Big Banks FAILing? Lets give them $160 billion so they can get BIGGER!
Treasure Secretary Henry Paulson is handing out $160 billion to banks in the hopes that they will stabilize and the financial markets will calm. But he won’t tell you which banks are in trouble. Instead, he’s giving cash to a range of banks, so that NO ONE CAN POINT A FINGER AT THE WEAKENED BANK.
Its like the lice patrol at my kids’ school: they notify parents that lice is present but don’t name kids, so the innocent kid doesn’t get stigmatized. Problem is, banks aren’t elementry school kids. Banks intentionally lent out lots and lots of money on the fractional reserve system, and bought and sold dangerously valued subprime mortgage and credit derivative products.
I think more banks should fail. The weak or badly damaged banks should close. The banks that do get government support (purchased by the government in the biggest Socialist grab ever in the US) should not lend out the money they’re given. The stronger banks should recapitalize, but not MERGE into bigger, more dangerous weapons of money destruction.
Someone needs to explain to the American people that the bank bailout does not mean money will be immediately be lent out again. Because its the excess lending that got us in this mess.
Then we should get on with it. There are other dominos falling.
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