Bush Seizing TARP Fund To Bailout Citi?
Hi All,
I just saw this posting. Evidently some bloggers are speculating that the reason Bush is asking for the second half of the 700 billion bailout is...get this - to shore up Citigroup's financial situation before the Obama administration can get involved. The implication is that George W. wants the money for Citi before Obama's crew can slap a lot of restrictions on corporate welfare.
The reason Obama is going along with Bush is his staff thinks it makes more sense to take office with congress on the new administrations side, rather than engender ill will with a fight before he takes power.
Click here for the goods at the Naked Capitalist.
My take: I just wish these guys would get out of the way and let free markets do their work.
Best,
James
Stumble It!
2 comments:
Ah, free markets! Deregulate and let the free markets ride! Wait, wait, free markets can't regulate themselves? Who would've though? Bailout! Look what free markets got us into!
Sorry for the sarcasm, kids. This whole situation has got me bonkers. I agree with your point, the free markets got us into the mess and the free markets will eventually get us out as they weed out uncompetitive, poorly run business. Economic Darwinism.
Naked capitalism's premise is the market has gone negative again b/c of citi, which is absolutely not the case. It may force congress's hand, but at this point it really doesn't matter since Bush can veto congress's rejection and still get the second tranche out. playing it out for obama to request bush to do so, gives obama flexibility in asking for the $1trillion stimulus and not having the $350b added on to that at the same time.
citi, as well as bac jpmorgan and others do need it, given earnings reports show them all tanking badly still. this time around, i have to believe that the toxic assets for which tarp was designed, will be used for that purpose. citi breaking bad and good assets and separating on the books is an indication of this.
we weren't ever a free market anyways, and to say such things like the end of capitalism, free market, socialism, etc is really a useless endeavor in my mind.
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