Capital Commerce

Geithner and More Money for the Banks

By James Pethokoukis

Posted: April 16, 2009

Even though most Americans may not have attended a Tax Day tea party yesterday, most of them are probably none too pleased about the bank bailout.That displeasure is reflected in the current unwillingness of Congress, even plenty of Democrats, to send any more dough their way. Yet the White House believes more taxpayer capital will likely be needed beyond whatever TARP money is still left. So what are Treasury Secretary TimGeithner's options. I think this about covers it:

1) Devote less money to the PPIP and TALF programs.

2) Free up money by using non-TARP money for the auto and housing bailouts.

3) Use the FDIC, which is attempting to expand it credit line to $500 billion, as a source of bailout funds.

4) Encourage, at some point, banks to repay their TARP injections so the money can be recycled.

Bottom line: Unless the economy explodes upward, the White House will ask for more funds. Should be a fun battle to watch.

There surely must be two sides to all this. Where's the other side?

The other side could be demanding accountability. This is not to say that after failed banks that go into receivership won't be bailed out with tax dollars.

I don't have enough characters to go into great detail so I'll simply provide a link that pretty much spells it out.

http://www.opednews.com/articles/U-S-Corruption-Runs-Rampa-by-Steven-Thompson-090421-440.html

and, to listen to Geithner explaining his credentials, or lack thereof, listen to the audio clip provided here.

http://www.freedomfromthepress.net

Opposition to our corrupt federal government and K-Street lobbyist does exist. We simply don't have the capital to buy up television and radio stations to get the messages out. Perhaps U2 and Willie Nelson could hold a series of pro-democracy benefit concerts to provide much welcomed funding?

Steven Thompson of WA @ Apr 24, 2009 01:21:38 AM

Geithner has more money for the banks?

Hooray! Glad it's his money this time and not the taxpayers?

Don't you just wish?

HillbillyBill of TN @ Apr 17, 2009 09:30:23 AM

Well, if we didn't bail out any banks,

and some failed, how much loss would we endure from guaranteeing their deposits via FDIC? How much loss to individuals from rising interest rates due to lack of capital to be lent? How much loss from lost taxes previously paid by the banks?

There surely must be two sides to all this. Where's the other side?

You can bet your bippy that most of the people at the tea parties have no idea what these answers might be. So tell us.

Muser of NM @ Apr 16, 2009 12:53:54 PM

Add Your Thoughts
About You

advertisement

Capital Commerce

Capital Commerce

U.S. News business reporter Matthew Bandyk examines the issues, people, and debates that shape the nexus of political and economic life in the nation's capital.

advertisement

advertisement

Subscribe

U.S. News Digital Weekly

A weekly insider's guide to politics and policy — in a multimedia, digital format. 52 issues for $19.95!

U.S. News & World Report

6 months of U.S. News & World Report's print edition for only $15. Save up to 67% off the cover price!