Citigroup took over Merril Lynch. Citigroup didn't want to take the bailout money but were forced to by the government once it was found out how in debt Merril Lynch was. It's scary to think that the government is forcing their bailout money on businesses. Will Bank of America also be forced by the government to take the bailout money? So why is it that Citigroup didn't want to take the money? Because of all the government regulations tied to that money. You take the money, you are beholden to what Obama wants for this country. He is on the path to destruction of our businesses (large and small). He is squashing entrepreneurship, just another way to move from capitalism to socialism.
Obama claims he will cut our deficit in half within his first term in office yet doesn't say how he's going to do it. It just sounds good. Like all his speeches. It sounds good. He throws a little "preacher voice" in for good measure and the sheep gobble it up. Making the masses buy the load of what you know to be crap is just half the battle. Can someone tell me how you get out of a deficit by spending?! Is that how you get out of credit card debt? Charge more?
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6 comments:
It obviously doesn't have to make sense
I'm totally against the bailouts and have been from the beginning, and I agree with your opinion that Duhbama is screwing up this country. However, I have to point out that your facts in this post are all wrong. It's Bank of America that was coerced into taking the bailout money last fall (when they did not need it) in order to save Merrill Lynch because the feds didn't want another investment bank going under (after Lehman Brothers did and the market was crashing).
Financial Times article from today , but I'm sure you could find many others about the whole mess.
So, Citigroup did not take over Merrill, BOA took them over. BOA's CEO almost backed out of the deal, but the feds kept the pressure on, and enticed them with the money. Not that Lewis is innocent, mind you. He certainly took advantage of the situation, thinking the TARP money would assist him in his wishes to expand and become a bigger player on Wall Street. He rushed into the deal and obviously, due diligence wasn't done. But, had the feds never been involved, the deal never would have happened.
In the meantime, all the taxpayers, shareholders and thousands of employees got screwed!
As one who has their payroll deposited in BA, it is not without concern,as this deepens, recent remarks from the FDIC re: insurance fund - solvent - non-bailout banks are being forced (in fee increases) to fund the FDIC - what can the possible out come be? - Article here:
http://www.google.com/hostednews/ap/article/ALeqM5gv3IJ-X4AJ-eO5sSEq0_QIz7NWogD96NC25O2
To think,(I hang my head in shame due to location alone (Massachusetts, home to Barney Frank), that all of this mess can be laid squarely on government regulations regarding mortgage lending, which resulted in an overall collapse, with a few voices only, decrying the nonsense - they should have been screaming from the Mountaintops - this mess, was caused by the government - they are the last ones who should attempt to fix it - bailouts should never have happenned. Regulation, in the form of serious oversight in reviewing mortgage applications would have put a halt to this nonsense - a mediator for those who actually fell for anything other than a fixed rate, to restructure the mortgage as a fixed rate - would have been the way to go - not a bailout - and the banks on the brink? - they could have restructure under a Chapter 11, or through leveraged buyouts - once the mortgages were "restructured". It boggles the mind that so many "fine minds" acted more like chickens with their heads cut off.
Just wanted to than you. As I have often said, I believe Obama was selected, tutored(from the time he was 10 yrs old) scripted, groomed, packaged and sold to a gullible public, to be the Puppet dictator of the United Socialist States of America, With ultimate goal of being the lifetime representative of USSA to the Global Union of Socialist States with HQ at the UN
I wholeheartedly appreciate the Citibank/BOA correction while respectfully disagreeing that "the facts in this post are all wrong".
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