So what’s happening in the great bailout scam?
I mean, looking at what’s going on, I simply don’t know what else to call it. Does anyone understand the plan (to include those supposedly executing it)? Where is the money going, what are the controls on its disbursement and use, who is really in charge of all of this?
I know who claims to be in charge, but I continue to be convinced that those making such claims don’t have a clue.
Anyway, these three paragraphs caught my eye during my morning reading:
Stock intended to eventually earn taxpayers a profit as part of the Bush administration’s massive bank bailout has lost a third of its value – about $9 billion – in barely one month, according to an Associated Press analysis. Shares in virtually every bank that received federal money have remained below the prices the government negotiated.
Most of the Treasury Department’s investments since late October have been in preferred bank stocks, more than $180 billion worth, with investments in giants like Citigroup and JPMorgan Chase, and many small community banks. But the government also negotiated options to buy up to 1.2 billion shares of common bank stock that was valued at $27 billion.
The Treasury Department said it did not expect these common stock options to be profitable immediately and negotiated them so taxpayers could share in the wealth if the bank stocks recover.
So the “taxpayers” are down 9 billion in share value?
Sweet. Well done, so far.
It is really the last paragraph which just frosts me to no end. First, if you believe “taxpayers” are going to benefit from any ‘profit’, I want what you’re smoking. Any profit will disappear into government coffers to be wasted elsewhere should they ever materialize. Taxpayers have one function – provide funds. There is no reciprocal payback of gains to taxpayers except as Congress deems appropriate – most likely in new government programs, spending or pork.
Why do I say that? Because that key little phrase that was popularized by Barack Obama’s discussion with Joe the Plumber has again shown up – “share the wealth”. You see, when “wealth” is “shared”, those who originally were on the hook for the funds will be the ones asked (not really asked but you know what I mean) to “share” when and if any profits show up.
And, naturally, we all know what the vehicle through which this “sharing of the wealth” will be accomplished. Yup, the same one now cluelessly throwing money around like a drunken sailor on shore leave – no offense intended to sailors, drunken or otherwise.
[Crossposted at QandO]