Remember that $700 BILLION that Wall Street needed NOW NOW NOW back in October? From Mike Madden at Salon:
This won’t be news to anyone with a 401K or without a winning lottery ticket, but even though Treasury Secretary Hank Paulson has burned through almost all of the first $350 billion Congress authorized, it didn’t quite turn things around. The infusion of money may have kept credit from tightening up further, but it certainly didn’t jump-start the economy — banks didn’t resume lending to businesses and consumers.
So what went wrong — and where did all that money go?
A lot of it is, apparently, just sitting in the bank.
The feds were pumping money into these banks so they would feel free to make more loans — better, simpler, sounder loans. The epidemic of exploding mortgages and failing institutions would ease. But the banks did not start making new loans.
And as of a couple of weeks ago, Treasury had spent all but $15 billion of the first installment of the bailout money, and the administration may soon ask permission to tap into the second chunk, which they were supposed to leave for Barack Obama’s administration to disburse.
But the banks are used to getting their way, and there probably wasn’t much reason to think they wouldn’t this time around, too. The financial sector has always been a generous donor to political campaigns, and it gives heavily to both Republicans and Democrats.
Chances are they’ll keep getting their way, too, even after Obama takes power. His pick for Treasury secretary, Tim Geithner, was one of the prime architects of the government bailouts of Bear Stearns and, later, AIG, and may have been one of the main reasons why Lehman Brothers didn’t get the help they did.
With the exception of some evil Republicans who torpedoed the first House bill, both parties and the media cooperated to push this thing through even though the voters hated it. The media even managed to spin the whole mess in a way to help Obama win the election (when they weren’t busy obsessing over Sarah Palin’s wardrobe.)
Executive pay was protected but homeowners weren’t. The Bush administration just handed out wads of money to the banks with hardly any control over what the banks did with it. I’m surprised they didn’t just give it to Bernie Madoff to invest. Here’s the money quote:
“It’s amazing how quickly you can get through $350 billion.”
Some of us DFH moonbat libruls thought that the guv’mint should have focused on helping the little people, the Joe and Jane Bagodunuts types who are struggling to stay afloat. But why focus when they can to f*ck us instead?
In 1960 historian John D. Hicks wrote in Republican Ascendency 1921-1933 that:
“As later events seemed to prove, money poured in at the top of the economic system tended to stay there, whereas money poured in at the bottom tended to rise through all levels of business and to strengthen the economy as a whole.”
Let’s party like it’s 1929!