Banks buying banks by donspoliticalblog
(libertarian)
Wednesday, October 29, 2008
I would like to take the time to check out just how good the bailout is doing; I am not going to take sides in what has been happening but let the shoe fall where it may.
In the governments argument for the bailout it was understood that the money was to be used to shore up banks so they could make loans to consumers and kick start the engine of our economy. I'm afraid that it is being used to help them build up the bonus fund for the Wall Street Golden Boys. Some estimates put the bonus number as high as $70 Billion dollars. This is one tenth of the total bailout. How does that make you feel Mr Paulson and Ms Pelosi and good ole Harry. Our president has been hoodwinked once again by his own people as well as our socialist House.
Who is dispersing the $700 Billion? A 35 year old man named Neel Kashkari boy that name fits doesn't it? Our friend Neel is one of the Goldman Sachs wizkids who helped create this mess. Why would Paulson who is an ex Goldman Sachs Executive pick someone so young and brash? Could it be a control situation? Why not someone who is a little more seasoned and has at least some ties to the politics of the matter?
When we check out AIG what do we find? They sent their salespeople on a lavish luxury retreat to the St. Regis resort in California costing over $440,000, $70,000 in green fees alone. They did this soon after receiving the $85 Billion credit line from our tax money. The funny thing is they had planned another junket soon after but cancelled it when the story came out about this one.
As if keeping their jobs wasn't enough a lot of Lehman's execs got huge signing bonus for staying with the company. Some equal to last years bonus which set records. With all the unemployment on Wall Street why would this be necessary? Where were the rules that should have been tied to this bailout?
We all thought that this money was going to be used to help start the economy and fuel the consumer spending. Wrong, these bankers can use this money any way they want. These banks who are getting the tax payer money are contemplating using it to buy other weaker banks not putting it into consumer hands at all. So much for that $700 Billion.
I praise the 171 in the House and the 25 in the Senate who had the good sense to oppose this rip off and stand tall for their constituents. The way the leaders in the House and Senate rammed this through is really criminal and the Executive branch was the accomplice to this crime. Both Obama and McCain voted for this bill so there is no political value with the exception of Pelosi's one sided attempt to blame the Republicans just before the failed attempt in the house.
I'll leave it up to the reader to study the cause of this meltdown as it can all be found in the Congressional Record. Look under Frank, Waters, Dodd and Obama for the root Cause. The two companies; Fannie Mae and Freddie Mac should never have been privatizes in the first place but President Johnson did it to hide the cost of the Viet Nam war in his budget. President Reagan deregulated the companies and President Clinton pushed for more minority loans. The only one that shouldn't be blamed for this mess is Bush, but he will carry the load of blame because it's easier to blame Bush than seek out the truth.
And that's my opinion, Don PS; Thanks Ron for the info. D
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Right on the money Don, these guys are totally out of control from the House to the Senate to the White House. There should have been strict rules to provide for the distribution of these funds.
DF
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