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Sunday, October 26, 2008

THE BAIL OUT - ( SELL OUT ) updater:

So, how's the trillion dollar bail-out ( sell -out) doing so far? I suggest you read this article from the NY Times Sat. edition if you think it's really going too help free up credit any time soon. Seems Sect. Paulson had "other" plans about how too best use our money and it doesn't include loans.( at least to any of us that is) Confused? Read on@ the blue title link.


Anonymous said...

Whose surprised? It was pretty obvious they were going figure out some way to keep all the $$. That's what they do best.

Paula D said...

Another article comes from a joint report by the Pittsburgh and Cleveland newspapers, published today. It shows what might have been Treasury Secretary Hank Paulson's plans all along, seeing as how he's among the alumni of the Wall Street crowd carving up our $700 Billion "gift" of taxpayer dollars. It shows just how far the Comrades are meddling in picking winners and losers among the nation's biggest banks.

Meanwhile, ordinary businesses on Main Street are still caught in the icy cold grip of the credit freeze, and that accounts for much of the continued drop in the stock market this past week.

Selected quotes:

"Pittsburgh and Cleveland, two bitter Rust Belt rivals on the football field, have become the proving ground for the federal government's controversial $700 billion bid to staunch a credit crisis that has spilled over from Wall Street to Grant Street and Euclid Avenue. Analysts say the $7.7 billion in federal support Pittsburgh-based PNC Financial Services Group received to acquire Cleveland's troubled National City Corp. is the first of what is expected to be dozens of government-financed acquisitions of weak banks by strong ones. The infusions are intended to restore confidence in the banking system and credit markets.

"In short, Treasury Secretary Henry M. Paulson Jr. and other regulators are picking winners and losers, not only among banks but also among stakeholders.

"The Fed will not let any bank fail," said Greg Melvin of C.S. McKee, a Pittsburgh investment manager. "They don't care about shareholders, but no debt holder or depositor is going to get nicked in the next three months."

That is how the regulatory script reads for PNC's $5.6 billion acquisition of National City, announced Friday. And Mr. Melvin, a director at FNB Corp., a Hermitage, Pa. bank, expects more to follow. "What the Fed is telling us is that you can use this money for acquisitions," he said. "They'll give you extra capital if you take a bad bank."

PNC, which earlier this decade fell under a regulatory cloud over inflated profits from a transaction involving American International Group, is the winner, and National City, done in by brokers who arranged toxic mortgages and untimely acquisitions, is the loser.

"Making Mr. Paulson the arbiter of which banks survive isn't what some members of Congress had in mind when they voted on the emergency legislation.

"Without regard to the economic and psychological impact on our community, Treasury made a coldly calculated decision to push National City off the cliff and use our tax dollars to help another bank scrape up the remains," said U.S. Rep. Dennis Kucinich, a Cleveland Democrat who voted against the bailout.

U.S. Rep. Steve LaTourette, R-Cleveland, said Congress should have given Mr. Paulson and other regulators a blueprint on how to use the $700 billion instead of letting the Treasury secretary "play God."

"He has picked winners and losers," Mr. LaTourette said. "The first winner he picked was Goldman Sachs, where he came from. ... The chickens have come home to roost in Cleveland in a horrible way."

FINE FIX THIS PUTS THE COUNTRY IN, Glenn. Credit is still frozen up, stock market falls still more, and the Treasury Secretary's little circle of "chosen winners" squander tax dollars injected for liquidity in order to play a game of Pac-man. I'd say America's leaders (and that's White House and Congress) have let the finance boys decide to take the catbird seat in running the country.


GlennK said...

So much for the Reagan Revolution my friend. BV$H is turning out to be the biggest socialist since FDR. He's ending his ignoble reign with the biggest transfer of public wealth(taxes) in history to the same people that have just destroyed most of the countries and the world's financial system and maybe very soon much of it's economic health. No big deal for these guys actually since he's just using more disaster ( his specialty) to rip us all off even more. As for the clueless Dems. they go right along believing or is it being owned by the same vandals so no help there either.