Sunday, October 26, 2008

I KNEW There Was a Reason I Was Against the Bailout...

Or should I say, "FAILout?" 

House Republicans Were Right on the Bailout

House Republicans voted down the first bailout bill because they were afraid it would become just another government boondoggle. But after it was loaded up with more pork than all the pigs in Iowa, they changed their minds. Guess what? It has become just another government boondoggle. Sec. Henry Paulson's idea was to buy up all the toxic mortgages to get them off the banks' books. He long since shelved that plan. His next idea was to buy stock in the banks so they would have fresh capital and could start making loans again. However, instead of making loans, some banks are using the money to pay dividends, give executives bonuses, and buy other banks. For example, PNC Financial Services received $7.7 billion in government money and promptly spent $5.6 billion of it to buy National City Corp. Lawmakers are protesting but they should hardly be surprised since they gave Paulson unlimited authority to spend the money any way he wanted to, with hardly an supervision and no restrictions on what the recipients did with the money. In addition, Paulson hired the Bank of New York Mellon to run the program. On the same day Bank of New York Mellon received $3 billion itself, apparently deciding that it could use some cash. Hardly anyone noticed.

Well, so much for the FAILOUT. Once again, the rich get richer, the poor poorer, and the government tells us all to F%#K off. I hope someone literally, as well as figuratively, throws that bastard Paulson under a bus.

Source: I LOVE that site!


cool yiddishe mama said...

"For example, PNC Financial Services received $7.7 billion in government money and promptly spent $5.6 billion of it to buy National City Corp."

When my in-house Fed insider came home Friday to report this, my first response was "hmmmm, where are the banks getting this money? From our pockets!"

The Republicans complain about capitalism being toppled by the "socialist" Democrats. Yet, what does it mean when our government gives money to bail out insurance and banks? Can you say "government takeover".


Am Kshe Oref - A Stiff-Necked People said...

Right. It's ironic that the Republican candidates, especially Sarah Failin' Palin, are complaining that the Democrats are completely about Socialism while they perpetrate the exact opposite.

And you know what? Maybe it's time to start a semi-Socialist government that WOULD work more FOR the people and less for the rich and for the corporations.

So, did your husband send Uncle Ben an email demanding an explanation?

cool yiddishe mama said...

Not yet. However, news hit this afternoon (I'm the one who told hubby about it)...Fed looking at another rate cut this week!

Am Kshe Oref - A Stiff-Necked People said...

Jesus, any more cuts and they're gonna pay the banks to take loans!