A truly undefendable and foolish position by the Treasury.

The Government can monitor the incomes and finances of 300+ million Americans and maybe 5+ million businesses but can not determine how 208 banks used $162 billion of which most was given to 20-30 banks? This is utterly preposterous. I think the more likely explanation is the Treasury does not want the public to know how the money was used, as in say like buying other banks, bonuses, etc.

“He added that, at this low point in confidence, not only are banks hesitant about lending, but consumers and businesses are cautious about taking on new loans.”

Hesitant? It’s more like refuse. Banks definitely are hesitant to lend but don’t imply that consumers and businesses being cautious is a significant part of the reason why. Tell that to car dealers who have buyers and can not get financing. Tell that to small manufacturers who can not fund work-in-process. Tell that to individuals who were ill for 3 months, had a break in their income, and now are refused.

Any money loaned to banks should be earmarked for specific loans. Isn’t that exactly what a bank wants to know from you when YOU ask for a loan? Why should banks be any different?

Treasury thinks we are all nitwits in saying it’s hard to understand how banks use that money. There were no rules applied to this money when it was given to the banks, so in effect the banks could do with it whatever they wanted to. Congress even after the fact should set down rules on how taxpayers monies can be used, and if they aren’t used according to those rules give it (money) to somebody who will play by a set of rules. It seems like there is no protection for the taxpayer who is ultimately footing this bill. For all the monies being poured down the sewer, every home mortgage in the US could probably have been paid off. So you say we shouldn’t give money to irresponsible people but it’s ok to give the stuff to irresponsible financial institutions who in the end will screw the homeowner even more. The auto industry bailout (waste) accordingly is a drop in the bucket and drops do rivers make. I guess what I want to say since there are no accounting procedures in place for this all we the taxpayers are definitely creating some rich individuals out there who otherwise should be penny less and I can understand why we have people who expect everything should be given to them.

We have no peer model for people to look up to anywhere, and our government deserves everything coming to it good, bad and ugly. I just feel bad for the individual who has always played by the rules.

Related Posts:

• How much serious is Geithner on regulating financial system?
• An example of the banks cooked results for the first Qtr, courtesy of John Mauldin:
• Housing market: 2010 and possibly 2011 is not going to be pretty.
• Important News - Oct. 20
• The Fed and U.S. banks would suffer irreparable harm if details of the loan programs were made public, according to the central bank’s senior counsel, Yvonne Mizusawa.

Leave a comment