Sunday, January 18, 2009

Why bailout is an utter fraud

There's a telling quote by John Hope, chairman of Whitney National Bank, explaining how his bank is going to use its bailout money (around $300 million):

Make more loans? We're not going to change our business model or our credit policies to accomodate the needs of the public sector as they see it to have us make more loans.

Of course. This raises an obvious question: Why is taxpayer money going to these banks in the first place? Wasn't the purpose of the bailout to get the banks to start loaning money again? The article goes on to say that few bankers are citing lending as a priority. "An overwhelming majority saw the bailout program as a no-strings windfall (emphasis added) that could be used to pay down debt,etc.." Ah, yes, a windfall. Another example of taxpayer money well spent.

jackdavis -

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