“What??” Cry the banks. “There are actual strings attached to the taxpayers’ ‘free money’ to us? You mean to say we can’t do as we wish with this money??”
O, the betrayal — o, the chagrin felt by the banks!
Some bankers say the conditions have become so onerous that they want to return the bailout money. The list includes small banks like the TCF Financial Corporation of Wayzata, Minn., and Iberia Bank of Lafayette, La., as well as giants like Goldman Sachs and Wells Fargo.
If you were a responsible parent, what tidbit of advice did you lay at the feet of your children whilst they existed within your domicile? Did it go something like this: “As long as you live here and I’m paying the freight, you’ll do what I say when I say it. You want to be independent, there you go, there’s the door. And good luck to you. But at least you’ll be doing what you want, when you want it.”
Any reason to think that fundamental precept shouldn’t be equally applied to all loaners and borrowers, any of us who wish fiscal assistance? Moreover, I should care to point out the obvious insofar as that precept was the very foundation — at least in theory — of every bank that ever considered loaning money to me. And you as well.
One of the biggest concerns of the banks is that the program lets Congress and the administration pile on new conditions at any time.
What? Social Engineering from the Demorats? Imagine that (sound of hand slapping forehead).
And you mean that Social Engineering just might have deleterious consequences?
But a growing chorus of industry experts are warning that asking weak banks to carry out the government’s economic and social policies could increase the drain on the public purse. These experts say that the financial assistance, while helpful in the short run, could force weak banks to engage in lending practices that will lose even more money, and that the government inevitably will become more heavily involved in dictating how banks do business.
But here’s the kicker you need to realize: if the banks continue to take handouts with these and future strings attached, if there is further payment to be extracted, who will make these further payments? Who will make up for the banks’ losses?
You and me.
And isn’t that forcing us to go full circle once again — with governmental interference mandating poor fiscal policies?
Have we learned anything at all?
So I say: refuse the money, banks and institutions. Some will fail, some will succeed. But you’ll still be the Master of your Soul, the Captain of your Fate.
BZ
Great post. I like the child/bank analogy.
I’m having trouble finding that little “follow” button on your blog so I can follow your blog. I’m somewhat new at this blogging thing and I like it. I’m wondering if I just have to bookmark your page in my browser or if u have a tab to click on. it may sound stupid but I’m asking this because I go online with my phone and sometimes it doesn’t display all of the images or things on the page
Larry: why, thank you kindly, sir.
Chris: if you’re on Blogger, I think you have to go to your personal Blogger Dashboard and then follow the links from there.
I think you might have to do that when you’re on a full computer online. I’m just guessing on that. But thank you for considering following my blog; I appreciate that muchly.
BZ
“Some bankers say the conditions have become so onerous that they want to return the bailout money.”
Go on then return the money, the taxpayer will be happy to get it back.
Good to see though, that the banks are seeing this for what it is, a vehicle to foist socialism by stealth upon America.
….what’s that sound, oh yes obama’s pipe-dreams going up in smoke.
I can’t believe that number of people that are so stupid that they actually think it’s *FREE MONEY*…
Just like the checks we all got a while back, wasn’t a damn thing FREE, it was OUR money to begin with…
On Tuesday I bought 60 shares of GM at $ 1.68 per share, just for the hell of it.
Today GM closed at $1.89 per share.
I’m rich, oh thank God!
My money guy said why don’t you just shred a hundred dollar?
I like your new banner.
It was stunning that Feingold and Bayh voted against the OmnibusT bill……wasn’t it?
of course, it was even MORE stunning that so many RINO’s voted FOR it (oink)
Good post, BZ.
I figure the only rule they ESPECIALLY don’t like is the CEO pay limit. They aren’t used to making such peanuts. It’s still more than most of them are worth though.
I hope most of them do give the money back. Make of break time, weed out the worst and the rest will thrive.
Ranando: when you’re thinking of shredding that hundred bucks, I’ll give you my address.
BZ
Dee: thanks!!
AA: I’ve always said that, in any venture, nature abhors a vacuum.
BZ
I recall reading somewhere that a lot of smaller bakns that were not in any particular trouble were reporting that they were being presured to take bailout money.
Was pretty obvious why that was.