Posted on 07/12/2009 7:59:26 AM PDT by fiscon1
Most people think we started stimuli and bailouts back in September with TARP. I go back even further. I go back to May of last year when the government bailed out Bear Stearns. Bear Stearns was days away from filing for bankruptcy when the Federal Reserve, in one weekend, stepped in and brokered a deal in which JP Morgan Chase would buy them out. Such a deal would normally take months to work out. Yet, this was worked out all in one weekend. You could say, as Michael Corleone would say, the Federal Reserve gave each an offer they couldn't refuse. Since Bear Stearns was on the verge of collapse, they had no room for bargain. The mere fact they would get bought out was good enough. As for JP Morgan Chase, the Federal Reserve sweetened the deal so much that they simply couldn't refuse. In other words, the Federal Reserve structured the deal so that it was so undervalued that Chase had to accept. They even backed it up with loans and equity.
(Excerpt) Read more at theeprovocateur.blogspot.com ...
As a nation, we set up a sophisticated system for dealing with companies that failed, banks included. Yet, those that favored trillions in bailouts would have us believe that these systems weren’t equipped to deal with the failures such companies as Bear Stearns and Lehman Brothers. Why not? When Bear Stearns went under our unemployment rate was in the fives, it’s now nearly ten percent. The sort of doomsday scenarios that were floated to justify its bailout are occurring. The only difference is that it took over a year to get there, whereas without it we would have gotten there much faster.
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Just delaying the pain. Exact opposite of the Volker / Reagan approach which was to get the recession over with and move on with better policies after.
Who was Bush told to help?
The fact that the economy has continued it's slow death spiral shows that certain individuals simply skimmed off their cash and are sitting by waiting for the inevitable to occur.
Now that it worked the first time watch for Obama to continue the wealth transfer.
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