Bailout Is a No-Strings Windfall to Bankers, if Not to Borrowers – NYTimes.com.
This article makes my blood boil. $350 Billion of hard earned tax dollars have gone to various banks across the country. This money was suppose to be used to shore up balance sheets of the banks in order for them to continue to support borrowers and other consumers.
However, that does not seem to be happening. This money has been used to shore up balance sheets of the banks in order for them to “wait it out” until the environment gets better for lending. I understand that it was not in our best interest as a world economy for the banks to fail, but really…giving them money to ride out the recession while the consumer gets pummeled without any help? Rather than spending tax dollars to bail out institutions who should have known better than make really bad decision with their capital, I would prefer to have changed the mark-to-market accounting rules to allow for less aggressive write downs.
Meanwhile, another $350 billion is getting ready to be printed by the feds and distributed to cover these poor business decisions. Where will it all end? and how long will it take our children to pay all of this off?