This country has made an incredible ideological shift in the past three months. I cannot help but think there is a deadly cliff at the end of this unexplored road. It is a scary time for patriotic American.

There is a little-discussed headline buried deep inside the nation’s financial newspapers. While the front page is covered with stories surrounding the Detroit bailout, readers brave enough to dig deeper will read about Illinois’ untraditional battle against Bank of America (NYSE:BAC).

The state, whose governor was just arrested on charges of selling a Senate seat, has renounced all of its ties with the bank. Bank of America lost the state’s business because of a decision it made to cut Republic Windows and Doors’ line of credit.

The bank realized it was in jeopardy of losing money, so it took natural defensive action to shield itself from the family-owned manufacturing business’ financial troubles. Bank of America did what any soundly operated business should and would do.

The death of independence

Apparently, the Illinois government is against capitalism. It is doing its best to force the bank to reinstate the line of credit so the now-defunct window manufacturer can give its former employees a severance package.

Bank of America did not break any of its contracts and it certainly did not do anything illegal, yet the state’s government wants the bank to risk its bottom line to cut the factory a break. Illinois is diverting millions of dollars worth of revenue away from the bank until it cooperates.

It is pure blackmail.

Making this story even more complicated is the fact that Bank of America recently cashed a $15 billion check from Uncle Sam’s TARP fund. That means Washington is surely going to see this as an invitation to step into the ring.

Once upon a time, this country was based on freedom to make our own decisions and run our businesses in the most prudent manner we could independently manage. But now, state and federal governments are finding it necessary to intervene whenever we make decisions that are not in step with their own politically motivated ideas.

We are treading in shark-infested waters. As the blood begins to spill, the nation will create a feeding frenzy it has no way of stopping.

Source: Illinois attempts to blackmail Bank of America (NYSE:BAC)