News Flash: Government Has No Idea What It’s Doing with Our Money

Another story about the government’s horrific incompetence in managing this particular financial crisis, just like they (necessarily) incompetent “managing” of the economy in general: “Where Will $700B Bailout Actually Go?“. Mark my words, in a few years and assuming no profound philosophical change in the country, people will look back on this program and blame “greedy businessmen” for the money grab.

A particularly telling snippet:

(AP) First, the $700 billion rescue for the economy was about buying devalued mortgage-backed securities from tottering banks to unclog frozen credit markets. 

Then it was about using $250 billion of it to buy stakes in banks. The idea was that banks would use the money to start making loans again. 

But reports surfaced that bankers might instead use the money to buy other banks, pay dividends, give employees a raise and executives a bonus, or just sit on it. Insurance companies now want a piece; maybe automakers, too, even though Congress has approved $25 billion in low-interest loans for them. 

And why is that? Consider:

Neel Kashkari, head of the Treasury’s financial stability program, told Dodd’s committee this past week that there are few strings attached to the capital-infusion program because too many rules would discourage financial institutions from participating.

Think about that for a minute. Hundreds of billions of taxpayer dollars are being stolen and redistributed, and “there are few strings attached” because “too many rules would discourage financial institutions from participating.” And people are still talking about this whole mess being a failure of the free market.

It’s all very surreal.

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