The Bank of Walmart

16 Oct 2008

The Bank of Wal-Mart or The Bank of Paulson

Earl L.J. Thomas

For some time now Wal-Mart has been trying to get into the business of banking. The only obstacles in their way, you guessed it government regulators and the biggest surprise of all ACORN! When Wal-Mart tried to open a bank in Utah, ACORN was worried that Wal-Mart would find a way around the Community Reinvestment Act (CRA), which requires banks to make(you guessed it!) sub-primed loans.

I am simply amazed that groups like ACORN would fight so fiercely against Wal-Mart operating a bank, but does or says nothing when the government is taking over private banks. In its infinite wisdom the government cannot even balance the budget. I know for certain that I am more afraid of the government than Wal-Mart. Imagine if Wal-Mart had a police force and the IRS at its disposal. Would you still shop there? I would never try to return anything that’s for sure.

Wal-Mart has made more people wealthy than the federal government ever could. The stock has returned an astonishing amounts since its beginnings in Arkansas. They have also employed thousands of people and spurred economic growth on a global scale. Along the way they have attracted a lot of attention and criticism from activist groups.

Groups like ACORN and its alliance groups such as WalMart Alliance for Reform Now (WARN) said purpose is to force Wal-Mart to be accountable to community standards. We are all witnessing the effects of the (CRA) forcing banks and lenders to make sub-prime loans.

Wal-Mart must have known how foolish the (CRA) was and drew criticism from ACORN in 2005 for trying to exempt its Utah bank from the (CRA). Why did the government not realize this? The answer is simple, the government collects money and Wal-Mart makes money. Wal-Mart provides thousands of jobs without money from the taxpayers and they are taxpayers themselves. So remember the next time you hear someone criticize Wal-Mart, if our government could operate as intelligently your and my retirement accounts would not be in dire straits right now.