Grant III Watch
Posted by aogFriday, 03 April 2009 at 15:29 TrackBack Ping URL

I am so far behind, I am still catching up at Just One Minute which asks

All this bailout and so forth was bad mojo to start with, but according to TOTUS (I’m loving that) necessary to shock the system back into life.

But now…Team TOTUS and Congressional Dems are meddling and taxing it so much that companies are hesitant in accepting the government dole.

What happens when you throw a bailout party and then set the dress code so high no one wants to attend?

If it were simply the case that no one would show up the bailout party, then I wouldn’t be too concerned. But we all know that there are two types who will show up for the cash

  1. The utterly dishonest who plan to steal the money anyway and then disappear.
  2. The well connected who plan to steal the money anyway and then use their connections to pass the blame off on someone else.

As we have so often since 20 Jan 2009, we are left wondering “incompet or malific?”.

Comments — Formatting by Textile
MAS1916 Monday, 06 April 2009 at 11:55

TOTUS intervention with private companies has succeeded in making Chapter 11 look appealing for companies that are in trouble. That may turn out to be a good thing.

Geithner and Obama screwed up in reverse. The more they threaten private companies and executive salaries, the more these folks will work to stay off the government dole. GM needs bankruptcy protection to renegotiate it’s labor contracts. Otherwise, those jobs and the entire company are finished.

The dangerous part comes when no one wants bail out funds any longer. Will Obama and Geithner use federal power to take them over anyway? Stay tuned to that part.

Annoying Old Guy Monday, 06 April 2009 at 12:46

It’s still a worry, because

  • Many solvent financial institutions were forced to take TARP funds, so as to remove the stigma. Otherwise, the recipient list would on the desk of every short seller.
  • In the face of this government intervention, some financial institutions are trying to return TARP money but told “no, you can’t”. What better sign is there that it’s control, and not solutions, that the Obama Administration is pushing?
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