Well commercial companies that are commercial now, but for how long. If the federal government gets their way, these commercial companies will be directly controlled, ala socialism. Companies that have received TARP, Troubled Asset Relief Program, are about to control of their companies to the government. The New York Times recently printed an article saying that President Obama is looking to change the preferred stock that government has in companies to common stock. This will effectively mean that the government now has a controlling interest in these companies.

At the current moment, the government owns preferred stock in companies that has accepted TARP money. This means the government does not have a vote into policies or management of a company. This does mean however that the government will be the first to get dividends, the taxpayers will get their money back. By converting the stocks the common stocks the government will then have a vote into policies and management. The federal government will then be able to dictate who is running the companies and how the company is run. A step away from free market and capitalism.

What makes this a big deal is that, not all companies that received TARP money, needed it or wanted it. The money was forced upon them by the government. By converting the stocks to common stock, this is a round about hostile takeover. Even worse, companies that want to pay back the TARP money are not being allowed to. The government is refusing to sell back their preferred stock. The government is forcibly injected itself into these companies, and are regrettably refusing to relinquish control.

The government is setting a horrible precedent. Due to their actions, companies can no longer trust the government when it comes to financial aid. When a financial crises looms once again in the future, our economy might need federal money injections, what happens then when companies refuse to accept or use the money offered. The government has sacrificed longer term solutions for to satisfy immediate childish goals.