Is it any wonder that our Congress has robbed the federal treasury to pay back campaign supporters? It should not be a surprise because the so-called "bailout" is really a ruse for a massive payback to campaign contributors of members of Congress. Why else would Congress approve an open-ended giveaway to Wall Street without any strings attached?
Shouldn't banks use the money to help the economy? Nope. It turns out that banks can use the money however they want. Banks that are getting government bailout money are contemplating using it for other things -- like buying other banks and not adding it to the lending pool so they can make more loans and end the credit squeeze. They are also paying big bonuses to the same executives that helped bring on the meltdown. When the government agreed to bail out Wall Street, the goal was to provide funds to shore up banks' capital bases so they would start lending again. It wasn't to help them fund the bonus pool. But estimates run as much as $70 billion will get paid out in bonuses and extravagance to Wall Streeters this year. That amount equals 10% of the $700 billion bailout.
The $700 billion bailout was a perfect opportunity for Congress to collude with Mr. Wall Street himself, Ex-Goldman Sachs Chairman Hank Paulson, to raid the U.S. treasury at the expense of our grandcdhildren, with perfect knowledge that it wouldn't solve the subprime mortgage crisis, but would satisfy Wall Street/Congressional greed.
