Posted on 11/16/2008 11:12:13 AM PST by lowbridge
The $700 billion bailout of the banking industry had naysayers complaining that the government wouldn’t act consistently, that abuses would occur, and that it wouldn’t actually help the economy.
Initially, money from the bailout was supposed to be used to buy bad mortgages under the theory that the government knew better than all of the other investors. The Treasury Department changed its mind Wednesday, deciding that, yeah, that wasn’t a good idea. This was after it got approval to spend the $700 billion pretty much as it pleased.
Now, the money will help to make the balance sheets better. Tomorrow is a new day, and who knows what fun the government will find to use the money on?
And abuses? Let us speak of a plucky little company called the Hartford Financial Services Group.
The poor folks at Hartford wanted a few billion dollars from the government. Unfortunately, since they had no banking arm, they weren’t eligible for the bailout. They were sad.
So, they went to find a bank to purchase, and the Federal Trust Bank was available for $10 million. (Ten million, with an “m.”) They purchased it, so now they’ll be eligible for the Capital Purchase Program, and will apply for $3.4 billion (with a “b”) in government funds.
I am not making this up.
Other companies have simply bypassed the requirements by being called Bank Holding Companies; the Treasury granted American Express’ request to be so designated because, you know, they need the money.
(Excerpt) Read more at patterico.com ...
And they were correct, paulson used it as his personal piggy bank and then switched plans.
Government buying shares in some companies and not others, which will inevitably lead to government control of business decisions. Just look at education. If local districts and states refuse to follow their silly rules, they threaten to pull out their 7-9%... which schools cannot afford to lose. If they buy 15% of a corporation (with our money), and they threaten to sell it all at once if the board doesn't do what they want (dropping the stock price like a stone), what do you think the board will do?
Doesn't Fascism substantially consist of government control of major corporations?
Unless and until government changes the underlying issues... and actually allows businesses to fail and homeowners to get the boot if they don't pay their bills... there will be no end of the bailout parades. Government will continue to bloat, continue to buy more private concerns with our money ("for the public good"), and our slide will continue.
WHY ISN'T ANYBODY TALKING ABOUT FIXING THE ACTUAL PROBLEM, RATHER THAN MERELY ADDRESSING THE SYMPTOMS?
No wonder Paulson was on his knees to Nancy Pelosi and Harry Reid begging them for support on this idiot bill, for which there were no hearings, no testimony before Congress nad for which the principled Republicans (and the fewer Democrats) who opposed it were demonized. I guess $ 700 billion isn’t too high a price to pay to bail out your pals. GW Bush’s Administration really ends on a high note, doesn’t it? And he leaves US with debts from this endless bailout that we, our children and grandchildren will be paying forever.
And that will be his lasting legacy, not Iraq that will never be a democratic "partner" nor Afghanistan that will always remain lawless.
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