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Sunday, October 26, 2008

The Real Losers

American Scofflaw
Every single American taxpayers!!!!

The American taxpayers, who have bailed out these banks, will not see one dime come back to them.

This is about congress protecting "their own", and when I say "their own", I am not at all talking about their constituents, who seem to have no other value than as endless revenue streams for more and more taxes.

The congress members who passed this legislation are simply acquisitions of the large corporations which own them. And in passing this legislation, they definitely did take care of "their own".

Congress: Think.

Ben and Hank have both told you that the critical issue for the economy is for "lending to resume", stating that it has dramatically contracted.

If this was the truth, then Ben and Hank would have come to you for $700 billion in the TARP, but instead of TARPing the money, they would have asked for permission to use it to capitalize 10 new banks which would be immediately IPO'd off to the public with the stake being in the form of some kind of super-senior debt that held a coupon high enough to encourage immediate (or nearly-so) replacement with private capital.

This would have resulted in an aggregate of seven trillion worth of new lending capacity in the economy, an amount that, incidentally, would allow the full replacement of Fannie and Freddie as holders of housing debt with about $2 trillion left over for credit cards, auto and business loans.

That would have immediately solved the "credit freeze" problem.

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