They Were Lying to Us
A Yahoo Finance article entitled “Bailout Nation: More Gov’t Control of JPMorgan, Citi, BofA Coming” reports that rather than spend all their our bailout cash to make loans and prop up an economy based on ridiculously cheap credit, the big banks are battening down the hatches and saving that money for a rainy day. The article ends with this:
So when policymakers and politicians say the taxpayer monies injected into the banks is going to be used to make loans, “they are lying to us,” Whalen says, using the kind of candor others are afraid of or can’t afford.
See also this from ClusterStock.
Maybe injecting capital into the banks was a better use of taxpayer money, but the abrupt change of course calls Paulson’s credibility further into question. He changes course on the economy more than John McCain, and neither one seems to have a real clue. I feel all warm and fuzzy, don’t you?
