Crying About T.A.R.P.

I had to detour from the environment for this one.

All the whining needs to stop. To begin with, this was a terrible idea thought up by Paulson and Bernake. Bernake is known for his theory on asymmetric information in lending to small business during financial disturbance, which lends him to believe that the banks are being taken advantage of by borrowers and the banks are the cornerstone of financial recovery.

We have a policy that was rushed through the 'Hill' based on a theory that is owned by one of the priciple creators of the bailout.

What would have happened without a bailout. The argument was the worst financial disaster ever. Markets are governed by psychology and temeperment of investors and actors in the market. When the ex-prez, the tresaury and all the chicken littles on wallstreet started crying the sky is fallen-the sky fell. Whenever a hint of good news or positive outlook is put forward the markets rebound.

Back to T.A.R.P.-> if the institutions in trouble were allowed to fail what would happen. The other institutions with inflated balance sheets and sketchy accounting would tumble also. The result would be, regional banks that were in strong financial positions would acquire the assets and other companies would buy the debt at a discount to cover losses of bad loans. The regionals flush with new deposits would increase lending in their regions. These banks tend to be the banks that finance small business and home purchases.

T.A.R.P. did exactly the opposite. All banks were forced or coerced to take the money whether the institution was solvent or not to, hide the institutions actually in trouble from runs on deposits and stock/bond devaluation. This is the 'Indy Mac' rule. Indy Mac was financially solvent until, I believe it was Schumer from New York, sent a letter to leaders about the trouble in a regional bank with large business in California. Indy Mac went out of business based on a lie and speculation.

So, when Wells, which is 1 of the few financially strong institutions, wants to operate as normal with vacations and bonuses the press and new_prez get their panties in a bunch because they took T.A.R.P. money. Well, let the banks that did not need or want the T.A.R.P. money give it back and let the weak banks fail or shut-up about T.A.R.P.

Maybe next time, before passing a massive increase in socialism, read the bill before voting!!!!!!! If you don't read the bill and vote for it anyway, then shut your mouths and stop whining or admit your absolute lack of competence and judgement in fulfilling your duties to your constituents.

I have not read the full report on the executive pay cap, but I am sure it will be a whole lot of talk with no teeth and unenforced. This is the presidency of talk the talk but walk a different direction. Luckily most people live on sound bites and forget the actual actions taken like no lobbyist in the white house and paying taxes(I thought Biden said 'be patriotic pay your taxes', so I guess Geithner, Daschle, etc. are unpatriotic????).

The Green Elephant wuz here