The banks said that they needed hundreds of billions of dollars in corporate welfare from the government, or else they would go out of business. They said that credit would remain frozen unless the tax revenues were handed over. Then, when the money was handed out to them, the doom they said would take place without a bailout came about anyway. Credit markets remained frozen.
Why? It’s as if the money that was supposed to thaw credit markets was, in fact, used for other purposes that have had little, if any, large-scale economic benefit. It’s as if the bailout money was taken to support the wealth of a very small number of people who already had plenty of money to spend, instead of being used to help the overall system upon which most Americans depend. Yes, I’m getting a very as if feeling about this bailout.
And so, I’ll leave it to you to piece together the failure of the Wall Street bailout with these three bits of news, conveniently revealed late on a Friday evening at the beginning of the winter holiday season:
First, it seems that none of the banks that have received bailout money are willing to reveal how they’re using that money to prevent economic disaster. They’re just taking the money, and doing what they want with it.
Second, at least 1.6 billion dollars of bailout money has been used to give new multi-million dollar bonuses to top executives, to reward them for their failure and endangerment of the American economy.
Third, many of the financial firms that received government welfare checks are using corporate-owned jets to fly executives around on personal trips.