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Hey guys. Here's a ton of money with no strings attached. You'll use it for the good of the country right...right?

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December 03, 2008 – Comments (7)

 

Hey guys.  Here's a ton of money with no strings attached.  You'll use it for the good of the country right...right?  Auditors fault Treasury policing of bailout funds.

"In the first comprehensive review of the rescue package, the Government Accountability Office said Tuesday that the Treasury Department has no mechanisms to ensure that banking institutions limit their top executives' pay and comply with other restrictions." 

Few things are more annoying than watching Paulson and friends rain money down on banks only to read in the headlines that they are using it for all sorts of things other than lending to U.S. consumers and businesses.  Like these gems for instance:

Bank of America Raises Stake in China Construction Bank.  Let me get this straight, the U.S. government gives you money to make sure that credit flows freely in this country and immediately after you use $7 BILLION to double your stake in a Chinese bank?!?!

or this one

Citi fund buying Spanish highways for $10 billion.  Uh hello?  In addition to the TARP money, didn't the government just have to come in a week ago and bail out Citi by guaranteeing $306 billion worth of bad investments that it has made in the past?!?!?!

These are just two examples that I thought of off of the top of my head without looking around at all.  I'm sure that anyone who does any digging will be able to find tons more.  Of course, it doesn't even mention the millions in bonuses that many companies are paying to the management who ran them into the ground.  What's that?  This isn't the money that the government gave these companies?  This is other money.  Right...

The government should be hammering on these banks and completely forcing them to loan all of the money that they are being handed on a silver platter out to U.S. consumers and businesses or to give it back.  They shouldn't be allowed to use it to de-lever their balance sheets, make acquisitions (all of this consolidation is only creating more institutions that are "too big to fail"), or worse yet to invest outside of the country.  This is nuts.  Do Paulson and his minions like Neel Kashkari have an sense at all, or are they really just using the money to line their friends' pockets?

At least someone in the government is calling them out on this.  The GAO is one of three watchdogs that Congress appounted when it approved the $700 billion TARP package.  It also created a special inspector general's office to make sure that the money is being used appropriately, but the veteran federal prosecutor Neil M. Barofsky who was nominated for the position is being blocked for some reason by an anonymous Senator.  Are you kidding me?  Stop screwing around and get someone in that position ASAP.  I don't know anything about Barfkowski, but how bad could he be?  He's got to be better than haing no oversight whatsoever.

Deej 

7 Comments – Post Your Own

#1) On December 03, 2008 at 8:18 AM, DaretothREdux (43.25) wrote:

Just when I thought I couldn't be more angry at Citigroup....

not to mention they don't have to ever pay back the money. Oh, you want a multi-billion dollar loan that doesn't allow us to seize any assets in the event that you default. Sure! Why not?

The Economy Doesn't Run on Hope,

Daretoth

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#2) On December 03, 2008 at 8:27 AM, TMFBent (99.82) wrote:

It'll never happen. Remember, this is the administration that refused to comply with basic banking regulation on the grounds that it would stifle innovation. Of course, none of the (fake) cowpokes holding those offices knows innovation from snake oil, but that didn't matter. The big campaign contributors and lobbyists told them what to think about innovation, and they managed to convince them (as usual) that when luck and leverage work, it's evidence of successful financial innovation.

Obscenely compensated luck-riders like Paulson cashed out before the inevitable crisis, and now that's blamed on everything but the policies. In the mean time, keep shoveling them money without any oversight. It's for our own good, remember.

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#3) On December 03, 2008 at 8:32 AM, carcassgrinder (36.29) wrote:

Without knowing them personally, it is very hard to draw conclusions on their level of intelligence...and this is vital information in trying to figure out whether they are just truly making stupid decisions....or if this is a brazen exploitation of a downturn in the ecomony used to secure trillions of taxpayer dollars to support the elite clubs of paper shufflers.

My fear is that they are indeed intelligent people who are very aware of their rare opportunity to capitalize off of the fear of the public and the chaos of the markets.  Much like they used 9/11 to secure the Patriot Act...another instance where fear and panic were used to bundle together a package of "changes" to your constitutional rights.

Unfortunately....an oversight group will still be worthless.....as they will not have the power to change or even influence the decisions being made....they will simply be able to point them out and publicize them.  And as usual.....the appauled and outraged public will sit idley with steam emitting from their ears.....powerless.  

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#4) On December 03, 2008 at 10:27 AM, brwn8484 (89.46) wrote:

When will you people wake up.  The same crooks and greedy people come to you again and again.  They all say.... Oh no... we are doing this for you???

 

Ha... Ha.... got you again.  What I always told the businesses I worked with... If you continue to do the same thing... The same results will occur.  Someday, I hoipe enough American will realize the fleecing of America is going strong and regardless of whom you listen to, this will not stop till we the American people rise up and demand real change.  And I DONT mean  Barak Obama or more spending on Govt bailouts/theft of American people!!!!

 

Wake up people!

 

 

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#5) On December 03, 2008 at 11:26 AM, Gemini846 (58.35) wrote:

Not a big fan of ben stein overall but he did mention that Obama's new Treasury Secretary spent 5 years at the NY fed doing same ole same ole.

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#6) On December 03, 2008 at 10:42 PM, Option1307 (29.71) wrote:

This is truely ridiculous and shameful and i don't see any end in sight.

This is just another example of our splendid government creating more problems while trying to fix one. Now not only are banks not loaning money, but they are buying more and more crap from other country's. Yeah! Excellant job Fed/Government...

On a serious note...How do we stop this? How do use little people actually make a difference and put a stop to this crap that is only escalating and neverending? I honeslty am at a loss for words these days. Everyday I think I've heard the most ridiculous thing ever imaginable, yet the very next day I hear an even more absurd idea from the government. Enough is enough, but how do we actually make a significant difference? We can all talk aobut this crap, but how do we change it or prevent it from happening again in the future?

I think this is more important than most people realize. Yes our economy is doomed, but it will will recover, eventually, time frame is debatable. But I honestly feel we are losing more than just our economy right now. We are losing our rights, constitution, our semi-capitalist free market system, responsibilty, morals, values, etc. We are losing what makes America great, what makes America, America.

If we keep up with this crap, people are going to quit "trying" in life...Why try when you will just get screwed by the government, unless of course your name is Paulson, Bernake, CITI, GM, AIG, FRE, FNM, etc. etc...

 

Sad day we live in, lets take back our country Fools. I'm just not sure how, ideas?

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#7) On December 29, 2008 at 10:04 PM, brwn8484 (89.46) wrote:

Contact your representatives and demand that they change.  Tell them to stop the fleecing and dont re-elect the same people again and again.  Look for candidates that have never been infected by politics or Washington.  Elect the people that are middle class.  Did you ever notice that noone in Washington is middle class.  Tell your friends to vote out the corruption in Washington.... And I mean all the corruption.  We can elect moral and honest individuals, that will work for us, but they are not going to be millionaires and politicians tainted by lobbying and political agendas.

Lets vote FOR SOME REAL PEOPLE.  

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