Bailout Working?

Respected analyst Kevin Phillips appeared on Bill Moyers Journal on Friday and stirred my blood saying that the banks are using the bailout funds to pay off investors rather than help mortgage holders or pay off their bad debt. Next, they’ll give more money to their greedy selves!

Does anyone know what kinds of restrictions are on those loans?

Questions abound:

Is the bailout working? Not so far according to reporting

http://money.cnn.com/2008/11/05/news/economy/commercial_paper/index.htm

Who monitored the distribution?

Some of the biggest, most stable banks got the biggest checks. For instance, JPMorgan Chase (JPM, Fortune 500), Citigroup (C, Fortune 500) and Wells Fargo (WFC, Fortune 500) led the pack with $25 billion in federal funding. Smaller banks are getting far less, and,some banks are using their loans to purchase smaller banks.

To what end goal? Even firms want more clarity,

http://online.wsj.com/article/SB122601914224707163.html

If the automobile companies after their years of bs management are bellying up to the federal bar, are they not going to have to give over preferred shares in exchange? Is the government not going to restrict how they can use the loan money?

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2 comments so far

  1. Mari on

    No. Should have let the free market fend for itself or have very precise injections of cash in very precise places for very precise uses.
    But nooooooo. The government had to “do something”. And apparently “something” is incomphrensively expensive and poorly thought out. The economy would be better served if a fraction of the bailout money was redistributed to every American in the form of ‘hey you don’t have to pay income taxes this year here’s what you’ve paid in payroll taxes so far back’.

  2. bla2222 on

    I wouldn’t want them to give back taxes paid either. I’m worried that without oversight or with ideological oversight, the rich are going to soak the taxpayers through this program!


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