Dumb*sses, Redux

The Splurge is turning out to be not quite as bad as I feared. Rather than a bailout in which the US Gov't US Taxpayers purchase toxic assets from the banks, we're purchasing preferred stock in the banks, with an expected dividend and other financial accouterments. Not quite as bad, since the net result of this infusion of capital into the banks will provide them with the resources to begin lending money again.

However, they will lend that money to who? That's right, the US Taxpayers. You see what's going on here? We're giving the banks money that they will lend back to us, for a higher interest rate than they will have to pay (in the form of the dividend). Insert something about "selling us the rope we'll use to hang ourselves" here.

October 15, 2008 by Brent Schneeman

Posted in General | 0 Comments »

Tags: