“It is with great reluctance that I have agreed to this calling. I love democracy. I love the Republic. Once this crisis has abated, I will lay down the powers you have given me!”–Emperor Palpatine, from Star Wars Episode II: Attack of the Clones

From The Loft:

This week, Treasury Secretary Timothy Geithner released details of the Obama administration’s plan to further inject government control over the private sector. If Obama and Geithner have their way, more financial institutions will be forced to “report in” to the government and have restrictions placed on what the institutions and the investors can and can not do with their money. With each passing day, Obama and company are chipping away at America.

The premise of this new Obama/Geithner plan is to do something about “toxic assets,” which the government is now calling “legacy assets,” because it sounds less… well… toxic. As the Heritage Foundation describes in a new report,  these assets represent “securities and loans held by financial institutions whose value is uncertain in the wake of the financial crisis.”

Some Geithner proposals:

— Imposing tougher standards on financial institutions that are judged to be so big that their failure would threaten the entire system.
— Extending federal regulation for the first time to all trading in financial derivatives — exotic instruments such as credit default swaps that are blamed for much of the economic carnage.
— Requiring larger hedge funds and other private pools of capital, including private equity and venture capital funds, to register with the Securities and Exchange Commission.
— Creating a regulator to monitor the biggest institutions. Geithner did not say which agency should wield such authority, but the administration is expected to favor the Federal Reserve.
— Empowering the government to take over major nonbank financial firms such as insurers and hedge funds if deemed necessary.

…This Geithner plan is just one more step in lulling the American public into placing more power in government. Thankfully, more legislators are speaking up, and more of the public is taking notice. But will it be too late?

There are no Jedi to rescue us.  We have to do it ourselves.