Bailout Stupidity

Do not read this article or watch the short video if you want to believe the government is acting in your best interest and NOT hosing you:

Black, a former top federal banking regulator, blames Treasury Secretary Timothy Geithner for negotiating such a bad deal on behalf of the American public.

His argument goes as follows:

The government was in no way obligated to lend the struggling CIT money and, in fact, initially refused to provide it bailout funds. More importantly, being the lender of last resort, the government should have guaranteed we'd be the first to get paid if CIT eventually filed Chapter 11. By failing to do so, "it's like he [Geithner] burned billions of dollars again in government money, our money, gratuitously," says Black.

But none of you mind Geithner giving billions of dollars to CIT without priority claim, right?

Why is any of this acceptable?

(As Black says, "We are in full force of the cover-up." He also says socialists would have negotiated a better deal than these people. He is really just saying that Geithner et al are incompetent. Surprised? Anyone?)

posted at 18:19:29 on 11/02/09 by clearpolitics - Category: Economics - [Permalink]

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