The sanctity of contracts…at your convenience


Michael Perelman reminds us of the propaganda involved in selling the way the bailout is happening.

Brenda Rosser said in comments…

This article appears to be thinly-disguised propaganda. An attempt to sell ‘the regulators’ (like Larry Summers, Geithner and Bair) as having a serious intention to rein in the excesses of the large banks.

When you read:
“Government officials do not plan to disclose the results for individual banks but may reveal broad results for the entire industry at the end of the month. … Stephanie Cutter, a spokeswoman at the Treasury Department, said it did not comment about the participation of specific banks in the plan or their efforts to exit the program..


“…the stress tests of the 19 biggest banks, due to be completed in the next three weeks….. If the test indicates that the losses would leave a bank with too little capital, the bank will have six months to either raise extra money from private investors or get money from the government”

Wow! Wouldn’t we like a deal like that for our house and personal debts!

Here’s the REAL crux of the article:

“….the new $500 billion to $1 trillion plan that will use public subsidies to encourage private investors to buy mortgage assets. the government’s bailout fund is dwindling, putting the administration in a bind. It is all but certain to need to seek more money from Congress, which wants to see results from existing programs first. The fund is down to its final $134 billion, according to Treasury officials, and is expected to face new requests for money in the coming weeks…”

More and more money. No results apparent after already having spent trillions of public money. Meanwhile thos big welfare-dependent banks are buying up public water assets, land, businesses etc overseas . And they still feel confident enough to object to limits on executive pay etc.

If the above isn’t a sign of gutless public regulators I don’t know what is.