Friday, January 16, 2009

The Ultimate Outrage: Latest bailout of Bank of America makes America largest stakeholder in institution; Sen. Corker gets it, Alexander doesn't

It is the ultimate outrage when the taxpayer has to pay for the bad choices of another.

You probably think I'm writing about a new single mom on welfare.


She has not, and has never begun to cost the American taxpayer over decades what this nation's banks and Wall Street fatcats have taken in only a matter of months

At the proper hour of midnight to try and hide this most shameful act, the Bush administration reached an agreement with the nation's largest bank to invest $20 billion of your money into it, and absorb almost $100 billion in losses from a bad deal it made in snapping up the faltering Merrill Lynch brokerage firm.

I am truly flabbergasted.

With taxpayers being laid off every day, with people being thrown out of their homes and with property taxes about to be raised, the Bush administration with a nod from Congress continues to give away our money as if there were no end to our foolish generosity. Truly, every American on April 15 should refuse to pay their taxes. They cannot incarcerate all of us. That is the only way to protest this insanity.


The incoming Obama administration wants to do the same with the remaining $350 billion in bailout money. And yesterday, the Senate voted to release the money for more of this insanity.

Of Tennessee's senators, one gets it. Sen. Bob Corker voted against releasing the money. Meanwhile, Sen. Lamar Alexander voted to release it. Alexander is the 15th richest lawmaker in Washington. Corker is 22nd.

If you have time today, you should call Alexander's office and ask what the hell was he thinking in voting to release the money for more Bank of America deals. Is he a socialist, or just stupid?

Truly, we need to know.

How can a nation on the brink of a Depression give away money to banks making such incredibly bad decisions? As Corker said yesterday, who said a large bank could not fail in this nation.

Bank of America should, and I have money in it. But I'll not be held hostage by the incompetence of its executives and utter stupidity of my government. I'd rather lose every cent I have in Bank of America than see another cent come from taxpayers.

So what is your choice? When are you going to finally say "dammit, enough!"

The House does not have to vote on releasing any more TARP money for such immorality. Blocking release of the money would require both houses voting so.

Here is how The New York Times reported this fiasco:

Two weeks after closing its purchase of Merrill Lynch at the urging of federal regulators, the government cemented a deal at midnight Thursday to supply Bank of America with a fresh $20 billion capital injection and absorb as much as $98.2 billion in losses on toxic assets, according to people involved in the transaction.

The bank had been pressing the government for help after it was surprised to learn that Merrill would be taking a fourth-quarter write-down of $15 billion to $20 billion, according to two people who have been briefed on the situation, in addition to Bank of America’s rising consumer loan losses.

The second lifeline brings the government’s total stake in Bank of America to $45 billion and makes it the bank’s largest shareholder, with a stake of about 6 percent.

May God save us all.

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