“The American people will never knowingly adopt Socialism. But under the name of ‘liberalism’ they will adopt every fragment of the Socialist program, until one day America will be a Socialist nation, without knowing how it happened.”

Socialist Party presidential candidate Norman Thomas

Tuesday, December 28, 2010

Throwing good money after bad

You thought the bank bailouts and TARP were over? They aren't over....

From the WSJ via Hotair -- Nearly 100 U.S. banks that got bailout funds from the federal government show signs they are in jeopardy of failing.

The total, based on an analysis of third-quarter financial results by The Wall Street Journal, is up from 86 in the second quarter, reflecting eroding capital levels, a pileup of bad loans and warnings from regulators. The 98 banks in shaky condition got more than $4.2 billion in infusions from the Treasury Department under the Troubled Asset Relief Program.

Democrats can't, but even the stupidest econ 101 student can tell you that when you subsidize failure, you get more failure. Rewarding reckless, failed bankers with free money tells these guys that they can keep engaging in the bad banking practices as before, without penalty....just as rewarding guys like Barney Frank, the criminally derelict author of the banking/housing collapse, with re-election tells him that he can repeat his awful decisions without penalty.

I swear, if we taxpayers have to fund another round of bank bailouts, only to watch the corrupt executives reward themselves with enormous bonuses of our money, I'll go ahead and declare this country officially done.


David said...

Boortz seems to think it will not be long until we are asked to bail out States such as California. If/when this happens you will see seismic shifts in the dynamics of this country. At least I hope this finally wakes people up.

ed said...

Without drastic spending cuts, regulatory relaxation, and public labor-union reform, a California bailout, courtesy of all the other states, will hopefully trigger national outrage that makes the TARP outrage seem like a whimper.