Morty

January 22nd, 2010 at 10:36 am

Good article from Bloomberg…better comments from Mr. Arndt.

Wake up folks, “Crony capitalism” is expensive and we are footing the bill.

Jack A

January 22nd, 2010 at 11:21 am

I’d like to see the air cleared on the extent n of Geitners participation previous to being in the Obama Admen

Matthew Arndt, CFA, CPA, CFP

January 25th, 2010 at 8:19 am

Since we provided the funds for this lavish party on Wall Street, I think the American people deserve to know what the Fed and U.S Treasury knew when they decided to squander taxpayer money by giving it to failing insolvent financial institutions which has allowed them to continue to exist as going concerns and has kept reckless contracts enforceable like the credit default swaps AIG entered into.

I struggle with the idea that these hand-outs had to be given to failing institutions on the grounds that there was no better alternative to save the financial system. Flooding failing financial institutions with trillions of taxpayer dollars without any recourse is an absolutely absurd and incredibly irresponsible response. I find it hard to believe that this government rescue of troubled financial firms was done at the lowest possible cost as is required by the F.D.I.C when it takes over a failed bank.

Since there hasn’t been any serious consequences for the bankers who brought the financial system to the edge of collapse, it’s very likely we will see a repeat of the agony that started in 2008. In fact, the people responsible (i.e. the bankers) for this carnage are profiting quite handsomely from everyday Americans’ woes.

TJR

January 25th, 2010 at 11:14 am

I am not sure what it’s going to take before everyone gets fed up with what’s going on. These policies that began out of ignorance and panic under the Bush administration and have continued under the Obama administration do nothing to minimize risk-taking at our banks and ironically, as you point out, rewarded those who should have been held responsible. I am completely disgusted with the politicians that lack any principles or backbone and continue to allow our largest banks to take the same old risks that got them in trouble. By the way, I would like someone to explain to me how Goldman Sachs which doesn’t hold customer deposits gets a bank charter and access to cheap capital from our Federal Reserve.