The $700 Billion Bailout Bait and Switch

~~By American Lassie

In an earlier post, on November 4, 2008 before the Presidential race was called, I expressed a worry about where the $700 billion bail-out money was going. It didn’t seem to be going where we were told it was intended to go.

Now Republican Senator Jim Inhofe of Oklahoma is addressing this in same manner.  On Saturday, November 15, he said we should take back the remaining money given to Henry Paulson in that “blank check.”

First we were told it was to buy mortgage-backed securities.  Then Paulson shifted gears and said it was to use $250 billion to buy stakes in banks.  The “Troubled Asset Relief Program” (TARP) would enable ailing banks to start lending money again and thus boost the economy.

-No homeowner has yet been helped and foreclosures are multiplying.
-Senator Chris Dodd said Paulson’s actions are “beyond belief.”
-Paulson told Charlie Rose  – “The driver is to have healthy banks be well capitalized so they can play for our country right now.”
-Paulson diverted $250 billion to buy stakes in healthy banks to spur lending, but they are not doing this with the money.
-Charles Schumer, Democrat-NY, fears the banks might stuff the money “under the proverbial mattress”.  It appears this is exactly what they are doing.
-Treasury hired the Bank of New York Mellon Corp. as “custodian” of the TARP program.  They also picked Mellon to receive a $3 Billion investment as part of the Capital Infusion Program.

Heads should roll !!!  Greed, corruption, and incompetence – where does it end?
Martha Stewart was imprisoned for lying – but then, she is a woman. Administrators’ neglect brought on this crisis.  It has been coming on for some time.  There were ample warnings (Bush and McCain) but Congress did nothing.  Barney Frank, chairman of the House Financial Services Committee, is one of the prime culprits.  When warned about Fannie Mae he said there was no problem there.  At the time his live-in partner, Herb Moss, was an administrator at Fannie Mae.  Conflict of interest?  I’d say so, but to paraphrase Katie Couric, “Who am I to judge anyone?”

Now everybody wants a bail-out.  The auto industry appears to be next on the list and Governor Schwarzenegger of California thinks that his state should be bailed out because California has shown discipline. (This has nothing to do with the fire – this is another matter).  Give me a break – when has California shown any discipline?  And why should that entitle them to bail-out money from us tax payers in the rest of the country?  What’s next?  The health industry, the remaining 49 states?  (Except for Alaska which seems to be doing fine, thanks to a smart governor).  Next we will have government-owned 7-11 stores.

I’m with Jim Inhofe.  Let’s demand our money back. It’s our money and we didn’t agree to this giveaway.  In my opinions, bankers can’t be trusted.  Remember Mr. Potter in “It’s a Wonderful Life”?  Greedy, crooked, conniving piece of scum…

***

Check out BailoutSleuth.com to keep up with the bailout developments and who’s getting what…

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7 Responses

  1. Ah gee — who would think that 700 Billion with no strings would really used wisely by THIS group of looting fools. (Next we get to find out how fast the Chicago political machine can loot the US treasury — isn’t THAT special?)

    Anyone know where the bumper sticker “Don’t blame me — I didn’t vote for HIM”, can be bought? It would work for both “hims”.

    And then the ONE’s economic advisers — more of the same.

    Second verse — same as the first.

  2. Paulson and Bernanke created this on purpose.

    here’s a vid for you:

    Insight – I just realized that you are not in my blogroll – my apologies…come check out the WH Press Secretary Story about The One’s BC

  3. Ironic. I checked out your link and the first thing on the page is this:

    Citigroup Inc. is getting $20 billion in additional government financing, in a bailout plan that buys the bank time without wiping out the investments of common and preferred shareholders.

    I have a credit card with Citi (that I pay on time and I never go anywhere near the balance limit). In last night’s mail I got a rate adjustment notice. They’re raising the rate from the current 6.99% to a whopping Prime (currently 4%) plus 10.99% (a net increase of 8%) starting December 3,2008! So apparently, not only isn’t the bailout money being used to lend to new borrowers, it’s also not being used to keep their current borrowers, because naturally I will cancel the card before next Wednesday.

    I am right with you, Lassie! Let’s all demand to see how our grandchildren’s money is being spent!

  4. Hey, Grail….before you cancel the card…make sure it won’t screw up your credit history! I’m serious…I was told years ago that doing that could be looked upon as a ‘problem’…better to just not use it. Eventually, I found when I finally used that free credit report a couple of months ago that companies will drop you but with no harm to you.

    I’m not sure if the original info is still valid…so I would call first and ask them point blank.

    I’m waiting on one now…one from Capitol One that I got when I thought I wanted air miles…but I haven’t flown and don’t plan to anytime in the near or far future…so I just ignore it for now…

    I consolidated a bunch from MBNA now whoever they are. I just got a Discover which I’m using as well as a NEA card that I’ve had for years as a backup for places that don’t take Discover…I’ve got enough points to get about 10 of their “gifts” most of which I don’t want…Discover charges merchants a bit more and the user gets a “cashback” deal…I assume the merchants write the costs off on their taxes as a cost of doing business. Some of the smaller shops can’t manage it, though. Sigh. I try to pay cash at small, independent shops so they don’t have to pay out to the CC companies! And I use the cards as cash…I pay immediately.

  5. Here’s your non-partisanship for ya, getting screwed from the left and the right.

    Another day in which up is down and down is up when I agree with Jim Inhofe about anything.

    I never saw what anyone saw to brag about in Barney Frank. He’s a loud-mouthed a$$hole so far as I’m concerned.

    Perhaps the road to redemption for the GOP leads them back to believing in fiscal responsibility. Because we sure as hell know that Democrats don’t believe in it.

  6. GRL,

    I worry less and less about my credit rating these days. Who’s got any money that they’re actually lending to people like us?

    I’d rather cancel the card and make a statement to Citi. I doubt that it would impact me negatively if I open another card elsewhere.

  7. That money will be spent before Paulson is gone, believe me.

    Nobody will be taking it away, either. What’s done is done… you can’t give your soul to the devil and ask him to give it back.

    ====================
    Paulson’s simply trying to give some quick cash to his buddies before his time is up…that’s all it is at this point. He’s a criminal, along with Bair, in my opinion.

    When people make claims that the Government is corrupt, they speak of people such as Paulson. But don’t be fooled… Bair is the same person, just with breasts.

    Look at what they did to WAMU. That was pure robbery and anyone who looks into it for 5 minutes can see that… unfortunately, it’s one of the MAJOR reasons this nation has been panicking. They see WAMU, one of the biggest, and oldest Brands they can remember go down in flames for no reason other than “the sky is falling”.

    They had plenty of cash to cover their asses… The FDIC and the OTS (aka JPMorgan) decided that it was a perfect time to swipe them up. But for $1.9 Billion? Who gets that $1.9 billion anyway? WAMU (or Washington Mutual, INC – The holding company?), nope… all that money went to Paulson’s cronies. So, basically, WMI (Washington Mutual) was shot, gagged, gang raped and thrown in the dumpster. All under our noses. They kept the media repeating “largest bank failure,” when, in fact, there was no failure.

    They knew they’d be bailing out banks… 2 weeks later they bailed out everyone BUT WAMU.

    Irony?

    Not at all…

    Now WAMU and JPMorgan are in court because apparently the JPM/FDIC tag team thought that they got to keep WMI’s money TOO!

    So now they got the Banking company, but they apparently want the Holding company that had nothing to do with it.

    The Holding company is getting a $20 Billion NOL + they have $4.4 Billion sitting in JPM’s bank that was robbed from them… they thought they threw a dead body into the dumpster, but they’re fighting for their freedom lately.

    Ready to see the slow, but sure destruction of the FDIC? Keep your eyes peeled… when WaMu is back under WMI, or they sue JPM (et al) and the FDIC/OTS, things are going to become more clear.

    So don’t believe this lady here is anything different than Paulson. Yes, Paulson is one of the evil brains behind all of this corruption going on since Spring, 2008, but the FDIC is the company behind the company (JPM), behind it all.

    …and JPM always seems to be behind Market Crashes. Do a quick search on that one, too. 😉

    JPMorgan was an evil man…he must be running his company as a ghost.

    Tesla didn’t call him the Devil for no reason! ;0)

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