I stumbled back to the table and knelt on the floor. The President cheerfully cut his meat, ate his steak and drank his wine. I lowered my eyes and stared at the small grey circles on the tablecloth that were water drops.

“By the way,” He added, “I have just signed an Executive Order nationalizing your factories. I’m firing you as head of your business. I’ll be operating the firm now for the benefit of all mankind. There’s a whole bunch of Erics and Andrews out there and they can’t come to you for jobs groveling like beggars.”

I looked up. The President dropped his spoon into the empty ramekin which had been his creme brulee. He drained the last drops of his wine. As the table was cleared, he lit a cigarette and leaned back in his chair. He stared at me. I clung to the edge of the table as if were a ledge and I were a man hanging over an abyss. I thought of the years behind me, of the life I had lived. The life I had earned with a lifetime of work, risk and struggle. Why was I punished? How had I allowed it to be taken? What game had I played and lost? I looked across the table and noticed with some surprise that there was no game board between us.

What had I done wrong?

As if answering the unspoken thought, the President suddenly cocked his head, locked his empty eyes to mine, and bared a million teeth, chuckling wryly as he folded his hands.

“You should have stopped me at the dinner roll,” he said.

Make Mine Freedom

You won’t believe how relevant this cartoon from 1948 is today! It uses humor to tout the dangers of Communism and the benefits of Capitalism. It is one in a series of films created by the Extension Department of Harding College, to “create a deeper understanding of what has made America the finest place in the world to live.” Unfortunately all that has made America great is being ripped apart by the arrogant and utterly corrupt politicians that supposedly represent us in Washington.

This should be shown in every school across America. Pass it on.

Hat tip Flopping Aces

CEO Says Government Pressured Bank Of America To Buy Merrill Lynch


House lawmakers today accused federal regulators of a gross misuse of power in orchestrating a “shotgun wedding” between Bank of America Corp. and Merrill Lynch & Co. that cost U.S. taxpayers $20 billion.

They also took aim at Bank of America Chief Executive Officer Kenneth Lewis, questioning whether he played dumb last fall as Merrill’s financial losses mounted and threatened not to go through with the merger to squeeze money from the government.

“Why did a private business deal announced in September and approved by shareholders in December — with no mention of government assistance — end up costing taxpayers $20 billion in January?” asked Rep. Edolphus Towns, D-N.Y., chairman of the House Oversight and Government Reform Committee.

The panel has been investigating the deal, including whether federal officials pressured Lewis and urged him to keep quiet about Merrill Lynch’s financial problems. Not divulging that information would have violated Lewis’ fiduciary duty to the bank’s shareholders.

In testimony before the committee, Lewis said publicly for the first time that his job was threatened after he expressed second thoughts about the merger. Lewis said then-Treasury Secretary Hank Paulson and federal regulators made clear that if the bank reneged on its promise they would force his ouster and that of board members at the bank.

“What gave me concern is that they gave that threat to a bank in good standing,” Lewis told the House Oversight and Government Reform Committee. “So it showed the seriousness with which they thought that we should not” back out.

Paulson and Federal Reserve Chairman Ben Bernanke also pledged government aid to Bank of America to help absorb the losses, Lewis said.

Bank of America ultimately received $45 billion from the government’s bank bailout program, $20 billion of which was tied to its acquisition of Merrill Lynch.

Lewis said he was never asked by Paulson or Bernanke to withhold information from his shareholders. However, Lewis said Paulson told him in a telephone call that the government was reluctant to put the terms of the deal in writing because it would have prompted public disclosure.

The Federal Reserve declined to comment on Lewis’ testimony.

A spokeswoman for Paulson has said the former Treasury secretary felt a letter would have been too vague to help Bank of America and only served to rattle markets by creating more questions than answers. She said questions about disclosures by the bank were left up to the Bank of America.

Towns said he plans to invite Bernanke and Paulson to testify at a later hearing.

Lawmakers on the committee said they were troubled by Lewis’ testimony as well as internal Fed documents related to the deal.

In one e-mail, Bernanke said he thought Lewis’ threat to pull out of the deal was a “bargaining chip” and “we do not see it as a very likely scenario at all.”

Other e-mails by federal analysts suggested they thought it suspect that Lewis claimed to be surprised by Merrill’s losses given the clear signs of a deteriorating economy.

An employee at the Richmond Federal Reserve said Bernanke had made it clear that if Bank of America backed out and needed financial assistance, “management is gone.”

Towns and Rep. Darrell Issa, R-Calif., the committee’s top Republican, said the merger was an obvious “shotgun wedding” that came at the expense of the taxpayer.

However, Rep. Dennis Kucinich, D-Ohio, said he thought Lewis was the one who was pressuring the government.

“There’s been a misconception here that the government put a gun to the head of Bank of America, when it’s quite possible that it was the Bank of America that put a gun to the head of the Fed by threatening” to back out, Kucinich said.

Lewis said he did nothing wrong. In the end, the decision to go ahead with the acquisition — with the promise of government support — was in everyone’s best interest, he testified. “This course made sense for Bank of America and its shareholders, and made sense for the stability of the markets,” he said. “We viewed those two interests as consistent.”

Just a few weeks after the deal was completed, Bank of America’s fourth-quarter earnings report showed the hit taken by its balance sheet because of the Merrill Lynch transaction, which made Lewis the target of shareholder anger.

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