Wednesday, August 08, 2007

Welfare Payments For Big Banks

Petropest has the skinny on Jim Cramer and his screaming fit begging for a government welfare bailout for the major banks.

It seems that the big banks are about to lose trillions of dollars because they made a lot of really stupid loans over the last five years.

Because these stupid people, made stupid decisions and its losing them incredibly large sums of money, the government will soon give them a big welfare payment to cover their stupid losses. It is expected that the government will need to borrow trillions of dollars and give it to the banks.

This should translate to big bonuses to very wealthy people who caused this very stupid problem to begin with.

If you're rich and stupid. The government will reward you? Or is that smart? Ok, if you're smart and lose trillions of dollars using unsound business practices, then you can make billions and billions of dollars off the backs of the taxpayers.

Get ready for a tax hike. It's the American citizen that will be paying these scams. The CEO of your bank needs another vacation home in a foreign country, and he needs you to buy for him. Its not like he can make money in some legitimate fashion.

I'll see you at the poorhouse.

2 Comments:

At 11:32 AM, Blogger Edgar said...

The latest scuttlebutt is that Fannie Mae is angling to buy more toxic '05, '06, '07 tranches from the IBs. I honestly don't think they count that money anymore. The SEC is helping the cook the books, IMO. Welcome to the kleptocracy comrade!

 
At 11:36 AM, Blogger Weaseldog said...

If you know you're getting a bailout, why not amass bigger losses?

If I were in their shoes and I knew that the more I lost, the better I'd be rewarded and that my losses would be forgiven, I'd do it.

Leave it to our government to make smart stupid, and stupid smart.

 

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