Secretary Paulson promised that the banks won't just "hoard" the money — they will quickly "deploy it" through the economy in the form of badly needed loans. There is just one hitch: Neither Paulson nor Simpson Thacher got that "deploy" part in writing — nor did they put in place any mechanism to require the banks to spend their taxpayer billions. Full Story »
Posted by Randy Morrow
Another very informative article from Ms. Klein this time about the latest rip-off from the Bush administration: i.e. the Wall Street bailout. Among the revelations: "Unfortunately, many of the banks appear to have no intention of wasting the money on loans. "At least for the next quarter, it's just going to be a cushion," and "The handout, he told analysts, "does present the possibility of taking advantage of opportunities that might otherwise be closed to us." In other words the money the banks get won't be used for loans etc. it will be used in the manner they see fit to benefit themselves.
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